A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. (investopedia.com)
Futures can be used either to hedge or to speculate on the price movement of the underlying asset. For example, a producer of corn could use futures to lock in a certain price and reduce risk (hedge). On the other hand, anybody could speculate on the price movement of corn by going long or short using futures. (investopedia.com)
This is a very basic description of futures and in my opinion unless you are an experienced investor that is willing to take large risks don't trade futures. This post is mainly used as a reference point for other posts.
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