Basic components of futures trading and why you may want to consider adding futures to your investment or trading plan What are futures? Futures contracts are a type of derivative contract agreement to buy or sell a specific commodity or security at a set future date for a set price. Futures contracts, or simply "futures," are traded on exchanges like the Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME Group) and require a brokerage account that’s approved to trade futures. Uses of futures trading Futures trading can be used for either speculation or hedging (Managing risks) Speculation :- Speculative traders can buy or sell futures to express an opinion and potentially profit from the direction of the market for a commodity. Futures contracts are generally liquid and can be bought and sold up to the time of expiration. Hedging :- Used often by companies or institutional investors to manage future price risk of commodities they work with. Futures contracts can also be bought or sold with the intention of receiving or delivering the underlying commodity. Types of Futures Futures include a wide range of financial and commodity-based contracts, from indexes, currencies, and debt to energies and metals, to agriculture products. Option on Futures Options trading and some strategies in the futures industry work similarly to options in the equity industry. Options are often used to reduce risk in a portfolio. Whether you are looking to trade in an uncorrelated market to diversify risk, hedge existing positions to limit risk, or directly trade more volatile markets at a reduced cost versus the futures contract alone, options on futures can be a way to do this. Why trade futures with PitBase Global Futures Markets :- Our traders have access and can trade U.S. and international markets. Free Quotes, Charts, & research Material :- Easy to use, powerful, stable and highly impressive platforms for FREE Deep Discount Rates :- Enjoy deep discount rates and fees among the lowest in the business $1.50 +fees per contract, per side Mobile Trading :- You can trade anywhere and anytime with Mobile Trading. For more information, visit www.pitbase.com