Futures trading offers the opportunity to trade a variety of asset classes using a single type of instrument. For instance, if you want to trade US Equities with leverage, you can trade futures contracts such as ES, NQ, RTY, or YM, or their micro versions MES, MNQ, M2K, and MYM. These tickers represent the following indices:
- ES: S&P 500
- NQ: Nasdaq 100
- RTY: Russell 2000
- YM: Dow Jones Industrials
If you’re interested in the forex markets and want to trade standardized, leveraged contracts, that’s also possible. At PropShopTrader, you can trade FX Futures contracts such as 6E or M6E, which represent Euro futures.
Additionally, you can trade commodity markets through futures. For example:
- WTI Crude Oil: Ticker CL
- Gold: Ticker GC
Advantages of Futures Trading #
Futures trading allows you to access different asset classes with standardized leveraged contracts. Although each ticker has a different multiplier, all contracts are designed to function similarly. They require an initial margin to open a position and have a designated per-tick value.
One of the key advantages of futures trading is that it enables traders to control large positions with minimal upfront capital, thanks to the use of initial margins. This provides the potential for higher gains compared to unleveraged products. However, traders must also recognize the potential for larger losses if they lack a sound risk management plan.
Important Notes #
- Both Warrior and Gladiator accounts at PropShopTrader are in SIM environment.
- This does not require you to worry about margins at the brokerage level. We are simply providing this information for educational purposes.
By trading futures, you can explore diverse markets with flexibility and leverage, but always ensure you understand the risks and manage your trades responsibly.