When you enter into a futures contract, you agree to buy or sell an asset at a specific price on a future date. There are two positions you can take:
Long Position: Agreeing to buy the asset in the future. Short Position: Agreeing to sell the asset in the future.
The value of the futures contract fluctuates with the price of the underlying asset, and traders can close their positions before the contract's expiration to lock in profits or limit losses.