If the Fed is one of the most influential voices in interest rate pricing, then how can interest rate markets move lower on the actual day that the Fed hiked rates? Futures and options have a time component that requires traders to think steps ahead, and you can see by the price action in S2Y futures leading up to the actual event that this hike had been…
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Neutral Trading Strategies for an Inactive Market
What do you do when the dust settles, the smoke clears, and you’re left with middling markets? After quite a volatile May, June has seen the stock market bounce back (albeit slightly) and the US dollar cool off..
Technical Analysis 101: What Is the Parabolic SAR?
Active traders have a vast array of technical tools and indicators to deploy. One of the most basic and useful is the parabolic SAR (PSAR). In this blog article, we’ll answer the question “What is the parabolic SAR?” and break down its applications in the live market. What Is the Parabolic SAR? Developed by technician… Read more.
What Are CME Event-Based Contracts?
Since its inception, the Chicago Mercantile Exchange (CME) has been an innovator in the trade of financial derivatives. From its lineup of E-mini equities to cryptocurrency futures, the CME provides active traders with a wide variety of alternatives. Read on to learn more about the new event-based contracts and how they may help you achieve… Read more.
Probabilistic Modeling for Trending Markets
Many mathematicians start with the same, single assumption when they commence any probabilistic modeling: the probability of a market moving higher or lower on any given day is 50%. Though this may seem oversimplified…
The Power of the Call Option
The wide world of options can open up an everyday trader’s portfolio to P/L fluctuations unseen in the outright world of shares and futures. You can take advantage of large moves higher while only putting up a small, set amount of capital by buying calls. You can make money from a particular market’s demise without the risk of going short by buying puts.
Stock Trading vs. Stock Investing: What’s the Difference?
When it comes to making money in the world’s equities markets, there are two strategies: stock trading and stock investing. Each has a unique functionality and a distinct collection of pros and cons. Read on to learn more about the stock trading vs. investing dichotomy and which may be best suited for your financial objectives.… Read more.
Trading Corn Futures: What You Need to Know
Agriculture futures offer market participants a vast array of hedging and speculative possibilities. Whether you’re trading Chicago Mercantile Exchange (CME) soybean, wheat, or live cattle futures, there’s always a deep, volatile market at your disposal. Some of the best opportunities for ag traders are in the corn futures market. Read on to quickly get up… Read more.
Three Easy Ways to Buy Gold and Silver
Most New Year’s resolutions are doomed from the start. You create too lofty a goal that must be accomplished in 365 days and usually commit too intensely in the first 30 and fall too easily back into bad habits by day 100.
When to Use Short vs. Long Futures Commodity Contracts
In the live futures markets, a trader has two basic choices: buy or sell. When you buy a futures contract, you are “going long” the market in the hopes that prices will rise. For most people, this is the traditional, intuitive mode of capital investment. But what does it mean to short a futures contract?… Read more.