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.
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What’s Your Margin to Equity Ratio?
A futures contract is a highly leveraged financial derivatives product. And, while the added leverage boosts the trader’s capital efficiency, it can also lead to exorbitant losses. Two ways that astute traders manage their use of futures leverage are with the margin to equity ratio (ME) and the margin equity percentage. What is margin equity… Read more.
Using Options to Profit from Time Decay
Stocks, forex pairs, cryptocurrencies, and futures contracts provide active traders countless opportunities. Given the diversity of alternatives, one question rises above the rest: Which market should I trade? Let’s take a look at two of the most popular assets out there—stocks and futures—and the reasons for trading each. Why trade futures? A futures contract is… Read more.
Why Trade Futures vs. Stocks?
Stocks, forex pairs, cryptocurrencies, and futures contracts provide active traders countless opportunities. Given the diversity of alternatives, one question rises above the rest: Which market should I trade? Let’s take a look at two of the most popular assets out there—stocks and futures—and the reasons for trading each. Why trade futures? A futures contract is… Read more.
E-mini Russell 2000 Futures FAQs
The Russell 2000 (RUT) is a publicly traded equities index that is composed of a diverse cross-section of U.S. small-cap companies. Featuring listings from sectors such as healthcare, technology, and consumer discretionary, the RUT’s performance hinges on the values of growth-oriented stocks. Although the Russell 2000 is not as well known as the Dow Jones… Read more.
3 Primary Market Drivers of Cattle Futures Prices
The Chicago Mercantile Exchange (CME) offers a variety of agricultural futures contracts for public trade. From grains to livestock, hedgers and speculators alike have access to a diverse array of alternatives. Two of its premier offerings are live and feeder cattle futures. Let’s take a look at three key drivers of cattle futures prices. 1.… Read more.