Benefits of Futures Trading
- No Pattern Day Trading Rule
- Ease of Going Short
- Ability to Hedge
- Diversify your portfolio
Equities margin trading is subject to the pattern day trading rule while futures are not. Futures also do not have the delayed T+2 settlement rule like a cash equity account is subject to. This offers the ability to take advantage of opportunities when they arise.
Initiating a hedge position in the FOREX market can sometimes be difficult especially in times of volatility or if currency pairs lose their correlations. In addition to netting being phased out over the years in the U.S., at times hedging strategies in FX can be limited or less dynamic compared to the futures markets
The futures markets allow you the ability to hedge your positions through a further dated contract or by using options (call or put). Through these strategies a delta neutral position bias can be executed. In addition, currency futures don’t have carry charges unlike the FOREX market.