What can you do with Futures?

00:54 Mins Read

Knowledge of futures and hedging and know how hedging is used to protect losses.

Transcript

What can you do with futures? By futures we don't mean future tense. We mean the financial term futures. Question that often persists is what all can be done with these financial instruments. They can be short sold. In short selling or shorting the transaction which happens is exactly opposite of the transaction which took place in this example; therefore, in shorting, we first sell and then buy later. Or they can be hedged. Hedging is a convenient practice which you must learn before you begin investing. Hedging means safeguarding your losses from increasing and also protect your profit from decreasing. Hedging acts as a fundamental way by which you can save your investment portfolio. To help you understand more about futures and things to do with it, we are here to help you. Read about importance and journey of technical trade analysis on Smart Money by Angel Broking and put it to actionable use.

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