And Selling Futures - Buying
: You sell a contract if you expect prices to fall. You profit by buying it back later at a lower price, capturing the difference.
: You buy a contract if you expect the price of the underlying asset to rise. You profit if you can sell the contract later at a higher price than your entry. buying and selling futures
: This is the minimum amount required to keep a position open. If your account falls below this level due to losses, you may receive a margin call . : You sell a contract if you expect prices to fall
: Unlike options, which give you the right to trade, futures are binding obligations. Both parties must fulfill the contract at expiration, either through physical delivery (common for commodities like oil) or cash settlement (common for stock indexes). You profit if you can sell the contract