💡Do You Really Know What You’re Trading in the Futures Market❓
When you click “Buy” or “Sell” on a futures contract, are you aware of what you’re committing to? Unlike spot trading, where you simply own an asset, futures trading ⚠️ binds you to a contract with specific obligations‼️
Entering a futures position means agreeing to maintain a certain margin level at any given time. If your margin falls short, you’re at risk of liquidation or extra fees. Futures trading isn’t just about market moves—it’s a contractual responsibility.
Why It Matters?
Spot trading is simple: buy, hold, and sell. But in futures, you’re managing an agreement that demands discipline. Understanding these obligations is crucial for navigating the futures market successfully.
Curious about options? Let me know if you’d like a simple explanation of how options contracts work!