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Category: Currency Futures

In simple terms, a currency futures contract is a futures contract where you agree to exchange one currency for another, on a specified date at a price that is fixed on the date when the contract is purchased.

Having been around since the 1970s, currency futures are counted as medium to high risk contracts. One thing worth knowing about forex is that they are not traded on a centralized exchange, futures currencies however do and that is an advantage for traders in our opinion. Now, in order to bring down the risk of trading currency futures, one can rely on hedging. This blog archive on currency future lists a number of write-ups on currency futures and hedge funds.

At Cannon Trading, we can help you with all that you need to know about currency futures trading. Our professional team educates and assists you in dealing with tricky trade situations. Please do read the informative articles that have been listed under this category.

S&P 500 Futures Contracts

Posted on by Ilan

Introduced in April 1982 by the Chicago Mercantile Exchange (CME), the S&P 500 Futures Contract represented a turning point in financial markets. Before its debut, traders had limited tools to hedge or speculate on the broader U.S. equity market. The S&P 500 index, comprising 500 of the largest publicly traded companies in the U.S., was already a key benchmark of market performance. By creating a derivative tied to the index, the CME provided traders and institutions with a liquid, leveraged way to manage risk or profit from market movements.

This new financial instrument quickly gained traction. Unlike individual stocks, S&P 500 Futures Contracts allowed participants to trade the entire market with a single position. It was a game-changer for portfolio managers, hedge funds, and individual traders alike.

Evolution of the S&P 500 Futures Contract

Over the decades, the S&P 500 Futures Contract has undergone significant evolution. Initially, the contract was accessible only to institutional players with deep pockets. The margin requirements and notional value of the contract were high, making it impractical for smaller traders. However, the CME’s introduction of E-mini S&P 500 Futures in 1997 dramatically expanded accessibility.

These smaller contracts mirrored the original S&P 500 Futures Contract but with reduced notional value and margin requirements. Retail traders could now participate in the same market as institutional giants, leveling the playing field and increasing liquidity. The introduction of Micro E-mini S&P 500 Futures in 2019 further democratized futures trading, enabling even smaller trades with minimal financial commitment.

Technological advancements have also played a significant role. The advent of electronic trading platforms in the late 1990s transformed the market, making trading faster, more transparent, and widely accessible. Today, traders around the globe execute futures SP trades with just a few clicks, relying on real-time data and advanced analytics to inform their decisions.

The Current State of S&P 500 Futures

As we approach 2025, the S&P 500 Futures Contract remains a cornerstone of global financial markets. It serves three primary purposes:

  • Hedging: Institutions use the contract to mitigate risk. For example, a pension fund heavily invested in U.S. equities might short the S&P 500 Futures Contract to protect its portfolio during market downturns.
  • Speculation: Speculative traders often look fo market fluctuations, leveraging the contract’s high liquidity and transparency to execute short-term strategies.
  • Portfolio Diversification: The S&P 500 Futures Contract enables investors to gain or reduce exposure to U.S. equities without trading individual stocks.

In recent years, rising geopolitical tensions, pandemic-related economic shocks, and rapid technological innovation have contributed to heightened market volatility. This volatility has increased the appeal of S&P 500 Futures Contracts, as traders capitalize on swift market movements.

What’s Next for the S&P 500 Futures Contract?

Looking ahead to 2025, several trends are likely to shape the future of the S&P 500 Futures Contract:

  • Increased Algorithmic Trading: Algorithms now dominate the trading of S&P 500 Futures Contracts. In 2025, advancements in artificial intelligence (AI) are expected to further refine these systems, enhancing market efficiency while potentially increasing competition among traders.
  • Sustainability and ESG Factors: As environmental, social, and governance (ESG) considerations gain prominence, derivatives linked to ESG-focused indices are growing in popularity. The CME may introduce variations of the S&P 500 Futures Contract tied to ESG criteria, offering traders new opportunities to align their strategies with ethical investing principles.
  • Regulatory Developments: As global regulators continue to monitor derivative markets, traders can expect enhanced safeguards against systemic risks. These measures aim to ensure the long-term stability of the market, preserving its appeal for both retail and institutional participants.
  • Expansion of Retail Participation: With brokers like Cannon Trading Company leading the charge, retail participation in S&P 500 Futures Contracts is expected to surge. Advances in education, trading platforms, and tools will further empower individual traders to harness the potential of these contracts.

Why Cannon Trading Company Is the Ideal Partner for Futures Traders

For traders looking to capitalize on the opportunities offered by the S&P 500 Futures Contract, choosing the right brokerage is critical. Cannon Trading Company stands out as a premier choice for several compelling reasons.

  • Exceptional Reputation: With a flawless 5 out of 5-star rating on TrustPilot, Cannon Trading Company has earned the trust of traders worldwide. Clients consistently praise the firm for its transparency, reliability, and personalized support.
  • Decades of Experience: Founded in 1988, Cannon Trading Company has decades of expertise in the futures markets. Its team of seasoned professionals offers invaluable insights and guidance, ensuring that traders are equipped to succeed in even the most challenging market conditions.
  • Free Trading Platforms: Cannon Trading Company provides access to cutting-edge trading platforms at no cost. These platforms offer advanced charting tools, real-time data, and customizable features, enabling traders to execute their futures SP strategies with precision.
  • Regulatory Excellence: The firm’s impeccable regulatory record underscores its commitment to integrity and client protection. Cannon Trading Company operates under the strict oversight of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), providing peace of mind to traders.
  • Comprehensive Support: From novice traders to seasoned professionals, Cannon Trading Company caters to all levels of experience. Its educational resources, including webinars, blogs, and one-on-one consultations, empower clients to master the complexities of S&P 500 Futures Contracts.

