Trading Futures Vs Equities
Recommended starting capital is 2 500 to 7 500 if you re trading a popular futures contract like the e mini s p 500.
Trading futures vs equities. However when it comes to trading there are some advantages to trading futures contracts instead of equities. Whether you are buying shares of an individual company or an etf one must have an initial minimum deposit of 50 of the total asset being purchased. Futures prices also trade on exchanges just like equities. Equity options carley garner.
Official market hours for trading the e mini s p 500 whose ticker symbol is es are from 9 30 a m. The margin is essentially. The more money you have the more flexibility you will have in your trading decisions. An option gives the buyer the right but not the obligation to.
To trade futures an investor has to put in a margin a fraction of the total amount typically 10 of the contract value. Options and futures are similar trading products that provide investors with the chance to make money and hedge current investments. Both the chicago board of mercantile exchange and the new york stock exchange own futures trading platforms and very little open outcry trading takes place worldwide anymore.