Why Do Futures Exist?
Jun 29, 2022
By The Small Exchange
Futures trading is primarily done with a short-term time horizon in mind, as derivatives traders use their leverage to enhance returns on strategies like day trading without taking on long-term risks that leverage can pose. Active traders often use Micro S&P 500 (MES) futures or Small Technology (STIX) futures to gain access to the stock market for a lower cost in an attempt to produce large returns from relatively small movements.
Experienced futures traders Katie and Frank show you some examples of futures products before applying one of the most popular strategies out there - day trading using standard deviations.
Get Weekly Commentary on Small Markets!
Sign up to start receiving free analysis on everything from stocks and bonds to commodities and foreign exchange.