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Category: Futures Trading

Futures trading is done by two main parties, one of which is the hedger and the other one is the speculator. Where a speculator is there to trade for either their own accounts or that of their clients, a hedger always uses futures as a possible protection from losses. Hedgers can also be described as individuals or business owners who are more risk averse. Speculators and hedgers are likely to benefit from futures trading if the trader has a strong ability to analyze the markets and understands that future behavior. Though futures can behigh risk, they offer an equally high return and are thus very tempting.

In case you are new to futures trading you need to understand how things work. We at Cannon Trading are there to help with your understanding of all the elements of futures trading and also counsel and advise you with the same. Our knowledge base featured on our website, is a store house of information. In order to know every aspect of futures trading, you must read through these articles that have been listed in this category archive. Go through it and get better informed!

Futures Trading

Posted on by Cannon Operations

Automated Futures Trading

futures trading

futures trading

The landscape of modern finance has been fundamentally reshaped by the rise of automated futures trading. No longer the exclusive domain of institutional giants and high-frequency hedge funds, systematic execution has become the gold standard for traders seeking precision, speed, and emotional discipline. As we navigate the complexities of 2026, the integration of artificial intelligence and low-latency infrastructure has turned futures trading into a high-tech discipline where the right partnership with a brokerage can make the difference between a failing strategy and a flourishing portfolio.

Learn More HERE

The Technological Frontier of Automated Futures Trading

The current era of automated futures trading is defined by a shift from static, rule-based systems to dynamic, self-evolving algorithms. Historically, a trading bot might have been programmed with a simple instruction: “If the 50-day moving average crosses the 200-day moving average, buy one E-mini S&P 500 contract.” Today, the technology has transcended these linear boundaries.

Machine Learning and Predictive Analytics

Modern systems now leverage supervised and unsupervised machine learning models. These algorithms do not just follow a set of instructions; they analyze terabytes of historical and real-time data from the CME (Chicago Mercantile Exchange) to identify non-linear patterns. For instance, an algorithm might detect that a specific volatility signature in the 10-Year Treasury Note futures often precedes a price breakout in equity indices. By training on decades of tick data, these systems can adjust their entry and exit parameters in real-time to account for shifting market regimes.

Infrastructure and Low-Latency Execution

In the world of futures trading, speed is measured in microseconds. The technological advancement of co-location—placing a trading server in the same data center as the exchange’s matching engine—has become essential. For example, by co-locating near the CME Globex servers in Aurora, Illinois, traders can minimize “slippage,” which is the difference between the expected price of a trade and the price at which the trade is actually executed. This infrastructure ensures that when an automated signal is triggered, the order reaches the exchange before the market has a chance to move against the position.

Artificial Intelligence and Machine Learning in Automated Futures Trading

One of the most significant advancements in automated futures trading is the integration of artificial intelligence (AI) and machine learning (ML).

How AI Is Reshaping Futures Trading

Modern systems can:

  • Analyze historical and real-time tick data
  • Detect non-linear relationships between markets
  • Adapt to volatility regime changes
  • Optimize parameters dynamically

Unlike traditional rule-based systems, machine learning models can retrain themselves as new data becomes available. In futures trading, this adaptability can be critical during economic shifts, interest rate changes, or geopolitical events.

For example, a volatility-adaptive strategy in automated futures trading might automatically reduce position size during unexpected CME-reported margin changes or increased market volatility. This type of dynamic risk management was difficult to implement in older systems.

Broker Support for AI-Driven Systems

A broker plays a vital role in enabling AI-powered automated futures trading. This includes:

  • Providing high-quality historical CME data for model training
  • Offering API access for algorithm deployment
  • Ensuring low-latency routing for real-time execution
  • Supporting platform integrations such as CQG-based infrastructure

Cannon Trading Company assists traders in connecting algorithmic systems to professional-grade platforms, helping ensure that automated futures trading systems operate efficiently within exchange specifications.

Low-Latency Infrastructure and Co-Location

Speed remains one of the defining elements of automated futures trading. In highly liquid futures trading contracts—such as E-mini S&P 500 futures—microseconds can matter.

Technological Advancements in Execution Speed

Modern advancements include:

  • Fiber-optic connectivity
  • Microwave transmission lines
  • Exchange co-location services
  • Hardware acceleration

Co-location allows automated futures trading systems to operate physically close to exchange servers, reducing latency and improving fill consistency.

For traders running arbitrage, spread trading, or order book imbalance strategies, these improvements significantly impact performance in futures trading environments.

How Brokers Help With Infrastructure

A knowledgeable broker can:

  • Facilitate access to co-location services
  • Assist with routing configuration
  • Provide guidance on order types supported by CME
  • Ensure compliance with exchange rules

Cannon Trading Company works with traders using high-speed execution strategies, ensuring that their automated futures trading systems align with exchange connectivity standards and margin requirements.

Advanced Order Types and Smart Routing

The CME continues to enhance electronic functionality, and modern automated futures trading systems now use advanced order types such as:

  • Iceberg orders
  • Stop-limit orders
  • Trailing stops
  • Market-if-touched (MIT) orders
  • Algorithmic execution orders

These tools allow traders to minimize slippage and reduce market impact.

Smart Order Routing

Smart routing technology in automated futures trading enables systems to:

  • Detect liquidity pockets
  • Avoid thin order book zones
  • Optimize entry and exit timing

In high-volume futures trading contracts, intelligent routing can dramatically improve execution quality.

Broker Assistance in Order Optimization

A broker helps traders:

  • Understand which advanced order types are supported
  • Configure automated order logic
  • Monitor rejected or partial fills
  • Troubleshoot execution anomalies

Cannon Trading Company provides personalized support, helping traders align automated futures trading systems with proper order handling and execution standards.

Cloud Computing and Data Analytics

Cloud technology has become a cornerstone of automated futures trading development.

Benefits of Cloud Infrastructure

Modern automated futures trading systems leverage cloud environments for:

  • Massive historical data storage
  • Distributed backtesting
  • Strategy optimization across multiple instruments
  • Remote system monitoring

Cloud-based futures trading allows traders to deploy systems without maintaining physical servers.

Broker Role in Data Access

Reliable futures trading depends on accurate and timely data. Brokers facilitate:

  • CME market data subscriptions
  • Historical tick data access
  • Real-time streaming feeds
  • Risk reporting dashboards

Cannon Trading Company ensures clients have access to institutional-grade data solutions necessary for building and maintaining automated futures trading systems.

Risk Management Automation

Automation is not just about entry and exit signals. Risk control is one of the most important advancements in automated futures trading.

Modern Risk Controls Include:

  • Real-time margin monitoring
  • Auto-liquidation safeguards
  • Volatility-based position sizing
  • Portfolio-level exposure limits

Futures trading carries leverage risk, and automated risk controls help reduce catastrophic losses.

Broker Support in Risk Monitoring

A broker provides:

  • Margin updates from CME
  • Intraday risk alerts
  • Account performance analytics
  • Regulatory compliance oversight

Cannon Trading Company’s risk management infrastructure helps traders integrate automated futures trading systems while maintaining disciplined oversight.

Integration With Professional Trading Platforms

Automated futures trading now integrates seamlessly with professional-grade platforms such as CQG-based systems, which offer:

  • Advanced charting
  • API access
  • Strategy automation modules
  • Custom scripting environments

These platforms allow traders to design, test, and deploy automated futures trading strategies directly within professional ecosystems.

