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and what sets them apart? Both are well-recognized and widely used investment methods in the financial market that have so many significant differences. Basically, one involves partial ownership of one or more companies, while the other is an agreement to trade an underlying asset on a certain date for an agreed price.

When seeking to increase your income, investments in different financial markets appear as a viable option for a large number of people. However, everyone tends to have a preference for one or another investment method, as there are unique advantages and disadvantages to each of them.

If you are looking for your personal best option to trade in the markets, you should really study these and other forms of investment thoroughly, as one of them may speak to you more than the other. Each trader should analyze his or her own personality, including goals, experience and risk tolerance, before jumping into investing in a particular market.

 question is a good starting point to begin to identify the particularities of each financial instrument and how you can adapt more or less easily to the requirements of each of them.

Below, we will review some aspects of each of these:

Futures are financial contracts to buy or sell an asset at a specified date in the future for a fixed price. It is a financial asset that is part of the derivatives market, which means that the contract takes the value of a separate asset: shares, commodities, indexes or cryptocurrencies; and subsequently, through speculation, a price that it could be in the future is agreed upon.

Futures entered into the market to allow buyers to transact goods in the present while allowing them to cash in on these goods purchased at a later date. Buyers could lock in the current price for goods delivered at a future date.

This trading practice was also made to benefit sellers. Sometimes, sellers are not yet ready to dispose of their items. This is when futures become really useful, as it allows sellers to lock in a price for a future sale. In short, both sellers and futures buyers are able to limit their price risk.

Trading futures involves transacting these contracts in relation to the asset being traded. The buyer of the contract is obliged to take possession of the underlying on which it is agreed once it reaches its expiration date. However, while the contract is ongoing, the buyer can sell the position and free him or herself from the obligation.

is the possibility to trade with leverage. Leverage is a tool specific to the futures market that provides traders with the power to control a high value contract with a much smaller investment through the use of borrowed capital. This gives the trader additional purchasing power and allows them to control larger positions with minimal capital risk.

Stocks represent a percentage of ownership in a company or group of companies. By investing in a stock in the market, the buyer exchanges money for the ownership of a part of a company. In this way, the purchaser becomes a shareholder in the group that owns the company.

When a company or group requires more capital to expand or improve its economic situation, a certain portion of the company or group is often put up for sale. In this way, whoever buys that portion becomes the beneficiary of its profits or responsible for its losses, depending on the proportion of ownership, as the shares increase or decrease in price.

lies in the condition of being an owner or not, since by being a buyer of a futures contract one does not become an owner of the underlying asset. On the contrary, by buying a stock, the new owner becomes exposed to the performance of the company in question.

There are different types of stocks that can be purchased on the stock exchange. The type of stock purchased determines the degree of power, profit and participation that the buyer has over the company or group of companies, as well as the rights he or she has over his or her share.

The price of the stocks is initially calculated based on the total capital contributed by the initial partners divided by the number of shares to be issued. However, once they enter the stock exchange, the price of these will be subject to the law of supply and demand.

In this sense, speculation on stock market values follows the same logic as speculation on the futures market. However, following the 

comparison, the price at which stocks are bought or sold is totally determined by the market, while futures agree on a price for a given date, regardless of the value it takes in the market at that time.

, one of the biggest differences lies in the ownership of the asset being traded. This can be seen as an advantage or disadvantage, depending on what happens in the market.

On the one hand, it usually takes more money to buy stocks than to trade futures. At the same time, if the value of the stocks rises, whoever owns a part of them will tend to make bigger profits than other types of investors. On the other hand, if the value of the stocks goes down, he or she will see the bigger losses as well. In this sense, exposure to market volatility is greater.

When trading futures, you can speculate without being the owner of the asset and the obligation that comes with it. For example, you can speculate with gold or oil without actually owning these types of assets, which tends to be very expensive.

 gives traders the opportunity to trade with leverage. And what do we mean by leverage? Well, leverage is the ability to control a high value contract with a much smaller investment through the use of borrowed capital. This gives them additional purchasing power and allows them to control larger positions with minimal capital.

At the same time, high leverage means more risk, because just as it can result in more income, it can also lead to a bigger loss. While leverage is what makes futures trading so opportunistic, it is also extremely crucial that traders understand how it works, as well as the role of margins in 

In this sense, we can see that when facing the 

 we can definitely see some similarities. Both are variable income assets, so they do not assure profitability to those who invest in them, since they are subject to market volatility.

