Timetraveller, futures do have a lower and upper bound ranges but that is mostly in agricultural futures. It is called limit move. If the market moves limit-down and you are long the underlying, yuou are screwed. You might not be able to exit the position on time and will lose a lot of money. With index futures, there is no lower or upper bound ranges and since the index futures are pretty liquid, you can get out with a loss if you are wrong. Regarding your question about getting in on derivatives trading. Here is what you need. A degree from one of the top 10 schools with a very high GPA. If your major is Maths, Statistics, computer science, physics and as such, it will help. The top firms want a Phd to manage their derivatives desk. Most of the time is spent buliding models to figure out the right price. The pay is based on performance; either you make a load of money or you're fired. There is no in between.