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Investment is a game of money of securing future money by taking a risk today. Trading therefore comes with a list of rules to play by. Commodity trading in particular offers tremendous potential for becoming a completely different asset class.
However, before investing in any kind of commodity, you must do an in depth research and also ask your broker as many questions as possible. Through this category archive we provide you as much information and valuable insights into the world of commodity trading.
We at Cannon Trading are here to help you with your commodity trading needs. You as a trader should select your commodity trading advisor only after performing a due diligence on him/her. We in fact do that for you. This way, you get only the best advice to help you with your commodity trading.
We’ve got the information that you might need at every step of commodity trading, and you’ll find it all right here in the commodity trading section of our blog. Read up, and read on to get equipped!
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Like in trading, Sports and many other endeavors in life…Preparation is sometimes 50% of the battle!
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| Instrument | S2 | S1 | Pivot | R1 | R2 | ||
|---|---|---|---|---|---|---|---|
Gold (GC)— Feb(#GC) |
4159.60 | 4200.40 | 4234.80 | 4275.60 | 4310.00 | ||
Silver (SI)— Mar. (#SI) |
56.51 | 57.89 | 58.61 | 59.99 | 60.70 | ||
Crude Oil (CL)— Jan (#CL) |
57.48 | 58.07 | 58.87 | 59.46 | 60.26 | ||
Mar. Bonds (ZB)— Mar (#ZB) |
115 21/32 | 116 | 116 6/32 | 116 17/32 | 116 23/32 |
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Futures markets are dynamic arenas where traders speculate, hedge, and invest across commodities, indices, currencies, and more. The approaches to futures trading are as diverse as the markets themselves — ranging from fast-paced day trading to long-term position trading, and from discretionary methods to cutting-edge algorithmic systems.
In this article, we’ll explore every major type of futures trading in detail — what defines each, how they work, and which styles suit different trader profiles. Whether you’re just starting trading in futures or already deep into advanced automation, understanding these approaches can help refine your strategy and results.
1. Day Trading Futures
Definition:
Day trading in futures is all about capitalizing on intraday price movements. Traders buy and sell contracts within the same session, closing all positions before the market ends.
Core Features:
Common Methods:
Advantages:
Risks:
Ideal for: Traders who thrive in fast-paced environments and use advanced platforms for futures trading execution.
2. Swing Trading Futures
Definition:
Swing traders hold futures positions for several days or weeks, seeking to capture short- to mid-term trends rather than intraday volatility.
Core Features:
Techniques:
Advantages:
Risks:
Ideal for: Professionals who cannot monitor markets constantly but still want meaningful participation in trading in futures.
3. Position Trading Futures
Definition:
Position trading involves holding futures contracts for weeks, months, or even longer — targeting large, fundamental price trends.
Core Features:
Techniques:
Advantages:
Risks:
Ideal for: Investors and institutions involved in strategic futures trading over macroeconomic cycles.
4. Algorithmic (Algo) Futures Trading
Definition:
Algorithmic trading, or “algo trading,” uses computer programs to automatically execute trades based on coded strategies.
Core Features:
Popular Models:
Advantages:
Risks:
Ideal for: Quantitative traders, developers, and firms embracing automation in trading futures.
5. Systematic Futures Trading
Definition:
Systematic trading relies on a set of predetermined rules and quantitative models to generate trade signals. It’s the foundation for most professional futures trading systems.
Core Features:
Examples of Systems:
Advantages:
Risks:
Ideal for: Traders seeking long-term consistency and structure in trading in futures.
6. Discretionary Futures Trading
Definition:
Discretionary traders use experience, intuition, and interpretation rather than fixed systems to make trading decisions.
Core Features:
Advantages:
Risks:
Ideal for: Experienced individuals who have mastered their emotional discipline and chart interpretation.
7. Spread Trading Futures
Definition:
Spread trading involves taking offsetting long and short positions in related futures contracts to profit from price differentials rather than outright price direction.
Common Types:
Advantages:
Risks:
Ideal for: Intermediate traders who prefer lower-risk strategies in futures trading.
8. High-Frequency Futures Trading (HFT)
Definition:
HFT uses ultra-fast algorithms and low-latency connections to capture small price inefficiencies in milliseconds.
Core Features:
Advantages:
Risks:
Ideal for: Institutional participants and prop firms equipped with advanced connectivity.
9. Hedging Futures Trading
Definition:
Hedging uses futures contracts to protect against unfavorable price movements in physical assets or investment portfolios.
Examples:
Advantages:
Risks:
Ideal for: Commercial entities and portfolio managers mitigating exposure through trading futures.
10. Quantitative Futures Trading
Definition:
Quantitative trading combines mathematics, statistics, and machine learning to design predictive trading models.
Core Features:
Advantages:
Risks:
Ideal for: Data scientists and institutional desks focused on predictive futures trading models.
11. News-Based Futures Trading
Definition:
News-based traders act on price volatility triggered by economic releases, earnings, or geopolitical events.
Core Features:
Advantages:
Risks:
Ideal for: Traders with access to fast data feeds and economic calendars.
12. Arbitrage Futures Trading
Definition:
Arbitrage exploits pricing inefficiencies between related instruments or markets to generate low-risk profits.
Examples:
Advantages:
Risks:
Ideal for: Institutional or quantitative traders with robust execution infrastructure.
13. Social and Copy Futures Trading
Definition:
A modern trend in trading in futures, social or copy trading allows users to replicate trades of experienced professionals through integrated brokerage platforms.
Core Features:
Advantages:
Risks:
Ideal for: New traders looking to learn futures trading while participating in live markets.
Choosing the Right Futures Trading Style
Each method of trading futures comes with distinct benefits and challenges. The key is matching your capital, risk tolerance, and lifestyle to the right approach.
|
Trading Style |
Holding Period | Main Tools | Best For |
|---|---|---|---|
| Day Trading | Minutes–Hours | Charts, order flow | Active traders |
| Swing Trading | Days–Weeks | Technical + Fundamental | Balanced traders |
| Position Trading | Weeks–Months | Macroeconomics | Long-term investors |
| Algorithmic / Systematic | Milliseconds–Days | Data models | Quant traders |
| Discretionary | Variable | Experience + Intuition | Veteran traders |
| Spread / Hedging | Weeks–Months | Correlation analysis | Risk managers |
| Arbitrage / Quantitative | Seconds–Days | Statistical models |
Institutions |
The best strategy often blends multiple approaches — for example, combining systematic entry rules with discretionary exits, or using algo-driven signals to refine swing trades. The diversity of trading in futures strategies is what makes the market both challenging and rewarding.
The Power of Strategy in Futures Trading
Success in futures trading doesn’t come from predicting every market move but from developing a structured plan and following it with consistency. The type of strategy you choose defines your routine, tools, and mindset.
Whether you prefer the adrenaline of day trading, the structure of systematic models, or the depth of position trading, remember that risk management and discipline are the true foundations of profitable trading in futures.


For over 35 years, Cannon Trading Company has been a trusted name in the U.S. futures industry — offering access to powerful platforms, transparent pricing, and personalized support. Whether you’re exploring algorithmic trading, discretionary trading in futures, or professional futures trading for hedging and speculation, Cannon Trading’s experienced brokers and platform variety help you trade smarter and safer.
Explore the next level of trading futures with tailored brokerage solutions, competitive margins, and dedicated customer service — all under one roof.
Open a Futures Trading Account with Cannon Trading Company and experience the difference that expertise and technology make.
Ready to start trading futures? Call us at 1(800)454-9572 (US) or (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.
This article has been generated with the help of AI Technology and modified for accuracy and compliance.
Follow us on all socials: @cannontrading
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| Instrument | S2 | S1 | Pivot | R1 | R2 | ||
|---|---|---|---|---|---|---|---|
Gold (GC)— Dec (GCZ5) |
3955.23 | 3983.07 | 4009.43 | 4037.27 | 4063.63 | ||
Silver (SI)— Dec (SIZ5) |
47.31 | 47.78 | 48.26 | 48.73 | 49.21 | ||
Crude Oil (CL)— Dec (CLZ5) |
58.72 | 59.27 | 59.86 | 60.41 | 61.00 | ||
Dec. Bonds (ZB)— Dec (ZBZ5) |
116 16/32 | 116 25/32 | 117 4/32 | 117 13/32 | 117 24/32 |

Without this report, farmers must depend on local elevator bids, private forecasts, and regional university data instead of the usual official numbers. That shift increases market volatility and complicates forward sales, hedging, and crop planning. Traders and risk managers now have to make decisions with incomplete information, which can amplify price swings across commodities like corn, soybeans, and wheat.
Originally Armistice day following WWI, Veterans Day serves as a reminder of the sacrifices made by those who have served in the military. It is a day for Americans to express gratitude and respect for the bravery and dedication of veterans across the nation. Because of the ongoing government shutdown, numerous key US economic data releases are unavailable and will not be reported during the week of November 10, 2025. Agencies like the Bureau of Labor Statistics (BLS), Bureau of Economic Analysis (BEA), and the Census Bureau have suspended their operations. Even if the shutdown ends this weekend.
