Futures trading offers no time decay, better liquidity, and simpler pricing compared to options. It’s a preferred choice for trend traders and those who want straightforward execution.
Do you trade futures?
What’s your experience—better than options or not?
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Only in the commodity segment, I do futures because of low liquidity in options.
Futures have higher cost of transaction than options
For overnight positions naked future trades have a higher gap risk
For long positional future trades we do lose out on cost of carry decay
So I prefer to do options only in the equity segment. Here options have sufficient liquidity.
Over a fair number of trades the effect of the time value in long options is insignificant, if we do
- Momentum trading where we get in and get out fast
- Lower Accuracy positional trend following trades where time value helps us to lose less when market is against us. Also during adverse gap events the worst case loss is small and well defined at the time of trade entry.
Futures position is extremely helpful for the short side since naked selling isn’t allowed in equities. On the long side, err, not so much.
Options = Death. 
I trade equity derivatives through options and commodity derivatives via futures. While I’m a big fan of options, there are undoubtedly some advantages that futures have over options.
I often say that in the market, being right or wrong isn’t in our control, but being objective or subjective is. That’s where futures stand out—they are not a grey area like options. With futures, you’re either bullish or bearish—nothing in between. However, with options, especially if you understand delta, you realize you’re never fully bullish or bearish; you’re always somewhere in between, like a pendulum.
Futures offer linear risk and reward, making hedging with stop-loss orders simpler. One challenge I’ve consistently faced with options is deciding stop-loss levels, as I’m often left uncertain. Choosing the right strike price is another issue, particularly for beginners, adding to the complexity of options trading.
While these factors give futures an edge, options maintain a larger fan base, likely due to their ability to hedge positions partially and remain flexible, being both partially bullish and bearish when the trend is uncertain.
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