Future of Futures

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THE FUTURE OF FUTURES

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Check out this special section for new ways to embrace futures trading. Easier access and new products are shaking up an old industry.

Bringing Futures Forward As futures trading evolves, contracts are shrinking; now, a new exchange promises to get even smaller By Tom Preston

ALSO IN THIS SECTION: 28 Pit Stories 32 Something Small Is About to Happen 33 Why Millennials Should Love Futures 34 ETFs in the Crosshairs 36 Politics Has a Futures Market

Becoming a modern investor requires buying shares of stock as the first, fundamental step. That could mean buying 100 shares of Apple (AAPL) or investing $1,000 in a mutual fund. But that simplicity belies the enormous legal and regulatory apparatus behind those shares of stock or that mutual fund. Without the right infrastructure, stock trading—and especially mutual funds—wouldn’t exist. Futures, by comparison, are relatively straightforward. Sure, regulations govern futures trading, but an agreement or contract about the price of the future delivery of a product is simpler than ownership in a public company. That’s why trading futures should become one of the first steps an investor takes, particularly in light of recent innovation in futures products—it’s innovation made possible by the centuries-old relative simplicity of futures. Stock trading likely began in

november 2019 | luckbox

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