Thread by @jordanfogel

I've traded options for 4 years

Futures for 2 years

So....

Which one's better?🧵👇

Let's first go over options

The main pro for options is that you get insane leverage

You have the ability to make a lot of money, from only a little

You also have the opportunity to get very high R/R trades

For example, if you buy a call option:

You could risk 100% of the call and target 1,000%

It's not easy but there is still the advantage of taking a 10R trade

You can also leverage the opportunity of using complex options strategies

Trading iron condors allow you to take advantage of neutral price action...

Which you can't do with any other instrument.

By selling spreads, you can make money strictly from time

...even if price doesn't move in your favor

Futures have very high leverage as well.

Depending on your broker, you can practically trade Micro futures for as little as $40 margins.

The one disadvantage to futures is that there are a limited amount of futures to trade

With options, there are TONS of stocks/setups to look through

With futures, not so many

Futures are also very highly liquid with low spreads

Options can have big spreads resulting in a loss right when you get into a position

So which should you trade?

Both.

There is no right answer for which one to trade

They both have advantages and disadvantages that will impact your trading depending on your strategy

My advice is to test both and see which one you like better

I started with options, went to futures, and am now back on options

I'm sure in the future I'll dabble with futures again (haha, get it.)

What matters is that you have a plan in place for each trade you take

It's more about the psychology and execution of a trade rather than the vehicle being used to trade.

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