Futures contracts are agreements to buy or sell an asset at a predetermined price and future date. While offering potential profits, futures trading also carries significant risks.

Common Causes of Futures Losses:

* Market Volatility: Unpredictable price swings can quickly erode capital, especially with leveraged positions.

* Lack of Experience: Novice traders may lack the knowledge and discipline to navigate market fluctuations effectively.

* Overtrading: Excessive trading increases exposure to risk and can lead to impulsive decisions.

* Poor Risk Management: Failing to set stop-loss orders or adhere to position limits can result in substantial losses.

* Leverage: While amplifying potential profits, leverage also magnifies losses, potentially exceeding initial investment.

Mitigating Futures Losses:

* Thorough Research: Understand the underlying asset, market trends, and risk factors before trading.

* Develop a Trading Plan: Define entry/exit points, position sizing, and risk tolerance.

* Practice Risk Management: Implement stop-loss orders and avoid overtrading.

* Continuous Learning: Stay informed about market developments and refine trading strategies.

* Consider a Demo Account: Gain experience in a risk-free environment before trading with real capital.

Disclaimer: Futures trading involves substantial risk and may not be suitable for all investors. Consult with a qualified financial advisor before making any investment decisions.