Is it possible to make really big profits trading futures?
A. Yes, it is, but keep this in mind. There is a relationship between risk and return that has shown to hold over time, namely, that higher returns are often associated with higher risk. So while it is possible to make big profits trading futures, the trader is also exposed to considerable risk – risk of losing money. Beginning traders are probably better off “lowering their sights” a little and, consequently, playing it more safe. Q. What is a Futures Contract? A. A commodity FUTURES CONTRACT is a firm commitment to deliver or to receive a specific quantity and quality of a commodity during a designated month at a price determined by open auction on a futures exchange. For example, someone buying an April Gold contract at $345 an ounce is obligated to accept delivery of 100 ounces of gold during the month of April at a price of $345 an ounce. Someone selling an April Gold contract would be obligated to deliver the same quantity and quality of gold at $345 an ounce. Q. What are the mec