Why Trade S&P 500 Futures with Cannon Trading Company?

The S&P 500 Futures Contract offers unparalleled flexibility and potential. Whether you aim to hedge against market risk, speculate on short-term price movements, or diversify your portfolio, this contract is a powerful tool. Partnering with a trusted brokerage like Cannon Trading Company amplifies these advantages, ensuring that you have the resources, support, and technology needed to excel in futures trading.

Trading prowess often hinges on timing, knowledge, and execution. With Cannon Trading Company by your side, you can navigate the complexities of the S&P 500 Futures Contract with confidence, turning market challenges into opportunities for growth.

The journey of the S&P 500 Futures Contract is a testament to the innovation and resilience of global financial markets. From its inception in 1982 to its modern iterations, the contract has continually adapted to the needs of traders and investors. As we approach 2025, its relevance remains stronger than ever, promising new opportunities amid evolving market dynamics.

For traders seeking to unlock the full potential of S&P 500 Futures Contracts, partnering with an experienced and reputable brokerage like Cannon Trading Company is a winning strategy. With its stellar reputation, advanced tools, and commitment to client success, Cannon Trading Company is the ultimate ally for navigating the exciting world of futures trading.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (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

Futures Broker

Posted on by Ilan

The futures trading market, known for its high risk and high reward potential, is not only a game of skill and strategy but also one that requires choosing the right futures broker. For novice and seasoned traders alike, navigating the world of future brokers can be fraught with challenges, especially when determining who to trust. With so much at stake—both financially and emotionally—it is crucial to recognize the signs of a reliable futures broker versus the red flags of an unreliable one. This guide will dive into the top ten signs of a trustworthy broker and the ten glaring warning signs to avoid, drawing on real-world cases, hypotheticals, and practical advice. We will also explore how traders can minimize their risks and why firms like Cannon Trading Company stand out as exceptional choices in the futures trading landscape.

Top Ten Signs of a Reliable Futures Broker

  1. Regulatory Compliance and Transparency A trustworthy futures broker is always registered with reputable regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the U.S. These registrations ensure compliance with stringent standards. Look for clear disclosures on their website, including license numbers and links to verification tools.

Case Study: A trader working with a broker fully licensed by the NFA avoided significant losses when the broker promptly alerted clients to regulatory changes affecting margin requirements. This transparency showcased the firm’s commitment to protecting its clients’ interests.

  1. Comprehensive Educational Resources Reliable futures brokers invest in educating their clients. They provide webinars, tutorials, and market analyses tailored to both beginners and experienced traders. Access to free trading platforms for practice is another strong indicator of a broker’s credibility.

Hypothetical: A beginner is torn between two brokers. One offers a free demo account and extensive learning material, while the other provides no educational resources. The beginner chooses the former and gains valuable experience in futures trading without risking real money.

  1. Fair and Transparent Fee Structures Reputable brokers clearly outline their fee structures, including commissions, margin rates, and withdrawal fees. Hidden charges are a sign of a broker to avoid.

Real Example: Cannon Trading Company is known for its transparency, offering clients detailed breakdowns of trading costs, ensuring there are no surprises.

  1. Quality Customer Service Trustworthy future brokers provide responsive and knowledgeable customer service, available across multiple channels, including phone, email, and live chat. Look for brokers with highly rated customer support.

Hypothetical: A trader faces a platform error during a critical market movement. The broker’s 24/7 support resolves the issue within minutes, preventing significant losses.

  1. User-Friendly Platforms A good broker provides intuitive and reliable trading platforms that cater to various levels of expertise. Features like advanced charting tools, real-time data, and easy execution of trades are essential.

Case Study: A trader using a platform provided by a reliable broker successfully executed a stop-loss order during a market crash, avoiding catastrophic losses thanks to the platform’s reliability.

  1. Access to a Wide Range of Markets Reliable futures brokers offer access to various markets, from commodities and indices to currencies and energy. This diversity allows traders to build robust portfolios.
  2. Strong Online Reputation High ratings on platforms like TrustPilot and positive reviews across forums and social media reflect a broker’s trustworthiness. Cannon Trading Company, for example, boasts numerous 5-star reviews, highlighting its reliability.
  3. Risk Management Tools Trustworthy brokers emphasize the importance of risk management by providing tools like stop-loss orders, margin calculators, and alerts.
  4. Industry Longevity Experience matters in futures trading. Brokers with decades of operation have weathered market changes, proving their resilience and reliability.

Example: Cannon Trading Company, with over 30 years in the industry, has built a stellar reputation for reliability and integrity.

  1. Ethical Practices Trustworthy brokers never pressure clients into excessive trading, upsell unnecessary products, or promise unrealistic profits. Their goal is long-term partnerships, not short-term gains.

Top Ten Red Flags of an Unreliable Futures Broker

  1. Lack of Regulatory Oversight Brokers without registration with major regulatory bodies are immediate red flags. Always verify their credentials.

