Here is an explanation of how to use futures contracts in trading with simplified illustrative images.
First: The main uses of futures contracts
1. Hedging: Used by investors or companies to protect themselves from price fluctuations.
2. Speculation: Used by traders to profit from their predictions of price movements.
Second: Illustrative images of strategies
1. Futures contract for speculating on price increases
2. Futures contract for hedging against price fluctuations
3. The difference between spot contracts and futures contracts
