Been learning a little about futures but was hoping someone could help me out.
So with stock, I buy at 25 and if it goes up, I can sell and make profit. If it goes down, I can sell but can't lose more than my initial investment.
With futures, let's say I buy a contract for 1000 at 85cents for whatever..let's say sugar. If it goes up, I make money. If I stop loss it at 81. I lose my thousand but do I also have to pay the other few hundred I lost? if so, how does that work?
So with stock, I buy at 25 and if it goes up, I can sell and make profit. If it goes down, I can sell but can't lose more than my initial investment.
With futures, let's say I buy a contract for 1000 at 85cents for whatever..let's say sugar. If it goes up, I make money. If I stop loss it at 81. I lose my thousand but do I also have to pay the other few hundred I lost? if so, how does that work?