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How do you know when you have to buy/ sell futures contract?

How do you know when you have to buy/ sell futures contract?

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Future contract is a financial instrument that gives the holder the right to trade an underlying asset on a future date. The price that the commodity will reach in a future date is estimated by the holder. On the future date, if the price is reached then the holder can exercise the future contract. If the underlying asset reaches the estimated price then the holder of the future contract may sell the contract or if a person wants to buy the contract then he/she may wait for the price to fall. In other words, if the price falls one buys, if the price increases then they sell.

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