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What does futures mean in trading?
As a trading tool in the financial market, futures refers to the transactions conducted by investors at the agreed time and price according to their predictions of the future market. In futures trading, buyers and sellers agree to deliver a certain amount of a certain commodity at a certain point in the future, and the transaction price is also agreed at the time of trading. Therefore, futures is an investment tool and a high-risk trading tool.

The main purpose of futures trading is to make use of price fluctuations to earn the difference profit. Take agricultural futures as an example. When agriculture is produced on a large scale, the supply in the market will increase and the price will fall. Through futures trading, investors can buy agricultural products when their prices fall, sell them after their prices rise, and earn the difference profit. Futures trading can also be used to hedge and reduce economic losses caused by market price fluctuations.

Futures trading is risky, which requires investors to have corresponding risk tolerance and professional knowledge. Before futures trading, investors need to understand market trends and fundamental analysis, and should also pay attention to risk control and fund management. Futures trading also has the characteristics of improving the efficiency of capital utilization, but for ordinary investors, it is still necessary to control risks reasonably and choose a reliable trading platform for trading.