What is a futures trader?

These types of traders can buy and sell the futures contract, with no intention of taking delivery of the underlying commodity; they're just in the market to wager on price movements. With speculators, investors, hedgers and others buying and selling daily, there is a lively and relatively liquid market for these contracts.

Who are the participants in the futures markets?

Most participants in the futures markets are consumers, or commercial or institutional commodities producers, according to the Commodity Futures Trading Commission. Commodity futures and options must be traded through an exchange by people and firms registered with the CFTC.

Should you start trading futures?

If you plan to begin trading futures, be careful because you don't want to have to take physical delivery. Most casual traders don't want to be obligated to sign for receipt of a trainload of swine when the contract expires and then figure out what to do with it.

What is stock futures investing?

Stock futures investing lets you trade futures of individual companies and shares of ETFs. Futures contracts also exist for bonds and even bitcoin. Some traders like trading futures because they can take a substantial position (the amount invested) while putting up a relatively small amount of cash.