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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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kimberley
To: kimberley who wrote (57693)4/23/2022 3:12:03 AM
From: Libbyt2 Recommendations  Read Replies (1) of 97611
 
IMO rimshot had a very good recommendation to talk to several people about their experiences of trading futures. Years ago I asked someone on SI to explain futures trading to me….not because I wanted to trade futures but because I wanted to understand the process.

My conclusion at the time was that trading futures was risky, and that you had the chance to do very well or have a trade go against you fairly quickly. The hours for some futures trading are different than the hours for the stock market, and some futures I believe trade 24 hours.

investopedia.com

From an article Options versus Futures: What’s the Difference

“Futures Options may be risky, but futures are riskier for the individual investor. Futures contracts involve maximum liability to both the buyer and the seller. As the underlying stock price moves, either party to the agreement may have to deposit more money into their trading accounts to fulfill a daily obligation. This is because gains on futures positions are automatically marked to market daily, meaning the change in the value of the positions, up or down, is transferred to the futures accounts of the parties at the end of every trading day.

Futures contracts tend to be for large amounts of money. The obligation to sell or buy at a given price makes futures riskier by their nature.”
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