Stock futures are contracts to buy or sell a stock at a set price on a future date. Unlike options, which give you the right but not the obligation to buy or sell, futures come with an obligation. They’re used for hedging and speculating. Risks include significant leveraged losses, but they also offer leveraged gains. For beginners, it's best to start with a solid understanding through educational resources or virtual trading platforms to practice without real risk. Always consider your risk tolerance and use protective strategies, like stop-loss orders, when trading.