Cannon Trading Company supports traders using such platforms and offers technical guidance on platform configuration and execution.

How Your Broker Navigates Technological Advancements

A premier brokerage does not simply provide a gateway to the markets; it acts as a technological liaison. Navigating the advancements in automated futures trading requires more than just a fast internet connection; it requires a broker that provides the “plumbing” for sophisticated strategies.

API Integration and Custom Environments

Advanced brokers offer robust Application Programming Interfaces (APIs) that allow traders to connect their custom-coded scripts—written in Python, C++, or Java—directly to the market. This is where E-futures platforms shine. By providing a stable API environment, a broker ensures that your automated futures trading logic can communicate seamlessly with the exchange’s order book. This prevents the “hanging order” syndrome, where a strategy sends a command that the broker’s server fails to process due to outdated software architecture.

Enhanced Risk Management Protocols

As automation increases, the risk of “runaway algorithms” also grows. Leading brokers have integrated server-side risk controls that act as a fail-safe. If an automated system begins to malfunction—perhaps by sending too many orders in a single second or exceeding a pre-set loss limit—the broker’s infrastructure can automatically “kill” the strategy and flatten all open positions. This level of institutional-grade protection is a cornerstone of professional futures trading.

Access to Specialized Products like E-mini and Micro Contracts

Brokers help traders scale their automation by providing access to various contract sizes. The introduction of E-mini and Micro E-mini contracts by the CME has revolutionized the space. Your broker helps you navigate these by allowing your automated systems to “ladder” into positions. An algorithm might be programmed to start a position with Micro contracts and only scale into the full-sized E-mini contracts once the trade has moved into a specific profit threshold.

Why Cannon Trading Company has been a Top Choice for Decades

futures trading

futures trading

For nearly 40 years, Cannon Trading Company has remained at the forefront of the industry. Since its founding in 1988, the firm has transitioned through the era of pit trading into the digital revolution of automated futures trading without losing its core identity.

Stability and Longevity in a Volatile Industry

While many “flash-in-the-pan” brokerages have disappeared during market crashes, Cannon Trading Company has provided a stable harbor for traders since 1988. This longevity is a testament to their conservative management and commitment to regulatory compliance. They are a long-standing member of the National Futures Association (NFA) and registered with the Commodity Futures Trading Commission (CFTC).

The Hybrid Service Model

What sets Cannon Trading Company apart is its unique blend of cutting-edge technology and human expertise. In an age where most brokers have replaced their support staff with chatbots, Cannon provides a licensed broker to answer the phone. For those engaged in automated futures trading, this is invaluable. If a technical glitch occurs or a global news event creates unprecedented volatility, having a “real person” at the trade desk who understands the nuances of the CME markets can be the difference between a minor hiccup and a catastrophic loss.

Unmatched Platform Diversity

Cannon Trading Company does not force traders into a “one size fits all” box. They offer access to over a dozen different trading platforms, including E-futures, Sierra Chart, and MultiCharts. This diversity allows a trader to select the specific environment that best supports their automated logic. Whether you need the heavy-duty backtesting capabilities of a quant-focused platform or the streamlined execution of a mobile-friendly interface, Cannon provides the tools.

Reputation and Verified Success

According to reviews on Trustpilot, Cannon Trading Company consistently maintains one of the highest ratings in the brokerage industry. Traders frequently cite their transparency regarding fees and their proactive approach to customer service. In the world of futures trading, where trust is the primary currency, Cannon’s reputation for integrity is their most valuable asset.

Strategic Implementation of Automated Systems

Implementing automated futures trading requires a disciplined approach to strategy development. The most successful traders follow a rigorous pipeline that involves data acquisition, backtesting, and forward-testing (paper trading).

Backtesting with Historical CME Data

Before any capital is risked, a strategy must be tested against historical data provided by the CME. This allows the trader to see how the algorithm would have performed during historical events like the 2008 financial crisis or the 1987 crash. Cannon Trading Company assists by providing high-quality historical data feeds that ensure the backtest is as accurate as possible.

Optimizing for LLM and Geo-Location

In 2026, the intersection of Large Language Models (LLMs) and trading is becoming a reality. Advanced traders are using LLMs to scan global news sentiment and feed that data as a “feature” into their automated systems. Geographically, as trading moves to a global 24/7 model, the ability of a broker like Cannon Trading Company to provide around-the-clock support is no longer a luxury—it is a requirement.

FAQ: Automated Futures Trading

What is the minimum capital required for automated futures trading?

While it varies by broker, many traders start with Micro E-mini contracts which require significantly less margin than standard contracts. Cannon Trading Company offers competitive margin rates to help traders of all sizes get started.

Can I automate my trading without knowing how to code?

Yes. Many platforms offered by Cannon Trading Company, such as MultiCharts, provide “point-and-click” strategy builders or use simplified scripting languages that are accessible to non-programmers.

Is automated futures trading safer than manual trading?

“Safety” is relative. Automation removes emotional errors like “revenge trading,” but it introduces technical risks like connectivity issues. Using a broker with a 24-hour trade desk, like Cannon Trading Company, mitigates these technical risks.

What are the most common automated strategies for the CME markets?

Common strategies include trend following (riding a price move), mean reversion (betting that price will return to an average), and arbitrage (exploiting price differences between related contracts like the E-mini S&P 500 and its Micro counterpart).

How does Cannon Trading Company handle technical support for APIs?

Cannon provides dedicated technical support to help traders troubleshoot API connectivity and ensure their automated systems are communicating correctly with the E-futures servers.

Are there hidden fees in automated trading?

Professional brokers like Cannon Trading Company are transparent about their costs. Costs typically include commissions per contract, exchange fees from the CME, and potentially a platform or data fee.

Try a FREE Demo!

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

 

First Notice Ahead PLUS: Metal HALTS, Weekly Brazilian Real, Levels, Reports; Your 5 Important Can’t-Miss Need-To-Knows for Trading Futures on February 26th, 2026

Posted on by Cannon Operations
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First Notice Day Ahead

By Mark O’Brien, Senior Broker

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— April (#GC)

 5081.67 5128.83 5183.07 5230.23 5284.47

Silver (SI)

— Mar. (#SI)

 83.95 86.23 88.79 91.07 93.62

Crude Oil (CL)

— April. (#CL)

 64.25 64.86 65.73 66.34 67.21

 Mar. Bonds (ZB)

— Mar. (#ZB)

 117 13/32 117 20/32 117 29/32 118 4/32 118 13/32

first notice

General:

Trading in CME Globex metals and natural gas futures and options markets were halted today due to technical issues impacting traders across the globe. CME Group later opened its Globex natural gas futures and options markets at 12:50 Central Time.

Metals futures reopened soon after. The exchange operator stated its support team were investigating the matter and pointed to a cooling issue at one of its data centers.

CME later said all day orders and good-till-date (GTD) orders for today would be canceled, while good-till-canceled (GTC) orders that had already been acknowledged would remain working.

More General:

Heads up: this Friday, Feb. 27 is First Notice Day for several major March futures contracts. All long positions in these, if held through First Notice Day are contractually committing to take delivery of the underlying physical commodity. Notable among them:

→ 50,000 bushels of corn, soybeans, wheat, oats (about five semi-truck trailers full)

→ 1,000 or 5,000 ounces of silver

→ 25,000 pounds of copper (equal in wieght to two grown elephants)

→ A 2-, 5-,10-yr. treasury note, or a 30-yr. treasury bond with a face value of $100,000 at maturity.

