Futures trading has a longstanding history, with the earliest records of futures trading dating back to the days of Aristotle. Investing in a futures trading contract means that you agree to purchase a specified quantity of a commodity or financial instrument at a specified future date, but at a price that is set today.
By agreeing to a futures contract you hope that the commodity or financial instrument you are investing in will rise in price by the time your contract expires. You can of course trade your contract before its expiry date to another trader on the futures market, hopefully making a profit in doing so.
When you spread bet on futures, just as when you spread bet on stocks and shares, you are not actually investing in anything, nor are you purchasing a futures contract of any kind. Instead you are simply betting on the price change of a particular futures contract being traded on the futures trading market.
Futures spread trading can result in dramatically high profits, but can also result in losses that are just as extreme. When you spread bet on futures, you need to be aware that you can lose more than your initial bet. This means doing some research into the futures markets you want to trade on, as well as taking a good look at your finances and realistically calculating how much you can afford to bet, and how much you can afford to lose.
Tradefair Spreads allows you to minimise your losses through stop-losses. A stop-loss is a predetermined price at which a position will be closed to protect against further loss. While other spread betting firms may offer this as an opt-in extra, Tradefair Spreads automatically protects you by automatically setting up a stop-loss on each and every trade you make. You are then free to adjust these stop-loss levels according to your circumstances and objectives. Stop not losses are not guaranteed but are designed to help you manage your risk.