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Category: Index Futures

Introduced in the year 1982, Index futures or stock index futures are extremely popular among trading commodities today. While trading, an index future is settled in cash on the value of a certain stock market index. One of the most traded indices is the S&P500.

These are quoted on the basis of either an underlying or a spot price for an index value. There are a number of technicalities involved, most of which you should understand. However, even if you find it tough to comprehend what Index futures are, you can take assistance from the trade experts at Cannon Trading.

We at Cannon Trading want you to understand the basics and the details about Index Futures like our experts do. There are a number of blogs that we list here in our category archive. We recommend that you read these to know for yourself what Index Futures trading is all about.

Overnight Edge, December Mini Dow, Levels, Reports; Your 4 Important Need-To-Knows for Trading Futures on October 21st, 2025

Posted on October 20, 2025 by Cannon Operations

Where is the Edge?

edge

At-a-Glance Levels

Instrument	S2	S1	Pivot	R1	R2
Gold (GC) — Dec (GCZ5)	4173.40	4285.40	4341.70	4453.70	4510.00
Silver (SI) — Dec (SIZ5)	49.49	50.65	51.24	52.40	52.99
Crude Oil (CL) — Nov (CLX5)	55.32	56.16	56.79	57.63	58.26
Dow Jones (YM) — Dec 2025	46087	46503	46733	47149	47379

Over the past few months, and especially in recent weeks, we’ve seen unusually large overnight moves. Some moves appear random, others reverse quickly, and some are driven by headlines such as tariff news. These dynamics have increased gap risk, reduced overnight liquidity, and produced frequent open-time dislocations.

Common question

Where is the edge?

Short answer

Trade the first 30 minutes and focus on short-term gap-fill or rejection setups.
Use same-day options when you expect a large directional move to limit tail risk and avoid being stopped out only to see the market move in your favor.
Trade spreads when relative strength diverges across instruments (for example, gold vs silver or mini-Dow vs ES).

Extended answer

I want to focus on the practical elements of trading like pre-market context, move behavior, market news correlation, liquidity, options limits, and whether to use mean reversion or momentum. I’ll also want to highlight key parts like risk management, stop placement, and position sizing. Planning should be direct with a simple checklist and no more than six sections. I should also consider using a relevant citation about tariff-related movements, but just one, and make sure it’s only placed where necessary. No framing or extra explanations.

Futures day-trading edge

You find edge by matching a repeatable hypothesis to the current market regime, then executing it with strict risk and execution rules.

Regime diagnosis (what the market is doing now)

Volatility regime: large overnight gaps and erratic premarket prints mean the market is in a news-driven, headline-sensitive volatility regime.
Catalyst profile: moves are often tied to macro headlines and tariff noise; those headlines create directional gaps that either persist into the session or sharply reverse at the open.
Liquidity profile: overnight liquidity is thin and fragmented, increasing slippage and fake outs at the open.

Reliable, tradeable edges you can use

Pre-open directional bias with size filter. Trade opens when overnight gap exceeds a threshold (e.g., 0.5% or X ticks) and pre-market order flow confirms (sustained prints, not one-off sweep).
Use reduced size and wider stops for gaps caused by headline noise.
Fade headline gap into first 30 minutes when structure is weakIf gap lacks follow-through volume and price fails to make a clean microstructure breakout, favor mean reversion to the first-tail or VWAP.
Trend-follow breakouts in high conviction regimeWhen overnight move is accompanied by aligned macro flow (rates, FX, commodities) and volume ramps into the open, follow momentum with a continuation plan.
Volatility arbitrage playsUse options or calendar spreads where available to sell realized volatility after spikes and buy protection around known headline windows.
Session-timing edgeTrade smaller and tighter in the first 15–30 minutes after the open; increase size after the market establishes structure (first clean high/low and confirmation).
Microstructure edge: limit vs market tacticsUse passive limit entries near structural levels and aggressive exits into liquidity. Avoid market entries into thin pre-open auction prints.

Concrete execution rules (checklist)

Pre-market checklist: identify gap size, top 3 headlines, correlated markets (bonds, FX, oil), and pre-open volume trend.
Entry rules: require either structural confirmation (higher high / lower low) or a mean-reversion setup with defined edge-to-risk ratio ≥ 2:1.
Sizing: reduce notional by 25–50% on headline-driven nights; increase only after two clean consecutive edges are realized.
Stops and targets: place stop where edge invalidates (clearly definable price level); scale out at predefined targets; never trade without a stop.
Slippage buffer: add tick buffer to stops and profit targets during thin liquidity opens.

