Once you get a foundational education on futures trading, there’s one more step, including account setup and access the right specific trading info.
Facts on Futures Series: Part 6
In this final post of the series, let’s look at a few key things you need to know to get started the right way with futures trading!
Futures Trading Account
If you want to trade futures contracts, you must have a futures trading account. You cannot use a standard stock account to trade futures.
How to Open a Futures Account
Opening a futures account is a separate process from opening a stock trading account. Futures accounts have different rules and money requirements, so it’s important to do your research before selecting a broker.
- Recommended Broker: I personally use TradeStation. I don’t receive any compensation for recommending it—I just find it to be a reliable platform for futures trading. It also has charting software.
- Due Diligence: Before opening an account, compare platforms, review fees, and understand the margin requirements.
Best Resources to Learn More About Futures
While I will continue to provide valuable insights and resources to our Trading Tribe, there are many other places where you can educate yourself on futures trading.
CME Group Education
One of the best resources available is the CME Group’s Education Center (cmegroup.com/education).
Here’s what you’ll find:
- Informational articles to expand your knowledge.
- Videos explaining futures market mechanics.
- Glossary of key futures trading terms.
- Trading simulator to practice trading without real risk.
These resources are free and well worth the time spent to continue to educate yourself on futures markets and trading.
Diving into Futures Trading
Futures trading is an incredibly powerful way to be able to trade the movement of huge markets. Not only the S&P 500 like I do with the E-mini S&P 500 futures, but also other broad stock markets, commodities, and more. By the way, I dive into the ES futures and more in my S&P Edge Pro service that includes daily morning research, live trading with me, and more.
Back to futures trading in general – it does come with unique rules, regulations, and responsibilities. By understanding the asset structure and specific contract specifications you can set yourself up to participate in this market successfully.
Series Wrap Up…Right into my Birthday 🙂
My goal with this 6-part Facts on Futures series was to give you a strong foundation in futures trading. Whether you decide to dive in right away or take time to study more, I hope you now feel better prepared to navigate this asset class with confidence!
And I’m happy to round out this series today ahead of my birthday weekend, when I turn 46 on Sat Feb 15th which also happens to be the 46th day of the year!
This is fun numerology but also a moment for reflection…
It was when I was 16 years old, exactly 30 years ago (gulp!) that I first barged into my dad’s study seeking chemistry homework help…
I came upon him looking at weird graphs on screens which I learned to be stock charts…
And everything changed.
While I didn’t get seriously into trading until 5 years later, so 25 years ago (another gulp!) I’ll never forget the first time I learned about this amazing world of trading.
Thank you all for being part of my journey, where I get to teach and share what I learned from my dad and developed myself. I look forward to continuing this on the other side of my 40s!
Have a great long weekend,
~Hima
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