Basheer_Algundubi
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What are the trades #العقود_الآجلة (#FuturesContracts )
It is an agreement between two parties to buy or sell a specific asset (such as oil, gold, stocks, or even cryptocurrencies) at a future date and at a price agreed upon today.
What is its purpose?
Hedging (#Hedging ): If you own an asset and fear its price volatility in the future (like a farmer selling wheat), you can sell a futures contract now to lock in a specific price and avoid loss if the price drops.
Speculation: If you expect the price of a specific asset to rise in the future, you can buy a futures contract now at a lower price and sell it when the price increases to make a profit. The opposite is true if you expect the price to drop.
How does it work?
You specify the asset you want to trade on.
You specify the future delivery date (like a month or three months).
You specify the price at which you will sell or buy this asset at the delivery date.
It is not necessary to receive or deliver the actual asset; in most cases, the contract is settled in cash based on the price difference between the time of purchase and the time of delivery.
Why do many prefer it?
Leverage (#Leverage ): It allows you to control a large value of assets with a relatively small amount of capital. (But remember, this feature increases both profits and losses!).
Liquidity: Futures markets often feature high liquidity, making buying and selling easier.
Diversity: A very wide range of assets can be traded.
$BTC $ETH $XRP #REX-OSPREYSolanaETF
It is an agreement between two parties to buy or sell a specific asset (such as oil, gold, stocks, or even cryptocurrencies) at a future date and at a price agreed upon today.
What is its purpose?
Hedging (#Hedging ): If you own an asset and fear its price volatility in the future (like a farmer selling wheat), you can sell a futures contract now to lock in a specific price and avoid loss if the price drops.
Speculation: If you expect the price of a specific asset to rise in the future, you can buy a futures contract now at a lower price and sell it when the price increases to make a profit. The opposite is true if you expect the price to drop.
How does it work?
You specify the asset you want to trade on.
You specify the future delivery date (like a month or three months).
You specify the price at which you will sell or buy this asset at the delivery date.
It is not necessary to receive or deliver the actual asset; in most cases, the contract is settled in cash based on the price difference between the time of purchase and the time of delivery.
Why do many prefer it?
Leverage (#Leverage ): It allows you to control a large value of assets with a relatively small amount of capital. (But remember, this feature increases both profits and losses!).
Liquidity: Futures markets often feature high liquidity, making buying and selling easier.
Diversity: A very wide range of assets can be traded.
$BTC $ETH $XRP #REX-OSPREYSolanaETF
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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