Review: What is Futures Trading?
Rating: 5 out of 5
Date: 05 11, 2014
A great overview of Futures Trading for beginners, Anthony Clarks writing style makes the commodities market easier to understand.  Essentially, Futures Trading is betting on the price of commodities such as cattle and wheat.  Futures contracts were originally designed to allow farmers protection against price changes on their crops between planting and harvesting.  Futures contracts differ from stocks in that they have a set expiration date.  Advantages of trading futures are the profit potential; futures move quicker and make money faster and broker commissions are smaller.  The biggest advantage though is that futures are a highly leveraged investment, whereas stocks trade at a 50% margin, futures contracts can be purchased for 5-15% down and the profit is 3-10 times more than that of stocks.  This is an excellent read if you are interested in trading commodities, highly recommended.