Trading Futures and Currency
In This Chapter
• The futures market offers opportunities for big gains and losses
• Cash and commodities present challenges and potential for active traders
• The forex market is an unregulated trading frontier
• The risks and opportunities of extreme leverage
Active traders are attracted to more exotic financial products because they offer the opportunity for extraordinary gains. With this opportunity comes a corresponding amount of risk. This brief introduction to futures contracts and currency trading is also a warning that you should have some experience as an active trader of equities before attempting these securities.
Futures contracts are binding legal agreements that commit the ...