Is it easier to short futures than short stocks? Yes, it is easier to short futures than it is to short stocks. In this video I chatted with Director of Sales at NinjaTrader, Walter Sledz about the Ease of short selling in Futures.
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No Short Sale Restrictions
Another common struggle for equity day traders is that in order to short a security, there must be shares available to trade. And there are many reasons why shares may not be available.
In comparison, a futures trader does not have the same short sale restrictions. You can take a short position as easily as a long position.
When a trader shorts a stock, they are required to sell at a minimum of a tick above last traded price. This means in a down-trending market, an equity trader may never get to take a short position, thus losing out on a market opportunity. But futures trader can be short the market just as easily as being long.
As a futures trader, you can express your opinion long or short multiple times a day or week and you do not have to worry about day trading restrictions applicable to equities or the ability to take a short position in the market. So why miss out on another opportunity because of restrictions? Make a move into futures.
Information in this post came from CME Group.
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