However, trading futures allows the commitment to be made for a specific time, and in a proportion according to the trader's available money, since there are different contract sizes. In contrast, stocks have a fixed value and imply the total possession of them, at least until they can be sold.

Nevertheless, both the futures market and the stock market have liquidity. This means that there are a large number of buyers and sellers willing to trade, which facilitates faster transactions and the possibility of obtaining good prices.

Do keep in mind, futures have the additional advantage of making it possible to trade almost around the clock: 7 days a week and almost 24 hours a day. As for the stock exchange, it usually has more restricted hours, according to each country.

, it is worth noting that the investment in stocks is long term, while in futures it can be both long and short term. This makes the futures market more flexible to the needs and strategy of each trader.

Either of these two investment methods requires prior study, perseverance and discipline to see favorable results in one's personal finances. In our opinion, the futures market offers some advantages that distinguish it from the rest of the investment methods available.

 so that every trader can test their capabilities in futures trading with fair and clear conditions. Thus, you can decide between 

 by testing one of these alternatives without risking your own capital.

Futures vs stocks and what sets them apart? Both are well-recognized and widely used investment methods in the financial market that have so many significant differences.

Understanding Futures vs Stocks

 you have at disposal is definitely something you want to have in mind before getting started. It is important to have an initial capital that allows you to participate in the market of your choice, while following the strategy you prefer, and at the same time it shouldn’t be part of the budget you need to sustain yourself for your day to day living.

Futures trading is an activity that can help to increase your income, which is one of the reasons why so many people are interested in getting started with this type of investment. However, it is also an activity that you want to make sure you fully understand and will have a 

, so it should not be made without prior deliberation and a lot of studying.

In order to start off on the right foot, one of the things you want to understand is how much should be taken into account to have the proper amount of 

. Knowing cost, alone, is going to allow you to make the right decision for yourself when it comes to choosing the right market for you to trade. For example, it will cost a lot less for a trader to get started with micro-futures contracts than it would to start with the standard futures contracts.

Each market, broker, strategy and trading objective requires different amounts of money, so you can find what fits best in your budget. Thanks to this, you can start trading with a smaller account and grow both in the capital obtained for yourself and in the capital that you have available for further investments.

Below, we will share with you some of the most important factors to consider when defining how much 

Among the financial markets you can choose to invest in, there are some that require more money to start trading. Particularly, this divide is very evident between regulated and unregulated markets.

Regulated financial markets are those that are subject to supervision and regulation by the financial authorities of the country in which they operate. These authorities establish rules and requirements that market participants must comply with, in order to protect investors and guarantee market stability.

The stock market and the futures market are two well-known examples of these types of markets. To trade stocks, the amount required to get started can be very high; generally around $25,000. But in futures, the requirements are much lower; as low as $500.

As can be seen, within the regulated markets, the amount of 

is much lower than that required by other financial markets. This is possible thanks to the leverage, which allows to have a high profitability with a low investment.

However, this characteristic of the futures market also increases the risk to which traders are exposed. For this reason, although starting 

 is not that much, it is important for traders to have a cushion that allows them to cover expenses in case a trade does not go as planned.

In this sense, leverage does give the possibility of higher profits with a smaller investment, but it also opens the possibility of larger losses, which you will really need to make sure you are prepared for.

Now, another type of existing financial markets is the unregulated one. In these types of markets, as in Forex, there is no supervision or regulation by financial authorities. This can make them more flexible and less costly for traders, but they can also be riskier and less transparent.

In relation to the latter, we can see that the quantity of 

 can really be lower or higher and sometimes the risk is more, while other times the risk is less. Everything will depend on the decisions you make when investing, for which you should be well informed beforehand.

As you probably know, futures trading is an activity that requires prior knowledge and understanding of the market you’re trading.. The vast majority of traders emphasize this point, since starting to invest without the proper knowledge can lead to frustration and giving up on the dream of trading.

When trying to decipher the necessary amount of 

that you should set aside, don’t forget to include the learning phase. Whether you learn through courses, books or self-taught, it will take time and money. Nowadays, it is very viable to make a self-taught path in this area, as long as you have spent the time to learn from your journey in order to make profitable trades.