Avoid taking delivery by liquidating long positions tomorrow. Do not risk holding any long positions overnight into Friday and risk your account receiving a delivery notice. It is a complex and costly procedure to cancel this process, called a retender.

Contact your Cannon Trading Co. broker if you have any questions regarding this or any future First Notice Day, or other important dates on the futures calendar.

Metals:

Which metals futures contracts settle with long positions obligated to receiving the actual physical commodity or short positions obligated to delivering it? Alternatively, which ones settle “in cash,” with a calculated financial settlement price offsetting both long and short positions on the final settlement date?

Below are the settlement conditions for a selection of major metals futures contracts:
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Introducing Cannon Edge — Your Daily Futures Snapshot

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

  • Current price and daily % change

  • 30‑day and 52‑week highs/lows

  • PROPRIETARY Short‑term and long‑term trend signals

  • Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQQ.
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Weekly Brazilian Real

The Weekly Brazilian Real has resumed its rally into new highs. If the move can be sustained, the second upside PriceCount projects a possible run to the  .20440 area. Strength in the Real futures reduces profitability to the Brazilian producer and tends to subdue farmer selling.

 

FREE TRIAL AVAILABLE
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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.

Daily Levels for February 26th, 2026
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day!

 Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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Find us on Trustpilot
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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.
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Weekly Market Update PLUS: New Crypto Contracts, CannonEdge, Levels, Reports; Your 5 Important Can’t-Miss Need-To-Knows for Trading Futures on Tuesday, February 17th, 2026

Posted on by Cannon Operations
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Weekly Market Update

By Eli Gal Levy, Series 3 Broker

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— April (#GC)

 4929.90 4970.40 5022.40 5062.90 5114.90

Silver (SI)

— Mar. (#SI)

 72.65 74.57 76.50 78.42 80.35

Crude Oil (CL)

— Mar. (#CL)

 61.89 62.76 63.23 64.10 64.57

 Mar. Bonds (ZB)

— Mar. (#ZB)

 117 12/32 117 22/32 118 118 10/32 118 20/32

Weekly Market Update

market

The good the bad and the ugly; this market as of late feels like a western movie. Maybe we’re just so used to the market going up. Where will the next catalyst for this market come from? The price action is pointing to consolidation phase. Leadership has flipped to other areas such as energy, staples, materials. There is too much volatility as of late. NDX broke below its upward sloping trendline from December lows. Everything I am reading, hearing and seeing is causing me to turn more cautious on this market.

???

How can the market go higher without tech? Did anyone see that financials (XLF) stalled as well. We’ve had 3 notable pullbacks this year so far in the S&P500 and they all stopped and found support around 6800 on the SPX. So right now, it’s a 3% pullback around the 100 Day Moving Average. And then the buyers come in. That is the key number I am looking at if that support breaks, Houston we have an alert. It seems the market is lucky to avert danger; there was a chance that the jobs report and CPI could go in the wrong direction and start painting a stagflation picture. Is AI recking tech so bad that its bad for the market? David Einhorn from greenlight capital was quoted saying “I think this is the most expensive market we’ve been in”.

DOW

DOW 50,000: an underlying assumption in both the bond and stock markets has been that the Fed would resume cutting rates after Jerome Powell steps down when his term as chair ends in May and is replaced by Kevin Warsh, who has endorsed rate cuts. The chair has just one vote out of 12 on the Federal Open Market Committee. If the anticipated rate-cut scenario doesn’t play out, and the AI hits keep on coming, the Dow 50,000 print may be the peak for a while.

RSP

RSP which is the equal weight S&P500 has been the leading ETF this year as opposed to the S&P. the Industrials sector is 16% of the RSP and Industrials have been going up. Over the last 10 years the CapEx companies have been cap light, high margins, and solid recuring revenues. Are now becoming CapEx very heavy, more debt and lower margins. The market is in a digestive stage of how do we value these stocks going forward. While we do see this economic expansion which is in the center of what RSP gives you such as Industrials. I keep hearing that valuations are too high.

Earnings

And perhaps we should have a new valuation paradigm? I would hold off on the latter until proven to be correct. Earnings have outperformed by 5% for 10 straight quarters. We’ve come to expect that from earnings season. Speaking of CapEx raises in spending by the mega cap companies, they were substantial. Shouldn’t that spending lift the SMH sector, I only saw the memory chips going up and that’s a disconnect to keep an eye out for.

Investors Intelligence’s tally of opinions showed bulls topping bears by 40 percentage points, a reading in the 90 percentiles of positivity, according to Jeff deGraaf, founder and chairman of Renaissance Macro Research. That elevated sentiment suggested at least some near-term caution, he wrote in a client note on Thursday morning. Traders should be patient, buying dips instead of chasing strength, he wrote.

“If tech cannot get an AI-driven valuation premium, one must wonder if any sector can earn its way into a better multiple in the next few years,” Colas writes.

Retail sales were a bad miss. And stocks continue to go up because of a K shape recovery, UBS says we believe the backdrop remains favorable; driven by resilient economic growth, supportive federal reserve policy and AI investment and adoption. Earnings are getting revised higher and that may be a reason markets are maintaining the gains of past days. Transport and Industrial are confirming just that and that’s where momentum has been. CSX which is in railways is at a 52-week high that points that the market believes in a growing industrial.

Growth

Earnings growth in the emerging markets in 2025 outpaced the US, US is around 14% emerging markets around 29 %, add to that the declining value of the dollar. The broadening thesis is supported by earnings and it’s not just domestic in the emerging market.

The markets seem to be transitioning in this 4th year of a bull market from a momentum multiple driven market to an earnings driven market, traditionally and historically over the last 80 years when the S&P moves into more of an earnings driven market, the returns are roughly half that of the momentum driven market. Barclays on Wednesday upgraded value, downgraded momentum and cautions on small caps. Am going to note that small caps finally are seeing on annualized basis positive earnings. And momentum is currently pivoting more towards quality and value.

We don’t have the ability to accurately assess what and how AI is going to be disruptive to certain sectors. This week we saw news that AI is disruptive to software, trucking, commercial real estate. And the market sold these sectors.

YIELDS

The Bond market is relatively calm and that is good for credit availability and the cost of capital not being a moving target. In Treasuries, the benchmark 10-year note yield dropped as low as 4.05% on Friday, down about 23 basis points from a couple of weeks earlier and the lowest level since late October, when it dipped under the 4%

The bullish bond backdrop was further bolstered by economic data, notably a smaller-than-expected rise of 0.2% in the consumer price index for January, the smallest increase since July. That boosted the odds that the Fed would cut interest rates by more than half a percentage point by year end.

I asked ChatGPT what’s the total value of all gold Vs. the US market and she answered Gold-30-40 trillion, US market capitalization 69 trillion.

Weekly Commodities Futures Overview (Week of Feb 9–13, 2026)

Market theme: Mixed performance with energy and some soft commodities under pressure, while precious metals remained relatively firm and grains were broadly stable. Volatility was heightened by macro uncertainty, holiday-thin trading, and positioning adjustments after recent rallies.

Energy Commodities

Crude Oil (WTI & Brent)

  • WTI crude futures traded around the $62–63/bbl zone into Friday.
  • Brent crude hovered near $68/bbl by week’s end. The weekly move was modest and flat to slightly down overall, reflecting consolidation after recent geopolitical driven rallies.

