Best Futures To Day Trade


Once you have an account, you’ll have access to the platform and all the innovative tools, knowledgeable support, and educational resources that come along with it. You can view initial margin requirements in several different sections on the thinkorswim® platform. They can be found under the Futures tab as well as the Trade tab in the Futures Trader section. All you need to do is enter the futures symbol to view it.

day trading

Also, be sure to know whether the contract is cash-settled or physically delivered upon expiration. For contracts with delivery upon expiration, if you hold your position until its contract expiration date, you can become liable for payment of the entire trade value . At a fraction of the size of a standard futures contract, Micro Bitcoin and Ether futures can offer a more cost-effective way for traders to gain bitcoin exposure. Futures trading brokers charge commissions on a per-contract basis. Until recently, there was also a base commission in some cases. Since brokers did away with stock trading commissions, the base commissions that had been charged on some futures trades have gone away.


Much like any normal trader or investor, a day trader makes money by selling a security for a higher price than they bought it, however it goes much deeper than that. To make money day trading futures you must have a sufficient amount of liquid capital that you are okay with losing. Day traders are often buying large numbers of shares and waiting for a small move before they sell. In order to do that, you must have enough capital to buy the large number of shares, and you must be okay if the shares take a loss, there is a lot of risk in day trading.

Best futures brokers overview

The daily range will fluctuate, with some and weeks seeing higher volatility and others seeing lower volatility. But this provides a good estimate for comparison of volatility between futures contracts. U.S. Treasury futures are an efficient way to trade the U.S. government bond market, which offers the greatest security and diversity among government bond markets worldwide.

Here are Benzinga’s suggestions for quality brokerages for futures trading. It is not entirely indicative of which market is the best for your day trading. Consider the following in choosing 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.

Can Commodity Futures Contracts Be Bought and Sold on the Open Market?

TD Ameritrade does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use. Please consult other sources of information and consider your individual financial position and goals before making an independent investment decision. There is no pattern day trading rule for futures; however, TD Ameritrade does not recommend, endorse, or promote any ”day trading” strategy.

Do futures traders make a lot of money?

The salaries of Futures Traders in the US range from $32,680 to $1,119,284 , with a median salary of $203,812 . The middle 57% of Futures Traders makes between $203,812 and $507,784, with the top 86% making $1,119,284.

A derivative is a contract that derives its value from the underlying asset . Futures trading platforms have been around for some time, and their popularity has increased over the years. First, there is a greater number of traders interested in trading futures contracts. There are no restrictions on short selling in the futures market.

What Software Do You Need to Trade Futures?

They provide the infrastructure that allows traders to execute trades in-house or with their broker. Futures trading is a complicated business, even for experienced investors, and so is shopping for a brokerage to use for futures and commodities trading. It’s not just about contract fees and trading platforms . If you’re a new futures trader or a veteran that has hit a rough patch, you might also consider downsizing your contracts. In some cases, exchanges offer E-mini futures and Micro E-mini futures products that are identical to standard futures products except smaller.

Is day trading futures risky?

While they are classified as financial derivatives, that does not inherently make them more or less risky than other types of financial instruments. Indeed, futures can be very risky since they allow speculative positions to be taken with a generous amount of leverage.

Studying, reading market commentary, staying on top of the news—it can be a lot for even the most seasoned trader. Looking at this list, many day traders would feel skeptical about trading any of the US Treasury instruments or Eurodollars. Again, your instrument of choice shouldn’t be based solely on market liquidity. You have to know your preferred futures market well enough to have the confidence to trade it. With that said, let’s move on to another important set of characteristics.

This reiterates that consistently making money trading stocks is not easy. Day Trading is a high risk activity and can result in the loss of your entire investment. This article will explain what futures trading is and list the best futures trading platform for traders in 2019 with comprehensive reviews of their trading platforms. As a futures trader, one of the most common questions that are usually asked.

What Research and Analysis Tools Are Available?

You can find stuck shorts, stuck longs, continued longs/shorts as well. This chart is important, however, it is less so than the prior two charts. We have to understand where price is going and price structure does tell us how the market is moving and where we can see strength . As a quick tip, use the prior session volume profile in futures to identify levels for the coming session on the volume profile. To trade 1 contract of the S&P 500 E-minis, you can do it with as little as $3,000 in your account.

The CME Group, for instance, offers an E-mini S&P 500 futures contract that’s identical to its flagship S&P 500 futures contract, except it’s just one-fifth the size. There are similar mini products in the grain, energy, currency, and metals sectors. TD Ameritrade offers excellent customer support, virtually any type of brokerage account you can think of, and no minimum account balances.


In summary, futures trading is a complex and exciting form of trading one must understand before stepping into the field. Expectedly, there are many things to know, and this sort of knowledge could be handy to succeed as a futures trader. TD Ameritrade is pricier compared with other brokers, and that can turn off some futures traders. Because your futures platform P&L may show your trade with a profit, but in fact, you still have to pay the fees and commissions to your broker and exchange. The final chart used, that is important, but maybe at the bottom of our list. This is the market profile chart, commonly known as the TPO chart.

Finding The Best Futures For Day Trading

The main benefit is that traders understand how the market moves, backfills, and fill areas of the chart where there is interest and unfinished auctions. Where there is a lot of movement this chart looks like it’s moved a lot and really busy. In comparison to the time chart this is a 5-min chart on the SPY for a full day. The volume profile is still very high on our list in terms of importance.

  • Information On Algorithmic TradingAlgorithmic trading is an automated buying and selling process with a programmed algorithm to determine the price, volume and timing of order.
  • It entered a strong uptrend in the second half of 2006, rising vertically into the 2008 peak above $7.00.
  • We have to understand where price is going and price structure does tell us how the market is moving and where we can see strength .
  • This chart is important, however, it is less so than the prior two charts.
  • For reference, we include the date and timestamp of when the list was last updated at the top right of the page.
  • The TPO is split up into letters, which represent a period, each period is a 30-min period.

Instead, you will gain exposure to the underlying contract by speculating using CFDs. To aid in your futures trading, consider enlisting the help of several stock research websites and software packages. Likewise, if you’re just starting to learn how to invest money, you’ll want to look at the best stock investing apps for beginners.

futures trading broker

A fair amount of history lessons have also been provided regarding how one excavated the methods. Finally, it gives a detailed analysis to the reader about the various techniques and can convince them to adopt the practices because of the possible successes involved. In a nutshell, this futures book provides essential information on the good and bad patterns and what each chart’s movement depicts. This book will teach the readers how to interpret the same in all kinds of scenarios and during the regular business course.