Can you lose the farm trading futures and options? Yes. There is substantial risk of loss in futures and options trading. We believe most wipeouts occur when speculators expose themselves to excessive risk relative to their capitalization levels. Remember risk is usually proportionate to reward. If you are trying to make a killing, you risk getting financially killed.

What creates the risk in Futures Trading? The risk in futures trading is created by volatility and leverage. Both the securities markets and commodities markets have demonstrated significant volatility in the recent past. Commodities markets have additional risk because they are often highly leveraged. Managing leverage is perhaps the most crucial element of futures trading. See our comments under philosophy.

Isn't there risk of getting a load of sugar in my driveway? No. When delivery occurs it is typically in the form of a warehouse receipt. In addition, simply liquidating your position prior to the delivery period eliminates all risk of delivery.