How to test and keep the edge

Backtest regime-specific rules: label historical sessions by overnight gap size and headline events, test mean-reversion vs momentum rules separately.
Forward-test with small capital: run a two-week rolling simulator and log slippage, win rate, and expectancy.
Adaptive rules: codify a volatility threshold that switches you between momentum and fade strategies automatically.

Brief trade plan template

Hypothesis: (e.g., “Overnight tariff headline caused a 0.7% gap that lacks confirmatory volume; first 20 minutes will mean-revert to VWAP.”)
Entry: limit at VWAP + X ticks or on 1-minute reversal candle.
Stop: invalidation beyond the overnight high/low + slippage buffer.
Target: partial at VWAP, final at first structure level.
Size: 50% normal when gap driver = headline; full size only when macro alignment confirmed.

Be systematic: diagnose regime, pick the strategy that historically wins in that regime, enforce execution and risk rules, and iterate from measured data.

Important: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this blog are of opinion only and do not guarantee any profits.

Past performances are not necessarily indicative of future results.

December Mini DOW

The December mini DJIA chart satisfied its second upside PriceCount objective earlier this month and corrected lower. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a possible run to the 52041 area.

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. 21st, 2025

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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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Price Extremes: Gold, Silver, Crude Oil; December KC Wheat, Levels, Reports; Your 4 Important Must-Knows for Trading Futures on October 16th, 2025

Posted on October 15, 2025 by Cannon Operations

Price Extremes

By Mark O’Brien, Senior Broker

General:

Day 15 of the U.S Government shutdown.

Stock Index Futures:

Dec. stock index futures returned to solid gains late today as markets remained alert over US-China trade tensions and amid hopes for interest rate cuts and strong quarterly earnings results from Wall Street banks. Traders have cemented bets on a rate cut later this month, and odds of a rate cut in December have jumped in recent days to around 96% according to the CME Group FedWatch tool:

Prices Metals:

It’s the broken record metals report. Dec. gold futures rose to new all-time highs today – its 47^th new record of the year – trading up to $4,235.80/ounce intraday.

Alongside gold, Dec. silver rocketed up nearly $2.00/oz. today to set its own all-time record high, trading intraday up to $52.55/ounce. This after yesterday when the contract took out a 45-year-old record closing price of $48.70/ounce, during the time when the Hunt brothers tried to corner the market.

Prices Energies:

November crude oil futures have remained on their lows this week – with a new multi-month intraday low of $58.20/barrel on continued concerns about oversupply and the possible impact on demand of rekindled U.S.-China trade tensions – its fourth day in a row closing below $60/barrel.

Livestock:

Dec. live cattle and Jan. feeder cattle both closed little changed today and within pennies of their own all-time record high closing prices at the close of trading yesterday. Tight supplies and strong feeder markets pushed cash cattle higher and the futures markets followed suit. The supply of cattle has lingered at a near 75-year low, with the closure of the US-Mexico border to Mexican cattle imports further constraining an already tight supply.

December KC Wheat

December KC wheat satisfied its third downside PriceCount objective and reacted with a key reversal higher. It would be normal to get a mean reversion from this level in the form of a consolidation or corrective phase, at least. If the chart can sustain further weakness, we are left with the low percentage fourth count to aim for in the $4.37 area. That we trade down to this level is a realistic target although we have traded that low just 5 years ago.

Daily Levels for Oct. 16th, 2025

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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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Day Trading Week! Fed Speakers, December Hogs, Swing Trading, Levels, Reports; Your 6 Important Need-To-Knows for Trading Futures the Week of October 13th, 2025

Posted on October 13, 2025 by Cannon Operations

Cannon Futures Weekly Letter

In Today’s Issue #1262

The Week Ahead – Fed Speakers Galore…
Futures 101 – Podcast: Insight into Day Trading Futures
Hot Market of the Week – Dec. Hogs
Broker’s Trading System of the Week – Mini SP Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

day trading

Traders, much like the Federal Reserve Board, are dependent on data that, during a government shutdown is barely existent. 17 Fed speakers! The markets are sure to move then, but wait, that’s not all, Fed Chair Powell on Economic Outlook and Monetary Policy.

