What is futures trading?

It is an agreement where prices derive from their underlying assets. Finally, futures trading is facilitated by futures contracts, commonly used by individual traders to make a profit or by corporations to lock in the prices of commodities they need for production and manufacturing.

How do I choose the best futures trading platform?

To find the best futures trading platforms, we compared pricing (e.g., contract charges and margin rates), investment choices (e.g. options on futures and ability to trade micros and smalls), and the platforms themselves, including trading tools, research, usability, and available order types.

What is breaking down 'futures'?

BREAKING DOWN 'Futures'. The futures markets are characterized by the ability to use very high leverage relative to stock markets. Futures can be used to hedge or speculate on the price movement of the underlying asset.

What are the rules for actively trading futures?

Unlike day-trading stocks, actively trading futures isn’t covered by Pattern Day Trader rules, which requires stock day traders to maintain a minimum account value of $25,000. Brokers have their own minimum requirements to be approved for trading futures, so you may need to find a broker that is willing to allow you to trade.