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Day Trading Futures vs. Day Trading Stocks
No Downtick Rule
With Futures there are NO downtick and/or short sale rules as found in daytrading equities. No boxing of positions and no bullets. You can instantly short anytime at any price.
Tax Advantage
Commodities are taxed differently than securities. The net gain or loss from trading commodities is reported on schedule D (capital gains and losses); 60 % of the amount is taxed as a long-term capital gain and 40% is taxed as a short-term capital gain. Active Securities Traders have all gains taxed as short term vs. commodities traders who have the above treatment.
24 Hour Market Access
With Electronic Screen traded E-Mini Contracts you can access the market during regular equity trading hours, after hours and during the night. This makes trading news easier as many news events happen after 3:00 pm and late in the afternoons.
More Leverage
You can control more exposure with the same capital than in equities.
Lower Cost Commissions It costs an average of $5-$9 per ticket to actively trade equities, compared with futures where it is $1.26 to $2.00 per ticket – less than half the price.
The Catch?
They can be more risky than equities.
Trading the E-Mini futures contracts can be more exciting and faster paced than traditional equity markets day trading. Your emotional swings can be more excessive with futures because they are so much more liquid than the equity markets that you may be used to trading. And you have more leverage to play with. These products are for professionals only. Please read carefully the risk disclosure forms on this site and all of the risk disclosure forms found in your account paperwork before considering trading futures.
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