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What are Futures?
What Are Futures?
Futures are contracts for cash settlement or the physical delivery of goods. Below are three main characteristics of futures trading.
How Do They Work?
Similar to stock trading if you purchase a futures contract and the price goes up, you have made a profit. Likewise, if you short a futures contract and the price goes down, you have made a profit. Below are several basic terms of futures trading and how a contract is valued.