First, let’s clear up one misconception: From a strategic perspective, there’s really no difference between stock and futures. Generally, the same approach used to exploit trading opportunities in stocks can be applied to futures, and vice versa. Whether it’s Boeing stock, Nasdaq 100 futures, or gold futures, the market can go up, down, or sideways, so in that respect you pay your money and take your chances.

However, futures do have characteristics that make trading them slightly different from trading stocks: In addition to low margin requirements, futures are contracts, which, like option contracts, have a limited life span.