A naturally found substance, crude oil is also one of the most traded commodities. It is crude oil that is further refined so as to make petroleum products. Just like with every other commodity, crude oil too has its specific ticker symbol, contract value and margin.
The margin is variable as it keeps changing as per the volatility in the market as well as according to the current value of the contract. If you are interested in crude oil trading or are already trading in this commodity, it is important for you to know that over the past 50 years the price of this commodity has been denominated in U.S. Dollars.
At Cannon Trading we help you trade crude oil at some of the best day trading margin rates. Our brokers will do their best to keep you aware of the market happenings to help you exercise call and put options carefully. In order to get more information on crude oil and commodities, read this category archive blog. Please feel free to share this information.
Summer trading at its best….8 points range on the Mini SP 500 during the primary session…As a trader, that can be pretty depressing. Few things you can do when stock index futures are “dead”:
Wait for them to come back a live and simply don’t trade until that happens.
Look at weekly Mini SP500 options as an alternative
Look at other markets ( crude oil had a nice volatile range today)
Crude Oil numbers tomorrow morning. As of lately it has been one of the more followed reports by all markets…..
I wrote this piece about day trading crude oil futures a couple of years ago and it is still very valid in my opinion:
Trading 102: Day Trading Using fear and greed ( using Crude Oil futures as an example)
Crude Oil Futures volatility offers a “different market personality” than stock index futures. Here is some of the things you need to know about day trading crude oil futures:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
Crude Oil is one of MY favorite futures markets for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when the first notice day and last trading day for crude oil futures are, in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into a delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Trade management is more important than Market Analysis….
Trading 201: Day Trading Crude Oil futures
Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.
Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
This service provides you with a current outlook on different commodities and futures markets such as crude oil futures, gold futures and other futures exchanges. You will be able to view a current chart along with current technical view of that specific futures market.
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Elliott Wave International’s Chief Energy Analyst tells you what he sees next for crude
By Elliott Wave International
In this new interview, Steve Craig, editor of Elliott Wave International’s Energy Pro Service, shows you what extreme readings in some of his market indicators mean for crude from here. Watch this interview now for a unique take on this key energy market.
This article was syndicated by Elliott Wave International and was originally published under the headline (Interview, 4:58 min.) Crude Oil: Will the Decline Continue?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
Did you know Cannon offers FOREX trading including the MT4 platform?
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services.
Time sure does tick a bit different in the commodities and futures world….
Some traders know time has passed quickly when it is time to change to the Sept. contract versus the June contract ( like we are doing with BONDS right now), others may notice it when they think “wow, monthly unemployment is next Friday, time sure flies…” and still other traders, perhaps professionals and money managers notice it when one month ends and another starts and it is time to share monthly results with their clients…..
Either way you look at it, hope June will be a great trading month!
Today I want to share a couple of market behaviors with you, I have noticed in the past.
The first is US Bonds trading behavior on the last trading day of the month on the last 15 minutes of the old pit session, i.e. 13:45 to 14:00 central time.
While I did not spend any time trying to predict the direction of the move, I seen it many times, the bonds will make a 10-15 ticks ( 15 tick in bonds = $500 per contract) move during the last 15 minutes as large traders position themselves ahead of months close.
Some what of a sell off today although the market bounced pretty good of the lows before the close.
Volume has been very low this past 2 months. take a look at the chart below and see how volume has been consistently below its 12 day moving average since mid March.
I must admit indices have been hard to trade, at least for me personally. I have been having more luck with bonds and Crude oil than the mini SP and mini Russell. I hope that volume and volatility like today will return sooner than later to stock index futures.
Daily Heiken-Ashi chart of the mini SP below for your review along with potential targets above and below:
EP – E-Mini S&P 500, Equalized Active Daily Continuation:Heikin-Ashi
I wrote before on how certain markets experience big moves on certain reports. One of the obvious ones is the crude oil inventories, weekly report, Wednesday at 7:30 AM pacific time. There are many others and tomorrow e have a few coming.
One of the reports today was existing home sales at 7 AM pacific. The market expected/ forecast was for 5.04 mil home sales, the actual number came out at 5.19 mil sales. The result was continued sell off in bonds and a strong trend day lower.
I am sharing with you my intraday 15 minute bond chart from today along with two sell signals that took place about an hour before the report. See below if you like a free trial.
Custom USA – 30yr US Treasury Bonds(Globex), Equalized Active 15 min Continuation
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HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NO INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
GOOD TRADING
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether 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.
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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 here in 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 exercise their own judgment in trading.
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.
