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What are FuturesWhat are futures. Futures contracts and forward contracts - How do you use them to make money? Futures have traditionally been a way to protect against volatile price moves in physical grain products in the United States. Futures trading subsequently expanded to other basic commodities such as grains, meats, metals, coffee, cocoa, sugar, cotton, petroleum, lumber. Definition of FuturesFutures are a type of financial derivative. Sometimes called a forward contract, a futures contract is an obligation to deliver a specific commodity or another underlying asset at a specified date in the future. Futures can be used to speculate on a wide variety of financial variables, from interest rates to currency exchange rates to market indices. Chicago Futures ExchangeThe Chicago Futures Exchange stood at the vanguard of the development of the futures market in America. The very first futures market opened in 1868. Why Chicago? The Chicago Futures Exchange was particularly important because of Chicago’s geographical location. Chicago is strategically situated as a shipping center and thus a natural site for grain trading. S&P 500 FuturesS&P 500 Futures are among the most popularly traded futures in the market. Since you only need to put up 5 percent of the value of the contract, you can make use of the enormous power of leverage. However, leverage is a sharp sword that cuts both ways – you will take heavy losses quickly if you bet in the wrong direction. Single Stock Futures MarketThe Single Stock Futures Market trades single stock futures, which are futures contracts with the underlying asset being one stock. The largest Single Stock Futures market in the world is that in South Africa, where 700,000 contracts are traded daily. What are FuturesMore on How to Trade Futures and Day Trade Futures. Free Billion Dollar Income NewsletterSign up for the free Billion Dollar Newsletter. Filled with ideas and strategies on generating wealth, personal effectiveness, how to apply the law of attraction, how to make money online and more, this newsletter is a powerful way to start your week. Your email address will be kept confidential. Easily unsubscribe at any time. Sign up right here: Feel free to link to this page to share the information here
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