Are Futures Really Riskier Than Stocks? — A 10-Year Trader Breaks It Down With Facts Only
"Futures? Isn't that how people lose everything?" Nine times out of ten, that's the reaction I get when I tell people I trade futures. But doesn't that strike you as odd? The futures market is where the world's biggest money flows every single day — Goldman Sachs, JP Morgan, central banks, and pension funds around the globe all participate in it. If it were truly a "market of financial ruin," why would the heart of global finance be beating right there? Today, let's strip away emotion and prejudice and examine, structurally, whether futures are really riskier than stocks. Here's the conclusion up front: What's dangerous isn't the product called "futures" — it's the unprepared person. 1. In a Market Like This, Long-Only Investing Is Half an Investment The Limits of One-Directional Betting in the Age of Volatility Look at the market right now. Geopolitical risks — Russia-Ukraine, the Middle East — have become the norm, an...