There are three main categories of futures contracts: spot, forward, and option. Spot futures are based on the current value of the underlying asset. Forward futures are based on the expected value of the underlying asset at a set point in the future. Option futures allow investors to speculate on whether the underlying asset will rise or fall in value.
Futures trading strategies are used to predict future price movements of stocks. These strategies are based on technical analysis, which uses charts and graphs to analyze past trends and patterns. Technical analysts use indicators such as moving averages, volume, and open interest to determine whether a stock is likely to rise or fall.
Futures contracts are essentially bets on whether a company will be profitable in the future. If you buy a stock market future contract, you agree to pay a certain price if the company does well, and you receive a certain amount if the company does poorly. These contracts are traded on exchanges, which means that anyone can trade them.