Trading futures with a small account

I’ve shared in other settings that trading futures with a $10,000 account is not ideal.   In fact, if this is your first trading account, it’s downright stupid.  $50,000 should be the minimum.  $100,000 is better.  The primary reason for doing so is the leverage that is inherent in the structure of a future’s contract.  The guys at Tasty Trade do a very good job explaining the difference between trading futures and other instruments that reflect the same underlying economic factors, but are executed differently through alternative instruments.    They do a better job than I explaining it in this video:

 

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