What is generally true about the volatility of futures?

Futures contracts are known for their potential for significant price fluctuations. This characteristic stems from various factors including market supply and demand, economic data releases, geopolitical events, and changes in commodity prices. The nature of futures trading often involves speculation, with traders trying to predict price movements to realize profits. Because of these varying influences, the prices of futures can experience dramatic changes over short periods, making option C the accurate statement regarding the volatility of futures.

In contrast, stability in prices, limited risk, and non-speculative aspects do not accurately reflect the fundamental nature of futures. The potential for loss is not capped given the high leverage typically involved in futures trading, which can lead to risks exceeding the initial investments. While some traders utilize futures for hedging purposes, they inherently retain speculative elements, contradicting any categorization as strictly non-speculative investments.