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Futures trading with Randy McKay
In futures trading, a futures contract is a standardized agreement to buy or sell a specific asset at a predetermined price at a specified time in the future.
The assets that are traded in the futures market include commodities, currencies, and financial instruments such as Treasury bonds and stock index futures.
In a futures contract, the buyer agrees to purchase the underlying asset at a specific price on a specific date in the future, and the seller agrees to deliver the asset at the agreed-upon price on the delivery date.
The price of the futures contract is determined by supply and demand in the market, and it is typically based on the spot price of the underlying asset, which is the current market price.
Futures contracts are traded on organized exchanges, and they are used by a wide range of market participants, including producers and consumers of the underlying asset, speculators, and hedgers.
Speculators buy and sell futures contracts in the hope of making a profit from price movements, while hedgers use futures contracts to reduce the risk of price fluctuations in the underlying asset.
Futures trading is a highly leveraged activity, which means that traders can control a large position in the market with a relatively small amount of capital. However…
