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Futures Trading

Definition

Trading standardized contracts to buy or sell an asset at a future date and price — common markets include ES, NQ, and CL.

How It Works

Futures are standardized contracts traded on exchanges (CME, NYMEX). Popular instruments include E-mini S&P 500 (ES), Micro E-mini Nasdaq (MNQ), crude oil (CL), and gold (GC).

Futures prop firms (Apex Trader Funding, Topstep, Earn2Trade) typically use NinjaTrader or Tradovate with Rithmic/CQG data feeds. Futures trading offers advantages: centralized exchange (transparent pricing), no PDT rule, tax benefits (60/40 rule in the US), and deep liquidity.

Micro contracts make futures accessible to smaller account sizes.

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