Stocks vs Futures vs Forex

Have you been wondering about stocks vs. futures vs. forex? When people hear the term day trader’s mention, many individuals immediately think about the stock market. However, day traders are also known to conduct trades in the forex market and the futures market. Some day traders tend to conduct trades regarding options about buying and selling. On the other hand, traders who place their concentration on the options market usually are swing traders. This is due to holding placements for weeks or even days, but not only for part of one day of trading activities.

Stocks vs. Futures vs. Forex

The main difference between stocks, forex, and futures lies in asset types, leverage, trading time, and fundamental impact. A value stock refers to shares of companies, futures are derivatives contracts that derive value from a financial asset such as a traditional stock, bond, or stock index, and forex represents the trading of a currency against each other as exchange rate pairs. Futures and forex trading have higher leverage (for example, typical leverage 1:100 for forex) than stocks trading. At the same time, forex can be traded 24 hours, five days per week, futures and stocks only several hours per day.


Main facts about stocks :

A stock is a type of security that presents ownership in a corporation and represents a claim on its assets and earnings.

Facts about stocks

Facts about stocks

Facts about stocks

If you possess the desire to be successful in your day trading efforts, you must concentrate your learning and your time for practice regarding one particular market. When the time comes that you have achieved the mastery of the chosen market, it is then considered to be a good time to attempt to engage in trying some other markets as well if you wish to do so.

In terms of day trading stocks, it is important to comprehend some primary factors.

Minimum capital for stock trading
According to the United States of America law, there is a minimum commencing capital requirement in the realm of day trading stocks, which has been set forth as being $25000 (twenty-five thousand dollars). To ensure that you have more than the minimum requirement, commencing with the capital for thirty thousand dollars is recommended.

Market hours for day trading stocks run from nine-thirty in the morning until four in the afternoon based on Eastern time. Several day traders also engage in the conducting of trades during the hour just heading out to the time of the market’s opening. As a result of this being the case, this scenario is referred to as the pre-market.

Many believe that the prime time to engage in trades is that the rate of volume and the level of volatility tend to be high. They normally are perceived to be high around eight-thirty in the morning to ten-thirty in the morning and three to four in the afternoon, all based on Eastern time.

Many different kinds of stocks can be part of the trading system. Stocks are permitted to be traded daily, which is what most traders tend to do. Or they may engage in performing research to discover new stocks for the sake of trading on a daily or weekly basis.

With these factors in mind, one will comprehend whether the stock market is where the trader desires to place his or her focus. If someone does not possess capital for thirty thousand dollars, then it is a good idea to engage in trades about futures and the forex. If you cannot engage in conducting trades at the hours regarded as the optimal trading times, then your trading activities will probably not result in the amount of success you would like to see.

Facts about Futures – stocks or futures

A futures contract is an agreement traded on an organized exchange to buy or sell assets at a fixed price but delivered and paid later.

Now when one considers futures regarding trading, it is also important to consider some prime factors. We can easily compare futures vs. stocks day trading:

Facts about futures - Day Trading Futures

Facts about futures - Day Trading Futures

Facts about futures - Day Trading Futures

Facts about futures - Day Trading Futures
The benefit of using futures for the sake of day trading is that there is no requirement in terms of a minimum legal amount. It is advised to commence with a capital in the amount of two thousand five hundred dollars up to seven thousand five hundred dollars if you hope to engage in the conducting of trades in popular futures such as the E-mini S&P 500. When you have more money, this increases the flexibility you possess in terms of the decisions you make regarding trading.


The official hours for trading in terms of the E-mini S&P 500 are regarded as being from nine-thirty in the morning until four in the afternoon. It is also realized that several day traders engage in placing their trades at the time that is just before the market’s opening, which is acknowledged as being the pre-market.

Then in consideration of day trading when it comes to forex, it is imperative to be mindful of some primary factors also.

If you desire to conduct trades related to forex, you will need to possess five hundred dollars as the minimum amount to get started. However, the recommendation is to commence with five thousand dollars if you would like to see a pretty profitable stream of income each month.

forex advantages over stocks trading

forex advantages over stocks trading
As we know, the main facts about forex we can easily compare with stocks (read our article forex vs. stocks):

Forex trades are highly convenient as they can be traded for twenty-four hours per day, from five in the evening on Sunday until five in the evening on Friday. But it noted that not all these times tend to be the best option in day trading.

The prime times for conducting day trading in regard or forex is dependent on the pair that will be traded. The British pound and US dollar combination do well when traded from four in the morning until six in the morning on Eastern time and from eight in the morning until eleven in the morning based on Eastern time.



Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on:

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