Understanding Futures Trading

Title:
Understanding Futures Trading
Word Count:
541

Summary:
Many people have the notion that commodity futures trading is very difficult to understand. It
People have a common misconception that commodity exchanges determine or establish the prices

Keywords:
futures trading,online futures trading,commodity futures trading,futures trading system,future

Article Body:
Many people have the notion that commodity futures trading is very difficult to understand. It
People have a common misconception that commodity exchanges determine or establish the prices

Buy and sell orders, which originate from all sources and are channeled into the exchange-trad

The major function of the futures market is the transfer of risk, and increased liquidity betw

Futures contracts are exchange-traded derivatives. A futures contract is traded on a futures e


There are two groups of futures traders: the hedgers, who are interested in the underlying com
On the other hand, hedging protects against fluctuations in market prices. This protection is

Hedging has two types, hedge sale and hedge purchase. A person can buy a commodity and sell fu

You might think that this is gambling, but the fact is that speculation refers to the conditio

Since the prices are distributed via telecommunications network and the internet, it makes onl

Keep in mind that an investment in futures can result in losses. Past performance results does

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