|
|
|
|
- Bitcoin Futures (96)
- Charts & Indicators (231)
- Commodity Brokers (529)
- Commodity Trading (782)
- Corn Futures (59)
- Crude Oil (215)
- Currency Futures (91)
- Day Trading (619)
- Day Trading Webinar (59)
- E-Mini Futures (136)
- Economic Trading (149)
- Energy Futures (112)
- Financial Futures (161)
- Future Trading News (3,074)
- Future Trading Platform (269)
- Futures Broker (603)
- Futures Exchange (290)
- Futures Trading (1,204)
- futures trading education (385)
- Gold Futures (91)
- Grain Futures (92)
- Index Futures (247)
- Indices (214)
- Metal Futures (107)
- Nasdaq (73)
- Natural Gas (36)
- Options Trading (159)
- S&P 500 (122)
- Trading Guide (347)
- Trading Webinar (54)
- Trading Wheat Futures (40)
- Uncategorized (26)
- Weekly Newsletter (206)
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!
Post-FOMC Moves: Markets React to Rate Cut and Outlook
|
|
|
|
Movers and Shakers: Markets Await Fed Decision Amid Retail Sales Strength
|
|
|
|
|
|
Weekly Newsletter: Rollover, Levels for Monday, Sugar Outlook & More!
Get Real Time updates and more by joining our Private Facebook Group!
Subscribe to our YouTube Channel
Cannon Futures Weekly Letter Issue # 1221
In this issue:
- StoneX/E-Futures Platform Updates
- Important Notices – Earnings, FOMC, Rollover, The Week Ahead.
- Futures 102 – SP500 Outlook + Premium Daily Research Trial
- Hot Market of the Week – March Sugar
- Broker’s Trading System of the Week – NQ intraday System
- Trading Levels for Next Week
- Trading Reports for Next Week
To our clients whose accounts are with StoneX and currently using the E-Futures Platform:
- The new StoneX Futures platform will be up and running Monday, Dec. 16th.
- Your existing LIVE user name and password will be accepted.
- Your existing exchange data subscriptions will migrate to the new platform.
- To login to the new trading interface please login here:
https://m.cqg.com/stonexfutures
- If you like a demo ( and did not have a demo of StoneX Futures yet) CLICK HERE
- In the mean time, your E-Futures platform will stay active until a date no earlier than Fri., Dec. 27th, with a firm decommission date to be announced
Important Notices – Next Week Highlights:
The Week Ahead
By John Thorpe, Senior Broker
- 122 corporate earnings reports and a number of meaningful Economic data releases including Core Personal Consumption and Expenditures Index (PCE) a closely watched Data point for the FED.Additionally, The final fed funds rate decision of 2024 will be announced on Wed. Dec. 18th, to be followed by Chairman Powell’s presser 30 minutes later.Below are the Rate change Probabilities as of this morning from the CME Fedwatch tool.
Prominent Earnings Next Week:
- Mon. Quiet (32 rpts)
- Tue. Quiet (19 rpts)
- Wed. Micron, Lennar Homes Post close
- Thu. Quiet (30 rpts)
- Fri. Quiet (18 rpts)
FED SPEECHES:
- Wed. 1:30 P.M. CST FOMC Chair Jerome Powell, leads Fed Presser on Rate decision.
Economic Data week:
- Mon. NY Empire State Manu. Index, S&P Global PMI Composite,
- Tues. Retail Sales , Redbook, Industrial Production, Business Inventories, Housing Market Index,
- Wed. Bldg Permits, Housing Starts, FOMC Rate Decision, Economic projections
- Thur. Jobless claims, Core PCR, GDP Final, Philly Fed, Conference Board Leading Economic Indicators, Existing Home Sales
- Fri. Core PCE Price Index, Personal Income
- For stock index futures traders, it’s time to “roll over” and start trading the March ’25 futures contracts. This Friday, Dec. 20th at 8:30 A.M., Central Time, the Dec. ’24 futures contracts will officially halt trading and the exchange will cash settle all open positions.
Futures 102: Daily Research Free Trial
Get Personalized Trading Reports Like the One Above Directly to your Inbox!
- Get qualified support and resistance levels for precise risk management on different commodity markets.
- Get pivot points that highlight shifts in the futures market momentum.
