
Futures
Futures are financial contracts that allow two parties to buy or sell an asset at a certain time in the future for a predetermined price. For example, an investor can purchase a futures contract for a specific amount of corn at a certain date in the future.
Some pros of buying futures are that they can be used to hedge against price fluctuations in an asset, they are usually highly liquid, which means that investors can easily buy and sell futures contracts at any time, and Futures markets are highly regulated and the prices of futures contracts are publicly available, which means that investors have access to information about the prices of assets in the future.
However, futures also come with risks, including the risk of price fluctuations, the risk of default by the counterparty, and the risk of high leverage leading to large losses.