4 Tips to Successfully Trade in Futures

Tradetalk14 Feb, 2022Business

Futures are used by people to speculate on the price of a commodity or security in the future. For example, if you think the price of coffee will be higher next year, you could buy the futures contract now and make money when the price rises. Futures are also known as derivatives because they derive their value from an underlying asset, index, or interest rate. In this case, it?s coffee that?s priced in dollars per pound. When buying futures, you don?t pay for the actual coffee, but instead are speculating that it will cost more at a later date.