Best Contracts For Futures Day Trading

If you are a day trader, you may be looking into futures trading. They are an attractive option as you do not need as much capital to get started in comparison with stocks. However, with a small account, this does mean that you are limited to futures contracts with lower day trading margins. On the other hand, a larger account will give you more flexibility to trade. 

Keep in mind that with futures day trading, both big losses and profits are possible, and you should always trade according to your risk tolerance. The most suitable futures contracts for you will depend on three factors: volume, margins, and movement.

Volume

When it comes to volume, you should consider contracts that typically trade over 300,000 contracts in a day. This will give you the reassurance that you have plenty of other traders to carry out trades with, and that you are able to buy and sell at the levels you want to. Some of the most heavily traded futures contracts include the E-Mini S&P 500, Crude Oil WTI, 10-Year Treasury Note, and Eurodollar. 

Margins

Different brokers will offer different day trading margins. This is usually determined by factors such as the volatility of the underlying asset, which is why you may find that crude oil has a higher trading margin than other assets. As such, you will require a larger account in order to start trading crude oil futures. 

Movement

When it comes to determining price movement, two factors come into play. The first is point value and the second is the number of points the futures contract usually moves within a day. For instance, the Eurodollar has a point value of $25,000 and 0.1 average daily range. Although the volatility will change over time, it helps to get a good idea of the estimates.

The Best Futures Trading Contracts for You

Based on the three factors mentioned above, you now have a few futures contracts to consider. The E-Mini S&P 500 is a great choice for beginners as its margins are low and its volume is only slightly higher than that of crude oil. As you progress, you may consider venturing into more adventurous territory – but before making any trade, always re-evaluate your risk profile and make sure that it aligns. 

Come to Bold Analysis, LLC for the Futures Trading Information You Need

Naturally, you will require knowledge and experience in order to successfully day trade futures. At Bold Analysis, LLC, we can provide you with the information you need to get started. Whether you require beginner traders support, digital mentorships, or alert room notifications, you can find the services you need with us. For any queries or if you would like to speak to one of our consultants, all you have to do is contact us and we will be in touch as soon as we can. We welcome you to join our community of fierce and independent traders today.