Courses 1Lesson 1

Why Traders Trade

At first glance, the answer to this question is obvious.  The simple fact of the matter is that traders

trade, or participate in markets, in order to make profits.  But there are many aspects to this simple

answer.

Let’s look at a few of the most significant reasons for trading futures:

1.

Futures Trading Requires Relatively Small Start-Up Capital

Typically, one can get started in futures trading for as little as $10,000.  In some cases

less capital is required.  Many professionally managed trading pools require from $2,500

to $5,000 for participation.  While most traders are not successful when starting with

limited capital, this is one way to get your foot in the door.

Futures options trading requires even less capital.  Therefore, it is possible for

the individual to begin with an even smaller amount of capital.  In. most other areas,

considerably greater capital is required.

The small amount of capital can work for or against you -- most often against you.