Contractual Agreements: Futures trading involves contractual agreements between two parties to buy or sell an asset at a future date, often with standardized terms and conditions

Risk Management: Futures trading is commonly used for risk management by hedgers who want to protect against price fluctuations in the underlying asset, such as commodities or currencies

Speculation: Speculators engage in futures trading to profit from price movements in the underlying asset without the intention of taking physical possession of it

Leverage: Futures contracts typically require a small upfront margin payment, allowing traders to control a larger position with a relatively small amount of capital, which can amplify both gains and losses

High Liquidity: Many futures markets are highly liquid, with a significant number of buyers and sellers, making it easier to enter and exit positions 

Diverse Underlying Assets: Futures can be traded on a wide range of assets, including commodities (e.g., oil, gold), financial instruments (e.g., stock indices, interest rates), and even weather-related events

Expiration Dates: Futures contracts have expiration dates, and traders must settle their positions by either taking physical delivery of the underlying asset or closing out the contract before it expires

Mark-to-Market: Daily settlement of profits and losses, known as mark-to-market, ensures that traders' accounts reflect the current market value of their positions

Regulation: Futures markets are typically regulated by government agencies or self-regulatory organizations to maintain fairness and market integrity

Risk Warning: While futures trading can offer opportunities for profit, it is inherently risky, and traders can lose more than their initial investment if market conditions move against their positions