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Futures contracts
Futures turn a view on an index, a bond, a currency or a commodity into a standardised obligation. You do not pay the full value up front. You post margin, and you will post more if the price moves against you.
Contract size is the hidden leverage
A full-size index future can represent a very large basket. Micro contracts reduce the money per tick and are still leveraged. Before opening anything, convert one tick into your currency and then imagine ten of those ticks against you. That exercise replaces a surprising number of opinions.
Expiry is mandatory planning
Contracts end. Around expiry, liquidity often moves to the next month. Some commodity contracts can go toward delivery. Brokers may close you out if you do nothing. Rolling means buying one month and selling the other, and the price difference is a real economic cost or credit.
Clearing versus a broker contract
Listed futures are cleared. Your broker still sets house margin, which can be stricter than the exchange minimum, and can raise it overnight. A CFD referenced to a future does not give you exchange open interest. Compare products only after you know which one the ticket creates.
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Sources and review
Written by: WiT Markets Editorial. Writes and structures WiT Markets pages. Separates a sourced fact from a cell that is Not confirmed.
Review: Editorially reviewed. This is not a qualified specialist review and it is not a legal sign-off.
Last reviewed: . Next review due . The date is an editorial pass. It is not a live check of every third-party fee.
Regulatory and official sources
- FINRA — checked 13 October 2026
- Financial Conduct Authority — checked 13 October 2026
Other sources
- CME Group — checked 13 October 2026
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