day trading futures questions | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

day trading futures questions

  #3 (permalink)

Super Moderator
London UK
 
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
 
xplorer's Avatar
 
Posts: 4,823 since Sep 2015
Thanks: 11,881 given, 10,529 received



Jayboii478 View Post
I'm new to futures, and i am a day trader, i was doing stocks for a bit. So my question is does futures day trade like stocks or differently? Like can i buy as many of 1 contract as i want or is there a limit like shares with stocks? As well can I trade that same contract multiple times in a day without issue? Is there a limit i need in my account to day trade like the 25k for stocks? I just don't want to go in and get hit with a surprise like you can only trade that contract once, or after 3 day trades you're a pattern day trader etc..

Any things I should know going into futures to day trade?

Thanks all!

There's many things you should know before going into futures. There's a minimum price increment in futures that works differently from stocks. You probably need to get yourself acquainted with concepts such as 'tick increment' and 'tick value'

I suggest you spend your time going over the threads on this forum. Use the 'search' function to help you look for specific contents. Spend time in understanding the main differences, pro and cons of trading futures Vs. trading stocks.

Many professionals advise beginners to always start with 1 contract. There are some futures products such as Gold or Oil that can be very volatile, which means even with only 1 contract, which is the minimum you can trade, you can be down a hundred dollars in a matter of seconds. There are also 'mini' and 'micro' contracts which may also be an option.

The much lower margin for futures is what attracts most people to it, several brokers offer a minimum margin of $500 to day-trade certain products, but this can be a deceitful proposition. Especially if you have never traded futures before, starting off with such a low amount can translated losing that initial amount very quickly, very likely. This does not mean that 5 times or 10 times that amount will be better, if you don't know what you're doing.

Provided you do know what you're doing, you can trade 1 contract all day to your hearts content, the 'pattern day trader' rule is for stocks and does not apply to futures.

Reply With Quote
The following 2 users say Thank You to xplorer for this post: