Blue line is facebook, Red line is S&P mini futures. Looking at one day


As you can see the above movements between the stock and the futures contract both look very similar. Both seems to have traveled the same basic percentage during the day.




Lets compare and see difference when trading a stock or trading a future:


Stock Trade

Stock $205.50 start of day

buy 100 shares = $20,500.00

with margin $10,250.00 in cash needed

Stock moved to $200.00 making $5 * 100 shares = $500.00 profit


Futures Trade

Futures $2846.00 start of the day

buy 1 contract = $3,000.00 (changes a little time to time)

Day margin sometimes give you control of contract for less

Future moved to $2820.00 $50.00 * 26 = $1300.00 profit