- Get technical forecasts to keep you on the right side of a specific commodity trading market.
- One on One “Daily Digest” with a dedicated series 3 professional.
-
- Hot Market of the Week
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.
March Sugar
The rally in March sugar ran out of momentum and the chart has been trending lower since. If the chart can sustain its break from here, the second downside PriceCount projects a possible run to the 20.16 area. It would take a trade below the September reactionary low to formally negate the remaining unmet upside count which would also be consistent with targeting the third downside count.
PriceCounts – Not about where we’ve been , but where we might be going next!
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.
Broker’s Trading System of the Week
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
Fusion NQ
PRODUCT
Nasdaq 100 Mini
SYSTEM TYPE
Swing Trading
Recommended Cannon Trading Starting Capital
$50,000
COST
USD 150 / monthly
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.
Daily Levels for December 16th, 2024
Weekly Levels for the week of
December 16th, 2024
Improve Your Trading Skills
Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.
Explore trading methods. Register Here
* 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.
Daily Insights and Market Levels: Unlock Premium Research with Artac Advisory
|
|
|
|
OPEC Meeting Tomorrow: Crude Oil Insights and Trading Strategies
|
|
|
|
NFP Tomorrow: Key Insights and Market Impacts
|
|
|
|
Movers and Shakers: Political Turmoil, Market Highs, and Economic Indicators
|
|
|
|
Movers and Shakers: Analyzing Market Trends and Upcoming Fed Signals
|
|
|
|
NQ Futures Contract
The NQ futures contract, also known as the Nasdaq-100 futures contract or the E-mini Nasdaq-100 futures contract, is a cornerstone of modern futures trading. Representing 100 of the largest non-financial companies listed on the Nasdaq stock exchange, this contract is highly favored for its liquidity, volatility, and utility in both speculative and hedging strategies. In this article, we delve into the origins, evolution, and impact of the NQ futures contract, exploring its top historical turning points, contract size evolution, hedging applications, and why Cannon Trading Company stands out as a premier choice among futures brokers.
The Top 5 Major Turning Points in the History of the NQ Futures Contract
- Introduction of the Nasdaq-100 Index and Futures Contracts (1985)
The foundation of the NQ futures contract began with the launch of the Nasdaq-100 index in 1985. This index represented a weighted basket of 100 non-financial companies, offering investors a way to track the performance of technology and growth-driven sectors. Shortly thereafter, the introduction of the Nasdaq-100 futures contract allowed investors to speculate on the index’s movement. At its inception, the contract size was much larger than the current E-mini Nasdaq-100 futures contract, catering primarily to institutional investors. - The Dot-Com Boom and Bust (1990s–2000s)
The late 1990s saw a surge in tech stock valuations, which dramatically impacted the Nasdaq-100 futures contract. During the dot-com boom, the NQ futures contract became a key vehicle for speculative trading, as traders sought to capitalize on the astronomical rise in tech stocks. However, the bust that followed in the early 2000s underscored the contract’s volatility. This era highlighted the need for smaller, more accessible contracts for retail traders, leading to the creation of the E-mini Nasdaq-100 futures contract in 1997. - Introduction of E-mini Nasdaq-100 Futures (1997)
The launch of the E-mini Nasdaq-100 futures contract marked a transformative moment in futures trading. Designed to be one-fifth the size of the original contract, the E-mini lowered the barrier to entry for individual traders and smaller institutional players. This innovation democratized trading and spurred a surge in participation, cementing the NQ futures contract’s reputation as a versatile tool for trading Nasdaq-linked securities. - Global Financial Crisis (2008)
During the 2008 financial crisis, the NQ futures contract experienced unprecedented volatility. Investors and fund managers turned to futures markets to hedge their equity positions against sharp declines. The crisis underscored the importance of liquidity and robust market access, which the E-mini contracts provided in abundance. This period also saw the introduction of advanced electronic trading platforms, enabling rapid execution of trades—a trend embraced by top futures brokers like Cannon Trading Company. - Rise of Algorithmic Trading and Micro E-mini Contracts (2019)
In 2019, the Chicago Mercantile Exchange (CME) introduced the Micro E-mini Nasdaq-100 futures contract, offering an even smaller notional value (one-tenth the size of the E-mini). This evolution catered to novice traders and those seeking greater precision in their trading strategies. Combined with advancements in algorithmic trading, this development has cemented the NQ futures contract’s role as a versatile instrument in modern markets.
Contract Size: Then and Now
At its inception, the Nasdaq-100 futures contract was designed with a larger notional value, making it suitable primarily for institutional investors. With the introduction of the E-mini Nasdaq-100 futures contract, the size was reduced to 20 times the index’s value, significantly increasing accessibility.
Today, traders can choose from multiple contract sizes:
- E-mini Nasdaq-100 Futures Contract: 20 times the index value.
- Micro E-mini Nasdaq-100 Futures Contract: 2 times the index value.
This tiered structure ensures that traders of all scales—from retail investors to institutional hedgers—can find a product that aligns with their risk tolerance and trading objectives.
Hedging with NQ Futures Contracts: Practical Applications
The NQ futures contract is not just for speculation—it’s a powerful hedging tool. For investors with significant exposure to Nasdaq-listed equities, trading the NQ futures contract or its options can mitigate potential losses during market downturns.
Example 1: Protecting a Technology-Heavy Portfolio
Imagine an investor with a $500,000 portfolio heavily concentrated in technology stocks like Apple, Microsoft, and Nvidia. If the investor anticipates a short-term decline in the tech sector, they can sell NQ futures contracts to offset potential losses. A single E-mini Nasdaq-100 futures contract moves in $20 increments for each point change in the index, offering precise risk management.
Example 2: Using Options on NQ Futures
Options on the Nasdaq-100 futures contract provide additional flexibility. For example:
- A call option can be purchased to speculate on a market rebound without committing to a full futures position.
- A put option can protect against significant downturns, acting as a form of insurance for the investor’s portfolio.
Options on E-mini Nasdaq-100 futures contracts are particularly popular due to their smaller contract size and manageable margin requirements, making them an excellent tool for hedging Nasdaq exposure.
Why Choose Cannon Trading Company?
When trading Nasdaq-100 futures contracts, selecting the right futures broker is critical. Cannon Trading Company consistently earns accolades from traders for several compelling reasons:
- Free Trading Platform
Cannon Trading offers a free, robust trading platform, ensuring that traders have access to advanced tools for charting, analytics, and trade execution. This cost-effective solution is particularly attractive for those trading the E-mini Nasdaq-100 futures contract or the Micro version. - 5-Star Ratings on TrustPilot
The company’s exceptional reputation is reflected in its perfect 5-star ratings on TrustPilot. From seamless customer service to efficient trade execution, Cannon Trading is consistently praised by clients for delivering a top-tier trading experience. - Dedicated Brokers with Decades of Experience
Unlike many futures brokers, Cannon Trading provides access to a team of seasoned professionals with decades of expertise in futures trading. These dedicated brokers guide clients through complex markets, ensuring informed decision-making and personalized support. - Regulatory Excellence
A stellar reputation with regulatory bodies ensures that traders can trust Cannon Trading to operate with integrity and transparency. Compliance and client protection are central to their operations, making them a trusted partner for trading Nasdaq-100 futures contracts. - Superior Customer Service and Resources
Cannon Trading excels in client education, offering webinars, market analysis, and one-on-one consultations. This commitment to client success sets it apart from other futures brokers, solidifying its reputation as a leader in the industry.
The NQ futures contract has evolved from its origins as a tool for institutional hedging to a versatile instrument accessible to all levels of traders. From the introduction of the Nasdaq-100 index to the launch of Micro E-mini contracts, the product’s history is marked by innovation and adaptation to market needs. Today, the combination of diverse contract sizes, robust hedging applications, and user-friendly platforms makes the Nasdaq-100 futures contract a cornerstone of futures trading.
For those seeking a reliable futures broker to navigate this dynamic market, Cannon Trading Company stands out. With its free trading platform, 5-star TrustPilot ratings, experienced brokers, and commitment to regulatory excellence, Cannon Trading offers unparalleled support for traders of E-mini Nasdaq-100 futures contracts and beyond. Whether hedging a portfolio or exploring speculative opportunities, partnering with a trusted broker like Cannon Trading ensures a seamless and rewarding trading experience.
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
- August 2025
- July 2025
- June 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010