Chapter 3 - Types of Securities
IN THIS LESSON
In this lesson, you will learn about futures trading, how they work, and their implications. Futures trading is a form of derivative trading where you buy an asset at a predetermined price and date. This asset could range from a stock option to a commodity such as steak or crude oil. Similar to stock options, this can be far riskier than buying or selling a share of a stock or bonds as wins or losses could grow exponentially. While you cannot invest in options within the simulator, they are a vital aspect of investing.
Source: Investopedia™