Futures 101 - Chapter 10: Position Limits

Article Index
Futures 101
Chapter 2: Futures Markets What, Why And Who
Chapter 3: The Market Participants
Chapter 4: What is a Futures Contract?
Chapter 5: The Process of Price Discovery
Chapter 6: Gains and Losses on Futures Contracts
Chapter 7: The Arithmetic of Futures Trading and Leverage
Chapter 8: Margins
Chapter 9: Basic Trading Strategies
Chapter 10: Position Limits
Chapter 11: Minimum Price Changes
Chapter 12: Regulation of Futures Trading
Chapter 13: Establishing an Account
Chapter 14: What to Look For in a Futures Contract
Chapter 15: The Contract Unit
Chapter 16: How Prices Are Quoted
Chapter 17: Minimum Price Changes
Chapter 18: Daily Price Limits
Chapter 19: Position Limits
Chapter 20: Understanding (and managing) the Risks of Futures Trading
Chapter 21: Choosing a Futures Contract
Chapter 22: Liquidity
Chapter 23: Stop Orders
Chapter 24: Spreads
Chapter 25: Options on Futures Contracts
Chapter 26: Buying Call Options
Chapter 27: Buying Put Options
Chapter 28: How Option Premiums are Determined
Chapter 29: Selling Options
Chapter 30: In Closing
All Pages

Introduction to Futures Trading 101
Published By: National Futures Association

Now that you have an overview of what futures markets are, why they exist and how they work, the next step is to consider various ways in which you may be able to participate in futures trading. There are a number of alter-natives and the only best alternative—if you decide to participate at all—is whichever one is best for you. In addition to describing several possibilities, the pages that follow suggest questions you should ask and information you should obtain before making a decision. Also discussed is the opening of a futures trading account, the regulatory safeguards provided participants in futures markets, and methods for resolving disputes, should they arise.