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Basics of future and options trading 4 you
A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price. If you buy a futures contract, you are basically agreeing to buy something that a seller has not yet produced for a set price.
That is, its valueis derived from something else. But the variety of securities you have at your disposal does not end there. Futures options can be a low-risk way to approach the futures markets. Many new traders start by yuo futures options instead of straight futures contracts. A futures contract is a standardized contract that calls for the delivery of a specific quantity of a specific product at some time in the future at a predetermined price.
Futures contracts are derivative instruments very similar to forward contracts but tarding differ in some aspects.Futures contracts are traded in futures exchanges worldwide and covers a wide range of commodities such as agriculture produce, livestock, energy, metals and financial products such as market indices, interest rates and currencies. HedgingProducers and manufacturers can make use of the futures market to hedge the price risk of commodities that they need to purchase or s.