The Best Funded Trader Program

best futures to trade for beginners

The moment I press the F1 key (expressing my interest to buy TCS futures) on my trading terminal, a couple of things happen in the background. Lastly, the black box highlights two important parameters – the underlying value and the market lot. With Electronic Communications Brokers becoming more popular and prevalent over the past couple of years, there is the chance that a broker may require you to pay commissions.

We’ll use the popular E-mini S&P 500 futures contract offered by the Chicago Mercantile Exchange (CME) as an example. On the other hand, a futures trading plan that’s centered around fundamental analysis might generate buy or sell signals based on crop or energy inventory reports. For instance, a trader may short an oil futures contract if weekly oil inventories grow at a faster pace than analysts had expected. Of course, some traders may incorporate both technical and fundamental analysis into their futures trading plan.


You can explore videos, articles, webcasts and in-person events on multiple futures topics. You can also use futures options on futures in a brokerage account and futures in an IRA account if you’re a qualified investor. They have a slightly lower volume than the prior two, are more volatile and have higher day trading margins.

Committing to an exit strategy in advance can help protect you from significant contrary moves. Too many traders try to use « mental stops, » picking a price in their heads for when they will close out a position and minimize their losses. But these are too easy to ignore, even for the most disciplined traders.


To trade futures markets, you need to open an account with a futures broker, who will provide you with access to the exchange and margin facilities. When you trade futures, you can go long (buy) or short (sell) a contract, depending on your market view. You can also close your position before the expiration date by taking the opposite trade, or roll over your contract to the next month if you want to extend your exposure.

But now, you have a logical framework for finding the best futures for day trading. According to our index, E-mini S&P 500, Natural Gas, and 10-Year Treasury Note are the top three contracts for day trading. Some brokers have fixed commissions, others where may charge different commissions depending on the number of contracts that you trade on average.

Trade Responsibly

In the snapshot below, the price per share is highlighted in blue. Prior to a name change in September 2021, Charles Schwab Futures and Forex LLC was known as TD Ameritrade Futures & Forex LLC. To start trading futures with Charles best futures to trade for beginners Schwab Futures and Forex LLC, you’ll need to open a standard account. The standard account can either be an individual or joint account. You will also need to apply for, and be approved for, margin privileges in your account.

  • Gain access to a Private Community of funded traders where you can chat, post, share and discuss trading ideas to set yourself up for success.
  • Technical analysis is the study of price patterns, trends, and indicators to forecast future price movements and identify trading opportunities.
  • Both these are valid questions at this point, and the answer to these questions depends upon the “Futures Pricing Formula”, a topic we will deal with at a later point in time.
  • That way, you’re attempting to limit your risk to $2 per ounce, while maintaining a profit potential of $5 per ounce.
  • Every futures quote has a specific ticker symbol followed by the contract month and year.
  • When you expect a change in both the buying and selling prices, you take advantage of these price changes to make money.

Having a long-term perspective requires traders to approach each trade with a clear strategy. Winning in small doses over time is vital to building a proper account. When trading futures, each dollar should be treated as if it is worth 100x its actual value.


However, if the price falls instead of rising, you will suffer a financial loss. The number of times you enter into trades each day makes it harder to learn what you need to know about day trading. Also called going long on futures, holding positions overnight can possibly cause you to lose money.

If the $180,000 contract fell to $179,000, you’d see $1,000 come out of your account. Once your account is open, you can select the futures contract you’d like to buy or sell. For example, if you want to bet on the price of gold climbing by the end of the year, you could buy the December gold futures contract.

This article explores some of the benefits and challenges you may encounter while trading your futures. Now you know what hours you have to be available, and often time just the morning session is enough to extract a full time income from the market. Energy products have been extremely volatile since oil prices collapsed in July of 2008 from their all time highs. Not to mention during these times a lot of news comes out of the US which helps more volume and volatility come in the markets. The last column shows the only time of day when futures are halted for trading.

best futures to trade for beginners