2. Why Are Futures Traded?
In futures trading, instead of taking or making deliveries, a trader merely speculates his position in the market’s volatility by predicting directions of trends. If prices move in the right direction, then the trader would be able to profit. If this does not happen, then a trader would experience some losses. This particular arena in trading can be very promising, but it involves so many risks as well. But if you are well experienced in trading stocks and have adopted quite an understanding of the different trends, behaviors, and strategies that the industry has to offer, then chances are, you may probably do well in this particular playing field.