Can I sell a futures contract without buying?

Futures trading, on the other hand, allows investors to sell contracts without owning the underlying asset. This flexibility is a key advantage of futures markets.

To sell futures, investors need to place an order with a broker or exchange. The order specifies the quantity and price at which the investor is willing to sell.

It's important to note that selling futures does not require an investor to have previously purchased the same contract. This allows for more strategic trading opportunities.

However, realizing a profit in futures trading requires "flattening" the position. This means placing an order for the same quantity on the opposite side of the market to offset the initial position.

Selling futures contracts differs significantly from selling stocks. In the stock market, selling involves disposing of previously acquired shares.