Buy Futures Contract Example -

Profits and losses are calculated and settled in your account at the end of every trading day.

Buying a futures contract does not require paying the full value of the asset upfront. Instead, you post a , which is a small fraction (typically 3–12%) of the contract's total "notional" value. buy futures contract example

Imagine a cereal manufacturer that needs 5,000 bushels of corn in three months. They fear corn prices will rise, which would hurt their profit margins. Profits and losses are calculated and settled in