The Benefits and Risks of Day Trading Futures

Day trading futures is a process that will allow you to buy and sell futures contracts on commodities or stocks. Day trading futures allows you to place a bet on what you believe the future price of a security or commodity will be. Here are some of the benefits and risks of day trading futures.


One of the biggest advantages of trading futures is that you can use large amounts of leverage. Some brokers will allow you to use leverage of as much as 150:1. This is much larger than what you can do with a traditional margin account with leverage of 1:1. Because of this, you have the potential to make larger revenue amounts.

Initial Investment

Another one of the benefits of day trading futures is that you can get involved in the market with a smaller initial investment. Many futures brokers will allow you to open an account with as little as $2000. For most people, this is an affordable threshold that they can get to if they really want to invest in the market. This makes the futures market widely available to investors of every kind.

Profit Potential

Another benefit of investing in this market is that you can make very large profits. This market is known for producing large profit potential for its investors. You can experience large swings in price on a daily basis. This is one of the most active financial markets in the world today. For those who like to actively day trade, this is one of the best markets to get involved in.


Day trading in the futures market is simple once you understand the basics. You will be able to download a trading platform on your computer and you can access the market anytime that it is open. If you can trade stocks or a traditional brokerage platform, you should be able to do the same thing in the futures market.


Even though the fast movement of this market can provide a good profit, it can also hurt you at the same time. With this type of investment, you could potentially lose most of your profit in a few seconds. It is very quickly and you have to be on top of your game in order to avoid large losses. There will be losses, from time to time, you need to be able to manage them well  in order to be successful.

Margin Calls

Another one of the bigger risks of futures trading is that you could experience a margin call. A margin call is when your account balance falls below a certain amount of maintenance margin that is required by the broker. If this happens, they will contact you and determine if you want to deposit more money or if they should close your account. When this happens, you can lose your entire account balance. Be certain you study the margin call information of your account so that you do not lose everything.

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