Hypothetical: A trader works with an unregulated broker who disappears overnight with their funds—a devastating yet avoidable situation.

  1. Unrealistic Profit Guarantees Promising guaranteed returns in futures trading is a major red flag. The futures market is inherently volatile, and no broker can ensure profits.
  2. High-Pressure Sales Tactics Brokers that pressure clients into making quick decisions or investing more than they’re comfortable with are not to be trusted.

Case Study: A novice trader was persuaded to over-leverage their account, resulting in significant losses when the market turned against them.

  1. Hidden Fees Shady brokers often bury exorbitant fees in the fine print, from withdrawal charges to “maintenance fees.”

Example: One trader discovered after a year that their broker charged monthly inactivity fees, eroding their profits.

  1. Poor Customer Support Brokers that are difficult to reach or provide vague responses to inquiries are signs of trouble. A lack of support can be disastrous during market volatility.
  2. Unreliable Platforms Frequent outages, execution delays, or lack of robust security measures are clear signs of a broker to avoid.
  3. Fake Reviews and Endorsements Be wary of brokers with overly polished or suspiciously similar online reviews. Genuine testimonials are diverse and specific.
  4. Limited Account Transparency Reliable brokers offer full visibility into account activity. Lack of transparency may signal mismanagement or fraud.
  5. Excessive Leverage Offers Brokers offering extremely high leverage may be enticing but are often designed to capitalize on inexperienced traders’ losses.
  6. Unverified Claims of Longevity Brokers claiming decades of experience without proof or clear histories are likely unreliable.

Navigating Pedestals and Pitfalls as a Beginner

For those new to trading futures, separating the reliable from the questionable can be daunting. Follow these steps to minimize financial and emotional risk:

  1. Do Your Homework Research brokers extensively. Use resources like the NFA’s BASIC system to verify registrations.
  2. Start Small Begin with small trades to learn the mechanics of futures trading without risking significant capital.
  3. Leverage Demo Accounts Take advantage of brokers offering free trading platforms and demo accounts to practice.
  4. Understand the Market Educate yourself on futures trading, including market terminology, strategies, and risk management.
  5. Ask Questions A reliable broker will answer all questions openly. If a broker seems evasive, look elsewhere.
  6. Avoid High-Pressure Sales Walk away from brokers pushing you into decisions without providing ample time for consideration.

Why Cannon Trading Company Excels in Futures Trading

Cannon Trading Company exemplifies the qualities of a reliable futures broker. With over 30 years in the industry, it is regulated by the CFTC and a proud member of the NFA. The company is renowned for its transparency, offering clear fee structures and a range of account options. Its free trading platform allows beginners to learn the ropes without financial pressure, while its exceptional customer service ensures clients receive timely support.

Moreover, Cannon Trading Company’s stellar reputation on TrustPilot, with numerous 5-star ratings, speaks volumes about its reliability. The firm prioritizes client education through webinars and detailed market analyses, enabling traders to make informed decisions. Its dedication to ethical practices and robust regulatory compliance sets it apart in a crowded market.

The future trading market is filled with opportunities, but success begins with choosing the right futures broker. Recognizing the signs of a reliable broker—such as regulatory compliance, transparent fees, and quality support—while avoiding red flags like hidden charges, poor customer service, and unregulated operations can save traders from costly mistakes. For beginners, starting small, asking questions, and leveraging educational resources can help navigate this challenging yet rewarding field. Brokers like Cannon Trading Company stand out for their decades of experience, ethical practices, and commitment to client success, making them a top choice for trading futures.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (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

Futures Brokers USA

Posted on by Ilan

Navigating Market Volatility in 2025

As financial markets continue to experience unprecedented levels of volatility, futures brokers in the USA play an increasingly critical role in helping traders navigate the complexities of futures trading. Heading into 2025, the unpredictability of global economic conditions, geopolitical events, and shifting monetary policies underscore the need for strategic intervention by futures brokers. Traders face unique challenges and opportunities in these conditions, making the guidance of experienced professionals more valuable than ever.

In this article, we will examine how futures brokers in the USA can assist their clients in managing volatility, offering ten actionable techniques supported by real-life trades, case studies, and hypotheticals. We will also explore why Cannon Trading Company, a leading futures broker with a stellar reputation, is an exceptional choice for traders seeking stability in turbulent times.

  1. Hedging with Futures Contracts

    One of the primary ways futures brokers help clients manage volatility is through hedging. By taking opposing positions in the futures market, traders can protect themselves against adverse price movements in underlying assets. For example:

    • Case Study: A soybean farmer fears a drop in prices before the next harvest. By working with a futures broker, the farmer sells soybean futures contracts to lock in current prices. When the market later experiences a downturn due to surplus production, the loss in the physical market is offset by gains in the futures trading position.

    Through personalized hedging strategies, futures brokers in the USA provide peace of mind to clients worried about market swings.

  2. Utilizing Options on Futures

    Another effective technique is trading options on futures contracts. These instruments provide traders the right, but not the obligation, to buy or sell futures at a specific price. For instance:

    • Hypothetical Example: An energy company anticipates rising oil prices but wants limited risk exposure. A futures broker advises purchasing call options on crude oil futures. If oil prices soar, the call options generate profit. If prices fall, the company’s loss is capped at the premium paid.

    Options on futures trading offer traders a way to benefit from volatility while managing risk.

