Diving into the world 🌎 of futures can be challenging, but having a glossary 📑 of key terms at your disposal will help you navigate 🛥️ with confidence. Here we present a glossary of essential terms related to futures trading. Get ready to become an expert!

Futures Terms Glossary

1️⃣. Futures Contract

🎓Definition: A legal agreement to 🛒buy or sell an asset at a specific price on a future date. Futures contracts are used for speculation or to hedge risks.

2️⃣. Margin

🎓Definition: The amount of 💵 money that a trader must deposit to open and maintain a position in a futures contract 📃. Acts as collateral to cover potential losses.

3️⃣. Leverage

🎓Definition: Use of borrowed funds 💸 to increase the size of a position in the market. Allows traders to control a larger amount of assets with less capital.

4️⃣. Settlement

🎓Definition: The process of closing a position in a futures contract. It can be physical settlement (delivery of the asset) or cash settlement (payment of the price difference).

5️⃣. Exercise Price

🎓Definition: The price at which an asset can be bought or sold in a futures contract. It is a key factor in determining the profitability of the trade.

6️⃣. Expiration Date

🎓Definition: The date on which a futures contract expires and must be settled. Traders must pay attention to this date to avoid losses.

7️⃣. Speculation

🎓Definition: The practice of buying and selling futures contracts with the hope of making profits from changes in the price of the underlying asset.

8️⃣. Hedging

🎓Definition: Strategy used to reduce the risk ⚠️ of losses in an investment by taking opposite positions in the futures market.

9️⃣. Implied Volatility

🎓Definition: A measure of the market's expectation of future volatility of the underlying asset. Often used to assess the risk of a futures contract.

1️⃣0️⃣. Futures Market

🎓Definition: A market where futures contracts are traded. It can include assets such as commodities, stocks, indices, and cryptocurrencies 🪙.

Participate and Share📨! Now that you have an essential set of terms about futures, it's time to put them into practice! Share this glossary with your friends and start exploring opportunities in futures trading.

Use the hashtag #FuturosExpertos and tell us about your experiences and strategies.

Together, we can master futures trading! If you have more terms you would like to add or need clarification on any, feel free to ask! ☺️