The futures market is not the easiest market to understand. Different contracts have different specifications and are all quoted differently. A contract may trade only on one exchange, while two exchanges offer competing contracts on the same commodity. Luckily, beginner futures traders have a plethora of resources at their disposal to learn the markets.

Futures Resources for Inexperienced Traders

The various futures exchanges are a great resource for a new trader to get a basic understanding of the market. Exchanges will have free information that details the specifics of each contract and how they are valued and traded. The Chicago Board of Trade (CBOT) offers free trading strategies for several of their futures products. The exchanges have an interest in educating investors. New traders mean higher volume, which means bigger profits for the exchange.

Futures brokers are another valuable resource for beginner traders. Similar to exchanges, they have an underlying interest in educating investors. Brokers will have detailed information about what a contract is and how they are valued. They will clearly explain the margin requirements and how to open an account for trading.

Finally, new traders can rely on many of the books that more experienced traders have written. One of the best resources for new traders is experienced traders. These traders have made the beginner mistakes and have developed sound trading practices. A beginner that discounts information from an experienced trader is making a grave mistake.