#MyTradingStyle Leverage: Futures often require low margin (e.g., 5-10% of contract value), amplifying both gains and losses.
• Timeframe: Can suit day trading (short-term moves) or swing trading (holding positions for days/weeks).
• Risk: High due to leverage and volatility. Risk management (stop-loss orders, position sizing) is critical.
• Analysis: Traders often use technical analysis (charts, indicators like RSI or moving averages) and monitor market news (e.g., economic data, supply-demand for commodities).
• Common Strategies:
• Hedging: Protecting against price swings (e.g., farmers locking in crop prices).
• Speculation: Profiting from price changes (e.g., betting on oil price spikes).
• Scalping: Quick trades to capture small price moves.
• Markets: Popular futures include crude oil, gold, S&P 500, and currency pairs via exchanges like CME or ICE.