Understanding Futures Trading

All of us have heard about Futures Trading and many of us have also taken a plunge into the deep waters of future trading. So tell us first understand what Futures Trading is? What is Futures Trading? Futures trading is different than investing in the stock market or bonds since you don’t actually own anything; in futures trading, you only speculate the price of the commodity that you are trading. The terms “buy” and “sell” merely indicate the direction you expect future prices will take. Futures trading can be described as a sort of an insurance plan for those who are trading and investing. For instance, a farmer may sell futures on his wheat crop if he thinks the price will go down before the harvest; conversely, a bread manufacturer may buy futures if they think the price of wheat is going to rise before the harvest. Baca entri selengkapnya »

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