CFDs and Futures can serve different purposes; it's important to understand the distinctions between these two financial instruments. CFDs are derivative products that allow traders to speculate on the price of copper without owning the physical commodity. With CFDs, traders can profit from both rising and falling markets by betting on price movements. However, CFDs are high-risk investments. CFDs often come with higher leverage, meaning there is the potential for significant gains – and for substantial losses. Futures, on the other hand, are standardized contracts to buy or sell a particular commodity (like copper) at a predetermined price at a specific future date. Futures permit the actual delivery of the underlying asset, or are cash-settled. Unlike CFDs, futures are traded on regulated exchanges and offer the advantage of transparency and lower counterparty risk. However, they may require a larger initial capital outlay. articleTo sum it up: CFDs can provide greater flexibility and are better suited for short-term trades or hedging, while futures may be more suitable for longer-term trades (or if you need to take physical delivery of the commodity). Regardless of the method chosen, you should always carefully consider your financial goals, risk tolerance, and market knowledge before entering into any trade. As always, sound decision-making and effective risk management are the keys to successful investing.