Futures
A future is a contract to buy or sell a specific quantity of an asset, at a price fixed today, for delivery on a future date. They trade on organised markets with a clearing house, which removes counterparty risk. They carry leverage by design: you post margin, not the full value.
By the TradingCalculator.Pro team · Updated on · About us
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Frequently asked questions
What is a futures contract?
A standardised, exchange-traded agreement to buy or sell a fixed quantity of an asset on a future date at a price agreed today. A clearing house stands between buyer and seller so neither depends on the other's credit. It is the oldest and most regulated derivative.
How much money do you need to trade futures?
It depends on the contract. A Micro E-mini S&P 500 (MES) requires roughly $1,200-1,500 of intraday margin; an E-mini (ES), about $13,000. But minimum margin is NOT the sensible capital: trading one MES with healthy risk needs several thousand, because margin does not protect you from loss — it only lets you open.
What is a futures rollover and when do you do it?
Closing the expiring contract and reopening the same direction in the next expiry, to keep exposure without reaching expiry or delivery. It is normally done when volume and open interest start migrating to the next contract, a few days before expiry, to avoid the wide spreads and poor liquidity of the last moment.
What is the difference between futures and CFDs?
Futures trade on regulated markets with centralised pricing, a clearing house and an expiry; CFDs are private contracts with your broker, with no expiry, a price your broker sets and a daily financing cost. Futures are more transparent and cheaper at volume; CFDs are more accessible for small accounts and, in exchange, more expensive and more opaque.
Can I actually be delivered the physical asset?
Only on physically-settled contracts (oil, grains, metals) and only if you hold past the last trading day. Retail brokers auto-close those positions beforehand, but you should know the dates: it is your responsibility, not theirs.