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Why trade Futures?

4 Major advantages of trading futures over stocks


Futures and stocks are two of the major classes of financial vehicles available to investors. Futures offer some key advantages over stocks and options, but they also typically employ greater leverage, which can be both a benefit and a risk. Trading futures can open the door to many more opportunities in new markets. 

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Around the clock

Trade Around the Clock

Compared to stocks which have a regular trading session of only 6.5 hours 5 days a week, futures market trade nearly 24 hours a day, 5 days a week. This allows for more flexibility and opportunity to react to market-moving events when they occur.

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High Leverage

Futures trading involves leverage, which can empower traders to take a larger position with a smaller upfront outlay of capital*. For example, with as little as $600 you can hold 1 micro gold futures contract equal to around $18,000 worth of gold**.

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Short Selling

Futures traders may be better positioned to sell short than stock traders. Futures traders don’t need to borrow shares from their broker or get margin privileges.***

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Diversify Your Portfolio Across Broader Field

Futures traders can access multiple sectors of the economy including stock markets, metals, agriculture, bonds, energy, commodities, and foreign currencies. The ability to diversify your portfolio with futures is unparalleled when compared to the traditional "stocks/bonds/cash" allocation model. 

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Highly Liquid Markets

Most futures markets are highly liquid and attracting an ever-growing number of participants trading millions of contracts every day, making it easy to get in and out of a trade with little delay and minimal bid-ask spread.

Writing a Sticky Note

Notice

* Leverage can work against you as well as for you
** Actual gold margin requirement and market price may vary
*** Heavy losses can occur for the short futures position if the underlying asset price rises dramatically
 

Our Favorite Picks​

We proudly provide access to some of the most liquid futures products in the world. Let's figure out what products fits your goal the best. Check out our #FeaturedProducts

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