Getting Started Trading Futures: Markets and Instruments

If you’re exploring how to trade futures or just starting your futures trading education, understanding the different futures markets and how they are traded is an essential first step. Futures contracts are available across a wide range of products and asset classes, providing traders access to global markets that span financial and commodity instruments. 

This guide breaks down the main categories of futures contracts, offering a foundational view of what’s available and who typically trades in these markets. 

Financial futures: indices, bonds, and currencies 

Financial futures are among the most widely traded instruments in the futures markets. These contracts allow traders to speculate on or hedge against changes in major stock indices, interest rates, currencies, and other financial assets. 

Common types of financial futures include: 

• Equity index futures: These track the performance of major stock indices, such as the S&P 500 (ES), Nasdaq 100 (NQ), and Dow Jones Industrial Average (YM). They’re popular with traders looking to capitalize on overall market direction or manage portfolio risk. Learn more about trading these futures. 
• Interest rate futures: These contracts, such as U.S. Treasury bond and note futures, allow participants to trade based on expectations for changes in interest rates. Common instruments include the 10-Year Treasury Note (ZN) and the 30-Year Treasury Bond (ZB). Learn more about trading these futures. 
• Currency futures: These track exchange rates between major global currencies, such as the euro (6E), Japanese yen (6J), and British pound (6B) against the U.S. dollar. Currency futures can be used for speculation or managing foreign exchange risk. Learn more about trading these futures. 

Financial futures tend to attract active traders, institutional participants, and those seeking exposure to macroeconomic events. 

Commodity futures: energy, metals, and agriculture 

Commodity futures offer direct exposure to the prices of physical goods and natural resources. These markets have a long history rooted in the agricultural industry and today are just as relevant to energy producers, metal miners, and speculative traders. 

Major commodity futures categories include: 

• Energy: These include contracts for crude oil (CL), natural gas (NG), gasoline, and heating oil. These markets often respond to geopolitical developments, seasonal patterns, and shifts in global supply and demand. Learn more about trading these futures. 
• Metals: These cover gold (GC), silver (SI), copper (HG), and platinum (PL). These contracts offer exposure to both industrial demand and precious metals price movements. Learn more about trading these futures. 
• Agricultural: These represent products such as corn (ZC), soybeans (ZS), wheat (ZW), and coffee (KC). These markets are influenced by growing conditions, global trade, and weather-related events. Learn more about trading these futures. 

Commodity markets can be more volatile than financials due to their sensitivity to supply shocks and natural events; that volatility can also create trading opportunities. 

Who trades futures and why 

Futures markets bring together a wide range of participants, each with different goals and strategies. These markets are open nearly 24 hours a day, offering flexibility and liquidity for a global audience. 

Key types of futures market participants include: 

• Commercial traders are typically trading futures to hedge the price of futures. For example, copper mining companies who trade futures are hedging known copper reserves that are in the ground yet to be mined. Commercial traders are also industrial companies that use large amounts of copper for construction and manufacturing. Commercial traders who buy copper futures contracts will often take delivery of copper. 
• Large professional speculators are typically commodity pool operators, proprietary trading firms, institutional investors, and hedge funds. These traders are purely speculating on the price movement of futures and generally do not take delivery or hold the actual product. Normally, commercial traders and large speculators can make up 90% or more of the daily trading volume in a futures market. 
• Small retail traders make up the remaining daily trading volume in a futures market and like large speculators, rarely take actual delivery of anything but instead choose to close their future contracts to avoid delivery. 

A helpful tool for understanding the makeup of market participants is the Commitments of Traders (COT) report, published weekly by the Commodity Futures Trading Commission (CFTC). This report provides a breakdown of open interest held by commercial traders, non-commercial traders (speculators), and others, offering insight into positioning and sentiment across futures markets. 

Read our blog on What Is the CFTC Commitments of Traders Report? to learn more. 

Building your futures trading knowledge 

Whether you're looking to learn to how to start trading or deepen your understanding of the futures markets, gaining familiarity with the different market categories and instruments is a critical first step. With such a wide range of contracts—from stock indices and interest rates to oil and corn—futures offer an accessible and versatile path for trading and risk management. 

Before diving in, it’s helpful to explore market fundamentals, trading platforms, margin requirements, and the specific characteristics of the contracts you're interested in trading. And for those eager to practice, many platforms (including NinjaTrader) offer simulated trading environments to help you build confidence and experience.