  3. Spreading Strategies

    Spread trading, which involves taking offsetting positions in related contracts, is another volatility management tool. Examples include calendar spreads (trading futures with different expiration dates) and intercommodity spreads.

    • Real-Life Example: A trader anticipates narrowing spreads between corn and wheat prices. A futures broker helps the trader go long on corn futures while shorting wheat futures. As the price gap tightens, the trader realizes gains irrespective of overall market direction.

    This strategy reduces exposure to absolute price volatility and focuses on relative price movements.

  4. Leveraging Stop-Loss Orders

    Stop-loss orders are a critical tool for managing downside risk in volatile markets. A futures broker can work with clients to establish stop-loss levels tailored to their risk tolerance.

    • Case Study: A gold trader enters a long position expecting prices to rise due to inflation concerns. The futures broker sets a stop-loss order at a 5% decline. When prices unexpectedly drop due to a stronger dollar, the order is triggered, limiting losses.

    Stop-loss orders ensure disciplined trading futures even in chaotic market conditions.

  5. Using Technical Analysis

    Futures brokers often provide clients with advanced charting tools and technical analysis to identify key market levels. These insights help traders execute informed decisions.

    • Example: A professional trader collaborates with a futures broker to analyze historical price patterns in the S&P 500 futures market. Using Fibonacci retracements and moving averages, they pinpoint entry and exit points during a volatile earnings season.

    By leveraging technical analysis, futures brokers in the USA empower clients to act decisively.

  6. Diversifying Across Asset Classes

    Diversification is a time-tested approach to mitigating risk. Futures brokers can guide traders in creating portfolios with exposure to various asset classes, such as commodities, equities, and currencies.

    • Hypothetical Example: A trader overly reliant on equity index futures is advised by their futures broker to diversify into agricultural commodities. When equity markets experience heightened volatility, gains in agricultural futures trading help stabilize the portfolio.

    This strategy minimizes reliance on a single market segment.

  7. Providing Real-Time Market Insights

    Modern futures brokers in the USA offer access to real-time data and expert commentary to help clients anticipate and respond to market moves.

    • Example: During the 2022 energy crisis, Cannon Trading provided clients with timely analysis of natural gas futures. Traders who acted on this information navigated extreme price fluctuations more effectively than those without broker insights.

    Access to accurate, up-to-date information is a cornerstone of successful trading futures.

  8. Structured Trade Execution

    Effective execution can make or break a trade during periods of high volatility. Experienced futures brokers employ smart order routing and execution algorithms to reduce slippage.

    • Case Study: A high-frequency trader enters the E-mini S&P 500 futures market during a Fed announcement. With the help of a futures broker’s advanced platform, orders are executed swiftly, locking in favorable prices before the market reacts.

    Top-tier execution is an often-underestimated advantage provided by reputable futures brokers in the USA.

  9. Educating Clients Through Webinars and Research

    Education is vital for empowering traders to manage risk. Many futures brokers, including Cannon Trading, provide webinars, market reports, and one-on-one consultations.

    • Real-Life Example: In 2023, Cannon Trading hosted a webinar on “Trading Futures During High Volatility.” Participants learned strategies to navigate unpredictable interest rate announcements, which they later applied successfully in live trades.

    Educational resources ensure traders are equipped to make informed decisions in volatile markets.

  10. Offering Access to Diverse Trading Platforms

    In a fast-paced environment, the right trading platform can be the difference between success and failure. Leading futures brokers in the USA provide clients with access to state-of-the-art platforms tailored to their needs.

    • Example: A swing trader uses a multi-asset platform from Cannon Trading to monitor futures, options, and spot markets simultaneously. This integrated view helps them identify arbitrage opportunities during a market selloff.

    The ability to trade seamlessly across markets enhances resilience in volatile times.

Why Choose Cannon Trading Company for Managing Volatility?

Cannon Trading Company is a standout in the crowded field of futures brokers in the USA, offering unmatched experience, client support, and technological resources. Here’s why Cannon is an excellent choice for traders concerned about market volatility:

  • Decades of Experience: With over 35 years in the industry, Cannon Trading has weathered countless market cycles, making it a trusted partner in uncertain times.
  • Top Regulatory Standards: Cannon Trading operates under strict compliance with U.S. regulatory bodies, providing traders with a secure and transparent trading environment.
  • Highly Rated Service: The company boasts dozens of 5 out of 5-star ratings on TrustPilot, reflecting exceptional customer satisfaction.
  • Diverse Platforms: Whether you are a beginner or a seasoned trader, Cannon Trading offers access to top-tier platforms like CQG, TradeStation, and Sierra Chart.
  • Tailored Support: Cannon Trading’s personalized service helps traders develop customized strategies to navigate volatility effectively.

For traders seeking a reliable partner in futures trading, Cannon Trading delivers expertise, technology, and trustworthiness.

As we approach 2025, market volatility is likely to remain a defining feature of financial markets. Futures brokers in the USA play an indispensable role in helping traders navigate these challenges through hedging, diversification, advanced execution, and education. From stop-loss orders to real-time insights, the techniques outlined above demonstrate the breadth of strategies available to clients.