Key drivers:

  • Ongoing geopolitical risk premium (U.S.–Iran talks) keeps prices supported.
  • But overall direction was sideways with traders booking profits after recent gains.

Natural Gas

  • Natural gas futures declined over the week, with prices near $3.04/MMBtu around Feb 16 — marking a notable weekly drop.

Summary (Energy):

  • WTI & Brent: Mild net declines / sideways.
  • Natural gas: Significant weekly weakness — one of the bigger movers lower on the energy side.

Precious & Industrial Metals

Gold

  • Gold futures held around the $5,000/oz level into mid-week and finished with relatively modest weekly gains vs. the prior Friday. Prices were still elevated from recent strength earlier in the month.

Silver

  • Silver underperformed gold with prices near ~$75/the ounce mid-Feb, reflecting a stronger pullback this week.

Platinum & Palladium

  • Platinum was slightly down; palladium ticked modestly higher, but overall moves were smaller compared with gold and silver.

Industrial Metals (Copper, Aluminum)

  • Copper futures drifted mildly lower over the week.
  • Aluminum showed some decline early then modest recovery, finishing the trading week with small net changes.

Summary (Metals):

  • Gold: modest weekly gains / holding firm.
  • Silver & Platinum: lower.
  • Industrial metals: overall soft or mixed with no strong directional trend.

Agricultural Commodities

Grains

Using broad market data:

  • Wheat futures were higher on the week, supported by topping activity and export dynamics.
  • Corn futures saw small positive weekly change.

Softs & Others

  • Commodities like sugar and coffee generally stayed muted with soft to slightly mixed weekly results.

Summary (Agriculture):

  • Wheat & Corn: modest up moves.
  • Soft commodities: flat to slightly mixed.

Top Weekly Movers – Commodities Futures

Upside / Outperformers

  • Gold futures: Held gains and remained resilient around key technical levels.
  • Wheat & Corn: Modest weekly strength among ag futures.

Downside / Underperformers

  • Natural gas futures: Among the largest weekly declines in the energy complex.
  • Silver: Weaker relative to gold.
  • Crude oil (WTI & Brent): Slightly down or flat through profit-taking and consolidation.

Key Market Drivers Last Week

1. Positioning after big rallies

Positioning shifts in metals and energy have led to profit-taking, particularly in silver and natural gas.

2. Geopolitics & macro data

Talks between the United States and Iran shape energy risk premiums, but haven’t triggered new directional breakouts.

3. Holiday-light trading

Thin volumes around Presidents’ Day and Lunar New Year contributed to choppy price action and sharper short-term moves.

What to Watch Next Week

  • Geopolitical developments (U.S.–Iran negotiations).
  • U.S. economic data & Fed expectations — dollar strength/weakness will influence metals and energy.
  • Weather in North America — especially for natural gas demand forecasts.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions and other financial instruments 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. I am registered solely as a commodities broker. Any references, recommendations & information contained in this article are of opinion only, should not be considered investment advice. And do not guarantee any profits.
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Name Exchange Class Exchange Symbol CQG Symbol Size
nano XRP Coinbase Crypto XRP XRP 500 XRP
XRP Coinbase Crypto XRL XRL 10,000 XRP
nano XRP Perp-Style Coinbase Crypto XPP XPP 500 XRP
nano Solana Coinbase Crypto SOL SOL 5 Solana
nano Solana Perp-Style Coinbase Crypto SLP SLP 5 Solana
Solana Coinbase Crypto SLC SLC 100 Solana
nano Ether Perp-Style Coinbase Crypto ETP ETP 0.1 Ethereum
Ether Coinbase Crypto ETI ETI 10 Ethereum
nano Ether Coinbase Crypto ET NET 0.1 Ethereum
nano Bitcoin Coinbase Crypto BIT BIT 0.01 Bitcoin
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Introducing Cannon Edge — Your Daily Futures Snapshot

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

  • Current price and daily % change

  • 30‑day and 52‑week highs/lows

  • PROPRIETARY Short‑term and long‑term trend signals

  • Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQQ.
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Daily Levels for February 17th, 2026
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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Find us on Trustpilot
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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.
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Trading With Futures

Posted on by Cannon Operations

trading with futures

Trading With Futures

trading with futures

trading with futures

In the ever-evolving landscape of global finance, the decision to engage in trading with futures is one that many individual investors revisit throughout their careers. While the allure of equities and bonds is undeniable, the unique structural advantages of the derivatives market—governed largely by the CME (Chicago Mercantile Exchange)—provide a compelling case for seasoned and novice participants alike. This essay explores the primary drivers behind the return of individual traders to the futures market, with a focus on risk management and the institutional-grade support provided by firms like Cannon Trading Company.

Why are individual finance traders returning to the futures market?

The return to the futures market is often catalyzed by a need for greater capital efficiency and 24-hour market access. Unlike the stock market, which is largely confined to standard business hours, trading in futures allows participants to respond to global economic events as they happen. Whether it is a late-night interest rate announcement from an overseas central bank or a sudden shift in geopolitical stability, the futures market remains open, providing a venue for immediate action.

Furthermore, the concept of leverage is a significant draw. In the futures arena, a trader can control a large contract value with a relatively small amount of margin. This capital efficiency allows for a more diversified approach to one’s portfolio without tying up the massive amounts of liquidity required for traditional stock ownership.

How does hedging other investments function within a futures strategy?

Hedging is perhaps the most sophisticated reason individuals prioritize trading with futures. At its core, hedging is a risk management strategy used to offset potential losses in one investment by taking a contrary position in another.

The Role of the E-mini and Micro Contracts

According to the CME, the introduction of the E-mini and Micro E-mini contracts revolutionized the ability of the individual trader to hedge. If an investor holds a substantial portfolio of blue-chip stocks, they are inherently exposed to “systemic risk”—the risk that the entire market will decline. By trading in futures, specifically by selling (shorting) an E-mini S&P 500 contract, the investor can protect their equity holdings. If the stock market drops, the loss in the physical stock portfolio is offset by the gain in the short futures position.

Strategic Precision

The precision of these hedges is a primary reason for their popularity. Because futures contracts are standardized, traders can calculate exactly how many contracts are needed to neutralize their exposure. This “insurance policy” allows investors to maintain their long-term stock positions—avoiding the tax consequences of selling shares—while insulating themselves from short-term volatility.

Why is Cannon Trading Company considered a top choice for futures traders?

Selecting a brokerage is the most critical decision a trader makes. Cannon Trading Company, founded in 1988, has maintained its status as a premier firm by focusing on the “human element” of brokerage. In an era dominated by automated bots and faceless apps, Cannon provides a dedicated broker model that many traders find indispensable.

Reputation and Trust

A quick glance at Trustpilot reveals the depth of client satisfaction associated with the firm. Traders frequently cite the personalized service, the speed of communication, and the deep industry knowledge of the Cannon staff. Being a “boutique” clearing firm allows them to offer a level of attention that larger, institutional-only firms cannot match.

Platform Diversity: E-Futures and Beyond

Cannon Trading Company provides access to a wide array of technology, including the E-futures platform. This software is designed for high-performance execution, offering the stability and speed required to navigate volatile markets. Whether a trader is focused on technical analysis or simple order execution, the E-futures suite provides the necessary tools to implement complex strategies efficiently.

What makes the current market environment ideal for trading with futures?

The volatility observed in the mid-2020s has served as a wake-up call for many. Traditional “buy and hold” strategies can be decimated by sudden market corrections. Trading with futures offers a way to profit in both rising and falling markets. Because there are no “uptick rules” or the restrictive borrowing costs associated with shorting stocks, trading in futures provides a level playing field for those who believe the market is overvalued.

