Futures as a Superior Product

#1 Innovative Financial Market


What a great market to be involved with. Let’s get honest: if you’re into trading – Futures is exactly where you want to be on the very edge of innovation. You must be wondering: What exactly are Futures? We’re glad you asked!

Futures are progressive financial contracts that facilitate a willing-buyer-willing-seller space through a pre-determined future date and price. Sounds cool, eh?

You see, we like to live by the age-old wisdom. The saying clearly states, “You will only be as good as the products you trade.” We all know that not all products are worth trading with. Especially the low-quality ones that have lately started swamping the financial market!

Futures is here to change that.

It’ll let you speculate on the trajectory of a commodity, security, or instrument of financial value. Can it get any better than that? It can, actually.

Independent Financial Regulation

You see, the superiority of Futures as an industry, product, and craft, lies in its trade being well-regulated by an independent government agency – Commodities Futures Trading Commission.

As a trader, your primary concern is protecting your hard-earned investment funds from fraud, price manipulation, or any other form of malpractice.

To understand the safety and peace of mind it provides, just for a second try comparing the Futures market to other financial markets. Forex, for example, has thousands of exchanges daily falling victim to a predatory or harmful activity, with some exchanges even actively trading against their clients.

That does not happen with Futures. Never, ever.

Unmatched Security & Consistency

Oh, and did we get to mention that Futures also offer security in transactions that give you leverage? The Futures market also delivers unmatched transparency in the world of trading.

Forget all about the unrelated exchanges that are not clear and visibly understood.

All of the Future’s transaction exchanges have to clear through the CME.

This one centralized exchange where everything goes through provides transparency where information is available to everyone in real-time. There are also downsides to trading futures.

One major one is that since the trade are in contracts, one is just enough to start trading. That sounds like an advantage, right?

Downfalls? Some

Wait until you find out how big that one contract is. Let’s consider the S&P 500; the E-mini S&P, one of the smallest ones, has a value of approximately $170,000. This makes buying stock look like peanuts.

You either jump into the deep end or don’t swim at all.

There’s no middle ground!

How to Solve That

However, the CME group has recently released some micro-contracts to allow traders to access once unavailable contracts at a tenth of their size.

This made active trading in futures an actual reality for a lot of users with small accounts. At least you won’t be exposed to predatory practices in other financial markets, even with smaller capital.

They have a low barrier for entry now, which is quite attractive.

Closing Thoughts

When trading financial markets actively, whether forex, crypto, stocks, or options, check out the futures market. With a very nominal amount of money, try setting up an account. You can be surprised about the amount of profits you can get from it but be careful.

Get acquainted with the simulated environment and see if it can benefit you or not.

Do your due diligence before trading and strategize, as in any financial market. Understand both the advantages of futures as explained and also the risks involved.

From experience, most traders say that out of all the products mentioned, futures are the most superior products they’ve traded. They truly are outstanding and appeal to all kinds of investors.

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Watch Your Risk & Happy Trading!


Futures Trading Frequently Asked Questions (FAQ)

How Does A Futures Contract Work?

Futures are derivative trades, they have financial contracts in place that obligate the parties to conduct the agreed transaction at a specific date and time in the future. The buyer must buy the asset at the set price, and the seller must sell it, regardless of the actual price at the expiration date for the contract.

What Are the Benefits of Trading Futures?

One of the most important benefits is being able to trade highly leveraged assets, there’s a lot of liquidity on these markets and finally, it has low commissions and execution costs.

Is Trading Futures High Risk?

Trading futures can be risky since they allow the trade to take speculative positions with a great amount of leverage. If we compare it to stock trading then yes, these trades can be riskier.

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