As for earnings reports? Q3 begins next week! Major Banks report first. (see Below)

The on again off again nature of Tariff news has created golden opportunities for breakouts in some markets, rangebound trades in others. The gold market exploded out of its range I have been writing about for months. Watch Crude oil to see if it stays in its $60.00-$65.00 range and the Dollar index too! The longer the range trade the harder and faster the breakout typically is.

Continued volatility to come as next week all markets will be reacting to whatever comes out of U.S. Govt leadership relating to conflicts cessation and trade deals, China, India, Canada and Russia (looks like the EU is following Trump on this one) The Crude Oil market certainly believes so.. Also, remember that Mexico’s extension will end October 29.

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

Earnings Next Week:

Mon. Quiet
Tue. JPM , JNJ, WFG, GS, BLK, C
Wed. BAC, MS, ABT,
Thu. SCHW, BK, USB
Fri. AXP,

FED SPEECHES: (all times CDT)

Mon. Paulson 11:55 am,
Tues. Bowman 7:45, Fed Chair Powell 11:20am, Waller 2:25, Collins 2:30
Wed. Bostic 11:10, Miran 11:30, Waller Noon,
Thu. Barkin 7:00am, Barr, Miran, Waller all 8:00am, Bowman 9:00am , Barkin 10:45am, Miran 3:15pm, Kashkari, 5:00pm
Fri. Musalem 11:15

Economic Data week:

Mon. with the government shutdown, data will be suspended.

Join us for an exclusive webinar on “Futures Spread Trading,” where you’ll discover the powerful strategies professional traders use to capitalize on market opportunities while managing risk. Whether you’re a seasoned investor or just starting out, this session will break down the essentials of spread trading, uncover actionable techniques, and show you how to navigate the futures market with confidence. Don’t miss this chance to learn from industry experts and take your trading skills to the next level—reserve your spot today!

Day Trading Futures

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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.

Free Trial Available

Dec. Hogs

The rally in December hogs stalled out last month and now the chart has activated downside PriceCounts on the correction lower. The first count projects a possible slide to the 81.11 area.”

Brokers Trading System of the Week

ALGOsigmaX E-mini S&P ES

Markets Traded: Mini SP500 ES/EP

System Type: Swing Trading

Risk per Trade: varies

Trading Rules: Partially Disclosed

Suggested Capital: $50,000

Developer Fee per contract: $205 Monthly Subscription

Get Started

Learn More

Disclaimer The risk of trading can be substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance is not necessarily indicative of future results.

IMPORTANT RISK DISCLOSURE

Futures trading is complex and carries the risk of substantial losses. It is not suitable for all investors. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect investor returns.

The returns for trading systems listed throughout this website are hypothetical in that they represent 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 backadjusted data (backadjusted).

Please read carefully the CFTC required disclaimer regarding hypothetical results below.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Please read full disclaimer HERE.

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Daily Levels for Oct 13th, 2025

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

www.mrci.com

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Crypto Trading, December Dollar Index, Levels, Reports; Your 4 Important Need-To-Knows for Trading Futures on October 9th, 2025

Posted on October 8, 2025 by Cannon Operations

Around the Clock Crypto Futures Trading Ahead

By Mark O’Brien, Senior Broker

crypto

General: Crypto Trading Round-The-Clock

Big news. CME Group, the world’s largest derivatives marketplace, plans to offer customers round-the-clock trading for its cryptocurrency products next year.

The timetable anticipates 24/7 trading of futures and options starting in early 2026. Currently this will cover the CME Group’s main offerings in Bitcoin and Ethereum, but starting Oct. 13, they will be joined by Solana and XRP derivatives.

Trading in cryptocurrency derivatives has been growing steadily since CME first offered Bitcoin futures in 2017. Notional open interest, which represents the outstanding value of contracts, reached a record $39 billion in mid-September.

All-hours access lets investors respond to price swings in real time, which could add additional legitimacy and liquidity to these digital assets.

Stock Index Futures:

The Dec. E-mini S&P 500 and E-mini Nasdaq futures contracts traded to new all-time record highs intraday today. Volume has tended to be lighter on this the sixth day of the U.S. government shutdown.

Traders have been negligibly on edge at these highs with some uncertainty about the U.S. shutdown, the state of the jobs market and the delay of scheduled releases of U.S. government economic reports.

Looking elsewhere for clues on the U.S. jobs front, last week a report from global outplacement firm Challenger, Gray & Christmas indicated U.S. employers announced fewer layoffs in September but hiring plans so far this year were the lowest since 2009. It came a day after a weaker-than-expected ADP National Employment Report.

Metals:

Dec. gold futures rose to new all-time highs for the sixth of seven trading sessions today, barreling through yesterday’s first move through $4,000 per ounce to trade intraday up to $4,081 per ounce, a $76.6 per ounce follow-through move.

Gold and silver futures have surged roughly 55% and 65% year to date, respectively, as expectations of Federal Reserve rate cuts have boosted the appeal of metals, which tend to perform better when interest rates are lower.

Energies:

Despite today’s report that U.S. crude oil inventories rose more than expected last week, crude oil futures oil futures staged a modest recovery today after last week’s decline to a 16-week low as the U.S. government shutdown fed worries about the global economy, while traders expected more oil supply to come on the market with the planned output boost announced by OPEC+ over the weekend.

December Dollar Index

The December dollar index broke out into a new high and completed its first upside PriceCount objective. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade. If the chart can sustain further strength, the second count projects a possible run to the 99.60 area, consistent with a challenge of the August reversal high.

Daily Levels for Oct. 9th, 2025

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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 Eastern Time ( New York)

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Trading Resources, December Silver, Levels, Reports; Your 4 Important Need-To-Knows for Trading Futures on October 8th, 2025

Posted on October 7, 2025 by Cannon Operations

Trading Resources

trading

Some useful resources for trading on Cannon Trading Website!

Heat Map:

Daily Research

Economic Calendar

Trading Courses

FOMC Minutes will be out tomorrow as FOMC is not a govt. agency!

Contact our trading desk today with any questions about the markets!

December Silver

The rally in December silver is approaching its third upside PriceCount objective in the 49.373 area. This target is consistent with a test of the all-time high from 2011. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade, at least. If the chart can sustain further strength, we are left with the low percentage fourth count objective in the 71.55 area (not shown here for presentation purposes).

Daily Levels for Oct. 8th, 2025

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Economic Reports

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Trade and Risk Management, December Cocoa, Levels, Reports; Your 4 Important Must-Knows for Trading Futures on October 3rd, 2025

Posted on October 2, 2025 by Cannon Operations

Trade and Risk Management

Course Overview 14 minutes

“If you have an approach that makes money, then money management can make the difference between success and failure…I try to be conservative in my risk management. I want to make sure I’ll be around to play tomorrow. Risk control is essential.”

– Monroe Trout, Trout Trading

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December Cocoa

December cocoa resumed its break into a new low. If the chart can sustain further weakness, the third downside PriceCount projects a possible slide to the 5681 area.

Daily Levels for Oct. 3rd, 2025

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Economic Reports

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Last Trading Day of the Month + Levels & Reports; Your 4 Important Must-Knows for Trading Futures on September 30th, 2025

Posted on September 29, 2025 by Cannon Operations

Trading Futures on the Last Trading Day of the Month

Last Trading Day of September: What You Need to Know

On the last trading day of the month, futures markets often see elevated volume and more abrupt intraday swings as large participants—CTAs, hedge funds, commodity pools, and corporates—rebalance, roll, or close positions for performance reporting and risk alignment. Those flows can cluster around key reference windows (e.g., settlement periods and cash-market closes), creating brief liquidity vacuums where spreads widen, slippage increases, and stop cascades are more likely.

Even when overall volume is high, liquidity can be uneven, with deeper book liquidity alternating with thin pockets—so an order that would normally fill cleanly may experience partial fills or adverse selection. It’s also common to see basis and calendar spreads move sharply as rolls concentrate, especially in equity index, rates, energy, and metals.

Practical pointers: come in with a predefined plan and smaller initial size, use limit or passive orders where possible, and avoid chasing late-month breakouts unless your setup and risk budget justify it. Keep an eye on roll calendars, first notice day (for deliverable commodities), margin changes, and any month-end economic releases that can amplify flows (e.g., regional PMIs, rebalancing signals).

Monitor depth-of-book and implied spread quotes; if spreads widen, consider adjusting targets and stops rather than forcing entries. Be wary of Trade-at-Settlement/settlement-period prints if you’re not deliberately targeting the fix.

Finally, tighten process discipline: mark your levels early, define max slippage, and be comfortable standing down if the tape becomes disorderly—not trading is a position. (Educational only—this is not investment advice; manage risk according to your plan and account constraints.)

Have a question about ANY futures market? Trading techniques? Platforms? Trading Algos? Most of our brokers have over 12 years experience and can be one of the most valuable resource you have access to! Speak/chat/email a broker now.

That’s the Last Trading Day of the Month! Plan your Trade and Trade Your Plan!

November Canola

November canola resumed its break into a new low. If sustained, the third downside PriceCount objective projects a slide to the 592 area. It takes a trade below the December reactionary low to formally negate the remaining unmet upside count.

Daily Levels for Sept. 30th, 2025

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Futures Trading | 5 Important Points to Keep in Mind during your daily Futures Trading

Posted on September 25, 2025September 24, 2025 by Cannon Operations

Cannon Trading Final v2

trustpilot 250825

futures trading

 Leverage opportunities – Skilled futures brokers guide traders in using leverage effectively and responsibly while futures trading.

 Diversification strategies – Brokers help spread risk across markets to strengthen trading outcomes.

 Hedging expertise – Support in protecting portfolios and managing volatility through futures contracts.

 Emergency support – Reliable assistance during critical market moments to safeguard traders.

 Cannon Trading Company advantage – Decades of experience, stellar TrustPilot reviews, regulatory excellence, and cutting-edge platforms like CannonX powered by CQG.

Try a FREE Demo!

The Crucial Role of a Skilled Futures Broker

Futures trading is one of the most dynamic and potentially rewarding areas of financial markets. By allowing participants to speculate, hedge, and diversify across commodities, currencies, bonds, indexes, and cryptocurrencies, futures trading provides unparalleled opportunities. However, trading futures also comes with significant risks that require knowledge, precision, and reliable support. This is where skilled futures brokers prove indispensable.

A seasoned futures broker is not merely a transaction processor; they are an extension of a trader’s strategy. They ensure smooth execution, provide emergency support during technical failures, assist with risk management, and offer access to cutting-edge platforms such as CannonX powered by CQG. Choosing the right partner in this space can make the difference between trading futures with confidence and exposing oneself to unnecessary risk.

Cannon Trading Company embodies the gold standard of futures brokerage. With decades of experience, consistent 5-star TrustPilot reviews, a spotless reputation with regulators, and a wide suite of professional-grade trading platforms, Cannon Trading demonstrates how the right futures broker elevates the entire trading journey.

Why Skilled Futures Brokers Are Vital to Futures Trading

Leverage: Maximizing Opportunity with Guidance

Leverage is one of the defining characteristics of futures trading. A small margin deposit allows traders to control large contract values. This magnifies both potential gains and risks. Without proper guidance, traders can misuse leverage and suffer significant losses.

A skilled futures broker provides essential education and context. They help clients understand how margin requirements work, how to size positions responsibly, and how to avoid overexposure. At Cannon Trading, brokers don’t just approve accounts—they walk traders through risk assessments, position sizing, and platform settings to ensure leverage is used effectively.

When trading futures, leverage is a double-edged sword. A futures broker who emphasizes discipline and education ensures traders avoid costly mistakes while harnessing leverage to unlock growth.

Diversification: Expanding Horizons Beyond Stocks

Unlike equities, futures trading provides access to diverse asset classes including agricultural commodities, energy, metals, stock indexes, currencies, and digital assets. This breadth allows traders to diversify strategies and hedge exposure to multiple markets.

A skilled futures broker serves as a guide through this landscape, explaining contract specifications, seasonal factors, and liquidity considerations. Cannon Trading offers access to a broad selection of global futures exchanges and platforms, including CannonX powered by CQG, which provides professional-grade tools for tracking and executing trades across multiple asset classes.

By diversifying with futures, traders spread their risks while exploring profit potential in markets that move independently of equities. Brokers are critical in advising how to balance portfolios and avoid concentration risk.

Hedging: Protecting Portfolios and Businesses

For institutional players, corporations, and even sophisticated retail traders, hedging is one of the most powerful functions of trading futures. Whether it’s an airline locking in fuel prices, a farmer hedging corn production, or an investor protecting equity exposure with S&P 500 futures, hedging stabilizes outcomes.

A seasoned futures broker explains how to structure hedging positions, match contract sizes, and roll over contracts efficiently. Cannon Trading has spent decades assisting commercial clients with hedging strategies, ensuring they not only meet risk objectives but also maintain compliance with regulatory standards.

Hedging requires precision. Without skilled futures brokers, traders may face slippage, mismatched exposures, or excessive margin costs. Cannon’s team ensures hedges are properly constructed and monitored in real time.

Emergency Support: One Phone Call Away

Technology is the backbone of modern futures trading, but systems can fail. Internet outages, platform crashes, or power failures can trap traders in vulnerable positions. In such cases, the ability to call a live futures broker to exit or add a position is not just convenient—it can be lifesaving for one’s account.

Cannon Trading emphasizes this broker accessibility. In emergencies, clients can immediately reach licensed brokers who will execute trades on their behalf. This human safety net is what differentiates full-service futures brokers from purely online discount firms.

Being one call away ensures traders never feel helpless when trading futures. Cannon’s reliability in this regard builds trust, confidence, and long-term relationships.

Expert Guidance and Education

Beyond trade execution, a skilled futures broker serves as an educator. Futures markets can be complex, with unique contract rules, expiration cycles, and margin requirements. Brokers like Cannon Trading publish educational blogs, market commentary, and strategy guides to empower traders.

They also guide traders on platform usage—whether navigating advanced charting tools on CannonX powered by CQG or understanding order types like OCO (one cancels other) and bracket orders. This personalized guidance helps traders avoid errors that can otherwise prove costly.

How Cannon Trading Company Embodies Broker Excellence

Futures Trading

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Decades of Experience in Futures Trading

Cannon Trading has served traders for over three decades. This longevity in the highly competitive brokerage industry underscores its reliability, adaptability, and credibility. In an era when many firms come and go, Cannon’s resilience demonstrates the trust it has earned from generations of traders.

TrustPilot 5-Star Ratings

Cannon Trading is consistently praised by clients with glowing 4.9/5 TrustPilot reviews. Traders highlight the firm’s personalized service, quick response times, and dependable execution. In a field where customer experience can make or break success, Cannon’s reputation shines as a competitive edge.

Regulatory Reputation

Cannon Trading maintains exemplary standing with both federal and independent futures regulators. Compliance with the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) is not optional—it’s mandatory. Cannon’s spotless track record with these bodies reassures traders that they’re working with a futures broker who values transparency, integrity, and professionalism.

CannonX Powered by CQG: Platform Excellence

Technology defines success in modern futures trading. Cannon offers clients a suite of platforms, with CannonX powered by CQG standing out as a premier choice. This platform combines speed, reliability, and deep market access with advanced analytics, making it an indispensable tool for trading futures across asset classes.

By pairing platform power with broker guidance, Cannon ensures traders have the best of both worlds: cutting-edge execution and personalized support.

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Related Reading on the Cannon Trading Blog

For readers looking to dive deeper into related topics, Cannon Trading’s Blog is an excellent resource:

Top Reputable Futures Brokers: How to Choose the Right One for You

Frequently Asked Questions (FAQ)

Why do traders need a skilled futures broker?
A skilled futures broker provides essential services such as leverage guidance, diversification opportunities, hedging expertise, and emergency support, all of which enhance trading outcomes.
How does Cannon Trading help during emergencies?
If a trader’s system fails, Cannon brokers are just a phone call away, ready to execute trades to exit or adjust positions, preventing catastrophic losses.
What makes CannonX powered by CQG unique?
CannonX powered by CQG offers professional-grade execution speed, advanced analytics, and deep market access, making it ideal for active traders.
How does Cannon Trading maintain its strong reputation?
Through decades of service, 5-star TrustPilot reviews, and spotless regulatory compliance, Cannon Trading consistently proves its credibility and trustworthiness.
Can futures trading help with diversification?
Yes, trading futures allows diversification into commodities, currencies, indexes, and more, which helps spread risk beyond traditional stocks.

Futures trading is a powerful avenue for speculation, hedging, and diversification, but it demands discipline, knowledge, and reliable support. Skilled futures brokers are not optional—they are vital partners who empower traders to succeed. From guiding leverage usage to providing emergency assistance, their role ensures traders navigate markets safely and strategically.

Cannon Trading Company exemplifies what traders should seek in a futures broker. With decades of experience, flawless regulatory reputation, top-rated TrustPilot reviews, and elite platforms like CannonX powered by CQG, Cannon proves that broker excellence directly translates to trading success.

By working with Cannon, traders gain more than a brokerage—they gain a trusted ally in the challenging yet rewarding world of futures trading.

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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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Gold continues its Breakout Amid Potential Gov. Shutdown, December Bean Oil, Hedging Strategies, Levels, Reports – The Important Must-Knows for Trading Futures on September 24th, 2025

Posted on September 23, 2025 by Cannon Operations

Movers and Shakers: Gold Breakout Meets Shutdown Risk: Hedging Strategies Explained

By John Thorpe, Senior Broker

The U.S Governments’ fiscal year concludes at the end of the third quarter. Expect more volatility as we wait to see how traders bet on whether or not Congress can pass appropriations bills to keep the U.S. Government open for business. The Government, in the past, shut down most recently in 2018. Prior to that? 2013, 1995 and 1994. Gold prices rallied during the shutdowns in the past. But what if there is no shutdown?

Gold has been on the move since we had a breakup! (breakout to the upside) from the 5-month rangebound trade, ($3200-$3500) basis the December gold contract. Since September 2^nd, gold has rallied in 3 weeks over $300 per troy oz. to $3810.00, if your crystal ball had you long Gold and you want to protect your current gains, what follows are a few Ideas you can implement using futures options. Consult with your Cannon Trading broker (800 454 9572 or 310 859 9572) for clarity.

Calculate the size you will be hedging: Calculate the number of contracts as (Portfolio Value / Gold Price × 100 oz)). For a $760,000 long position at $3,800/oz, use ~2 contracts.

Strategy 1: Protective Put (Straightforward Downside Insurance)

Buy put options on gold futures to gain if gold prices fall, offsetting losses in your long position. This is ideal for strong bullish views but with short-term downside concerns.

Steps to Implement:

Assess Exposure: Determine your long position’s value.
Choose Strike and Expiration: Out-of-the-money (OTM) puts (e.g., 5-10% below current price, like $3,600 strike at $3,800 spot) for cheaper premiums; at-the-money (ATM) for fuller protection. Use 1-3 month expirations for flexibility.
Execute: Buy puts via a futures-approved broker (e.g., Cannon Trading). Premium: ~1-5% of notional (e.g., $500-$2,000 per contract at 20% implied vol).

Example:

Gold at $3,800; buy $3,600 put expiring in 2 months for $150/oz premium ($15,000/contract).
If gold drops to $3,400: Put worth ~$200/oz (intrinsic value), hedging $20,000 loss per contract in your long position.
If gold rises: Lose only the premium, but keep gains.

Pros: Retains unlimited upside; simple. Cons: Premium decays over time (theta); costly in low-vol environments.

Strategy 2: Collar (Low-Cost or Zero-Cost Hedge)

Buy a protective put and sell an OTM call to finance it. This caps upside but provides free/cheap downside protection—suitable for neutral to mildly bullish outlooks in volatile markets.

Steps to Implement:

Buy Put: OTM (e.g., $3,600 strike).
Sell Call: OTM above spot (e.g., $4,000 strike) with same expiration.
Match Sizing: Same number of contracts as your exposure.
Execute: Net premium near zero if call income matches put cost (adjust strikes for balance).

Example:

Buy $3,600 put ($150/oz premium); sell $4,000 call (collect $150/oz).
Net cost: $0.
Protection below $3,600; upside capped at $4,000 (may need to close if called away) Pros: Minimizes upfront cost; effective in sideways markets. Cons: Limits gains; potential assignment on calls.

Strategy 3: Bear Put Spread (Defined-Risk, Lower-Cost Protection)

Buy a higher-strike put and sell a lower-strike put for partial hedge at reduced cost. Best for moderate downside expectations without full insurance.

Steps to Implement:

Select Strikes: Buy ATM/OTM put (e.g., $3,800); sell further OTM (e.g., $3,400).
Expiration: 1-6 months.
Contracts: Match exposure.
Execute: Net debit = Long put cost minus short put premium (e.g., $200/oz debit = $20,000/contract).

Example:

Buy $3,800 put ($250/oz); sell $3,400 put (collect $50/oz). Net: $200/oz.
Max hedge benefit: $400/oz spread minus debit ($200/oz profit if gold < $3,400).
Limited protection to spread width.
Pros: Cheaper than naked puts; caps max loss. Cons: No protection below short strike; less flexible.

December Bean Oil

December soybean oil completed the first downside PriceCount objective to the 49 area where we are getting a reaction in the form of a potential spike reversal trade. At the point, if the chart can resume its break with the new sustained lows, the second count would project a possible slide in the 47 area.

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 Sept. 24th, 2025

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Triple Witching – What You Need To Know and How to Prepare – December Mini S&P, Levels, Reports; Your 4 Important Must-Knows for Trading Futures on September 19th, 2025

Posted on September 18, 2025 by Cannon Operations

Triple Witching Tomorrow

by Ilan Levy-Mayer, VP

Triple Witching: What Futures Traders Need to Know for Tomorrow

What Is Triple Witching?

Triple witching occurs four times a year—on the third Friday of March, June, September, and December—when stock index futures, stock index options, and stock options all expire simultaneously. This convergence creates a unique trading environment that every futures trader should understand.

What Happens During Triple Witching?

Volume Surge: Trading activity can spike dramatically as institutions roll over or close positions.
Increased Volatility: Price swings can be sharp and unpredictable, especially near the open and close.
Institutional Flows Dominate: Market behavior often deviates from typical technical patterns.

Implications for Futures Traders

Liquidity is High—but So Is Risk: While there’s plenty of activity, slippage and wider spreads are common.
Execution Challenges: Rapid price changes can make order fills tricky.
Short-Term Noise: Expect unusual moves that may not align with your usual indicators.
The September contracts i.e. ESU25, MNQU25 etc. will stop trading at 8:30 Am Central time and will cash settle based on a special settlement price that usually comes out closer to 9 AM Central. More on that here: https://www.cmegroup.com/trading/equity-index/settlement.html

Trading Recommendations

Stay Disciplined: Avoid chasing moves; stick to your plan.
Use Limit Orders: Helps control slippage in fast markets.
Reduce Position Size: Manage risk during volatile periods.
Consider Scalping or Staying Flat: If you’re experienced, short-term strategies can work. If not, sitting out is a valid choice.
Risk: the last traded price or final traded price will rarely be the same as the Final settlement price. we do not recommend waiting for the final settlement. We recommend exiting any position you have in September prior to 8:30 a.m. Central tomorrow morning.

Bottom Line: Triple witching can present opportunities—but also significant risks. Preparation and discipline are key.

December Mini SP 500

The December Emini S&P is extending its rally with a fresh contract high. At this point, the chart is taking aim at its third upside PriceCount objective to the 7252 area.

Daily Levels for Sept. 19th, 2025

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December Mini DOW

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Price Extremes

By Mark O’Brien, Senior Broker

General:

Prices Metals:

Prices Energies:

Livestock:

December KC Wheat

Daily Levels for Oct. 16th, 2025

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Cannon Futures Weekly Letter

In Today’s Issue #1262

The Week Ahead – Fed Speakers Galore…

Futures 101 – Podcast: Insight into Day Trading Futures

Hot Market of the Week – Dec. Hogs

Broker’s Trading System of the Week – Mini SP Swing Trading System

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

Day Trading Futures

Hot Market of the Week

Dec. Hogs

Brokers Trading System of the Week

ALGOsigmaX E-mini S&P ES

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Daily Levels for Oct 13th, 2025

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Trading Reports for Next Week

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Around the Clock Crypto Futures Trading Ahead

By Mark O’Brien, Senior Broker

General: Crypto Trading Round-The-Clock

Stock Index Futures:

Metals:

Energies:

December Dollar Index

Daily Levels for Oct. 9th, 2025

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Trading Resources

Some useful resources for trading on Cannon Trading Website!

Heat Map:

FOMC Minutes will be out tomorrow as FOMC is not a govt. agency!

Contact our trading desk today with any questions about the markets!

December Silver