The risks associated with futures trading are similar to those of forwards, but they are different in many ways. The biggest difference between the two is price sensitivity and margin requirements. The former are public markets, while futures are private and have relatively low liquidity. They also have the benefit of being easy to enter and exit. You will not lose much if you get out of a position too quickly, and you can invest small amounts and still have a good amount of profit.

When you invest in futures, you are signing a contract that specifies a price for the asset you are buying on a specific date. The underlying asset could be a commodity, currency, or financial asset. You can also choose the maturity period of the contract. Generally, futures are short-term investments with a maturity of a year or less. Therefore, if you can afford to take on a greater level of risk, go ahead and invest in futures.

A futures contract is a contract between the buyer and seller. It specifies a price for an underlying asset. The contract will expire on a specific day. The underlying asset can be a currency, commodity, or financial asset. These investments are short-term, with a maturity of one year or less. However, these contracts can provide additional diversification for your portfolio, so they are not a good idea for beginners.