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Futures Basics·Beginner· 4 min

What are futures?

A calm walkthrough of what a futures contract really is — no jargon, no scary math.

The idea in one sentence

A futures contract is an agreement to buy or sell something at a fixed price on a future date. Traders rarely hold to delivery — they use futures to speculate on price direction with leverage.

Why traders use them

Futures let you trade indexes, commodities, and currencies with a small deposit (margin) and near-24-hour access. You can go long OR short with equal ease.

What you'll trade in this app

This app simulates NQ (E-mini Nasdaq-100) and MNQ (Micro E-mini Nasdaq-100). Both track the Nasdaq-100 index — MNQ is 1/10th the size of NQ, so it's the beginner-friendly version.

Watch it on the chart
Chart breakdown
FUTURES CONTRACT · agreement today, settle laterTODAYagree price = 18,000EXPIRYsettle vs markettraders close BEFORE expiry · no delivery
A single NQ candle: what each price move is worth in real dollars.
Key takeaways
  • A futures contract is a price agreement, not a stock.
  • You can go long or short — direction is symmetric.
  • Leverage magnifies both wins and losses.
  • MNQ is the smaller, safer sibling of NQ.
Quick check

Which of these best describes a futures contract?

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Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.