What is a trader's Guide to futures?

A Trader's Guide to Futures: Guide Author CME Group Subject This is an introductory guide to trading futures that reviews what futures are, who trades futures, why traders trade futures, how a trade works, how traders can get started and a futures quiz.

What do you need to start trading futures?

Once you have access to the futures market, you need to decide what kind of futures you want to trade and on which exchanges. The futures for different asset classes will behave differently and each exchange will have its own rules for trading and settlement, all of which a day trader must understand before they can start making reliable trades.

What are futures and how do they work?

Futures contracts allow players to secure a specific price and protect against future price swings. You can buy futures on commodities like coffee, stock indexes like the S&P 500 or cryptocurrencies like Bitcoin. Leverage and margin problems are risks of futures trading, which is less regulated than stock trading. What are futures?

Can you buy futures on stocks?

You can buy futures on commodities like coffee, stock indexes like the S&P 500 or cryptocurrencies like Bitcoin. Leverage and margin problems are risks of futures trading, which is less regulated than stock trading. What are futures? Futures are derivative contracts to buy or sell an asset at a future date at an agreed-upon price.