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What is futures trading?

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Written by Pavlos Antoniou
Updated this week

Futures are standardized contracts that allow you to buy or sell a specific asset at a predetermined price on a future date.

Instead of owning the underlying asset, you’re trading the contract itself. Futures are commonly used to speculate on price movement or to hedge exposure.

Contracts exist across multiple markets, including:

• Equity indices

• Commodities

• Currencies

• Energy

• Fixed income

• Crypto

Each contract has defined specifications — tick size, tick value, contract size, and expiration — which creates structure and transparency in how price moves translate into profit or loss.

Unlike CFD or spot Forex trading, futures trading requires market data subscriptions. Pricing comes directly from the exchange in real time, and exchanges charge for access to that data.

Futures trading is structured, regulated at the exchange level, and built around standardized contract rules — which is why many professional traders prefer it.

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