The Basics of Futures Trading

Futures trading gives you access to a variety of products, including commodities like oil, precious metals and bonds. It also offers diversification to your portfolio.

Hedging – Control Risk

Hedging with futures allows you to control 선물 시장 your exposure to risk in an underlying market by borrowing money to bet an asset’s price will fall so you can sell it at a lower price later. If the underlying asset does not fall, the profits from the short sale offset any losses you may have on your share position.

How to Trade Futures in a Bear Market

Some traders (speculators) focus on one or two sectors of the futures market because they understand those markets’ fundamentals and economic trends better than others. Some approach all or most of the futures markets using technical analysis to determine entry points and risk management rules, while other traders take a more directional approach by buying or selling based on whether they think prices will rise or fall.

Risk and Liquidity

The ability to buy and sell quickly in a volatile market is an important factor in futures trading. This is why futures are traded on margin, which means you borrow a portion of the contract’s value from your broker. This leverage also increases your risk because if the market moves against you more than you expect, you could lose more than you invested.

Margin – Initial and Maintenance

The initial margin is the amount of funds needed by an exchange to initiate a futures position, and maintenance margin is the minimum required by the exchange at any given time. If the margin in your account drops below this value, you will receive a margin call from the exchange and must replenish it immediately.

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