Craig Bewick, Head of Retail Education at the CME Group, shares insights on the rise of retail investors in futures trading. He discusses the mechanics of futures contracts and the flexibility they offer compared to options. The conversation also touches on the importance of hedging strategies to navigate market volatility, the burgeoning field of crypto futures, and debunks misconceptions surrounding leveraged ETFs. Bewick encourages listeners to take advantage of educational resources to deepen their understanding of this dynamic trading landscape.
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insights INSIGHT
Why Retail Traders Love Futures
Futures attract retail traders because they offer capital efficiency and lower margin requirements than equities.
They also trade nearly around the clock, increasing accessibility for active traders.
volunteer_activism ADVICE
Manage Margin Like A Performance Bond
Treat futures margin as a performance bond, not a loan, and expect daily mark-to-market adjustments.
Monitor maintenance margin and be ready to add funds when positions move against you.
insights INSIGHT
Futures Give Direct Market Exposure
A futures position has a delta of one, giving direct long or short exposure comparable to holding the underlying index.
Options add non-linear payoff and can expire worthless, unlike straight futures exposure.
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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Ben Carlson are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. See our disclosures here:
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