The advantage of futures trading is that there is a large amount of leverage per contract. Most contracts you will trade cost between $500 and $1,000 in margin so you don’t need a lot of capital to make a trade if you are trading intraday, unlike options contracts in stocks that have premiums that make it hard to overcome in order to earn a profit. In addition, commodities will eventually find market balance. For example, oil will never go to zero because producers will not drill for it if the price drops too low, nor will it rise too high because the consumer will stop buying it above a certain price. In the alternative, a stock can go to zero. Understanding market balance is a key factor in trading futures contracts. Markets work on the basis of Action and Reaction, meaning there is usually a quantifiable reaction that you can project based upon the prior action of the markets. Understanding Action and Reaction swings is the basis of our strategy.