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Financial Directories

 Futures Option Trading Online Directory

Definition of a Futures Contract: A futures contract is a way to leverage your money to buy more for less and to trade some commodities or options on products not available with individual stocks. It is also a way for businesses to hedge against price swings of the commodities they sell, use and trade. The very nature of futures implies more risk because you are leveraging your money. Futures are generally left to the more sophisticated investors because both gains and losses can be greatly multiplied. A futures contract allows you to buy a certain amount of a product at a specified time at a certain date (delivery date) and a certain price (settlement price).

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