Futures

What
Futures are derivative products - that is, the values are derived from the underlying asset, for example, commodities like coffee, metals and gold, and foreign currencies.

A futures contract is a standardized contract, traded on a future exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price.

Pros
It requires a low outlay with potential high returns. It is useful for hedging certain risks and carries a low transaction cost.

Cons
It is not meant for everyone as losses can be huge.

Best for
Derivatives are only for professionals and savvy investors.