Understanding Opportunities and Risks in Futures Trading
*This information is provided by the National Futures Association.
Investing in futures markets have been described as continuous auction markets and as
clearing houses for the latest information about supply and demand. They are the
meeting places of buyers and sellers of an ever-expanding list of commodities
that today includes agricultural products, metals, petroleum, financial
instruments, foreign currencies and stock indexes. Trading has also been
initiated in options on futures contracts, enabling option buyers to participate
in futures markets with known risks.