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| International: | (310) 859-9572 |
| USA/Canada: | (800) 454-9572 | |
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| International: | (310) 859-9572 |
In This Issue
Reports and Expiration Notices
GOOD TRADING!
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Newsletter Archives
July 23, 2008
This publication is the property of National Futures Association
Introduction
Trading volume in futures contracts and options on futures on U.S. markets has risen to more than 500 million contracts annually. And the dollar value of futures contracts traded currently exceeds severalfold the dollar value of common stocks traded on all U.S. stock exchanges.
Futures markets have been described as continuous auction markets and as clearing houses for the latest information about supply and demand. They are worldwide meeting places of buyers and sellers of an ever-expanding list of products that includes financial instruments such as U.S. Treasury bonds, stock indexes, and foreign currencies as well as traditional agricultural commodities, metals, and petroleum products. There is also active trading in options on futures contracts allowing option buyers to participate in futures markets with known risk.
Electronic information and communication technologies are providing new and better trading tools and new and more diverse trading opportunities. In some cases, entirely electronic markets function alongside open-outcry markets that have existed for more than a century and a half. Electronic order placement is increasingly commonplace. As such developments help make futures markets more useful to more people, it follows that they have become more widely and extensively used.
Notwithstanding the changes that have and are continuing to occur, the primary purpose of futures markets remains unchanged: To provide an efficient and effective mechanism for the management of price risks. By buying or selling futures contracts that establish a price now for a purchase or sale that will take place at a later time, individuals and businesses are able to achieve what amounts to insurance protection against adverse price changes. It is called hedging.
Simultaneously, other futures market participants are speculators. By buying or selling, depending on which direction they expect prices to move, they hope to profit from the very price changes that hedgers seek to avoid. The interaction of hedgers and speculators, each pursuing their own goals, helps to provide active, liquid, and competitive markets.
Speculative participation in futures trading has become increasingly attractive with the availability of alternative methods of participation. Whereas many futures traders continue to prefer to make their own trading decisions— what to buy and sell and when to buy and sell—others use the services of a professional trading advisor or avoid day-to-day trading responsibilities by establishing a fully managed trading account or by participating in a commodity pool that is similar in concept to a mutual fund.
For those individuals who fully understand and can afford the risks that are involved, the allocation of some portion of their investment capital—the portion that is truly risk capital—to futures speculation can provide a means of achieving greater portfolio diversification and a potentially higher overall rate of return on their investments. There are also a number of ways futures and options on futures can be used in combination with other investments to pursue larger profits or to limit risks.
Article continues at CannonTrading.com →
Disclaimer: There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing in this newsletter is intended to be a trading recommendation for you to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information in this newsletter.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 07/06 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - ISM Services(Jun) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
| 07/07 Fri |
7:30 AM CDT - Nonfarm Payrolls & Unemploy Rate(Jun) 7:30 AM CDT - Average Workweek & Hourly Earnings(Jun) 2:00 PM CDT - Dairy Products Prices |
LT: Jul Cotton(NYBOT)
Jul Pork Belly Options(CME) Jul US Dollar Index Options(NYBOT) Jul Canadian Dollar Options(CME) Jul Live Cattle Options(CME) |
| 07/10 Mon |
9:00 AM CDT - Wholesale Inventories(May)
2:00 PM CDT - Consumer Credit(May) |
|
| 07/11 Tue |
|
FN: Jul Frozen Pork Bellyies(CME)
LT: Jul Orange Juice(NYBOT) |
| 07/12 Wed |
7:30 AM CDT - Crop Production & WASDE 7:30 AM CDT - Supply & Demand 9:30 AM CDT - API & DOE Energy Stats |
|
| 07/13 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercisetheir own judgment in trading!