So, what is futures trading? Before answering it, you must first understand the term futures or futures contracts. As previously explained, futures are contracts that require the parties to buy or sell assets at a predetermined price and time.
This futures contract contains information regarding the amount of underlying assets that must be sold or purchased in the future. Ownership of the contract can be traded with other parties so that futures trading is a derivative trading transaction on a futures exchange and is based on futures contracts.
In futures trading, the main principle that must be understood is that the execution of transactions between buyers and sellers is carried out on the basis of a contract that has been agreed upon at the beginning. If the market price of an asset changes, either soaring or shrinking, the applicable price remains the agreed price. The difference or difference between the agreed price and the actual price is called the margin which is also the main object of futures trading.