The CME provides a transparent and regulated environment where every participant sees the same price and the same depth of market. This transparency, combined with the low transaction costs compared to individual stock picking, makes the futures market an efficient engine for wealth management.

The Longevity of Cannon Trading Company in the Industry

Why does Cannon Trading Company continue to thrive decades after its inception? The answer lies in their adaptability. While they have embraced the latest technology, such as the E-mini and Micro contracts, they have never abandoned the core principle of trader education.

Traders often return to Cannon because the firm acts as a partner rather than just a transaction processor. Their longevity is a testament to their ability to guide clients through various market cycles—from the dot-com bubble to the financial crises of the 21st century. By maintaining high standards of integrity, as reflected in their Trustpilot ratings, they have built a legacy of trust that is rare in the financial services sector.

Deep Dive: Managing Risk When Trading in Futures

While the benefits of trading in futures are numerous, the importance of risk management cannot be overstated. The same leverage that allows for significant gains can also lead to substantial losses if not managed correctly.

  • Stop-Loss Orders: Every professional trader utilizing E-futures or similar platforms understands the necessity of a stop-loss. This is a pre-determined price at which a losing trade is automatically closed to prevent further capital erosion.
  • Margin Awareness: Understanding the difference between initial margin and maintenance margin is vital. Cannon Trading Company brokers often work with clients to ensure they are capitalized sufficiently to withstand the “noise” of daily market fluctuations.
  • Position Sizing: Because of the high notional value of contracts like the E-mini, traders must be disciplined in how many contracts they carry relative to their account size.

The Evolution of the E-mini and Retail Accessibility

The CME Group’s creation of the E-mini was a watershed moment for the individual. Before its inception, futures contracts were often too large for the average retail account to handle. The E-mini allowed for a more granular approach, and the subsequent launch of Micro E-mini contracts (at 1/10th the size) has lowered the barrier to entry even further.

Today, trading with futures is no longer the exclusive domain of floor traders in colorful jackets. It is a digital, global, and highly accessible market. With the support of an established firm like Cannon Trading Company, individuals can leverage these institutional tools to build a more resilient financial future.

Why Traders Stay: The Cannon Advantage

The reason traders stay with Cannon Trading Company for years, and even decades, is the stability of the relationship. In the fast-paced world of trading in futures, having a calm, experienced voice at the other end of the line during a market panic is worth more than any algorithm.

The firm’s commitment to providing multiple clearing options and a vast selection of platforms (like E-futures) ensures that as a trader’s needs evolve, their brokerage can evolve with them. This flexibility, combined with the stellar reputation evidenced on Trustpilot, makes them the logical choice for anyone serious about their trading career.

trading with futures

trading with futures

FAQ: Frequently Asked Questions About Futures Trading

What is the difference between trading with futures and trading stocks?

While stocks represent equity ownership in a company, futures are contracts to buy or sell an underlying asset at a future date. Trading with futures offers higher leverage, 24-hour access, and the ability to go short as easily as going long, which is not always the case with equities.

Is trading in futures suitable for beginners?

It can be, provided the beginner is willing to invest time in education. Using the Micro E-mini contracts is a popular way for new traders to start with lower financial risk while learning the mechanics of the market.

Why do I need a broker like Cannon Trading Company?

A broker provides the necessary infrastructure to access the exchanges (like the CME). Cannon Trading Company offers the added benefit of personalized support, various platform choices like E-futures, and a history of reliable service.

How does the E-mini S&P 500 contract work?

The E-mini tracks the S&P 500 index. When you buy a contract, you are essentially betting that the index will rise. Because it is electronically traded, it offers high liquidity and tight spreads, making it ideal for both day trading and hedging.

Where can I see real reviews of Cannon Trading Company?

The most transparent and verified reviews can be found on Trustpilot, where the company maintains a high rating based on years of client feedback regarding their service and execution.

What are the costs associated with trading in futures?

Costs typically include exchange fees, clearing fees, and broker commissions. Cannon Trading Company is known for competitive pricing, especially for active traders who utilize platforms like E-futures.

Can I hedge a small portfolio using futures?

Yes. With the advent of Micro contracts on the CME, even smaller portfolios can be effectively hedged. This allows individual investors to use the same sophisticated risk-management techniques as large institutional funds.

The Future of Your Portfolio

The financial markets of the future will likely continue to be characterized by volatility and rapid change. For the individual trader, the ability to adapt is paramount. Trading with futures provides the versatility required to navigate these waters, whether through aggressive speculation or defensive hedging.

By partnering with a firm that has stood the test of time, such as Cannon Trading Company, and utilizing robust platforms like E-futures, you gain access to the tools, the technology, and the expertise needed to succeed. The move toward trading in futures is more than just a trend; it is a return to a market that offers the transparency, liquidity, and efficiency that modern investors demand.

Whether you are looking to hedge your long-term stock holdings with the E-mini or you are seeking to capitalize on the 24-hour nature of global commodities, the futures market remains the gold standard for active finance. As you move forward, remember that the quality of your information and the reliability of your broker are your most valuable assets.

Try a FREE Demo!

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

 

Precious Metals Continue to ROAR!!!! Crude Oil Numbers, Levels, Reports; Your 4 Important Can’t-Miss Need-To-Knows for Trading Futures on January 14th, 2026

Posted on by Cannon Operations
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PPI, Business Inventories, Fed Speakers,

Crude Oil Numbers

& more

Look for a volatile trading day tomorrow!

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

 4537.77 4566.13 4605.07 4633.43 4672.37

Silver (SI)

— Mar. (#SI)

 80.59 83.68 86.45 89.54 92.31

Crude Oil (CL)

— Feb (#CL)

 58.65 59.85 60.68 61.88 62.71

 Mar. Bonds (ZB)

— Mar (#ZB)

 115 2/32 115 13/32 115 22/32 116 1/32 116 10/32

 Precious Metals Continue to Roar!

metal

The precious metals move to the upside has continued today with the sharp move higher for Silver which traded up over 7% on the day today, reaching a new all-time high price of $86.34 today and closing slightly below that level. Gold and Copper also traded higher with gold trading up over 2% and Copper trading higher by around 1.6%, and the momentum is still strong across the asset class.

There has been a lot of headlines and global uncertainty that could be playing a role in the dramatic moves to the upside, but any selling that has been seen over the last year has been met with buying on weakness helping drive the prices higher.

The equities also saw a positive day today with the S&P, Nasdaq and Russell all trading marginally higher led by the Russell. This has been a common theme over the past few months where the Russell either leads equities higher or leads the prices to the downside, and that trend continued today.

There is a lot of economic data being released this week, starting tomorrow looking at CPI, which can have a strong impact on the equities, precious metals, treasuries and the crypto futures that traders will be watching throughout the week.
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February Crude Oil

February crude oil stabilized its slide last month and now has activated upside PriceCounts on the correction higher. The first count projects a run to the 61.75 area.

FREE TRIAL AVAILABLE
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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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Daily Levels for January 14th, 2026
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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Find us on Trustpilot
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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.
Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!
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New Years Trading, FOMC Minutes, Levels, Reports; Your 4 Important Can’t-Miss Need-To-Knows for Trading Futures the Week of December 29th, 2025

Posted on by Cannon Operations
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Happy Holidays and Trading on the last week of 2025!