With a proven track record, comprehensive platform offerings, and a commitment to client success, Cannon Trading Company is uniquely positioned to assist traders in managing risk and capitalizing on opportunity in the world of futures trading. By leveraging the resources and expertise of leading futures brokers, traders can approach market volatility with confidence and resilience.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (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

Standard and Poor’s 500 Futures

Posted on by Ilan

Standard and Poor’s 500 futures, commonly known as S&P 500 futures or SP500 index futures, are among the most widely traded financial instruments in global markets. These contracts offer exposure to the performance of the S&P 500 index, a benchmark that represents the performance of 500 large-cap U.S. companies. Whether used by institutions for hedging or speculators for profit opportunities, S&P futures play a pivotal role in the financial ecosystem. This detailed exploration delves into the mechanics of the S&P 500 futures contract, its components, trading strategies, and its appeal to various market participants.

What are S&P 500 Futures?

S&P 500 futures are derivatives contracts that derive their value from the S&P 500 index. These contracts allow traders and investors to speculate on or hedge against the future performance of the index. Each S&P 500 futures contract represents a fixed dollar amount multiplied by the current index level. For instance, the standard S&P 500 futures contract has a multiplier of $50, while the micro SP futures contract has a multiplier of $5, making it more accessible to individual investors.

The contracts are traded on regulated exchanges, primarily the Chicago Mercantile Exchange (CME), under the product name E-mini S&P 500 futures and Micro E-mini S&P 500 futures. These products are available for trading nearly 24 hours a day, five days a week, ensuring flexibility for participants across time zones.

How to Trade the S&P 500 Futures Contract

Trading the S&P 500 futures index requires understanding the contract’s specifications and the market dynamics. Here are the steps and considerations for trading:

  1. Understand Contract Specifications:
    • Symbol: ES (E-mini), MES (Micro E-mini)
    • Contract Size: The standard E-mini S&P 500 futures contract represents $50 multiplied by the S&P 500 index level. For the Micro E-mini, it’s $5.
    • Tick Size: Each tick (minimum price movement) is 0.25 index points, equivalent to $12.50 for the E-mini and $1.25 for the Micro E-mini.
    • Expiration: Futures contracts expire quarterly (March, June, September, and December), with traders often rolling over positions to maintain exposure.
  2. Set Up a Futures Trading Account:
    • Open an account with a broker authorized to trade CME-listed products.
    • Ensure the account meets margin requirements for trading S&P futures.
  3. Develop a Trading Strategy:
    • Use fundamental analysis, such as economic indicators and corporate earnings, to anticipate market movements.
    • Employ technical analysis to identify price trends and potential entry and exit points.
  4. Risk Management:
    • Set stop-loss orders to limit potential losses.
    • Understand leverage, as futures trading involves significant exposure relative to the margin required.

Who Trades S&P Futures and Why?

The participants in the S&P 500 futures market are diverse, each with unique motivations. They include institutional investors, individual traders, and high-frequency trading firms.

Institutional Investors: Hedging and Portfolio Management

Institutions such as mutual funds, pension funds, and insurance companies frequently use S&P 500 futures to hedge their equity exposure. Hedging involves taking an opposite position in futures to offset potential losses in a portfolio. For instance, if a portfolio manager expects market volatility or a downturn, they might sell S&P 500 futures contracts. This allows them to lock in the current value of their holdings, reducing the impact of adverse price movements.

Speculators: Profiting from Price Movements

Speculators, including retail traders and hedge funds, are drawn to S&P 500 futures for their liquidity, leverage, and potential profitability. Unlike institutional hedgers, speculators aim to profit from price fluctuations in the S&P futures market. They can go long (buy) if they anticipate a market rally or go short (sell) if they expect a decline. The high liquidity of the S&P 500 futures index ensures minimal slippage, even for large trades, making it an attractive choice for speculative strategies.

Arbitrageurs and Market Makers

Arbitrageurs exploit price discrepancies between S&P 500 futures and the underlying index or related financial products. For example, if the futures price deviates significantly from the index value, arbitrageurs may simultaneously buy the underpriced asset and sell the overpriced one, locking in risk-free profits. Market makers, on the other hand, provide liquidity by quoting buy and sell prices, ensuring smooth market functioning.

Components of the Standard and Poor’s 500 Futures Contract

The S&P 500 futures contract is closely tied to the S&P 500 index, which is composed of 500 large-cap U.S. companies across various sectors. Key components include:

  1. Contract Multiplier:
    • The standard multiplier is $50, while the Micro SP futures use a $5 multiplier, catering to smaller investors.
  2. Index Composition:
    • The S&P 500 index itself includes companies from sectors such as technology, healthcare, financials, and consumer discretionary. Heavyweights like Apple, Microsoft, Amazon, and Alphabet significantly influence the index.
  3. Margin Requirements:
    • Traders must deposit an initial margin to open a position and maintain a maintenance margin to keep the position active. Margins are typically a fraction of the contract value, amplifying leverage.
  4. Settlement:
    • S&P 500 futures settle to the index’s final settlement value on expiration. Traders can close positions before expiry or let them settle financially.

