Futures trading is a type of investing that allows you to buy or sell assets at a set price in the future. This is done through a contract that you agree to with a broker. The terms of the contract will state when the asset is to be bought or sold and at what price.

While this might seem like a complicated process, it can be relatively simple to understand once you know the basics. In this article, we’ll give you a crash course in futures trading so that you can start investing with confidence.

The first thing you need to know about futures trading is what types of assets you can trade. The most common type of asset traded in futures contracts is commodities. This includes things like oil, gas, gold, silver, wheat, corn, and more. You can also trade futures contracts for financial instruments like stocks and bonds. And finally, you can even trade futures contracts for cryptocurrencies like Bitcoin.

Now that you know what types of assets you can trade in futures contracts, let’s take a look at how prices are determined. When you enter into a futures contract, you and the other party agree to buy or sell an asset at a set price on a specific date in the future. The price is determined by the current market value of the asset plus any additional fees—this is called the delivery price.

Before you begin trading futures, it’s important to understand the basics. In this article, we’ll provide an overview of what futures contracts are and how they work. We’ll also take a look at the different types of markets where futures are traded and some of the key considerations that you should keep in mind before making your first trade.

For example, let’s say that you enter into a contract to buy 1,000 barrels of oil at $60 per barrel in six months’ time. Today, oil is selling for $55 per barrel. This means that the delivery price of your contract is $60 per barrel—the market value plus an additional $5 per barrel fee.

Conclusion:

Futures trading is a type of investing that allows you to buy or sell assets at set prices in the future. This is done by entering into contracts with brokers which state when and at what prices assets are to be bought or sold. While this might seem complicated, it can be relatively simple to understand once you know the basics—as we have outlined above. So if you’re interested in futures trading, now is as good a time as any to start learning about how it works!