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Trading Futures? Learn the Basics

Trading Futures? Learn the Basics - The Bubba Show
Todd "Bubba" Horwitz on Liberty Talk FM - Image Rotator Photo

BY: Todd Horwitz, Host & Senior Contributing Analyst
PUBLISHED: October 17, 2017

The Benefits of Futures Over Equities

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It’s a futures Tuesday on the Bubba Show, as Bubba shares a webinar on futures trading. Bubba brings up one of the biggest faults with all traders, they are gambling, not trading, and Bubba explains there is a significant difference between the two. Trading is a skill based on probability and the better trader will grind out money.

Before trading futures, Bubba asserts you first must understand what futures are and how they trade. After learning the basics of the futures contract, you must learn the hours of operation, the size of the contract and the characteristics of the market you choose to trade.

After learning the basics, you must learn to trade in liquid markets only, while understanding the patterns and footprints that can develop. The ability to see patterns take shape creates the advantage for the trader. Bubba explains that futures are the best trade for someone who wants to be active.

The benefits of futures over equities is clear, the costs are significantly less, margins are less and there is no FINRA day trading restrictions. You can trade futures with less capital and leverage, as well as less risk because of the liquidity in futures markets.

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Todd Horwitz began his career in the financial industry as an option market maker at the Chicago Board of Options Exchange in 1982 and was one of the founding traders in the SPX pit. He is an active member of the am currently a member of the Chicago Board of Trade.