Review:
Futures Contracts
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Futures contracts are financial agreements to buy or sell an asset at a specified price on a future date.
Key Features
- Specified price
- Future date for execution
- Financial agreement
Pros
- Hedging against price fluctuations
- Potential for high returns
- Opportunity for speculation
Cons
- Risk of losing money if market moves against the contract
- Requires understanding of market forces
- Potential for manipulation by large market players