Why Futures are better than stocks

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Deciding between whether to trade futures or stocks? While there are pros and cons to both, the most suitable option for you will largely depend on your risk profile. In this article, we give you a comparison of futures vs. stocks as well as some good reasons you should opt for the former.

Low Commissions and Execution Costs
Depending on your broker, you may be charged a different commission rate than other traders. However, you can expect the total commission to be as low as 0.5% of the contract value. This can vary based on the service provided by your broker. Commissions are usually payable when the position is closed.

Futures Provide You with More Leverage
When futures trading, the trader has to put in a margin, which is a percentage of the contract value. In the case that the market moves in the opposite direction, the trader will incur losses that may be higher than the margin amount, and they have to pay to bring this value closer to a maintenance level. However, if the market moves in the right direction, the profits you stand to make are also much higher. Because futures trading allows investors to be exposed to a much larger volume of stocks than buying them directly, you will benefit from more leverage.

Futures Markets Provide High Liquidity
A large number of futures are being traded every day and some markets are even open round the clock. The high level of trade activity ensures that market orders can be placed quickly, which in turn means that prices do not tend to fluctuate drastically. This allows traders to clear out large positions quickly without any adverse effects on price.

Futures Markets Are Fairer and Unconducive to Insider TradingUnlike stocks where certain individuals may have access to insider information which they then leak to an exclusive group of traders, it is very difficult to do the same in a futures market. This allows the market to be more efficient and gives all traders a fairer chance instead of having a select group of individuals with an advantage over others.

And the best part, if the CEO is involved in some scandal or the company declares bankruptcy, you aren’t exposed to these specific risks, and a better diversified trading a global financial product.

Trading Futures Now offers a fully automated approach to trading the futures market. 100% automated trading algorithm and 100% automated scalping algorithm, with a user community helping you trade the markets without all the stress.

If you are looking for automated futures trading to help your trading decisions, you have come to the right place at Trading Futures Now. With 24/7 support and a member forum available, you can have access to the help you always require and connect with like-minded individuals who are on the same trading journey when you make use of our services. If you have any questions at all or would like to get started by opening a live account today, please do not hesitate to contact us and one of our experienced consultants will be in touch as soon as possible.


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Risk Disclaimer :

There is a very high degree of risk involved in trading. past performance is not necessarily indicative of future results. TFN Trading Corp and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, TFN Trading Corp will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Futures and futures options trading carries significant risk. Options trading carries significant risk. Foreign Exchange trading carries significant risk. Stock Trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading futures, options, stocks, and foreign exchange products. prior to trading any securities products, please read the characteristics and risks of standardized options and the risk disclosure for futures and options. The strategies, setups, methods, and all other products and features on this website are for educational purposes only and should not be construed as advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness, and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of TFN Trading Corp may have a position or affect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. All our partners or affiliated companies are in no way associated with the proprietary information provided by the TFN Trading Corp method or software. All returns are based on buy side analysis and do not include commission costs. All projections are based on current returns. the projections do not account for any possible draw down effects on performance and performance projections. Actual returns and projected returns may fluctuate over the course of the service. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless TFN Trading Corp, its principals, agents, and employees.

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Testimonials appearing on tradingfuturesnow.com and or all affiliated websites may not be representative of the experience of other clients, users, customers and is not a guarantee of future performance or success.

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