Why Institutions Use Futures for Hedging

Institutions favor S&P 500 futures for hedging due to their efficiency, liquidity, and alignment with broad market benchmarks. Here’s why these contracts are essential tools for risk management:

  1. Portfolio Protection:
    • Institutions use S&P futures to shield their portfolios from market downturns. For instance, during economic uncertainty, selling S&P 500 futures can offset potential losses in equity holdings.
  2. Cost Efficiency:
    • Hedging with futures is often cheaper than liquidating and repurchasing a portfolio, especially for large positions. Futures’ leverage ensures that a smaller upfront capital outlay provides significant market exposure.
  3. Tax and Regulatory Advantages:
    • Futures may offer favorable tax treatment compared to other derivatives or direct stock transactions, depending on jurisdiction. They also help institutions comply with risk management regulations.
  4. Global Exposure:
    • Since S&P 500 futures trade nearly 24/7, they provide round-the-clock exposure to U.S. equity markets, enabling real-time adjustments to risk profiles.

The Appeal of Speculating on the S&P 500 Futures Index

Speculators gravitate toward the S&P futures market for its unique features that cater to active trading strategies:

  1. Leverage:
    • Futures offer significant leverage, allowing speculators to control a large market position with a relatively small capital outlay. This amplifies potential profits, though it also increases risk.
  2. Directional Flexibility:
    • Speculators can easily profit in rising or falling markets by going long or short. This dual-direction capability makes S&P 500 futures versatile for diverse market conditions.
  3. Volatility:
    • Market volatility, often driven by economic data releases, geopolitical events, or earnings reports, creates opportunities for intraday and swing trading.
  4. Accessibility:
    • The introduction of Micro E-mini S&P 500 futures has made the market more accessible to smaller traders, enabling them to participate in the index’s movements without excessive risk.

The Standard and Poor’s 500 futures market is a cornerstone of modern financial markets, serving the diverse needs of institutional hedgers and retail speculators alike. By providing exposure to the broad U.S. equity market, the S&P 500 futures index plays a critical role in risk management, price discovery, and speculative trading.

Institutions rely on the futures SP market for efficient hedging and portfolio protection, while speculators are drawn to its liquidity, leverage, and profit potential. With a detailed understanding of contract specifications, trading strategies, and market dynamics, participants can harness the full potential of the S&P 500 futures contract, whether as Micro SP futures or standard-sized contracts.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (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

OJ Futures all time highs! + Futures Trading Levels for Oct. 27th

Posted on by Ilan
Get Real Time updates and more on our private FB group!

What you need to know before the close of the trading week:

By Senior Broker, Mark O’Brien

General: 

 

It will likely be challenging to predict the next stage of the Israel/Hamas war in terms of how broadly it draws in other participants.  For now, diplomatic efforts – negotiating for the release of hostages, calls for a cease fire, bringing humanitarian aid to civilians in Gaza – have toned down the severity of the fighting.  Concurrently, Israel is softening up the opposition by bombing of targets thought to be Hamas military strongholds and the markets are anticipating the launch of a ground war.

 

Even with the conflict entering its 20th day and seeing how commodities have already reacted in that time, the start of ground fighting and/or a broadening of participants would likely see sharper moves in particular futures contracts, i.e., gains in energies, flight-to-quality upward movement in gold and the Swiss franc and even food-related commodities like wheat.  Conversely, equity index futures – U.S. and more broadly – will be vulnerable to draw-downs.  Note that the E-mini Nasdaq already fell into correction territory on Wednesday following the latest tech earnings.

 

Financials: 

 

One instrument at a potential cross-roads – it’s current 6-month / ±$11K per contract decline a dominant catalyst for dragging shares around the world to multi-month lows – is the 10-year T-note futures contract.  Its correspondent benchmark yield is hovering at a 15-yr high of 5%.  Already vulnerable to information on the pace of the U.S. economy, the conflict uncertainty poses a new agitator to the market.

 

Crypto:

 

After trading down to 3-year lows below 15,000 last October, on Tuesday, Bitcoin futures traded through 35,000, a 17-month high, a ±$10,000 move for a Micro Bitcoin futures contract (contract size: 1/50 Bitcoin), a ±$100,000 for the “adult” / Bitcoin futures contract (contract size: 5 Bitcoin).

 

Softs: 

 

With new all-time highs being set all year – almost weekly – orange juice futures (basis Nov.) are poised to break through $4.00/lb. (contract size: 15,000 lbs, 1 cent = $150), more than double its ±$1.85 levels in January, a ±$32,000 per contract move.  Florida orange growers harvested their smallest crop in nearly 90 years, the result of an ill-timed freeze, two hurricanes and the citrus psyllid, a tiny invasive winged insect that has spread citrus greening disease and is laying waste to Florida’s groves.

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Plan your trade and trade your plan.

 

 

 

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 when it comes to Futures Trading.

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Futures Trading Levels

10-27-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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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 judgement in trading.

US$ Moving the markets? + Futures Trading Levels for Sept. 28th

Posted on by Ilan
Get Real Time updates and more on our private FB group!

What you need to know for the last two trading days of the month

 By Mark O’Brien, Senior Broker

General: 

 

Thanks in large part to higher yield opportunities, foreign purchases of dollars to buy U.S. treasuries have pushed the U.S. Dollar Index (basis Dec.) to a 10-month high today – trading to an intraday high of 106.24 – a climb of over $7,000 per contract since mid-July.  The Federal Reserve held interest rates steady at their September meeting, but chairman Powell reiterated the Central Bank’s goal of bringing inflation down to its 2% target, so further rate hikes were still on the table and “higher for longer,” remained the clarion call.

