To become a successful day trader of futures contracts, the individual must understand fully how futures contracts work. Given the risk inherent in trading (investments are not guaranteed by the government), most people learn many trading terms, methods of analysis, and other trading facts before they even begin simulated trading ("paper trading"). Jumping prematurely into day trading futures can cause loss of thousands of dollars. However, an individual who begins slowly and learns the futures markets thoroughly will be able to move successfully into simulated trading, followed by day trading with real money.

Learn Futures Trading Terms

To learn how to trade futures well, one must begin with the vocabulary of trading.