#TradeStories

"Future trade" typically refers to the trading of futures contracts—a key part of financial markets. Here’s a breakdown to get you started:

What Is a Futures Contract?

A futures contract is an agreement to buy or sell an asset (like oil, gold, wheat, Bitcoin, or a stock index) at a predetermined price on a specific date in the future.

Buyer agrees to purchase the asset.

Seller agrees to deliver the asset.

Both are obligated to follow through—unless they close their positions earlier.

Why Do People Trade Futures?

1. Hedging Risk:

A farmer might sell wheat futures to lock in a price before harvest. Airlines might buy fuel futures to protect against rising costs.

2. Speculation:

Traders try to profit from price movements. If you believe oil prices will rise, you could buy a futures contract now and sell it later at a higher price.

3. Leverage:

Futures let you control large positions with a small amount of money (margin). This means high potential profit—but also high risk.