 

Currencies: 

 

Conversely, the Euro hit 6-month lows today, down to 1.0538 intraday, marking a ±$9,500 per contract move in a little over two months.  The Japanese yen is threatening its key 150 level, where Japanese officials are seen as potentially intervening to shore up the currency (divide the futures price by 1 to find the conversion rate).

 

Metals: 

 

New highs in the dollar have also translated to new lows in precious metals, particularly gold, which lost ±$29 per ounce today (basis Dec.) and broke through $1,900 per ounce, approaching early-February lows near $1883.  This is a ±$225 per ounce decline (±$22,500 per contract) from its May 4 highs.

 

Energies: 

 

Despite China’s tenuous economy – a key measure of demand for crude oil globally – the supply side of the ledger has been the driving force behind rising energy prices.  Production cuts made by OPEC+ and continuing through year’s end have contributed to a plunge in storage levels in Europe and the U.S. to multi-month lows.  Today the Energy Information Administration reported a crude oil inventory draw of 2.2 million barrels for the week to September 22, spurring a ±$3.50 per barrel advance above $94.00 per barrel intraday (basis Nov.)  Yesterday, the American Petroleum Institute estimated that stocks at the Cushing, Oklahoma hub – where West Texas oil futures deliveries are processed – had slipped to below 22 million barrels, which is on the brink of the minimum operating level for that important terminal.  The crude oil tanks around Cushing have approximately 91 million barrels of storage capacity.

 

Summary: 

 

Futures traders remember the practical rule of thumb to keep an eye on the U.S. dollar.  A stronger dollar in the global market will increase the price of commodities relative to foreign currencies.  The higher price of commodities in foreign currency will work to lower demand and dollar-priced commodities.  For a first-rate overview, check out the piece by Hannah Baldwin with the CME Group and contributed to Reuters: “How a strong dollar affects international currencies & commodities.”

 

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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 when it comes to Futures Trading.

3b644da2 2bee 4d39 8d98 5208a20bec39

Futures Trading Levels

09-28-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

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Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

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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 judgement in trading.

Win 1 oz Gold Bar + Trading Levels for 5.17.23

Posted on by Cannon Operations
Get Real Time updates and more on our private FB group!

Are you ready to go for gold?

 

Then here is your golden opportunity. CME Group will be launching the Go for Gold Precious Metals Trading Challenge coming this June.

 

You’ll have the opportunity to practice trading highly liquid Precious Metals products while competing against other traders for the chance to win the grand prize of a 1 oz. bar of gold*.

 

During the challenge, you’ll explore our suite of precious metals contracts and test-drive strategies in a simulated environment. We’ll send you exclusive, daily education materials on precious metals contracts in order for you to feel prepared to trade and confidently compete against your peers.

 

Get ready to strike gold.

 

*Participants will only be eligible to receive a 1 oz. gold bar if permitted in accordance with the applicable laws of their jurisdiction.

START DATE: June 4, 2023

 

END DATE: June 9, 2023

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Plan your trade and trade your plan. 

 

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 when it comes to Futures Trading.

Futures Trading Levels

for 05-17-2023

trading levels futures and commodities

Economic Reports, Source: 

Forexfactory.com

 

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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 judgement in trading.

Weekly Newsletter #1128: March Wheat Analysis, Trading During Economic Guide & Futures Trading Levels 1.09.2023

Posted on by Ilan

Cannon Futures Weekly Newsletter Issue # 1128

 

Join our private Facebook group for additional insight into trading and the futures markets!

In this issue:
  • Important Notices – Make 2023 great!
  • Trading Resource of the Week – Trading Around Economic Reports FREE COURSE
  • Hot Market of the Week – March Wheat
  • Broker’s Trading System of the Week – CIRUS ST58 EUROFX KASE
  • Trading Levels for Next Week
  • Trading Reports for Next Week

    • Important Notice – New year’s Trading Schedules

Make it a great 2023! Stay disciplined, educate yourself and utilize our FREE valuable resources.
In this “Trading Around Key Economic Reports” FREE Course you will learn:
  • What is GDP?
  • About the Retail Sales Report
  • What is NFP ( non farm payroll) Report?
  • Understanding US housing Data
  • FOMC
  • Understanding Oil Data Report
  • Importance of Consumer Confidence Survey
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      • 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.
        PriceCounts – Not about where we’ve been , but where we might be going next!

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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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With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this week.
PRODUCT
SYSTEM TYPE
Swing
Recommended Cannon Trading Starting Capital
$12,000
COST
USD 90 / monthly
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The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Sign Up for a Free Personalized Consultation with a Broker from Cannon Trading Company
Questions about the markets? trading? platforms? technology? trading systems? Get answers with a complimentary, confidential consultation with a Cannon Trading Company series 3 broker.

  • Trading Levels for Next Week

Daily Levels for January 9th, 2022

Daily 1.09

Weekly Levels

Weekly 1.09

 

  • Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:
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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 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 exercise their own judgment in trading

Key Points for Real Time Dow-Jones Futures Trading

Posted on by Jenny Collins

Dow Jones Futures Blog

Dow-Jones In Real Time

Providing exposure to 30 of the largest companies in the U.S., the Dow-Jones futures market is directly correlated to the value of the Dow-Jones Industrial Average. Among the most liquid contracts on the exchange, the Dow futures are a favorite for all types of traders. Whether you are a scalper live streaming online, or you’re a position trader placing phone orders, the Dow futures are a diverse landscape with traders participating from all over the world.

