Chapter 20: Understanding (and managing) the Risks of Futures Trading
Anyone buying or selling futures contracts should clearly understand that any given trans-action may result in a loss. The loss may ex-ceed not only the amount of the initial margin but also the entire amount deposited in the account or more. Moreover, while there are a number of steps that can be taken in an effort to limit the size of possible losses, there can be no guarantees these steps will prove effec-tive. Well-informed futures traders should be familiar with available risk management possibilities.
Past performance is not indicative of future results. Trading futures and options is not suitable for everyone. There is a substantial risk of loss in trading commodity futures, options and off exchange forex.
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