Investing Basics: Futures

May 1, 2023 Beginner
Gain a better understanding of futures trading and learn about the risks and benefits of leverage.
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Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure for Futures and Options prior to trading futures products.

Futures and Forex accounts are not protected by the Securities Investor Protection Corporation (SIPC).

Futures and futures options trading services are provided by Charles Schwab Futures and Forex LLC. Trading privileges are subject to review and approval. Not all clients will qualify.

Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Charles Schwab Futures and Forex LLC is a subsidiary of The Charles Schwab Corporation.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

Trading on margin increases your level of market risk. Your downside financial risk is not limited to the amount of equity in your account. Charles Schwab Futures and Forex LLC (CSFF) may liquidate any or all of your positions at any time if your account equity drops below required margin levels. CSFF may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance notice. You are not entitled to an extension of time on any type of margin call.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.