What are the benefits of using futures in trading?
Futures contracts offer several benefits, including price stability, leverage, and the ability to hedge against risks.
Can you explain how leverage works in futures trading?
Leverage allows traders to control a larger position with a smaller amount of capital, amplifying potential profits and losses.
What does hedging mean in this context?
Hedging in futures trading involves taking a position in a futures contract to offset potential losses in another investment.
Are there any risks associated with trading futures?
Yes, risks include market volatility, potential for significant losses, and the complexity of managing futures positions.
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