Tradovate Futures Trading Blog

Can Futures Help You In Your Trading Journey?

Posted by Benzinga on May 17, 2022 at 9:15 AM



Photo by Sophie Backes on Unsplash


Both aspiring and seasoned traders are question-generating machines; they’re constantly questioning their system, their interpretation of events and their behavior in an attempt to improve and optimize. 


Could Futures Be A Boon Toward Success In Your Trading Journey, And Selecting The Right Platform?

One of the key questions in a trader’s journey is what instruments he or she will be trading. Given the many available choices, this isn’t always an easy question to answer. Despite the complexity, deciding whether shares, options contracts, futures contracts, or a combination of two or more, will be your trading instrument of choice is important. 


Tradovate LLC, a modern futures trading platform and broker, is attempting to simplify the selection process. Its platform, rated 4.4 on TrustPilot, is meant to provide traders with robust tools tailor-made for futures contracts. 


While consideration of the actual instrument is essential in the selection process, having a broker and platform that’s tailored for your style of trading can also help. 


So what arguments exist for trading futures contracts? 


Why Trade Futures?


Like the cryptocurrency scene, futures trading operates on a 24-hour market cycle. This gives traders the ability to take action at any time.


Unlike stock and options trading, futures trading is not subject to the notorious pattern day trading rule (PDR) that limits a trader’s number of trades per day when their account value is less than $25,000. As a futures trader, all you need is enough cash to cover a futures contract to engage with the markets. 


The accessibility of the futures market comes with potential financial benefits. With futures trading, for example, traders can buy approximately $100,000 worth of the S&P 500 stocks for less than $5,000 margin. With mini- and micro-sized contracts, traders can leverage even more money in their trades. Note, however, that traders assume more risk with these actions and should understand and accept this risk before moving forward. 


An additional financial advantage can be found in taxes and wash sale rules. Future profits are taxed 60% as long-term capital gains instead of as income, making the tax burden a little less heavy on traders. Finally, with futures, there are no wash sale rules, which means you can use losses to offset gains from futures trading activities. 


Why Tradovate?


Unlike larger operators like Interactive Brokers Group Inc. (NASDAQ: IBKR) and Toronto-Dominion Bank’s (NYSE: TD) Ameritrade, Tradovate’s sole focus is on futures. As such, there are a number of tailor-made functions that may provide benefits for futures traders. 


To facilitate the newcomer’s journey, Tradovate states it ensures you can backtest your strategy through a risk-free simulated trading environment, open an online account without a funding minimum and receive 24/5 dedicated support. 


For both newcomers and seasoned traders, Tradovate offers affordable future contracts pricing, including a 25-cent micro contract and a 79-cent standard contract with low margins. Tradovate’s platform is both PC & Mac compatible with desktop, web and mobile apps available, granting traders real-time updates on whichever browser or device is desired. The platform also gives you access to historical session data at four times the speed with a Netflix style on-demand Market Replay add-on function. 


Tradovate: Quick Summary


  • Trade Anywhere From Any Device
    Full access to all versions of Tradovate’s cloud-based platform to trade on all of your devices: desktop, mobile and tablet. Tradovate is compatible with both Mac and PC.
  • Modern Trading Tools And Custom Indicators
    Designed specifically for futures traders, Tradovate says this suite of tools was built for modern markets. From advanced order management to the ability to create custom indicators or download them from our community.
  • Reducing Your Trading Costs With Low Commissions And Margins?
    Tradovate has designed three plans depending on the way you trade. No per-trade commissions, platform fees, order routing fees or inactivity fees are imposed.
  • “24/5 Support: Tradovate Is There When You Need It”
    Tradovate claims you don’t have to be alone. Get live customer support, in-app chat, a built-in knowledge base and other up-to-date resources, including support in multiple languages. You also can always fly it solo and use Tradovate’s online resources instead.
  • Practice Before You Trade: Unlimited Simulated Trades
    Get access to Tradovate’s unlimited trading simulation tool so you can test your ideas before risking your money.
  • Quickly Review Past Market Sessions
    Sign up for the Market Replay add-on and test trading strategies with up to four times the speed so you can view historical session data.


Interested in giving Tradovate a shot? Click here


This post contains content that was originally written and distributed by Benzinga and sponsored by Tradovate. This content is for informational purposes only and is not intended to be investing advice.


The official blog of Tradovate, exploring futures trading from issues to innovations.


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