Flux Trigger Pack – Back To The Future Trading

What Are Futures?

Futures markets trade futures contracts. A futures contract is an agreement between a buyer and seller of the contract that some asset—such as a commodity, currency, or stock—will be bought or sold for a specific price, on a specific day in the future (the expiration date).1

Futures trading is especially common with commodities. For example, if someone buys a July crude oil futures contract (CL), they are saying they will buy 1,000 barrels of oil from the agreed price upon the July expiration, regardless of the market price at that time. The seller is likewise agreeing to sell those 1,000 barrels of oil at the agreed-upon price. Unless either trades their contract to another buyer or seller by that date, then the original seller will deliver 1,000 barrels of crude oil to the original buyer.

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