Futures and futures options trading involves substantial risk and is not suitable for all investors. Certain requirements must be met to trade futures. Please read the Risk Disclosure Statement for Futures and Options before considering any futures transactions:
Hedging with futures may help reduce risk in a portfolio by potentially offsetting losses during market downswings. Trading futures allows for leverage, a useful vehicle that can let traders take a larger position with a smaller upfront outlay of capital. Leverage also carries a high level of risk and is not suitable for all investors. Greater leverage can create much greater losses quickly and with smaller market movements.
In this video, you’ll learn how futures can be used to hedge a portfolio.
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