Why Do So Many Traders Prefer Futures?
If you’re trying to figure out where to begin your trading journey, it helps to know how futures differ from other financial instruments. Futures trading requires education and practice, and losses can exceed your deposit.
Here we’ll discuss the key differences between trading futures vs. stocks, including 24-hour trading, unrestricted shorting, and trading on a level playing field.
Reasons stock traders add futures to their trading portfolios
No issues with shorting
One of the biggest challenges stock traders face every day is the inability to short stocks and ETFs easily and consistently. This is often caused by a shortage of available long positions at a supporting brokerage, which are needed to borrow those shares for a trader to enter a short position. With futures trading, you can enter short positions as well as long ones. Every future can be shorted for any number of contracts at any time.
Diversification
Futures provide exposure to a wide variety of financial markets and commodities that may otherwise be difficult to trade through individual stocks. In addition to major market indices like the E-mini S&P, Nasdaq, and Dow Jones, you can trade markets that affect our everyday lives like crude oil, gold and silver, bonds, coffee, and many others.
24-Hour trading
If you want to trade where the action is, then look no further than futures trading in a global marketplace. Unlike stocks and ETFs, with limited trading hours and often limited trading volume, the primary futures markets are often highly liquid and tradable nearly 24 hours.
What does it cost to get started?
You can get started trading futures with a NinjaTrader account.
- Futures trading generally has a lower initial account opening capital requirement than stock trading.
- Futures do not have a day trading capital requirement, and there is no minimum funding requirement to get started with NinjaTrader. You must complete an appropriateness assessment before trading.
Best brokerage for trading futures
NinjaTrader is recognized for our unique combination of a high-performance trading platform, discount pricing, and real-time support
Download our award-winning software. NinjaTrader is always free to use for advanced charting, backtesting and trade simulation.
Recognition
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2026 #1 Futures Broker
Top Rated Futures Broker - BrokerChooser.com
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2024 Winner Best Trading Software
Stocks & Commodities Readers' Choice Award
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2024 Excellence in Futures Education
Benzinga Global Fintech Awards