You can control a lot of "stuff" with very little money.
Traders (like you) who have no interest in the actual corn or oil; they just want to profit from the price changes [5]. 4. How to Start buying futures for dummies
You buy a contract because you think the price will go up . You can control a lot of "stuff" with very little money
AI responses may include mistakes. For financial advice, consult a professional. Learn more How to Start You buy a contract because
Futures are high-octane trading. They offer the potential for huge wins with small amounts of money, but they are significantly riskier than buying regular stocks.
You sell a contract because you think the price will go down [5]. 2. Leverage: The Double-Edged Sword
This is the biggest difference from stocks. You don't have to pay the full value of the contract upfront. You only put down a small deposit called (usually 3–10% of the total value) [1, 2].