If the price moves against you even a little bit, you can lose your entire investment—and sometimes more—very quickly [1, 2]. 3. Hedgers vs. Speculators There are two types of people in this market:
When you buy a futures contract, you aren't getting the physical item delivered to your house today. You are agreeing to a price for a transaction that happens later [2, 5]. buying futures for dummies
Farmers or airlines who want to lock in prices so they don't get screwed by market swings [5]. If the price moves against you even a