The stock market offers a glimpse into the future with “stock market futures” contracts, also called “equity index futures” or simply “futures”. To understand how these instruments work and how you can harness a financial superpower, continue reading to learn more.
Stock market futures allow stock traders to trade the direction of the underlying equity index and can also assist with hedging equity positions you hold in your portfolio. They can help you by serving as a leading indicator for the stock market’s direction.
To say futures might predict the stock market’s direction would be misleading. While stock market futures signal the intended direction of the market, they more so act as a bet on the direction the market will likely head in the future.
If you want to trade stock market futures, you will need an app which allows you to transact based on your research and inclinations. The following list of the best apps for stock market futures trading will allow you to place futures trades alongside other investing transaction types.
TopStep is a fintech firm that evaluates your trading performance with real-time simulated accounts. If you manage to pass the company’s evaluation, you can earn access to a funded account worth $30,000 – $150,000 which you can trade futures contracts using the firm’s capital.
The company’s thinkorswim platform contains a large array of investing tools, including paper trading, Earnings Analyzer, charts with almost 500 indicators (like customized candlestick patterns), backtesting and historical market replays.