Futures

What You Need to Know About Trading Futures

What You Need to Know About Trading Futures

Trading futures requires you learn how to trade futures, learn about the markets, learn what drives futures prices, and learn how to decide which futures contracts to buy and sell.

Experienced futures traders always have a plan before entering a trade. This plan includes how many contracts to buy or sell, how much risk they are willing to take, how much money they are willing to lose on a single trade and a price level to take profits.

Understanding how futures trading works is a key factor to consistent trading and avoiding mistakes. Each type of futures contract has its own unique contract specifications which you need to fully understand – futures can trade at odd times during the day, each future has both a specific and unique last trading day and expiration day, which can be different and each futures contract has a unique contract point value which determines the profit and loss of a position based on the price action.

Finally, you might have heard stories of the absent-minded futures trader who forgot to close his lean hogs positions and a truck pulled up a few days later to his house to deliver the hogs. Although I guess this could happen, most online brokers are looking out for you in these circumstances and will auto close positions before the delivery notice is required (but it is a funny story).

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Risk Acknowledgment – Engaging in futures trading involves significant risk, especially when trading on margin. Such activities may not be suitable for everyone, given the high level of risk involved. The leverage provided can both amplify gains and losses. Prior to participating in trading, it’s crucial to evaluate your investment goals, experience level, and risk tolerance carefully. There is a real risk that you might lose part or all of your initial investment, so you should not invest funds that you cannot afford to lose. We strongly advise that you fully understand all the risks related to trading and, if necessary, seek guidance from an independent financial advisor.

Regulatory Compliance – Only individuals who are registered with certain regulatory bodies are authorized to offer advice or conduct transactions in futures.  These bodies include the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and state regulatory authorities, each classified as an “Intermediary.” The Arch Public, its affiliates, or any associated individuals involved in creating and maintaining our offerings are not registered as Intermediaries. We encourage our clients to consult with a licensed investment professional before engaging in any trading strategies or transactions. We do not guarantee that the outcomes discussed herein will be achieved, nor do we claim that our past performance is indicative of future results.

Educational Purpose Only – Information provided by The Arch Public is for educational purposes and should not be taken as personalized investment advice. Investment decisions should always be made based on your specific financial needs and circumstances, with the counsel of a professional advisor. Engaging in trading without thorough understanding and professional advice may be detrimental to your financial health.

CFTC/NFA Disclaimer –Simulated or hypothetical trading scenarios have limitations and may not accurately represent real trading outcomes. Such results do not reflect actual trading and may not capture the impact of market factors such as liquidity. Hypothetical trading does not involve financial risk, and no simulated trading record can account for the risk of actual trading. The Arch Public makes no claims that any account will achieve profits or losses similar to those discussed.

General Warning – Trading involves the risk of loss and may not be suitable for all individuals. Past performance is not indicative of future results, and there can be significant differences between hypothetical and actual trading results. Deciding to trade represents a personal decision, and The Arch Public advises against investing money that you cannot afford to lose. This disclaimer does not consider your individual financial circumstances and is not intended as specific investment advice.

Acknowledgment - User’s acknowledge that all software is user driven and controlled by each individual trader, and not by Arch Public or any of its affiliates.