Courses 1Lesson 1

Futures trading is a technique whereby one can buy and/or sell a variety of raw

and processed commodity items, including financial instruments and stock

indices, for anticipated delivery at some point in the future.

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There are three major categories of participants in the futures markets, each

with their own expectations, goals and market methods.

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Futures trading allows producers and end-users to lock in costs of production,

improving economic stability as well as the stability of their particular business.

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Speculators, by far the largest category of traders, have no interest in making or