Futures trading can be risky due to:
- *Leverage*: Amplifies potential gains and losses
- *Market Volatility*: Rapid price movements can result in significant losses
- *Liquidity Risks*: Insufficient market liquidity can impact trade execution
- *Overnight Risks*: Positions can be affected by unexpected events outside trading hours
Effective risk management strategies, such as position sizing and stop-loss orders, can help mitigate these risks.
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