University of Pittsburgh alumnus Jason Damon started working as a day trader following several years as an IT analyst. Jason Damon of Pittsburgh focuses on futures contracts speculation.
Futures contracts enable a buyer or a seller to complete a transaction based on a set price for a future date. For example, a futures contract can freeze the price of oil for $80 per barrel to be sold in 30 days. This type of contract has two types of buyers: speculators and hedgers.
Hedgers are generally buyers who use the underlying commodity in their business. If there is a chance the commodity price will increase in the upcoming months, futures contracts can help the hedger save money by securing raw materials at a lower price. On the other hand, speculators aim to purchase futures contracts at low prices to resell at a higher price in the future. While speculators can make exceptional profits from well-timed transactions, futures contracts also carry considerable risk.
Futures contracts enable a buyer or a seller to complete a transaction based on a set price for a future date. For example, a futures contract can freeze the price of oil for $80 per barrel to be sold in 30 days. This type of contract has two types of buyers: speculators and hedgers.
Hedgers are generally buyers who use the underlying commodity in their business. If there is a chance the commodity price will increase in the upcoming months, futures contracts can help the hedger save money by securing raw materials at a lower price. On the other hand, speculators aim to purchase futures contracts at low prices to resell at a higher price in the future. While speculators can make exceptional profits from well-timed transactions, futures contracts also carry considerable risk.
