Also, unlike the stock market, you don't have to wait for an up-tick before going short. It doesn't look very professional. A futures trade is a precise financial transaction. At the end of each trading day, all completed trades must balance every filled sell order must have a corresponding buy order, and vice versa, all with the proper number of contracts and at the agreed prices. Those who use the futures markets to transfer risk are called hedgers.
Speculators assume the risk of price change that hedgers seek to avoid.
Speculators seek the opportunity to profit. When a speculator assumes price risk, this allows the hedger to concentrate on the more controllable aspects of his business. Futures speculation is unlike most investments in that price movements are magnified by the leverage resulting from deposit requirements representing only 5-10 percent of the full contract value. Additional margin deposits may be required, depending on market fluctuations. Price changes affecting the hedgers' physical position can be offset by a comparable price change in the futures position.