My last post finished as I was ending university. This post covers my trading journey through the early years in full time work, whilst at
When someone trades in futures they are referring to futures contracts. A futures contract is a derivative and they allow traders to participate in many financial markets using leverage.
Each type of futures contract is standardised to specify the quality and quantity of an underlying asset.
When a trader buys a futures contract they are taking on the obligation to buy the underlying asset, at the agreed price, when the futures contract expires. When a trader sells a futures contract, they are taking on the obligation to sell the underlying asset, at the agreed price, when the futures contract expires.