Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

Now live: ESG solutions

Manage the risk associated with renewable energies, environmental change and sustainable investments.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview

      Expanding your futures knowledge

      • Comparing stock trading with futures trading
      • Contract specifications
      • Physical delivery vs. cash settlement
      • Understanding product moves
      • Economic events

      Take your trade plan to the next level

      • Download the trade plan
      • What kind of trader am I?
      • What does risk actually mean?
      • Managing futures risk
      • Utilizing stop orders

      Practice what you've learned

      • Drawing trade trendlines
      • Defining your parameters for exiting a trade
      • Entering a trade using moving averages
      Master the Trade: Futures
      You completed this course.Get Completion Certificate

      Master the Trade: What Does Risk Actually Mean?

      CME Group Login

      Log in or create an account to access premium content on cmegroup.com

      When it comes to defining and managing “risk,” each trader may have a unique perspective on both its definition and the methods they will use to manage it effectively.  Some traders consider risk as the potential amount they’re willing to lose in a trade. For others, risk could also mean the monetary amount allocated for each individual trade. Still, others may simply look at risk as the level of volatility for any one contract. 

      While the risk in a trade is typically linked to the loss of money in a trade, it is also what creates potential for profit. Traders should understand the following attributes of a contract to help manage their risk and help them identify products that fit their risk profile.

      To learn more and access additional tools and activities, log in or create an account.

      This activity does not count towards your lesson completion.

      Lesson Complete
      You have failed this lesson. Click here to retake quiz.
      You have completed this quiz before. Click here to retake the quiz.
      Related Courses
      /content/cmegroup/en/education/courses/master-the-trade-futures/take-your-trade-plan-to-the-next-level/master-the-trade-what-does-risk-actually-mean
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
      Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern