What are Futures? How to Trade or Invest in Futures

[Jojo]

Futures are contracts obligating the buyer to purchase, or the seller to sell, an asset at a predetermined future date and price. To trade futures, one must open a brokerage account, choose a commodity (e.g., oil, gold), and decide on contract specifications. For instance, an investor may buy oil futures predicting price rises. Profits come from price changes before contract expiry, but high leverage demands careful risk management.