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Ross Givens

Stock Trader & Educator

Futures Trading

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Futures Trading or Futures are derivative investment vehicles that bind the parties to transact an asset at a fixed future date and amount. Regardless of the actual selling price at the maturity date, the buyer must purchase or the seller must sell the underlying asset at the set price.

Physical commodities and other financial securities are examples of underlying properties. Futures contracts specify the quantity of the underlying commodity and are standardized to allow trading on a futures market. Futures contracts may be used for hedging or trade betting.

An investor may use a futures contract to bet on the trajectory of a security, asset, or financial instrument.