Conclusion A futures contract is a contract between two market participants to buy or sell a financial asset in the future at a pre-agreed price. Often, transactions on them are closed before the expiration date of the contract without a real delivery. Futures trading is considered more risky and speculative due to its complexity and lower margin requirement compared to stock trading. There is an opinion that futures are a tool for active short-term traders rather than long-term investors. Due to the increased risks when trading these contracts, you should carefully follow the rules of risk management and manage your trades wisely.
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