Managing Risks of Futures Trading

Any one trading, buying or selling futures contracts should clearly understand that the Risks of any given transaction may result in a Futures trading loss. The loss may exceed not only the amount of the initial margin but possibly the entire amount deposited in the trading account, possibly more. While there are a number of steps and strategies which can be taken in an effort to limit the size of possible losses, there can be no guarantees that these steps will prove effective. Well-informed commodity traders should be familiar with available risk management possibilities.

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