The origin of Futures Trading dates back hundreds of years and lies in the agricultural sectors. The array of Futures and Options markets to trade has grown over time, covering for example precious metals, stock indices, energy sources such as oil and natural gas, currencies, interest rates and even recently even weather and real estate.
A Future is a contract to make or accept delivery of a given underlying instrument, at a fixed date in the future and at a pre-arranged price. However in most cases the contract is closed out prior to delivery.
Futures are so called derivatives. "Derivatives" markets consist primarily of two types of participants, hedgers and speculators.
The purpose of hedging is to reduce the risk of loss or to lock in profits on any existing position. This is achieved by taking positions in Futures (or Options) markets that are equal in size and opposite to the current cash positions.
Speculating involves trades that involve a certain element of high-risk and is designed to profit from a rise or fall in a particular market.
Via Broker Junction you may enter trades on major exchanges around the globe. Our dealers are experienced in trading on all major US., European and Asian exchanges and have access to a vast array of tradable underlying instruments.
Simulated Futures Trading
If you are new to the world of futures and options trading, we recommend that you sign up for a Free - 14 day simulated Demo Trading Account prior to funding your real trading account with Broker Junction, Series L.L.C., or any other broker.
There are substantial risks involved in trading futures and options, which may or may not be entirely revealed to you depending on your simulated trading experience/performance. To learn more about this subject and the risks involved, please be advised to review one or more of the following guides: