Buying And Selling Futures [2025]

: Unlike options, which give you the right to trade, futures are binding obligations. Both parties must fulfill the contract at expiration, either through physical delivery (common for commodities like oil) or cash settlement (common for stock indexes).

: You sell a contract if you expect prices to fall. You profit by buying it back later at a lower price, capturing the difference. buying and selling futures

: Profits and losses are settled daily. Your account balance is updated at the end of every trading session based on the current market price. Leverage and Margins : Unlike options, which give you the right