Real time quotes are widely available across media outlets, trading platforms, and brokerages. The E-Mini Dow futures(YM) trade on the CBOT as part of the CME Group. Minimum tick size is one point with a value of $5.00 per point, per contract. The notional value of the E-Mini Dow contract can be calculated using the value of the Dow Jones Industrial Average times $5. A smaller alternative, the E-Micro Dow(MYM) contract trades at one-tenth the format of the former, or $0.50 per tick.

The Dow-Jones Advantage

Dow-Jones futures offer competitive margin requirements and leverage, allowing responsible investors and traders the opportunity to hedge larger positions with less capital. For U.S. Traders, the IRS classifies broad based index futures such as the Dow Futures under the 60/40 rule which allows trading profits to be taxed at 60% the more favorable capital gains rate, and only 40% as ordinary income (Check with a CPA before trading.)

As an investment device, the Dow-Jones futures provide real time leveraged exposure to the index value, which promotes capital efficiency for investors and traders.  This means that skilled risk managers, like yourself, will no doubt find competitive and creative solutions to manage risk.

The Dow Jones Futures market is a competitive market for tools and platforms to trade with.  Hence, a plethora of options are available to both retail and professional traders. The Dow-Jones Futures are traded on by many brokerages, software, and platforms, with access to real time data quotes being provided from the exchange through several different data providers.

Dow Jones Futures Live Stream

The Dow-Jones futures market shares a strong correlation to the other U.S. Index futures such as the Nasdaq 100, S&P500, and Russell 2000 contracts. This means that the U.S. markets tend to reflect the movement of one another with additional correlations to the bond markets, currencies, and many other commodities such as gold, silver, etc. Notably, the futures trade nearly 24 hours a day through the week, from Sunday evening until Friday. It’s arguable that if you consider the ease of shorting, capital efficiency, etc. it makes futures a much more valuable tool than ETF’s. Additionally, also  available are the Dow Futures Options contracts which expire monthly. Be sure to understand your risks, and consult with your broker before trading.

Key Points of the Dow-Jones Futures Market

  • Dow-Jones Futures provide leveraged exposure to the DJIA for traders and investors. Take caution when you are approaching a leveraged environment, as the risks can be substantial.
  • Multiple Contract Sizes for different sized investors, traders, and strategies
    • E-Mini(YM) – $5 per point
    • E-Micro(MYM) – $10 per point
  • Profits are taxed more favorably at the 60/40 rate.
  • Trade nearly 24 hours a day, 6 days a week.

You can download one of our trading platforms with live data and the options board here

E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).

We will be happy to screen share with you and answer any questions you may have about futures related inquiries.

Author: Josh Meyers, Broker at Cannon Trading Company

Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.

Dow & NASDAQ Futures to Show Pre-Open on Stocks

Posted on by Jenny Collins

Dow NASDAQ Futures

NASDAQ Futures Marketwatch, Investing in futures & CME

When looking at the Dow, NASDAQ, and S&P futures, there are similarities and differences between stock ETF’s and these Futures. Depending on how much leverage you would like to employ, the Futures numbers are below. If you are looking at the futures prices and had questions about the valuations, we have included a quick key below:

Dow futures symbol YM, Stock ETF Equivalent symbol DIA

Nasdaq Futures symbol NQ, Stock ETF Equivalent symbol QQQ

S&P Futures symbol ES,  Stock ETF Equivalent symbol SPY

Notional Value Calculations for Dow NASDAQ S&P Futures

Both Mini and Micro E-Mini (1/10th size of the E-Mini)

Mini Dow futures price X $5 = Notional Value

Micro Emini Dow (MYM) futures price X .50 = Notional Value

Mini Nasdaq 100 futures price X $20.00 = Notional value

Micro E-Mini Nasdaq (MNQ) 100 futures price x $2.00 = Notional value

Mini S&P futures price X $50.00 = Notional Value

Micro E-Mini S&P (MES) Futures price X 5.00 = Notional value

 

If Dow @ 32000 Notional Value of YM = $160,000.00    Margin to hold $ 8800.00

E-Micro    32000 Notional value of MYM = $16,000.00   Margin to hold $ 880.00

If Nasdaq @ 13500.00 Notional Value of NQ = $270,000.00 Margin to hold $16,500.00

E-Micro    13500.00 Notional value of MNQ = $27,000.00 Margin to hold $ 1650.00

If S&P @ 4250.00 Notional value of ES = $212,500.00 Margin to hold $11,800.00

E-Micro   4250.00 Notional value of MES = $21,250.00 Margin to hold $1180.00

 

Dow Nasdaq S&P futures also offer options, Weekly Options for E-Mini S&P 500 Futures | Cannon Trading.

You can download one of our trading platforms with live data and the options board here

E-Futures International | Futures Trading Platform & Broker Demo Account (cannontrading.com).

We will be happy to screen share with you and answer any questions you may have about futures related inquiries.

Author: John Thorpe, Senior Broker at Cannon Trading Company

Important: Trading commodity futures and options involves a substantial risk of loss. Therefore, recommendations contained in this letter are of opinion only and do not guarantee any profits. There is not an actual account trading these recommendations and past performances are not necessarily indicative of future results.

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.