StoneX®

Trade Futures, Spreads and Options with Confidence.

 

How Do I Trade Futures Online?

by | Futures 101

Things You Need To Know

*Note: For the purpose of this blog, I am using the dt Pro trading platform and the associated contract symbols and margins

Contract Symbols — Each futures and commodity contract has its own unique symbol. For example, the symbol for corn is ZC. If you were to see “ZCU4,” that would represent the September 2014 Corn futures contract. The “U” is the month of September and 4 represents the year 2014. The month and year will always be the last 2 parts of futures contract.

Monthly Symbols — Each month in futures trading has its own unique symbol. These symbols are standard across the industry. The commodity month symbols may look confusing, but there actually is a reason for doing it this way. Letters that can be duplicated for an existing commodity symbol are not used. S for Soybeans, C for Corn and so on.

 

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Futures Trading Starter Plan

Monthly Symbols

Jan
Feb
Mar
Apr
May
Jun
F
G
H
J
K
M
Jul
Aug
Sep
Oct
Nov
Dec
N
Q
U
V
X
Z

Contract Specifications — Everything about a futures contract is standardized except its price. Quality, quantity, last trade date and settlement procedure are already determined. This predetermined information can be found by viewing the contract specifications. Exactly how much of a commodity are you controlling with one contract? What’s the minimum price increment? Click here to find the contract specifications for a given commodity and view the contract size, tick values and more.

Contract Margins — How much money do I need in my account to trade a contract of a certain commodity?

Futures trading gives you the ability to use leverage in the markets — meaning you can control large dollar amounts of a commodity with a comparatively small amount of capital. That small of amount of capital required in your account, is known as margin.

There is initial margin, sometimes referred to as overnight margin, day-trading margin (the amount of money you need to have in your account if you are in and out of the market before the trading session ends — it can be half of the initial margin or less) and maintenance margin, which is the amount of money you need to have in your account to hold or maintain a position (note: that if your account balance drops below the maintenance margin level and the market closes, you will be on margin call and will need to reduce or liquidate positions, or send enough funds to the account to get it above the initial margin level required for the contracts you are trading. Click here for a list of the margins for the contracts you are trading.

Trading Hours — Different markets trade at different times of the day. Make sure you are placing your order at the proper time. Click here to know when the open and close time is for each individual futures contract.

Futures Calculator — The math! How much do you stand to gain or lose on a trade? Our Daniels Trading Futures Calculator on our site is a great short cut and resource to get your answer! Check it out here – it’s free and easy to use.

Putting it Together

Now that you have the information you need, watch this short video tutorial I created that shows you how to pull all the information together and place an online trade on our dt Pro platform.

Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

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