Futures trading is a way to speculate on the future price of an asset. It is an excellent opportunity to diversify your investments, but it is also a risky strategy.

Generally, futures contracts are used by hedgers 선물옵션이란 and speculators alike. Hedgers use them to manage the risk of a fluctuating price for an asset, while speculators use them to magnify relatively small price movements to create potential profits.

The Basics

Future contracts allow parties to agree on specific terms for a particular asset, such as the amount of fuel or grain that will be delivered at a given time. The parties agree on how much of a certain commodity will be sold, and what the price will be for it.

If the price of gas goes down, for example, you lose money on your contract. However, if the price of gas goes up, you make money.

The Relationship Between Futures Trading and Economic Indicators

Because futures are leveraged, losses can quickly outweigh the gains you make. In addition, the underlying market is marked to market every day, so it can change wildly over time.

Before you begin trading, be sure to research the underlying market and determine whether it’s worth entering into a long or short position. Next, set up protective orders and develop an exit strategy based on your analysis.

Then, use streaming futures charting and technical indicators plus in-depth research and commentary to get the most out of your trading. You’ll find all of this conveniently integrated into Schwab’s trading platform.