Futures Contracts

03/22/2022 09:28 AM By Matt Ratliff

 Are you curious about Futures Contracts?   Maybe there are reasons for you to consider adding Futures Contracts to your investing/trading strategy.  Futures Contracts can deliver some interesting advantages over normal equity trading.   Trading Futures Contracts is not without risks, including some very unique risks.  Watch this video for more...

What is a Futures Contract
A Futures Contract is a financial agreement between 2 parties to buy and sell a specific quantity of a standard asset at a specific price on a specific date in the future.
What can I buy/sell with a Futures Contract

There are many types of Futures Contracts you can buy or sell.  Broadly they include Securities and Commodities.   Popular Futures to trade are:  the  S&P 500, Crude Oil, 30 year Bond, and Corn.

Are there advantages?

There are several advantages to consider, including:  tax treatment, liquidity, diversification, short selling, and leverage.

Do I really have to buy corn?

Good question.  The answer is NO.  You and I would never hold the contract until execution, rather we are speculating over shorter time periods.  So we never actually execute the contract and take delivery of corn.

Matt Ratliff