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What are futures markets?

Futures markets are also called futures exchanges. Traders use futures exchanges to hedge against price volatility and speculate on the future prices of stock indexes, currencies, commodities, interest rates and other assets. A futures contract is a contract to exchange a particular security at a specific price on a specific future date.

What is a futures contract (CFD)?

Futures are derivative financial contracts, meaning that they are representative of the physical asset’s price. When trading futures contracts through CFDs, you are betting on the price movements in the market without taking any physical ownership of the underlying asset.

What is a commodity futures contract?

Commodity futures are agreements to buy or sell a pre-determined amount of a particular commodity at a specified price and date. For commodity futures contracts, the expiration month is included in the name of the contract.

Who uses a futures contract?

A futures contract can be used by two types of traders: speculators and hedgers. A trader may wish to speculate on the fluctuating value of a particular asset, whereas others may decide to hedge or guarantee the future price of an asset in order to offset financial risk.

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