By John Thorpe, Senior Broker

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

 4488.83 4525.67 4554.83 4591.67 4620.83

Silver (SI)

— Mar. (#SI)

 70.58 74.69 76.84 80.95 83.10

Crude Oil (CL)

— Jan (#CL)

 55.25 56.08 57.48 58.31 59.71

 Mar. Bonds (ZB)

— Mar (#ZB)

 115 1/32 115 10/32 115 22/32 115 31/32 116 11/32

 New Years Holiday Schedule, FOMC Minutes and no stocks report earnings.

new year

·        3 full trading days left in 2025 to capitalize on!

·        4 trading days in the week (all markets are closed Thursday, New Years Day)

·        Tuesday FOMC Minutes released from the December meeting. 1 PM CST

We’ll see you next week! Please enjoy a safe and memorable weekend.

Earnings Next Week:

·        Mon. Quiet

·        Tue. Quiet

·        Wed. Quiet

·        Thu.  Happy New Year!

·        Fri.   Quiet

FED SPEECHES: (all times CST)

·        Mon.  None

·        Tues.   None

·        Wed. None

·        Thu.  None

·        Fri.   None

Econ Data: (all times CST)

·        Mon. Retail and Housing Data with Dallas fed sprinkled in

·        Tue. Redbook, More housing data and FOMC Minutes

·        Wed. Jobless numbers, Chitown PMI and EIA Crude numbers

·        Thu. Happy New Year!

·        Fri. PMI Final, Fed Balance sheet, All Markets open regular hours.
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Daily Levels for Dec. 29th, 2025
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

 U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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Find us on Trustpilot
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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.

Call Now

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!
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12100 Wilshire Blvd.

Suite 1640

Los Angeles, CA 90025 US

API Futures Trading

Posted on by Cannon Operations

api futures trading

API Trading

api futures trading

api futures trading

API futures trading has moved from a niche practice among quant desks to a mainstream toolset used by independent traders, prop firms, hedge funds, and broker clients. If you’ve ever wondered how trading bots place orders on CME or ICE without touching a mouse, or how a risk engine can cancel hundreds of orders in milliseconds, the answer is usually the same: an application program interface that lets software talk directly to a broker or exchange.

This guide explains what api trading means in the futures world, where it came from, who uses it, and how it has reshaped modern market structure. Along the way, it highlights practical workflows, real examples, and the specific advantages and risks that come with automation.

What Is API Futures Trading?

At its simplest, api futures trading is the practice of trading futures contracts through code that connects to a trading venue via an application program interface (often shortened to API). The “interface” part matters: it’s a standardized set of rules that allows one program (your trading system) to request data and send instructions to another program (your broker’s or platform’s servers).

When you use api trading, you are not clicking “buy” in a charting window. Instead, your code sends an order message: contract symbol, side, quantity, price, order type, time-in-force, and any special flags. The broker or platform validates it, routes it to the exchange, and streams execution reports back to your software. The same interface can also stream live prices, market depth, historical bars, account balances, and positions.

In practice, the most common futures APIs are offered by:

  • Broker APIs (e.g., CQG, Rithmic, Interactive Brokers, TT, Tradovate, etc.) that route to multiple exchanges.
  • Exchange-native APIs (e.g., CME iLink for members) used by large firms with direct access.
  • Platform wrapper APIs (e.g., Python, C#, JavaScript SDKs) that simplify order management and data consumption.

All of these are designed to give you programmatic control over the “three pillars” of futures operations: market data, order entry, and account/risk management.

Key Components of an Application Program Interface for Futures

A futures-focused application program interface typically exposes several categories of endpoints or message types:

  • Market data
    • Real-time quotes (bid/ask, last trade).
    • Level II depth and order book updates.
    • Derived data (VWAP, settlement, implied spreads).
    • Reference data (tick size, margin rates, trading hours).
  • Order management
    • New order placement for limit, market, stop, stop-limit, iceberg, bracket, and algorithmic order types.
    • Order modification and cancellation.
    • OCO and OSO logic (one-cancels-other, order-sends-order).
    • Exchange acknowledgments and rejection messages.
  • Trade and position reporting
    • Fill notifications and partial fills.
    • Current positions by contract and strategy.
    • Trade history for reconciliation.
  • Risk controls
    • Pre-trade checks (max order size, fat-finger limits).
    • Intraday margin monitoring.
    • Kill switches and global cancels.
  • Connectivity and authentication
    • API keys, OAuth tokens, certificates, or session logins.
    • Session heartbeat and reconnect logic.

Understanding these pieces helps explain why api trading is so powerful: it is not only about sending orders faster, but also about designing a complete automated trading lifecycle.

Origins: How API Trading Emerged in Futures Markets

To understand api futures trading today, you need a quick tour of how futures moved from pit trading to screens.

The open-outcry era

For most of the 20th century, futures trading was physical. Traders stood in exchange pits, shouting bids and offers, using hand signals, and relying on runners to carry order tickets. Speed mattered, but “speed” meant walking faster or having a better spot in the pit.

Early electronic markets

In the 1970s–1990s, exchanges began experimenting with electronic systems. Chicago exchanges developed early matching engines, and Europe’s LIFFE and Eurex went electronic earlier than some U.S. venues. These systems needed standardized electronic order messages. At first, they were proprietary protocols used by member firms, not public APIs. Still, this was the seed of modern api trading: a machine-readable order book and a documented message format.

FIX and the first “interfaces”

The Financial Information eXchange (FIX) protocol, introduced in the early 1990s, allowed brokers and institutions to communicate orders and fills across systems. Fix wasn’t futures-only, but it became a backbone for multi-asset connectivity. Many futures brokers still support FIX gateways, and for some firms, FIX was their first real application program interface for algorithmic execution.

Direct market access and co-location

Late 1990s and early 2000s brought direct market access (DMA), where buy-side firms could send orders straight to exchanges through broker risk filters. Co-location—placing servers inside or near exchange data centers—reduced latency dramatically. APIs evolved to reduce overhead, using binary protocols rather than text-based messaging. This is where api futures trading started to diverge based on user type: ultra-low-latency APIs for HFT, more flexible APIs for systematic and discretionary traders.

Retail APIs

By the 2010s, retail futures traders wanted automation too. Brokers and platform vendors began offering documented APIs, sample code, and developer communities. This democratized api trading, letting small teams build strategies that previously required institutional infrastructure.

In short, api futures trading is the product of four decades of market electrification: once the pit became an engine, interfaces became inevitable.

Evolution Into Today’s API Futures Trading Ecosystem

Modern api futures trading sits at the intersection of high-speed execution, cloud computing, and data science. Here are the biggest evolutionary steps.

From manual “rules” to full algorithmic systems

Early users might have coded a simple auto-trader: “If price crosses moving average, buy one contract.” Today, strategies can span dozens of instruments, multiple timeframes, and portfolio-level risk constraints. APIs now support complex order types, server-side triggers, and conditional workflow management. The interface is no longer an accessory; it’s the trading venue itself.

Better data and event-driven design

Early APIs pushed snapshots of prices every few seconds. Today they stream tick-by-tick events and full depth updates. That shift made event-driven architectures standard: rather than polling for data, strategies react instantly to new information.

Interoperability and language support

Python became common for research; C++ and Java stayed dominant in execution; C# and JavaScript rose for platform scripting. Brokers began offering SDKs across languages, plus websocket or REST layers for lighter use. This “stack” approach is why api trading is now accessible without a PhD in networking.

