- Futures contracts allow traders to hedge against price volatility by locking in prices for future transactions.
- They enable speculation on the direction of market prices without the need to own the underlying asset.
- Futures provide liquidity to markets, facilitating smoother and more efficient price discovery.
So I've been wondering, right, how exactly do futures contracts fit into the whole trading scene? What's their main purpose and how do traders use them to their advantage? Like, is there some strategy that relies heavily on these contracts? Would love to hear what you guys think or any personal insights you might have on this.
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