As for earnings reports? Next week we will see the numbers over 1200 stocks.
What Market has been range bound and now breaking out? The longer the range trade the harder and faster the breakout becomes. Watch the U.S. Dollar as a breakout to the upside has been looming and ready to rock.
Expect continued volatility next week as the markets have not been able to receive Gov’t data due to the ongoing, politician-imposed shutdown. Don’t be fooled, this is about politics NOT Policy.
We’ll see you next week! Please enjoy a safe and memorable weekend.
Get ready to put your trading skills to the test! Cannon Trading is proud to be part of the upcoming CME Group Trading Challenge, running November 9–14, 2025, where participants can compete in a risk‑free, simulated futures environment. Each trader starts with a $25,000 virtual account and the chance to trade across a wide range of CME Group products—including equities, energy, metals, FX, interest rates, agriculture, and even cryptocurrency contracts. Along the way, you’ll gain insights from industry veteran Bob Iaccino, access exclusive educational content, and compete for cash prizes of up to $2,500. Enrollment is free, but spots are limited—register today and see how your strategies stack up against fellow traders.
Get ready to put your trading skills to the test! Cannon Trading is proud to be part of the upcoming CME Group Trading Challenge, running November 9–14, 2025, where participants can compete in a risk‑free, simulated futures environment.
Each trader starts with a $25,000 virtual account and the chance to trade across a wide range of CME Group products—including equities, energy, metals, FX, interest rates, agriculture, and even cryptocurrency contracts.
Along the way, you’ll gain insights from industry veteran Bob Iaccino, access exclusive educational content, and compete for cash prizes of up to $2,500. Enrollment is free, but spots are limited—register today and see how your strategies stack up against fellow traders.
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| Instrument | S2 | S1 | Pivot | R1 | R2 | ||
|---|---|---|---|---|---|---|---|
Gold (GC)— Dec (GCZ5) |
3861.93 | 3910.07 | 3978.13 | 4026.27 | 4094.33 | ||
Silver (SI)— Dec (SIZ5) |
46.01 | 46.69 | 47.60 | 48.28 | 49.19 | ||
Crude Oil (CL)— Dec (CLZ5) |
59.02 | 59.67 | 60.34 | 60.99 | 61.66 | ||
Dec. Bonds (ZB)— Dec (ZBZ5) |
117 7/32 | 117 20/32 | 118 13/32 | 118 26/32 | 119 19/32 |

It wasn’t even apparent during Chair Jerome Powell’s post-announcement news conference what triggered the price jolts in several of the futures markets this afternoon – including a ±50-point decline in the E-mini S&P 500 and a ±200-point decline in the E-mini Nasdaq in the span of eight minutes, or the ±$40 sell-off in gold in the span of two minutes.
Regardless of the cause, they served as the latest real-world examples of why it’s so important for traders of all types to assess the risks of their trades – before you enter into them – and have a plan to manage that risk. Day traders and position traders alike should be aware of important planned events – just like FOMC announcements and press conferences – and anticipate the potential risks to those events (these days it’s wise to include occasions when the U.S. president speaks, considering his ongoing involvement and influence in global trade relations).
These events certainly create opportunities for traders – outsize moves can also result in outsize favorable outcomes – but the most important aspect to trading – is always to manage risk.
Day 29 of the U.S Government shut-down, now the second-longest on record.
The Federal Reserve cut interest rates by a quarter of a percentage point today – its second consecutive rate cut, lowering the Fed’s benchmark interest rate to a range of 3.75 to 4 percent, its lowest level in three years.
We’re amidst earning season for the third quarter. Moving into full swing, all eyes were on Microsoft, Google-parent Alphabet and Facebook-owner Meta today– all releasing their latest earnings results after the closing bell.
Apple and Amazon
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Get An Edge With the Trading Psychology Course“You must understand that there is more than one path to the top of the mountain.”- Miyamoto Musashi, A Book of Five Rings: The Classic Guide to StrategyMany experienced traders say that the stiffest challenge you’ll face in becoming a futures trader is conquering your own psyche. Why? Because losing is part of trading, and people hate to lose.In this “Trading Psychology” Course you will learn: · How to examine your patterns and behaviors and recognize when they are holding you back · Maintaining self-confidence as a trader even in the face of inexperience · The mathematical expectation model and how it can decrease your losses · Determining the trading plan that is right for your trading personality · Understanding and using Motivation – Risk – Reward to its full advantage · Creating effective trading technique strategies · Qualities of Successful Traders START FREE COURSE NOW |
Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.
It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.
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