Just keep in mind that, with a good education, you will be able to start trading with a previously defined strategy. This will guide you not only to choose the best market and the most suitable asset, but also to align your actions to certain objectives, which can put you on the path to success.

you will need. Roughly speaking, in long-term strategies you can invest little by little, but you will not see profits for a long period of time. For this reason, you may spend quite a bit of time in expenses that will accumulate before you see a profit.

In contrast, a strategy such as day trading can give you short-term profits with investments that do not have to be anywhere near as significant. It all depends on the size of the contracts and which markets you decide to trade.

If you are a beginner trader, you probably don't want to risk lots of money on a single trade in the futures market. E-Mini and Micro E-Mini contracts are good alternatives for trading, with an exponentially lower economic pressure.

Mini and Micro futures are handled in the same way as standard futures, with the difference that traders can gain access to the markets with a much smaller amount of 

Microfutures are futures contracts in a smaller version, which allow trading for a fraction of the capital required. Like any other contract within the futures market, microfutures agree to trade an asset on a specific date and at a specific price.

 is much less with this type of contract than with standard contracts, but there are still certain expenses that are part of any futures trading operation, such as the margins.

Margin in futures trading is a method used by brokers to hedge against losses they may incur from owning a particular asset. To open and maintain a position in the futures market, a trader must pay this margin.

The initial margin price for opening a position can vary widely depending on the market and the size of the contract you are trading. Generally, it represents 5% of the total value of the contract, but it can vary.

 should not only contemplate the initial margin, but also the maintenance margin. It is necessary to pay the maintenance margin to keep the position open, and its price may vary according to the market situation.

As you will see, within futures trading, many values depend on your particular decisions as a trader, so we cannot give you concrete numbers without knowing your profile beforehand. However, knowing about these factors can help you to study them thoroughly before deciding to make an investment.

It is important that you always have at least a slightly larger amount of 

 than is strictly necessary. This way, you can be prepared for any unforeseen event.

A key factor in calculating the budget you will need for trading is the short and long term goals you set for yourself.

Your Goals and Your Money to Trade Futures

When you start trading, it is important that you define goals that fit your strategy and that you can achieve. Many people expect to make large sums of money as soon as they start trading, and that, for the most part, is not the case.

For that reason, it is essential that you do not spend all your capital trying to make the market behave to your convenience. You should be guided by the knowledge you have acquired before you start, be consistent with the trading plan you have designed and understand that your goals will be adjusted to your level of available 

It is true that some traders make huge sums of money with just one move, but it is also true that those same traders probably have a huge amount of capital available for trades and extensive trading experience to know how and when to open or close a position in the market.

In their beginnings, those same traders surely did not make those same investments. Everyone must go at their own pace and with their own method, and it is very valuable to be able to do so without risking all your capital at once. For that reason, we recommend that you begin your journey as a trader with a funding test.

 for you to test your trading capabilities without risking your own capital. This way, your amount of 

 will not be a limiting factor for your potential as a trader.

The money to trade futures you have at disposal is definitely something you want to have in mind before getting started.

How Much Money Do I Need to Trade Futures?

 is a tool that allows access to the futures markets in order to visualize movements and make investments in a time period no longer than one day.

All traders, regardless of the investment strategy they apply, can operate from these 

 that will provide them with data to make informed decisions.

 is a short-term investment strategy, mostly used in more liquid markets.

 is to make profits from these rapid market movements by opening positions that usually last from a few minutes to a couple of hours.

 lies in the high speed at which prices move in the markets where this strategy is used.

If it does not provide accurate data together with indicators that help to make quick decisions, the 

 account, you will be able to trade with the 

 of your choice, as we work with the most popular ones, just as long as they support RTrader data.

, it is important that you take into account certain characteristics which are necessary for you to be able to perform at your best in your operations.

, since it must be agile and stable to allow the execution of fast and accurate operations.

 that offers accessibility from different devices so that you have alternatives to access from your cell phone, computer or any other device you prefer.

 allows you to customize its tools to suit your preferences and needs as an operator.

 should include advanced technical analysis tools to help traders identify price patterns and trends. It is important that you can view charts and tables that allow you to speculate on the price action and thus know when it is convenient to open or close positions in the market.

 must provide you with accurate, real-time market data to enable you to make informed decisions.

: it is important that you check that the commissions and fees are reasonable in order to minimize the costs of trading. However, you should not choose the cheapest one just for the sake of it as not all of them offer the same tools. You can look for one that provides you with the information you need without charging excessive fees.

