MFTrading NSDQ-DEC20 too good to be true?

Leverage. Position sizing. Scaling in and out of contracts. The biggest difference in getting wiped out and staying in for the long game is risk management.

That being said, futures are a great way to hedge against market uncertainty. Also there is no theta decay in futures trading vs options trading meaning time doesn't decay the contract value which makes it easier to trade imo than options.

A 1 point in price increase is defined by a gain in the contract, depends what you trade, the E-mini S&P 500 futs, called the /ES are most liquid, over a million traded every day. If you want a greater increase, simply increase the size, keeping in mind risk.

Some helpful reading -> https://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500_contract_specifications.html

You can't lose more than you put in simply because most brokers will terminate/close your position. They have risk management too. You can put stop losses when you enter a trade, but it is defs good to learn on paper accounts first.

/r/AusFinance Thread