More robust risk tooling

After crashes like 2010’s Flash Crash, exchanges and brokers tightened risk controls. Most futures APIs now include throttles, order-rate limits, and protective checks. Kill switches are built into gateways. That means api futures trading can scale without turning into a runaway-order disaster.

Cloud and containerization

Teams now deploy strategies on Kubernetes, serverless functions, or managed cloud VMs. Some brokers allow cloud-hosted connections; others require on-prem or co-located stacks for latency. Either way, APIs are built to support distributed, resilient execution.

Shift toward “smart order routing” and multi-venue access

Futures are mostly centralized per contract, but spreads, options, and cross-exchange products benefit from intelligent routing. Platforms use APIs to pull in liquidity from multiple venues and manage legged orders automatically.

These steps together created today’s environment: API-first trading where software defines the edge.

Who Uses API Futures Trading the Most?

Different trader profiles gravitate to api trading for different reasons.

High-frequency trading (HFT) and market makers

These firms care about microseconds. Their application program interface is usually binary, low-level, and co-located. They perform:

  • Market making in liquid contracts (ES, NQ, CL, ZN).
  • Statistical arbitrage across correlated futures.
  • Spread and calendar-roll capture.
    Their advantage comes from speed, order book modeling, and inventory management.

Systematic macro and trend funds

CTAs and quant macro funds use api futures trading to execute large, diversified portfolios. They tend to trade:

  • Equity index futures.
  • Rates (Treasuries, Eurodollars/SOFR).
  • Energy and metals.
  • Agricultural contracts.
    They care more about robustness, slippage control, and risk parity than nanosecond latency.

Proprietary trading firms

Prop firms use APIs to standardize execution for many traders. They blend discretionary signals with automated risk and order placement, often running:

  • Intraday momentum strategies.
  • Options-on-futures hedging.
  • Cross-market arbitrage.
    Their systems emphasize monitoring, compliance, and rapid iteration.

Advanced retail and semi-pro traders

A growing base of individuals uses api trading to automate repeatable ideas:

  • Overnight carry or mean-reversion systems.
  • Breakout and pullback entries on micro contracts.
  • Automated trade management (brackets, trailing stops).
    They value ease of integration with charting tools, plus stable data feeds.

Corporate hedgers and commercial users

Large commodity producers and consumers use application program interface links to hedge exposures automatically. Instead of calling a broker, their treasury systems can:

  • Rebalance hedge ratios.
  • Roll positions near expiry.
  • Monitor margin usage.
    This is less “speculative” but still very much api futures trading.

How API Trading Has Changed the Futures Industry

API connectivity didn’t just change how individual traders operate; it changed futures market structure.

Faster price discovery

When many participants trade through software, information is absorbed quickly. Arbitrage loops (cash-futures, inter-commodity, inter-exchange) tighten spreads. While that can reduce some discretionary opportunities, it improves overall efficiency.

Thinner “human” liquidity, deeper algorithmic liquidity

Open-outcry provided deep liquidity via human judgment. In electronic markets, most displayed depth comes from algorithms that can cancel quickly. API-driven quoting creates liquidity that is real but more fleeting, which is why futures order books can appear deep yet move abruptly during stress.

Rise of complex spreads and synthetic products

Calendar spreads, inter-commodity spreads, and options-on-futures combos are now often traded through automated legging algorithms. APIs allow rapid creation and management of multi-leg positions, which increased volume in spreads and reduced execution friction.

Democratization and competition

Retail-access APIs reduced barriers to entry. Talented small teams can now compete with larger firms in some strategy classes (not HFT), especially in medium-frequency and swing horizons. That pushed brokers to innovate on fees, latency, and API tooling.

More emphasis on risk controls and surveillance

Since API errors can scale fast, brokers and exchanges invested heavily in pre-trade risk checks, messaging limits, and post-trade surveillance. The industry became more “systems-engineering” oriented.

New forms of alpha

As basic patterns got automated away, alpha shifted toward:

  • Better data (alternative signals, order flow, cross-asset context).
  • Better execution (adaptive limit placement, smart sizing).
  • Better portfolio construction (dynamic risk budgets).
    All of these are easiest to implement through api futures trading pipelines.

Benefits of API Futures Trading

  • Speed and precision
    • Orders can be placed and adjusted in milliseconds.
    • Reduced human error in sizing and entry.
  • Consistency
    • Rules execute the same way every time.
    • Emotional noise is removed from routine tasks.
  • Scalability
    • One system can trade many contracts and accounts.
    • Easy to add new markets if data and margins allow.
  • Advanced order logic
    • Brackets, OCOs, trailing stops, and execution algos.
    • Automated roll and hedging workflows.
  • Research-to-production workflow
    • Strategies tested in code can be deployed with minimal translation.
    • Performance analytics feed directly into revisions.

These advantages explain why api trading keeps spreading across the futures landscape.

Risks and Challenges

API access is powerful, but not magic. Key challenges include:

  • Connectivity risk: Internet outages or server crashes can leave orders unmanaged. Redundancy and watchdogs matter.
  • Latency sensitivity: Even medium-frequency strategies can be hurt by slow data or order routing. You must measure end-to-end delay.
  • Overfitting: Easy backtesting can produce fragile strategies. Use robust validation, walk-forward testing, and regime awareness.
  • Operational complexity: Logs, monitoring, and version control become part of trading.
  • Regulatory and compliance: Some jurisdictions require registration once automation reaches certain thresholds; firms must follow exchange messaging limits and broker rules.

Good api futures trading includes engineering discipline, not just clever signals.

A Practical Picture: Typical API Trading Workflow

Here’s how many traders implement api trading in futures:

  • Research
    • Collect historical futures data.
    • Build and test models in Python/R/Matlab.
  • Paper trading
    • Connect the strategy to a simulator or demo account through the same application program interface used live.
  • Execution layer
    • Implement order logic, throttles, and state management.
  • Risk and monitoring
    • Set max exposure per instrument and per day.
    • Add alerts for slippage, disconnects, or abnormal behavior.
  • Live deployment
    • Start small, scale slowly.
    • Review fills daily and refine.

The best systems treat execution as part of the strategy, not an afterthought.

The Future of API Futures Trading

Looking ahead, api futures trading will likely evolve in a few directions:

  • More server-side automation: Exchanges and brokers will host more conditional order logic to reduce latency and failure points.
  • AI-assisted execution: Machine learning models will adapt sizing and limit placement based on real-time microstructure.
  • Standardization: Expect more cross-broker compatibility and higher-level abstractions over raw APIs.
  • Greater retail participation: Micros, lower margins, and better tooling will keep drawing individual coders into api trading.

The core idea will stay the same: an application program interface is the bridge between human intent and machine execution.

FAQ: API Trading and Futures Automation

Is api trading legal for futures?
Yes. Futures exchanges and brokers explicitly support api trading, though users must comply with exchange rules, order-rate limits, and any registration requirements for advisory services.

Do I need to be a programmer to use api futures trading?
You need some coding ability, but many platforms provide templates and visual strategy builders that still rely on an application program interface behind the scenes. Learning basic Python or C# is often enough to start.

What strategies work best with API futures trading?
Strategies that benefit from consistent execution and rapid order handling do well: trend-following systems, mean reversion, spread trading, and automated trade management. Ultra-low-latency HFT requires specialized infrastructure.

How do I manage risk when using api trading?
Use broker-side risk limits, add a kill switch, cap daily loss, and monitor messaging rates. Always test in simulation first.