Knowing all this and taking into account your preferences, objectives and conditions, you can choose the 

However, we will mention some that, in our opinion, are the best for trading and that we recommend to all traders who join 

. It is one of the leaders in the market, with more than 500,000 traders who find support in its 

 to trade different types of financial assets.

Something important to highlight is that it is a free 

 from which you can visualize and analyze the market, elaborate advanced charts, develop trading systems and simulate operations. These tools allow traders to discover opportunities with potential for trading.

 makes it possible to trade 24/7, since the schedules of the different markets in which you can invest from the 

 are different, with the possibility of automating stop, limit and trailing orders.

 suitable for traders of all levels, whether they are just starting out or are experts in the area.

 that we recommend the most to our traders because it has a powerful and easy to use 

, in addition to having first class support.

 is one of Rithmic's applications, a data feed service that serves as an intermediary between traders and 

It provides access to fast, accurate and reliable data flows, bringing security and accuracy to traders' operations.

A great advantage of Rithmic is its process, which offers its traders the possibility of "storing" orders, so that you can demand the guarantee of a price for a given order even if you are not in front of the computer to do so.

It offers the possibility of viewing the current and actual quotes in the investment markets, as well as the volume of transactions carried out.

On the other hand, this same application allows you to place, modify and cancel orders and view standard statistics such as your past performance, positions and risk limits.

 do not have the option to view charts, an essential feature for every trader.

Those who use it most probably need a second screen to access their charts from another 

. The latter is one of the big differences in comparison to the other 

 offers the same functionalities as the previous one but with the option of accessing charts from the 

 and with the incorporation of Microsoft Excel in the interface to enable you to manage your trades and create your own, customized indicators.

A great attraction of this version is the convenience it offers traders, as they can set up and send trades from within Excel, as well as activate automatic trades for those who wish to implement a trading strategy based on algorithms.

At the same time, when viewing charts, this 

 allows you to draw trend lines, shapes, fans, arcs and any common visual signals you prefer.

You can also manage primary and secondary studies, and add technical overlays you have created or used from the pre-programmed selection.

 has about 100 pre-programmed indicators, although more experienced traders usually prefer to do different ones independently.

Another valuable aspect of this version is the ability to access the 

 via a mobile application. This gives traders the freedom to consult charts, market activity, order flow and order history.

In this way, you will be able to travel without losing sight of your operations and new market opportunities, although for the moment it is not possible to place orders from your cell phone.

, available for any trading strategy. You can start trading on them by accessing one of our 

They are designed to offer fair conditions to all traders, regardless of the strategy they prefer to follow. Try them to do trading in your own way, without risking your capital.

Day Trading Software is a tool that allows access to the futures markets in order to visualize movements and make investments.

Best Day Trading Software

 if you start doing it for the right reasons and with the proper mindset.

Depending on what your goals are when you start 

 with new learnings that will help you become better or you may end it frustrated and upset.

Chances are, if you've done a little research on 

, you've encountered a practice that gives freedom to those who do it. And if someone else can do it, why couldn't you?

However, there are many people who enter the futures market to trade out of a need for quick cash. Just remember, 

 out of necessity such as this is usually not very successful.

 work, you've lost before you start. This may seem a little harsh to some, but it is better to know beforehand than to enter with false expectations and be discouraged at the first trade executed.

, especially in the early stages of a trader's career.

It is important that the transition in your livelihood is not so abrupt: you should build up experience before becoming dependent on 

In this way, you will be able to see losses as learning instances and not as a large-scale failure.

Therefore, if you are thinking of entering the world of 

, it is better that you are clear about some previous questions.

Once you know them, you will discover an activity that can be exciting and profitable, where anyone can be successful if they have perseverance and discipline.

Futures Trading is All About Psychology and Attitude

A large part of the reason for success among many traders is their ability to adopt the right attitude when 

, as well as to control their mind and emotions, or at least their reactions to them.

 is not to be dominated by desires and anxiety.

In relation to this, one of the most common mistakes when starting 

 right away, without studying or testing yourself first.

When such a start is made, there always comes a moment of waking up to reality.

Now, this can be a great learning experience, but it can also be a moment of confusion and frustration.

The latter tends to happen because of being overconfident and simply rushing to get results immediately.

 requires some time to study and learn, and that is why it is not advisable to start 

One piece of advice we can give you: focus on the desire to learn about

 and not on the desire to profit from it.

