There are a number of Financial Exchanges that a trader can trade on. Most traders only consider trading through the New York exchanges, such as the NY Stock Exchange, and the NASDAQ. Most traders have no idea about the advantages of trading through other exchanges such as the exchanges in Chicago; the Board of Trade, and the Mercantile exchange. Here’s a list why you might want to consider trading through Chicago rather than New York. (They’re competitors.) Trader’s are unaware that you can trade all kinds of wonderful markets through Chicago, such as Crude Oil, Natural Gas, Wheat, Soybeans, Corn, Live Cattle, Live Hogs, Sugar, Orange Juice, and my favorite, all four of the major indexes, S&P500, DOW, NASDAQ, and Russell 2000. (These are just a few of the markets Chicago offers, there are many more fun things to trade!) Here’s 20 reasons why you might want to consider trading through Chicago, rather than New York. 1. No pattern day trading rules: In the stock market, traders who make more than three day trades in a rolling five-day period are subject to the pattern day trader rules, which requires a minimum account balance of $25,000. This rule does not apply to the futures market. Make as many trades as you want in one day, penalty free! 2. No minimum account balance: Many futures brokers do not require a minimum account balance to open an account, which makes it accessible to traders with a small amount of capital. (Extremely tight spreads, easy in and easy out of markets.) 3. Trade with unrealized gains: In the stock market, traders must sell shares to realize their gains, which can result in taxes and transaction costs. In the futures market, traders can hold onto their positions and even trade using their unrealized gains. 4. No waiting to clear: In the stock market, trades can take one to three days to clear, which can be inconvenient for traders who need to enter or exit positions quickly. 5. Leverage: Futures contracts typically offer higher leverage than stocks, which means traders can control a larger position size with a smaller amount of capital. o Contract sizes: The futures market offers a variety of contract sizes to suit the needs of many different traders, including beginners. ▪ Micro-sized contracts, also known as "micro lots," allow traders to control a smaller position size with a smaller amount of capital; excellent for beginner traders. ▪ Mini-sized contracts, also known as "mini lots," are slightly larger than micro-sized contracts and may be suitable for traders with a slightly larger amount of capital. ▪ Standard-sized contracts are the largest and may be suitable for traders with a larger amount of capital, and commercial entities with a higher risk tolerance. o This can be beneficial for traders who want to tailor their position size to their risk appetite and capital availability. This flexibility can allow traders to find a contract size that fits their needs and trading style. 6. Short selling: Futures contracts can be sold short, which allows traders to profit from falling prices without fees, interest or penalties. This is often times not possible in the stock market, where short selling is restricted, and penalized with fees, interest and dividends that must be paid by the trader. 7. Trading hours: The futures market is open for trading 24 hours a day, five days a week, which can be convenient for traders in different time zones. 8. Tax benefits: Trading futures may offer certain tax benefits compared to trading stocks. For example, futures traders can elect to have their profits treated as 60% long-term capital gains and 40% short- term capital gains, which may result in a much, much lower tax rate. 9. Margin: Futures traders maintain a margin account, which is a type of collateral that ensures they have the financial resources to cover any potential losses on their trades. This can make it easier to enter and exit trades quickly, as there is no need to sell shares to cover short positions. 10. Volatility: The futures market can be more volatile than the stock market, which can create opportunities for traders who are able to capitalize on price movements. 11. Diversity: The futures market offers a wide range of contracts to trade, including commodities, currencies, and indexes which allows traders to diversify their portfolio. 12. Liquidity: The futures market is highly liquid, which means it is easy to enter and exit trades without affecting the price significantly. This can be beneficial for traders who need to move in and out of positions quickly. 13. Low costs: Trading futures typically has lower costs compared to trading stocks, including lower commissions and exchange fees. Many traders believe when they trade stocks through the New York markets, they’re paying no commissions. This is a fallacy, the stock exchanges and brokerage firms simply hide their commission inside the spread, as well as other clandestine techniques called front running, this is how they extract their commissions. This is not so in the Chicago futures exchanges. There is no front running, and we have super tight spreads. That said we do have commissions, but they can be negotiated with your broker depending on how often you trade. (This is a good thing, up front and honest.) This also facilitates much faster and cleaner order flow, since your orders are not being sold to another firm to be filled. 14. Regulation: The futures market is federally regulated, which provides traders with a greater level of protection against fraud and manipulation. (Unlike Crypto and Forex.) 15. Expertise: Many traders who specialize in the futures market have a deep understanding of the underlying assets and market conditions, which can be beneficial for those looking to learn from experienced traders. (Futures brokerage firms are generally run by elite teams of passionate and experienced traders, unlike stock firms who generally hire kids out of college with no experience.) 16. Technical analysis: Many traders in the futures market rely on technical analysis to make trading decisions, which involves studying charts and other data to identify patterns and trends. The futures market adheres well to the rules of technical analysis, making it work well for technical traders. 17. Fundamental analysis: Futures traders also use fundamental analysis to make trading decisions, which involves analyzing economic and market conditions to determine the value of an asset. 18. Speculative trading: The futures market offers opportunities for speculative trading, which involves taking positions based on the potential for price movements rather than the underlying value. 19. Hedging: The futures market is often used by producers, manufacturers, and other market participants to hedge against price fluctuations in the underlying assets. This can help reduce risk and stabilize income. 20. Expertise: Many traders who specialize in the futures market have a deep understanding of the underlying assets and market conditions, which can be beneficial for those looking to learn from experienced traders. Futures traders are kind hearted loving people willing to reach out and help new traders, where stock traders are the dregs of the underworld, cutthroat, unwilling to share tactics and strategies. I’m joking of course! ;-) (If you actually got this far, you’re ready to start trading futures.)

Chicago vs New York