Learn With ETMarkets: Futures Contracts 101 - understanding the basics

Learn With ETMarkets: Futures Contracts 101 - understanding the basics https://ift.tt/pjb5fdz trading involves contracts between two parties to buy or sell a specific commodity or financial instrument at a predetermined price and date in the future, Jay explained to Tara and Dev. The purpose of futures trading is to manage risk through hedging. Futures exchanges, such as the Chicago Mercantile Exchange, appeared in the 19th century. Today, investors use futures trading as a complex financial tool to manage risk. Speculators play a role market and take risks to predict price fluctuations.