What Exactly are Futures Trading? Futures trading involves predicting the future prices of commodities, currencies, or financial assets through contracts. These contracts bind traders to buy or sell at predetermined prices and dates, enabling them to profit from price fluctuations without owning the assets. It's a method of anticipating market movements and safeguarding against risks. Hedging in Futures Trading: A Smart Move for Risk Reduction Hedging in futures trading acts as a strategic safeguard against unexpected price changes in diverse financial markets. Think of it as a backup plan, a risk-reduction method that works by making opposing bets in futures contracts on the same or related assets. This smart move helps minimize or even eliminate potential losses caused by market fluctuations, proving crucial in unpredictable markets across various fields, from farming to finance. How to Hedge Using Futures Trading: A Step-by-Step Guide 1. Choose the Right Futures Contract To begi