Futures
With the advent of electronic trading, the trading of futures has become increasingly popular among individual investors. Futures trading used to be restricted to large banks, commodity producers and consumers, hedge funds, and large speculators, but now almost anyone with a computer can trade them. The main reason for trading futures among investors is the potential for large PROFITS due to the use of leverage. Nowadays, futures allow you to handsomely profit from movements in stock prices, interest rates, commodity prices, exchange rates, real estate indices, and more. If you are looking to get rich quickly, futures trading is for you.


Trade Dow Futures Like a Professional

Why Trade Dow Futures?

The Dow is by far the worlds most followed stock index, and is the reference point for millions of traders and investors around the globe. The Dow is a price-weighted index of 30 blue chip companies in the US representing nine economic sectors of the economy. The leadership position of the component Dow stocks results in an extremely high correlation of the DJIA to broader U.S. indexes, such as the S&P500®. CBOT (Chicago Board of Trade) Dow, Big Dow, and mini-sized Dow futures, therefore, provide opportunities for traders and individual investors to gain market exposure and manage risk between correlated equity index futures, underlying stocks, stock baskets, and single stock futures.

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Introduction to Trading Futures Contracts

What is a Futures Contract?

By definition, a futures contract is a legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon today by the buyer and seller. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity, and are traded on regulated exchanges. A future is part of a class of securities called derivatives. A derivative is a security that derives its value from the value of an underlying instrument. More specifically, a future is classified as an exchange traded derivative because the exchange's clearinghouse acts as counterparty on all trades, sets margin requirements, and provides the mechanism for settlement.

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