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The Complete Idiot's Guide to Active Trading by Ken Little

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Chapter 9
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

Futures contracts are binding legal agreements that commit the ...

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