How much money do i need to trade futures on td ameritrade

How do I view a futures product?

Futures are traded exclusively on the thinkorswim® platform and Mobile app (available on iPhone®, iPad®, and Android™).

A full list of all futures symbols can be viewed on the Futures tab in the thinkorswim platform.

For illustrative purposes only.


How to read a futures symbol:

For illustrative purposes only. 

Slash (/)
This is used to identify that the product is a futures product in the thinkorswim platform.

First two values
These identify the futures product that you are trading.
ES = E-mini S&P 500

Third value
The letter determines the expiration month of the product.
F = January, G = February, H = March, J = April, K = May, M = June, N = July, Q = August, U = September, V = October, X = November, Z = December

Fourth value
The year of expiration
20 = 2020

A futures contract is quite literally how it sounds. It’s a financial instrument-also known as a derivative-that is a contract between two parties that agree to transact a security or commodity at a fixed price at a set date in the future. It is a contract for a future transaction, which we know simply as “futures.” The vast majority of futures do not actually result in the delivery of the underlying security or commodity. Most futures transactions are purely speculative, so it’s an opportunity to profit or hedge risks, and not usually used to take delivery of the physical good or security for most traders.

There are many types of futures contract to trade. They include:

– Interest Rates
– Metals
– Currency
– Grains
– Stock Index
– Energy
– Softs
– Forest
– Livestock

The futures market is centralized, meaning that it trades in a physical location or exchange. There are several exchanges, such as The Chicago Board of Trade and the Mercantile Exchange. Traders on futures exchange floors trade in “pits,” which are enclosed places designated for each futures contract. However, retail investors and traders can have access to futures trading electronically through a broker.

Written by Jane