Why Do Futures Exist?

Jun 29, 2022

By The Small Exchange

Overview

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.

Contents

0:05 Why Do Futures Exist?

2:00 Futures Offer a Leveraged Version of Popular Markets

4:00 An Overview of Micro S&P 500 Futures

5:35 An Introduction to Small Technology Futures

6:35 Futures Can be Used for Day Trades

7:50 Using Standard Deviations

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