Futures trading is the process of buying and selling standardized contracts to buy or sell an underlying asset (such as oil, gold, indices, or cryptocurrencies) at a predetermined price on a future date. Traders use futures to hedge risk or speculate on price movements, often without intending to take physical delivery. Futures contracts are traded on regulated exchanges like CME, ICE, and Eurex, offering high liquidity and transparency. Traders can take both long and short positions with leverage. However, it’s important to remember: profits and losses are based on the full contract value, amplifying both potential gains and risks.

Futures are one of the most dynamic and liquid markets in the world. They provide access to key assets of the global economy: commodities, currencies, indices, and crypto assets. Trading futures allows for effective portfolio diversification and the ability to profit from market movements in either direction. Thanks to high liquidity and near-continuous trading (typically 24/5), futures are ideal for both scalping and position trading strategies. While leverage enables traders to increase their position, it also demands strict risk management.

To start trading futures, you need access to a trading platform that offers futures contracts, either directly or through CFDs. After opening and funding an account, you can choose a futures market and decide whether to buy (go long) or sell (go short), depending on your expectations of future price movements. Traders typically analyse futures markets using technical analysis, fundamental data, and information related to the underlying asset. Before entering a trade, it is important to understand contract specifications, expiration dates, margin requirements, and apply risk management tools such as stop-loss orders.

Futures prices are influenced by the expected future value of the underlying asset. Key factors include supply and demand conditions, economic data, interest rates, and market expectations related to the asset being traded. For some markets, such as commodities or indices, seasonal patterns, inventory data, and geopolitical events can also affect futures prices. Market sentiment and changes in expectations about future conditions often play a significant role in price movements.

Futures trading involves a high level of risk due to the use of leverage and margin requirements. Price movements in the underlying market can lead to rapid gains or losses, potentially exceeding initial expectations. Market volatility, unexpected events, and approaching contract expiration can increase risk. When trading futures or futures CFDs, effective risk management is essential, as losses may occur quickly if the market moves against your position.