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Futures vs. Equities

Daytraders will experience many benefits from trading futures contracts like the E-mini S&P 500 and the E-Mini Nasdaq 100.

Commodity Trading Involves Substantial Risk of Loss. Prior to investing you should read the risk disclosure statement provided with the account application.

No Downtick Rule

With Futures there are NO downtick and/or short sale rules as found in daytrading equities. No boxing of positions and no bullets. You can instantly short anytime at any price.

24 Hour Market Access

With Electronic Screen traded E-Mini Contracts you can access the market during regular equity trading hours, after hours and during the night. This makes trading news easier as many news events happen after 3:00 pm and late in the afternoons.

Pay Fewer Taxes

Commodities are taxed differently than securities. The net gain or loss from trading commodities is reported on schedule D (capital gains and losses); 60 % of the amount is taxed as a long-term capital gain and 40% is taxed as a short-term capital gain. Active Securities Traders have all gains taxed as short term vs. commodities traders who have the above treatment.

Easy to Trade

E-Mini’s are to day traders like trading one symbol, one ECN (namely ISLD), really fast. No 10 different ECN’s, no market makers, and no specialists.

More Leverage

You can control more exposure with the same capital than in equities.

Lower Cost Commissions

It costs an average of $5-$9 per ticket to actively trade equities, compared with futures where it is $1.26 to $2.00 per ticket — less than half the price.

The Catch?

They can be more risky than equities.

Trading the E-Mini futures contracts can be more exciting and faster paced than traditional equity markets day trading. Your emotional swings can be more excessive with futures because they are so much more liquid than the equity markets that you may be used to trading. And you have more leverage to play with. These products are for professionals only. Please read carefully the risk disclosure forms on this site and all of the risk disclosure forms found in your account paperwork before considering trading futures.

Commodity Trading Involves Substantial Risk of Loss. Prior to investing you should read the risk disclosure statement provided with the account application.