Futures Trading Education

Stocks to Futures

Watch this RJOF Quick Tips: Stocks to Futures video presented by our Senior Market Strategist, Phillip Streible to learn how trading stocks differs from trading futures and how to implement them in your futures trading plan.

What is a futures?

Futures is a contract of a specific commodity that is bought or sold at a future date. It has standardized quantity, quality and delivery. Buyers can agree to either buy or sell at a future date but do not take or make delivery today.

Why trade futures?

Leverage is the ability to control large dollar amounts of a commodity with a comparatively small amount of capital. Traders who purchase a futures contract are attempting to gain bullish exposure. On the other hand, traders who sell a futures contract are attempting to gain bearish exposure.