The trade of standardized derivatives has gained popularity in recent years. For the first half of 2018, the Financial Information Association (FIA) reported the total number of traded futures and options contracts measured 14.9 billion, up 19.7% year-over-year. Of this figure, options accounted for 42% of the action. If nothing else, options are a premier… Read more.
Futures Trading Education
Andrew Pawielski highlights the long S&P trades highlighted in the MDA premium room. View the 3 long trades in ES @ 2703, 2708, 2714 with trailed risk stopped out around 2723.
No matter how seasoned or talented a futures trader may be, chances are slippage will have been a formidable adversary at one time or another. To minimize the impact of slippage, traders use two common strategies ― streamlining technological infrastructure and developing advanced trading strategies ― but are there other ways to win the war against… Read more.
The futures marketplace is a diverse arena providing traders and investors with a broad spectrum of viable opportunities. However, the most suitable product, market or strategy depends on each individual’s resources and financial goals. In the case of long-term investors, there are three primary reasons for engaging the futures markets: Asset diversification Risk management Speculative opportunities… Read more.
Futures trading requires both creativity and a pragmatic approach to conducting day-to-day business. Unlike professions where you work in a group or team, active traders must do everything themselves, playing the roles of manager, market pro and accountant every time they make a trade. Pulling off this diverse array of duties requires a wide-ranging skill… Read more.
It’s no exaggeration to state that 2018 was an active year for the futures markets. An escalating U.S.-China trade war, U.S. congressional midterm elections, and the first Bitcoin ETF offering were a few items that kept traders riveted. Subsequently, high levels of participation became the norm, in everything from crude oil to corn. Being a forward… Read more.
In the arena of futures trading, the cost of doing business is fairly straightforward. Exchange and clearing fees, as well as brokerage commissions, are a few black-and-white items that obviously cut into a trader’s profits. However, there’s also an x-factor that often goes unrecognized — slippage. While slippage may not be exceedingly devastating, or rewarding, it… Read more.
Perhaps the most influential four-letter word in the English language is fear. Fear is defined by the Oxford dictionary as “an unpleasant emotion caused by the threat of danger, pain, or harm.” When it comes to futures trading, the pain of failure and the harm of capital loss deter a great number of people from ever… Read more.
For those driven to succeed, the learning never stops. Whether you are immersed in the scholarly literature of the day or hoping to glean insight from an untimely loss, education is an ongoing process for the active futures trader. Although books and blogs are readily available to streamline the learning curve, another especially useful medium… Read more.
Each day, individuals around the globe pursue their financial goals via financial derivatives. According to the Financial Information Association (FIA), more than 25 billion futures and options contracts changed hands during 2017. This staggering figure illustrates the high level of public interest that has made futures and options some of the most popular modes of trade… Read more.