Is trading futures more risky then trading stocks ? Most would answer "yes" to this question. If define risk as the % amount of your capital you put on the line then futures are NOT more risky. Suppose you use a leverage factor of 5. What you actually achieve is that you amplify small movements with a factor 5. In fact it is lile you are travelling in a time machine, you can make the same return in a time period that is 5 times smaller then somebody who is not using leverage. Futures are just regarded as more risky because you win quicker money or lose it quicker. "quicker" refers to the time factor. One guy uses no leverage and put his stoploss at 2 % of his capital, another uses factor 5 leverage and put his stoploss also at 2 % of his capital so they BOTH risk the same amount of their money, the last one is not taking more risk because he uses factor 5 leverage then the first one. The extra risk for the one with leverage factor 5 is the execution risk that the market blows through his stops. Again, the leverage factor you use is the factor at which you travel more fast through time.