Futures contracts are leveraged securities that enable traders to control a large quantity of an underlying asset with minimal cash. To facilitate these transactions, the trader makes a good-faith deposit known as a margin. If you’re going to trade futures, then it is important to understand that margins are dynamic―as market conditions evolve, so do… Read more.
Unlike Wall Street, the futures markets are open for business on a near-24/5 basis. For the active trader, these extended futures hours open the door to countless opportunities and strategic possibilities. Let’s take a look at the essential tenets of overnight trading. The U.S. Overnight Session The rise of the electronic marketplace has given futures… Read more.
The rise of the digital market has placed a greater focus on technology for self-directed traders. For this group, the days of fill slips, runners, and panicked phone calls are gone forever, and in their place is the futures trading platform. However, for the broker-assisted trader, personal service remains the backbone of conducting day-to-day business.… Read more.
It is a common misconception that traders and investors are the same. Although it is true that both may pursue profits by buying and selling futures contracts, the manner in which they pursue this goal varies greatly. Read on to learn more about the trading versus investing dichotomy. Time Frame and Expectations Are Key Perhaps… Read more.
For many traders, options spreads are ideal ways of securing affordable market exposure while minimizing downside risk. In this article, we’ll cover the essential ins and outs of using a bear put spread. What Is a Bear Put Spread? A bear put spread is a multifaceted options trading strategy designed to profit from declining asset… Read more.
Following the uncertainty caused by COVID-19 in 2020, many financial experts predicted 2021 would be a big year in the markets. The introduction of vaccines, unlimited Fed quantitative easing (QE), and massive government stimulus all pointed to economic recovery. In fact, during Q1 2021, investment banking giant Goldman Sachs projected U.S. GDP to grow by… Read more.
Stopped out of the Natrual Gas position. Working an order in the Cocoa futures market.
Once reserved only for institutional traders, spreads are gaining popularity among retail participants around the globe. Reduced margin requirements, limited risk exposure, and diverse strategic alternatives have made spreads an ideal destination for legions of active futures traders.
Futures spread trading is a unique discipline that offers many benefits to practitioners. Featuring reduced margin requirements, extensive strategic applications, and limited exposure to systemic risk, spread trading is viewed by many traders as a premier financial strategy.
No matter what your goals and resources are, having a structured approach to market entry, exit, and risk management is a necessity. Without this type of plan, the vast majority of futures trading strategies will fall short of their potential. In reality, active traders have thousands of strategies at their disposal. The best ones are… Read more.