Trading futures provides investors with certain benefits that they would not able to take advantage of if they only traded equities.
"The idea about trading futures that most people don't realize is there are tax benefits, you're taxed at a lower rate," said Carley Garner, futures and options trader at DeCarley Trading, a division of the Zaner Group. "It's easier to file your taxes, that's obviously a big deal."
Another benefit of trading futures is that the markets are open almost all day. Garner noted that the CME Group, which is a marketplace offering futures and options products for risk management, closes for about an hour a day. This allows investors and traders to react to any event going on in real-time, which is a "huge advantage," Garner said.
On election night, for instance, Garner said that the S&P futures dipped by more than 100 points. But stock traders were unable to take advantage of the dip because by the time the stock market opened in the morning, the dip has passed.
"As a broker, it causes me stress because I get very little sleep during the week," said Garner.
Watch More with TheStreet:
- Here Is Jim Cramer's Market Outlook for November
- Tag Along on Some of GoPro's Biggest Adventures
- Jim Cramer Reveals His Choice for Federal Reserve Chair
- 5 Times Elon Musk Was Absolute Magic on Twitter