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What is Futures Trading?

How does Futures Trading work?

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Written by Support
Updated over a month ago

Futures are standardized contracts in which two parties agree to buy or sell a specific commodity, asset, or security at a predetermined price on a set future date.


Key Points About Futures Trading

  • Traded on Exchanges
    Futures are traded on regulated exchanges like CME (Chicago Mercantile Exchange) and others in Europe and the U.S.

  • Requires a Brokerage Account
    You need a brokerage account that supports futures trading.

  • Market Data Costs
    Futures traders must subscribe to market data feeds, as this data comes directly from the exchanges.
    ​FunderPro Futures provides CME Level 1 (Top of Book) data for free with all subscriptions.

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