Currency Futures News & Information on Cannon Trading

Currency Futures

Category Archives: Currency Futures

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

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

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


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

January 6th, 2023 Filed under Currency Futures, Day Trading, Futures Exchange, Futures Trading, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1128

 

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

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

Make it a great 2023! Stay disciplined, educate yourself and utilize our FREE valuable resources.
In this “Trading Around Key Economic Reports” FREE Course you will learn:
  • What is GDP?
  • About the Retail Sales Report
  • What is NFP ( non farm payroll) Report?
  • Understanding US housing Data
  • FOMC
  • Understanding Oil Data Report
  • Importance of Consumer Confidence Survey
      • Hot market of the week is provided by QT Market Center, A swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
        PriceCounts – Not about where we’ve been , but where we might be going next!

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

Daily Levels for January 9th, 2022

Weekly Levels

 

  • Trading Reports for Next Week

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

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading


Key Points for Real Time Dow-Jones Futures Trading

March 18th, 2022 Filed under Currency Futures, Future Trading News, Index Futures, Indices | Comment (0)

Dow-Jones In Real Time

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

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

The Dow-Jones Advantage

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

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

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

Dow Jones Futures Live Stream

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

Key Points of the Dow-Jones Futures Market

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

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

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

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

Author: Josh Meyers, Broker at Cannon Trading Company

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


Dow & NASDAQ Futures to Show Pre-Open on Stocks

February 28th, 2022 Filed under Currency Futures, Future Trading News | Comment (0)

Dow NASDAQ Futures

NASDAQ Futures Marketwatch, Investing in futures & CME

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

Dow futures symbol YM, Stock ETF Equivalent symbol DIA

Nasdaq Futures symbol NQ, Stock ETF Equivalent symbol QQQ

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

Notional Value Calculations for Dow NASDAQ S&P Futures

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

Mini Dow futures price X $5 = Notional Value

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

Mini Nasdaq 100 futures price X $20.00 = Notional value

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

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

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

 

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

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

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

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

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

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

 

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

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

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

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

Author: John Thorpe, Senior Broker at Cannon Trading Company

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


Gold Futures Analysis, Price & Prediction

February 23rd, 2022 Filed under Currency Futures, Future Trading News | Comment (0)

Gold Futures Analysis, Price & Prediction

Gold Futures Analysis

Taking a closer look at gold futures analysis, price and prediction, the CME gold futures contract (GC) is one of the most actively traded on the exchange marketplace. Each contract represents 100 troy ounces (see contract for specs) with a tick value of $10 or .10 per ounce. The CME continues to provide accessibility for smaller traders by offering contract sizes such as the Micro gold futures (MGC). Standing at 1/10th the size of the aforementioned, with a tick value of $1, the MGC provides accessibility to those who may size their positions incrementally. Both contracts are actively traded, providing good liquidity to market participants.

Whether the standard applies or not, gold continues to be a popular choice for investors and traders alike. In gold futures analysis, the market participants of gold futures are diverse. People across the world hedging, speculating, and doing business with the hope of a better future. Though volatile at times, gold has a record of recovery after periods of price adversity. Inflationary concerns and looming world conflict have once again sent gold futures careening toward all-time highs. In a time where Bitcoin and other cryptos continue to draw attention from those pursuing extraordinary returns, metal investors seem to have enjoyed relative stability and growth since the COVID-19 crisis. Gold looks poised to once again push upward as investors and traders seek financial solace from the anticipated Russia/Ukraine military conflict.

From a technical analysis perspective, gold appears to be testing the upper side of a price consolidation that’s lasted for nearly a year. Assuming continued strength, one could argue that gold will top $2,000 an ounce this year and possibly make a new all-time high. If conflict materializes and broad-market weakness presents, the negative beta correlation of gold to the S&P500 may create buying pressure.

Price & Prediction

Taking this into consideration, it’s important for traders like you to brace for multiple scenarios when doing a gold futures analysis, with price and prediction. All signs point upward for gold, which means it can be useful to reflect and prepare for something less obvious. Ironically, like a punishment for the preemptive celebration of traders and investors, when things seem a shoo-in, adversity reveals itself. Make a plan for when things don’t go your way. Gold may retest $2,000/ounce and fall back into price consolidation, or reverse and press downward. Any number of scenarios could play out, and only time will tell. You must consider these and more factors when looking at gold futures analysis, price and prediction. Those prepared with reactive risk management solutions, active at finding low risk/high reward trading opportunities will succeed.

Within the gold futures, speculative traders skilled in order flow/tape reading should find intraday opportunities. While swing traders and portfolio-style risk managers may utilize gold futures to hedge or manage their broad market exposure. Directionally focused swing/position trading continues to be viable option for disciplined traders as well. The critical element to success tends to be risk management, regardless of trading style.

Nowadays cryptocurrency has taken the world by storm. Outsized returns and the hope of instant success draw a crowd. It seems an era of new-school vs. old-school, but caution is advised. For millennia our species has valued gold. Bitcoin was created in 2009. It can be argued that the cryptocurrency market is still in its initial price discovery phase. Please consider that strong value can be found outside of what’s considered trendy or popular. It’s ironic that gold seems less glamorous these days. Be sure to do your due diligence, and remember what they say about all that glitters….Happy Trading!

Get More Insights and Sign Up for A Free Demo Here: https://www.cannontrading.com/software/e-futures-international?q

Author: Josh Meyers, Broker at Cannon Trading Company

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


What are Gold Futures?

February 18th, 2022 Filed under Currency Futures, Future Trading News | Comment (0)

What are gold futures ?

What Are Gold Futures?

Like all commodity futures, gold futures are derivative financial contracts.  A derivative is a type of contract whose value is determined by or derived from the value of another asset.  In the case of gold futures contracts, the other asset is an amount of gold.  The major gold futures contracts traded on the CME Group’s COMEX Exchange are derived from the value of 100 ounces, 50 ounces, and 10 ounces of gold with a rated fineness of 995. What this means is the underlying metal’s purity is at least 99.5% or more.  In turn, because of the reflective relationship between gold futures contracts and gold itself, understandably the price of a futures contract is valued similarly to and fluctuates with the price of gold.

The Marketplace Breakdown

Gold futures, such as those traded on the CME Group’s COMEX Exchange, are an efficient means for you as a trader to participate in the directional movement of the price of gold.  The exchange is essentially the marketplace where these futures are traded.  By means of electronic networks, an exchange’s market participants can be apprised of vital information like this futures contract’s current price, competing bids and offers, the number of contracts changing hands (volume), the total number of outstanding contracts (open interest), and more.  It’s also the means by which participation in the gold futures marketplace takes place.  It’s where buyers and sellers, or futures traders like you, meet.

How Do You Begin Trading This Market?

Gaining access to the gold futures market generally calls for a trading account to be opened with a registered brokerage.  It is through this arrangement that market participation is facilitated and orders to buy and sell gold futures can be placed to the exchange via an electronic trading platform – called Globex at the CME.  The exchange is responsible for the execution of trades between buyers and sellers.  This is possibly the most important function of the exchange, in that it serves as the buyer to every seller and the seller to every buyer, thus virtually eliminating credit risk for each market participant.

Get More Insights and Sign Up for A Free Demo Here: https://www.cannontrading.com/software/e-futures-international?q

Author: Mark O’Brien, Senior Broker at Cannon Trading Company

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

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