When operating in a market without prior knowledge of it, it is possible to get a lucky break.

But keep in mind that it is also very likely that the market will behave in ways that you do not fully understand and that will lead you to make the wrong trades.

In the same way, when you feel that you know a market completely, that you have mastered it, is when you can run the most risk.

Overconfidence can work against you because, in 

, you are constantly learning due to the fact that the market changes continuously.

 is an activity that requires the ability to act quickly, while remaining calm.

Nevertheless, it also involves taking risks, while being very careful. So to manage the combination of these polar opposites, you need knowledge, practice and management of your mind and emotions.

Successful traders are not driven by the fear of losing, nor by the greed of always wanting to earn a little more.

This allows them to close their positions at the right time, without rushing or waiting longer than convenient. It is important to understand that risk is part of 

In fact, it is an activity where it is normal to fail. You must accept failure as part of your day-to-day business and keep it under control.

If you have found it to get out of control, it may be time to change something in the way you trade.

There are quite a few common mistakes that new traders make when getting started, all with particular consequences in the results obtained and all learning experiences to create better habits for their 

How Does Your Mindset Affect Your Operations?

Among traders who are starting to operate in a futures market, one of the most common mistakes is to take monetary losses as personal failures, which end up affecting them emotionally.

Therefore, it is important that you do not get emotionally involved with the trades you make, even if it is difficult at first.

Yes, it is likely that you could have done things in a different way that worked out better for you, but, as we said, risk and losses are an inevitable part of 

 don't emotionally affect you for the worse, you shouldn't allow those decisions to lead to overconfidence either.

It is very common for inexperienced traders to find information to support their theories without having seen both sides of an argument.

Therefore, it is advisable to remain neutral, without taking sides on a decision, until you have analyzed the whole picture, with its positive and negative aspects.

The same is true for past experience. You should not let your past 

Learning from your mistakes and successes is important, but even more important is staying current and knowing that things are constantly changing, especially in markets with high levels of volatility.

In this sense, the best recommendation you can take would be to design a 

 that fits your way of carrying out the activity and that will be nurtured by the learning you achieve day by day.

, especially today. A few years ago, the only way to do it was with a personal account, with your own capital.

Fortunately today, that scenario has changed for the better. Most experienced traders have had to go through "reality shocks", which have led them to become more cautious and make certain adjustments in their approach to 

For this reason, many that have experienced that have recommended going through a funded testing.

This is the evaluation period offered by some platforms to be able to have access to financing for 

During the funded testing process, traders do not operate in the real market, but start to take part in a simulation of 

, where exactly what happens in the real market is reproduced.

Using this method, as a trader, you can have access to the futures market with a small investment. This allows you to test your 

 without risking a large amount of money.

This way, you will be able to make the necessary adjustments in your operations, according to the results you obtain with real market data.

Best part is, you are able to do this without the risk that you take from funding your own account, thus reducing the anxiety and fears that it may generate.

 specially designed to offer fair and flexible conditions to traders, so that they can start 

 on their own terms, following some basic rules that are part of our plans.

This will give you the opportunity to enter the world of 

Perhaps you will also become passionate about this amazing activity that can, not only, change the way you look at money but also the attitude you have towards life.

We want to share with you the talk we had with Yose de los Santos, who told us about his journey in the world of 

, and can surely serve as inspiration if you are thinking of making a start:

 with the right mindset and achievable goals, especially when you are taking your first steps.

Futures trading is a good idea if you start doing it for the right reasons and with the proper mindset.

Is Futures Trading a Good Idea?

 to buy or sell an asset at a specified date in the future for a fixed price.

It is a financial asset that is part of the derivatives market, which means that the contract takes the value of a separate asset: shares, commodities, indexes or cryptocurrencies; and subsequently, through speculation, a price that it could be in the future is agreed upon.

At the beginning of monetary exchange, goods were often bartered or "traded" in exchange for payment. Over time, buyers of goods realized that they needed some goods throughout the year, but not right away.

 was originally created in the 19th century under the name of "forwards" or "futures market", with the aim of protecting raw material producers in periods of concentrated supply (harvest) and in a market with highly variable prices throughout the year, which made the work unattractive.

When it comes to trading, futures are financial contracts to buy or sell an asset at a specified date in the future for a fixed price.

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