What’s the difference between REST and websocket APIs for futures?
REST is request/response and better for account queries or slower workflows. Websockets stream events continuously and are preferred for live prices and order updates in api futures trading.

Can api futures trading be used for hedging rather than speculation?
Absolutely. Commercial firms automate hedges and rolls using an application program interface connected to their broker.

What are common mistakes new API traders make?
They ignore latency, overfit backtests, skip monitoring, or trade too large too soon. Start small and treat the system like mission-critical software.

Try a FREE Demo!

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.

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NFP Tomorrow, Nvdia results, January Heating Oil, Levels, Reports; Your 5 Important Can’t-Miss Need-To-Knows for Trading Futures on November 20th, 2025

Posted on by Cannon Operations
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NFP Tomorrow

by Ilan Levy-Mayer, VP

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Dec (GCZ5)

 4012.00 4047.10 4090.70 4125.80 4169.40

Silver (SI)

— Dec (SIZ5)

 49.06 50.08 51.16 52.18 53.26

Crude Oil (CL)

— Dec (CLZ5)

 57.55 58.47 59.59 60.51 61.63

 Dec. Bonds (ZB)

— Dec (ZBZ5)

 116 3/32 116 9/32 116 22/32 116 28/32 117 9/32

NVDIA came out as we are writing the blog and results were positive.

Tomorrow we have the NFP report for September!! Due to the govt. shut down these past few weeks, so don’t be surprised with heightened volatility at 730 Am central time.

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The September Non-Farm Payrolls (NFP) report drops tomorrow, November 20th at 8:30 AM ET—and futures traders should be on high alert.

nfp

After a delay due to the government shutdown, this release is one of the final labor market snapshots before the Fed’s December rate decision. Economists expect a modest gain of around 50,000 jobs, with unemployment holding at 4.3% and average hourly earnings rising 0.3% month-over-month. For futures traders, this report could be a volatility catalyst: weaker-than-expected numbers may fuel rate-cut expectations, pressuring yields and boosting equity index futures. Conversely, a strong print could reinforce the Fed’s hawkish stance, lifting the dollar and sending treasury yields higher. With traders pricing in coin-flip odds of a December rate cut, tomorrow’s data could tilt the scales—and futures markets will likely react swiftly. Whether you’re trading equity indexes, interest rate products, or currency futures, be prepared for sharp moves and recalibrated expectations.

January Heating Oil

January Heating Oil satisfied the third upside PriceCount objective and is correcting lower. At this point, IF the chart can resume its rally with new sustained highs, we are left with the low percentage fourth count to aim for in the 3.36 area.
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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.

Daily Levels for Nov. 20th, 2025
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Economic Reports

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All times are Central Time ( Chicago)
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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.
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Second Interest Rate Cut, December Cotton, Levels, Reports; Your 4 Critical Need-To-Knows for Trading Futures on October 30th, 2025

Posted on by Cannon Operations
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What You Need to Know Before Trading Futures Tomorrow!

By Mark O’Brien, Senior Broker

At-a-Glance Levels

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

interest

Interest Rates

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.

General – Interest Rates:

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.

Stock Index Futures:

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.

Tomorrow:

Apple and Amazon

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December Cotton

December cotton violated its contract low this month but for now was unable to sustain the break towards the low percentage drawn downside PriceCount objective near 57 cents not shown here for presentation purposes. The new chart has activated upside counts on the correction higher and is quickly approaching the first objective to the 66.27 area. To achieve any additional upside targets, we will first have to break out above the long-term downtrend
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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.

Daily Levels for Oct. 30th, 2025
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

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Economic Reports

 U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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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.

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FOMC Tomorrow, December Live Cattle, Levels, Reports; Your 4 Important Need-To-Knows for Trading Futures on October 29th, 2025

Posted on by Cannon Operations
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FOMC Tomorrow

By John Thorpe, Senior Broker

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Dec (GCZ5)

 3837.43 3906.47 3970.33 4039.37 4103.23

Silver (SI)

— Dec (SIZ5)

 44.83 46.01 46.69 47.88 48.56

Crude Oil (CL)

— Nov (CLX5)

 58.65 59.28 60.39 61.02 62.13

 Dec. Bonds (ZB)

 118 18/32 118 27/32 119 1/32 119 10/32 119 16/32
fomc
 

October 29th, Tomorrow, is the 96th anniversary (seems like the term “anniversary” should be celebratory rather than marking a day of dread for the nation) Black Tuesday: when the US Stock Market crashes, ending the Great Bull Market of the 1920s and eventually contributing to the Great Depression. While we don’t expect this current Great Bull Market will crash tomorrow, yet anytime soon, it is not a novel idea to manage risk, it’s imperative.

Tomorrow is also the release of the expected 2nd to last in a series of Fed Rate cuts while Chairman Jerome Powell will read a statement and will avail himself to the Press Corps. Expectations are for .25 reduction to the 3.75-4.00 range. Although surprises do occur, the only surprise tomorrow would be in the language used to massage future rate cuts, rather than the cut itself. Big Earnings after the close tomorrow as Microsoft, Google and Meta.

Previously in this blog I have included some option strategies, for both high volatility markets and low volatility markets. Measures of volatility are important to understand more holistically your risk management requirements when implementing your option strategy. I am including some basic definitions of the “Greeks” used to measure the impact of volatility on Option Premiums. In trading futures options, they help traders assess risk and manage their portfolios. Below are the definitions of the primary Greeks, tailored to futures options:

·        Delta: Measures the rate of change in an option’s price for a $1 change in the underlying futures contract’s price. It ranges from 0 to 1 for calls and -1 to 0 for puts. For example, a delta of 0.5 means the option’s price moves $0.50 for every $1 move in the futures price. Delta also approximates the probability the option will expire in-the-money.

·        Gamma: Measures the rate of change in delta for a $1 change in the underlying futures price. It reflects the acceleration of the option’s price movement. High gamma indicates delta is highly sensitive to price changes, which is common for at-the-money options near expiration.

·        Theta: Measures the rate of change in an option’s price due to the passage of time, often called time decay. It’s typically negative, as options lose value as expiration approaches. For example, a theta of -0.05 means the option loses $0.05 per day, all else equal.

·        Vega: Measures the sensitivity of an option’s price to a 1% change in the implied volatility of the underlying futures contract. For example, a Vega of 0.10 means the option’s price increases by $0.10 if implied volatility rises by 1%. Vega is higher for longer-dated options.

·        Rho: Measures the sensitivity of an option’s price to a 1% change in interest rates. For futures options, Rho is often less significant due to typically short maturities and stable interest rates, but it still indicates how much the option price changes with shifts in the risk-free rate.

These Greeks are critical for understanding how factors like price movements, time, volatility, and interest rates impact futures options pricing and risk. If you’d like, I can dive deeper into any specific Greek or provide examples of their application in trading strategies.

 Instant Viewing/Download: Commitment of Traders Report – How to Use?
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December Live Cattle

The rally in December live cattle lost its momentum this month and activated downside PriceCount objectives on the correction lower. The break accelerated to its third count to the 224.50 area where it appears we may try to stabilize for a moment, at least. At this point, IF the chart can sustain further weakness, the low percentage fourth count would project a possible move to the 200.00 area.
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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.

Daily Levels for Oct. 29th, 2025
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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

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Economic Reports

 U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)
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Find us on Trustpilot
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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.
Call Now

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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.