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.
Futures Trading
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.
How to Trade Micro WTI Crude Oil Futures Contracts
When it comes to commodities, energies are an exceedingly popular asset class. And, within the energies segment, West Texas Intermediate (WTI) crude oil is a go-to product for many active traders. Let’s take a closer look at CME Micro WTI futures. Read on to learn more about this exciting contract and to discover a few… 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.
When Is Buying Futures Contracts a Good Idea?
If you’ve ever purchased a car, house, or other big-ticket item, then you’re aware of the commitment such an action entails. Buying futures contracts is no different — it is a serious business that requires you to secure financing, actively budget, and apply leverage. If done competently, however, “going long” a futures market can pay… Read more.
Understanding Winter Seasonality of Heating Oil Futures Prices
On the Chicago Mercantile Exchange (CME), energies play a pivotal role in daily trade. It doesn’t matter whether you’re an institutional hedger or retail speculator, the odds are good that there’s an ideal CME contract well-suited for your needs. The global energy complex is a dynamic atmosphere, featuring a lineup of exciting products. From the… Read more.
Customize Your Energy Market Exposure with CME Micro WTI Crude Oil Futures Quotes
CME WTI crude oil futures are some of the most popular derivatives contracts in the world, featuring consistently robust traded volumes and order flow. Tens of thousands of participants target this exciting market on a daily basis. Despite the popularity of WTI futures, many retail traders have been faced with a formidable problem: size. Now,… Read more.