Common Types of Futures Contracts

There are several types of futures contracts available to trade and each have unique characteristics. Learn about the different types of futures contracts and, their benefits and drawbacks.

How Futures Contracts Are Bought and Sold

Futures are used by commercial traders to protect against price fluctuations for commodities that they either buy or sell. While retail traders and investors have no need of the commodity, they can also buy and sell futures contracts and benefit from price movements, if they are correct about market direction.


Join over 170,000 Lessons from the Pros readers. Get new articles delivered to your inbox weekly.

Free Class