TL;DR: Futures trading involves contracts on regulated exchanges, offering price transparency and risk control, while Forex (CFD) trading is decentralized with flexible position durations and higher leverage.
Futures are contracts that let traders agree to buy or sell an asset at a set price, but on a future date. Instead of owning the asset, traders speculate on whether its price will go up or down. This makes it a popular choice for trading commodities like oil, gold, stock indices, and even currencies.
Futures allow traders to either protect their investments or take advantage of market shifts for potential profit. It's a way to gain exposure to big markets without having to actually own the assets.
At FundedNext, we offer traders the chance to trade futures using simulated capital. This means you can focus on refining your strategies without the risk to your personal finances. Profitable traders enjoy keeping a share of their earnings while benefiting from a well-structured, risk-managed environment.
Futures vs. Forex Trading: Key Differences
Feature | Futures Trading | CFD (Forex) Trading |
Market Structure | Traded on regulated exchanges (e.g., CME Group, NYMEX) | Decentralized over-the-counter (OTC) market |
Asset Types | Commodity Futures: Crude Oil, Gold, Natural Gas Index Futures: S&P 500 E-mini, NASDAQ 100 E-mini
Currency Futures: EUR/USD, JPY/USD Interest rates: U.S. Treasury Bonds | Currency Pairs: EUR/USD,GBP/USD, USD/JPY
Commodities: Gold, Oil, Silver
Indices: S&P 500, NASDAQ 100 Stocks: AAPL, TSLA Cryptocurrencies: BTC/USD, ETH/USD |
Trading Hours | Exchange-traded with set hours (e.g., CME: Sunday 6:00 PM – Friday 5:00 PM EST), daily breaks, and some nearly 24/6 trading, all subject to contract expirations. | 24/5 continuous trading from Sunday 5:00 PM EST to Friday 5:00 PM EST, with no exchange restrictions but asset-specific trading hours. |
Price Transparency | Centralized exchange pricing ensures fairness | Prices vary between brokers due to decentralization |
Expiration | Contracts have expiration dates | Positions can be held indefinitely |
Regulation & Standardization | Highly regulated with standardized contract sizes and expiration dates | Less standardized, with variable lot sizes and broker-dependent execution |
Futures trading offers greater price transparency, standardized contracts, and built-in risk control, making it ideal for traders who prefer structured markets.
Forex trading provides greater flexibility in position duration and accessibility but comes with decentralized pricing and higher leverage risks.
Forex vs. Futures Instrument Names
Instrument | Forex Symbol | Futures Symbol |
Dow Jones | US30 | YM |
Nasdaq 100 | NAS100 | NQ |
S&P 500 | SPX500 | ES |
Gold | XAUUSD | GC |
Crude Oil | WTI Crude | CL |
Euro FX | EUR/USD | 6E |
Key Terminology Differences
Forex Term | Futures Terms |
Pips | Ticks |
Pairs | Products/Instruments |
Lots | Contracts |
Why Trade Futures with FundedNext?
At FundedNext, we offer traders:
Simulated Capital: No need to risk personal funds
Access to Advanced Trading Platforms: Including Tradovate, NinjaTrader, and TradingView.
Growth-Focused Trading Environment: Designed to protect your progress and support your journey as a professional trader.
Structured Evaluation Programs: Designed to develop and reward profitable traders
Whether you're transitioning from Forex to Futures or just starting your trading journey, FundedNext offers the tools, resources, and support you need to succeed.