Hedging a portfolio can help manage risk but may hurt returns. If applied incorrectly, it can have unlimited risk. Here’s one way to hedge a portfolio using futures in three steps.
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:
Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC). Charles Schwab Futures and Forex LLC FCM-Specific Disclosure Document | Charles Schwab
Futures and futures options trading services are provided by Charles Schwab Futures and Forex LLC. Trading privileges are subject to review and approval. Not all clients will qualify.
Subscribe to our channel:
Check out more Insights & Education from Charles Schwab:
Connect with Charles Schwab:
Facebook:
X:
Open an account with Charles Schwab:
[0726-5HL6]
source
