Trading Multiple Contracts

Beginning day traders should always start trading with a single contract (or group of 100 shares, or single forex lot), but as they become more experienced, they will be able to trade multiple contracts, and take advantage of the benefits that multiple contracts provide.

When traded correctly, there are several advantages to trading multiple contracts, including increased profit, and improved risk to reward ratios. An explanation of the benefits of trading multiple contracts, along with descriptions of two multiple contract strategies, can be found in the trading multiple contracts article.

Even if you are still a beginning day trader, the information about trading multiple contracts will help you think like a professional trader, which should also improve your single contract trading.