Perhaps the most important question a trader will face is “How much risk do I assume on the next trade?” A fundamental driver of risk is position size, or the amount of a given security accumulated during the execution of a trade. Position size has several definitions, depending upon whether the financial instrument being traded… Read more.
Tips & Strategies
When To Exit A Profitable Futures Trade
Profit targets are a common method of exiting a trade in positive territory. A profit target is a predetermined price where the potential capital gain justifies the assumed risk. Developing the optimal profit target for a given trade can be a considerable undertaking.
MACD Outline
Like many of the other great tools contained in the dt Pro platform, the MACD indicator is another way to give any trader a critical edge in the futures markets.
Shifting Your Technical Analysis into Overdrive
Today’s traders have come to realize that online trading revolves around two crucial issues – execution and analysis.
Block Allocation for Trade Managers
dt Pro allows CTAs, professional trade managers, systems traders and personal traders to create, manage, and modify block allocations directly on the platform. Not only can you trade directly into the block account, but your trades are automatically allocated based on your defined rules and the fills break down in real-time to reduce time spent managing blocks. It’s all done in real time – no back office support or administration required!
Trading Option Spreads, While Fading Time Decay
Commodity option contracts are decaying assets. Unlike futures contracts from which they are a derivative, option contract values are lost each day to time decay. Therefore, it is prudent to liquidate long option positions even if the target price is not yet realized before time value diminishes the premium.
Two Bullish Corn Charts in a Bearish Market
As a reader of TWIG, I hope you have come to understand my major objective to inspire ideas so you can hedge or trade these grains markets on your terms. Lately, I have been asked by producers why it would make sense to re-own. Today, I am going to step out of my bear costume and put on my bulls jersey. Maybe I can inspire an idea or two to get you involved.
The Bullish Hammer: Would You Know It If You Saw It?
Bullish Hammers, as the name suggests, is a signal on a chart that alerts you to be on the lookout for a market that is setting up to reverse and trade higher! I’ve highlighted in yellow this exciting candlestick set up in the chart below.
Do Gaps Matter?
Many traders pay attention to price gaps on a chart. Are gaps significant and should they be part of a trader’s strategy? Or are gaps merely a gap in price just because there was a gap in time between recorded trades at the exchange?
Tax Advantages of Futures Trading
As we are all aware, tax season is now upon us and I am sure everybody could use some relief from the tax man, so what better time to learn about the tax advantages of futures trading! Most experienced traders may understand the differences between trading stocks versus futures and the benefits each offers depending… Read more.