What is Margin in Futures and How Does It Work?
Margin in futures is a deposit that lets you control large positions with a small upfront cost. It enables leverage but also introduces risk, making margin management critical to success.
Margin in futures is a deposit that lets you control large positions with a small upfront cost. It enables leverage but also introduces risk, making margin management critical to success.
Futures contracts expire on set dates, triggering either cash settlement or physical delivery. Traders must manage positions before expiration to avoid surprises, often by closing or rolling into a new contract.
Futures market data includes price, volume, open interest, and more. Learning how to read this data helps traders analyze trends, manage trades, and make more informed decisions in real time.
Futures order types like market, limit, and stop let you control how and when trades are executed. Each type helps manage price, timing, and risk based on your strategy.
Going long means buying a futures contract expecting prices to rise. Going short means selling first, aiming to profit from a drop. Both allow traders to act on bullish or bearish views.
An active futures contract is the one with the highest volume and liquidity. It is usually the nearest expiration and offers the best execution, tightest spreads, and most accurate price action.