How to Buy Futures Contracts

Your Guide to buying the best Futures


A Futures buying guide is designed to provide investors with the information they need to make an informed decision when investing in futures contracts. This guide will cover the risks and benefits of investing in futures, the basics of how to trade futures contracts, and the various strategies available. We will also discuss the different types of futures available and how to evaluate each option. Finally, we will provide some tips on how to get started trading futures. With this guide, investors can make an informed decision and be better prepared to take advantage of the many potential opportunities in the futures markets.

Key features

  1. Type of Futures Contract:Which type of futures contract is most appropriate for your needs? Options include equity index futures, commodities, single stock futures, and other types of traded contracts.
  2. Risk Profile:How much risk are you willing to take when trading futures? Consider the potential profits and losses associated with each type of futures contract and decide what level of risk you are comfortable with.
  3. Time Frame:How long do you plan to hold the futures contract? Be sure to consider the contract duration, as well as the expiration date. Shorter-term contracts may be more liquid, but also may carry higher costs.
  4. Liquidity:How liquid is the market for the futures contract you are interested in? Consider the size of the bid/ask spreads and the volume of trades to assess liquidity.
  5. Margin Requirements:What are the required margin levels for the futures contract you are considering? Different brokers may require different levels of margin, so make sure to research the specifics of the broker you plan to use before trading.
  6. Costs:What are the costs associated with trading futures? Be sure to factor in the cost of commissions, as well as any other additional fees that may apply.
  7. Regulation:Are there any regulatory requirements that you must adhere to when trading futures? Be sure to familiarize yourself with the applicable regulations in the jurisdiction where you plan to trade.

See the most popular Futures on Amazon

Important considerations


  • Price - Futures contracts are generally less expensive than stocks and other longer-term investment options, making them an attractive option for those with limited capital.
  • Leverage - Futures contracts are highly leveraged, meaning you can control a great deal of value with a relatively small investment.
  • Flexibility - Futures markets allow for traders to make the most of their time by trading multiple contracts simultaneously and taking advantage of different strategies.
  • Liquidity - Futures contracts are generally very liquid, meaning that they can be bought and sold quickly and easily.
  • Risk Management - Futures contracts can be used as a way to manage risk by taking a long or short position in a particular market.
  • Diversification - By trading multiple futures contracts, investors can diversify their portfolios and reduce their risk exposure.


  • Market Risk: Futures trading involves substantial risk of loss due to changes in the market, making it a high-risk investment.
  • Leverage: Futures contracts are highly leveraged, which can amplify profits and losses.
  • Time Decay: Futures contracts have a limited shelf life and can decay faster than the underlying assets.
  • Costs: Futures trading involves transaction costs such as commissions, fees, and exchange charges, which can dramatically reduce profits.

Best alternatives

  1. Commodities - Tradable physical goods such as oil, gold, or agricultural products.
  2. Options - A contract between two parties that gives the buyer the right, but not the obligation, to buy or sell a security at a specified price on or before a certain date.
  3. Forward Contracts - Agreements between two parties to buy or sell an asset at a certain future date for a certain price, with delivery and payment occurring at the end of the contract.
  4. Swaps - An agreement between two parties to exchange one set of cash flows for another.
  5. Exchange-Traded Funds (ETFs) - Investment funds that trade on a stock exchange and track the performance of an underlying asset or index.

Related tools, supplies, and accessories

  • Futures contract - An agreement between two parties to buy or sell an asset at a predetermined price at a specified time in the future.
  • Brokerage account - An account with a broker that allows you to buy and sell futures contracts.
  • Risk management tools - Tools such as stop-loss orders, margin requirements, and leverage limits that help you manage the risk associated with trading futures.
  • Technical analysis tools - Tools used to analyze market data and identify trends and patterns that can be used to make informed trading decisions.
  • Research tools - Tools used to conduct research on the markets and to gain insight into the performance of different markets.

Common questions

  1. What are Futures? Futures are contracts between two parties to buy or sell a commodity, currency, or other instrument at a predetermined future date and price.
  2. What are the risks of trading Futures? Futures trading carries a high risk, as prices can easily move against an investor's position. There is also a high likelihood of incurring a financial loss, as well as the possibility of exceeding the available margin.
  3. Who can trade Futures? Futures can be traded by anyone who has the necessary capital and knowledge to do so. However, it is recommended that those unfamiliar with futures trading seek the advice of a financial advisor.
  4. Where can I find Futures trading information? Futures trading information can be found on various websites, such as the Chicago Mercantile Exchange (CME) or the Intercontinental Exchange (ICE). Additionally, most brokerage firms offer research and analysis of the futures markets.
  5. What fees and commissions are associated with Futures trading? Fees and commissions vary from broker to broker, but typically include transaction costs, commissions, and exchange fees. Many brokers also offer discounts for larger accounts and/or higher volume trading.
  6. What strategies are used in Futures trading? Strategies used in futures trading include spread trading, momentum trading, swing trading, and scalping. Additionally, investors may use a combination of strategies to maximize their profits.


One interesting fact about Futures is that they were once primarily used by farmers to protect their crops from price fluctuations. Farmers would lock in a specific price for a commodity in the future to ensure they would not suffer from market fluctuations. This allowed them to plan for a more secure future. Today, however, Futures are used by investors to speculate on the price movements of various assets. They are also used by large corporations to hedge against potential losses from price movements. Sources: and

Disclaimer: This buying guide was not created by humans, and it is possible that some of it's content is inaccurate or incomplete. We do not guarantee or take any liability for the accuracy of this buying guide. Additionally, the images on this page were generated by AI and may not accurately represent the product that is being discussed. We have tried to convey useful information, but it is our subjective opinion and should not be taken as complete or factual.