Future Trading News

Category Archives: Future Trading News

As a high risk trading type, futures trading is not for someone who is faint-hearted. Though there are a number of different ways of investing in futures , it is important to stick to what you know. Treading into unknown waters is not something that you should do when dealing in futures.

From managing margins to ordering trades to doing market analysis and more if you want to, you can do that all by yourself – but you may betaking double the risk. Therefore, when trading in futures, it may be better to seek advice from a professional trader.

Professional trading experts at Cannon Trading can help you with your futures trading. We are also there to keep you updated with the latest on futures trading and market news. All the news and latest articles on futures trading are published on our site under the category Archive Futures Trading News, which you are currently browsing through. Read more and the latest here and keep updated.


Futures Trading Strategies: Hedging

January 20th, 2020 Filed under Future Trading News | Comment (0)

Many investors are in the futures trading market for one reason: to make a profit. This process, known as speculating, is fairly straightforward as the investor is looking to take a risk on certain markets to try and predict the rise and fall of costs and volatility. Conversely, however, there is another strategy that is quite the opposite. Rather than entering into the futures market to take risks and make money, many investors will participate in a futures trading strategy known as hedging to keep their costs low, and their assets safe. 

 

What is Hedging?

Hedging is a process done by either a producer of a commodity or a company that relies on a certain commodity to operate. The two parties will sign a futures contract, or a prior arrangement to buy or sell at a set time in the future for a fixed price. Commodities producers and business owners alike engage in this practice in order to offset their risk exposure and protect themselves from any fluctuation in price. It is a way for business owners to mitigate the fear of the unknown, especially for more volatile assets such as wheat, soybeans, and other agricultural commodities. 

 

In the example of agriculture, a farmer may be interested in participating in a futures contract to ensure a profit. The farmer can never be certain that the price of his commodity will stay the same at harvest as when he originally planted them. In this time, their value may decline and he will lose money on the sale. Conversely, a business relying on these crops will not want to risk that their prices will go up the next time they need to purchase them in large quantities. The two parties will mutually agree on a shared price that is in both of their best interests to mitigate risk in what is known as a long term cash position or a hedging strategy. 

 

Disadvantages and Risks of Hedging Strategies

When hedging with a futures contract, investors must keep in mind that it is exactly that, a contract. Remember, no one has ever gone into a long term cash position for a futures contract with the intention to get rich — Quite the opposite. Hedging strategies are intended to be a safety net in case of drastic price increases on a commodity you are buying or selling. With this in mind, it is still easy to lose out on money using this strategy. An investor may set the cost of a hedge and wind up paying more than it would have cost to just buy the commodities outright in real-time. When entering into a long term cash position, the investor must weigh if the set price can justify the savings they might see, and act accordingly. Like having insurance, hedging is a method that investors use to avoid uncertainty, and avoid large losses if unfortunate or unfavorable circumstances were to occur. Like insurance, however, it is not uncommon to end up paying more money having it and not needing it, but better safe than sorry!   

 

Getting Started With Hedging

Even if you do not plan on participating in a hedging strategy and the inverse short term cash position, or speculating, is the direction you choose — understanding this process is an essential skill for any investor. Many large entities like airlines, oil companies, and investment funds will use this strategy to preserve costs in the event of high fluctuation rates and foreign exchange rates. As an investor, you will be better equipped to analyze and fully understand the investment strategies that these large companies are taking. Whether you are using it for yourself or just becoming a more well-rounded investor, a firm understanding of this process will help you to understand the market.

 

Futures trading is an inherently risky practice, and by nature is based solely on predictions alone. While an investor can never be completely certain which way the market will go, hedging can be a useful tool in keeping their assets and commodities protected. Avoid missteps that can lead to overabundances of your investment, a shortage of your investment, or the costly mistake of losing more money than you initially put in; trust the professionals at Cannon Trading.  Cannon Trading will help you to get started by partnering you with a professional futures broker. Our professional team members will help to advise you on which platforms and which investments are right for you, to help get you started investing in the futures trading market. We will help to advise you on all of your trading needs and questions when they arise with our extensive background and knowledge of futures contracts and trading. Don’t go it alone, start your commodities trading journey with expert assistance from Cannon Trading. 

 

Disclaimer – 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.  


A Guide to Agricultural Futures Trading

January 20th, 2020 Filed under Future Trading News | Comment (0)

Commodities, especially agricultural commodities, are used by each of us every day. Agricultural commodities are broken into several categories: grains and oilseeds, livestock, dairy, lumber, softs, biofuels, and more. These commodities, from the food on your plate to the gas in your car, are all around us every day and almost impossible to avoid. For these reasons, futures trading is extremely common in the agricultural industry. From a small drought to a large storm, these commodities can be significantly impacted by just one instance of unfavorable weather. Agricultural futures trading allows farmers and consumers alike a way to protect their investment from the rise and fall of their product’s value in this volatile industry.   

 

How to Get Started with Agricultural Futures Trading

Agricultural commodities are within the category of soft commodities. The term soft commodity refers to a commodity that is grown and then harvested such as grain, cotton, and coffee, as well as livestock like cattle and pork. While the majority of these commodities are used directly as a food source, some are used industrially such as rubber and latex from trees, as well as several other users in the clothing, and skin care industries. With their myriad of functions, it is more common that these products will be used for very similar purposes. As such, when getting started with agricultural futures trading, it is an essential step to choose your asset, and research it extensively. 

 

Begin by asking yourself: What will my commodity’s price relationship be like with other commodities? What outside factors like the weather is my commodity at risk of? What types of markets will I be selling my commodity to? By asking these questions, you will begin to understand the supply and demand that you will be operating with. We then suggest you watch the market while trying to predict price ebbs and flows. Were your predictions correct? Once you feel that you have a comfortable grasp on your commodity’s volatility, it is time to partner with a professional. 

 

Agricultural Futures Trading Best Practices

Agricultural commodities can be used as the physical goods themselves, or as a powerful investment vehicle. These commodities are integrated into almost every industry imaginable, and will, therefore, need to purchase them constantly. As a business owner, you will want to lock in a set price that is safe from supply and demand — this is where futures trading comes in. 

 

Hedging is a common risk management strategy, given the high volatility of agricultural commodities. This strategy is built to minimize losses by locking in a fixed price to buy and sell your commodity at a later date. Futures trading is particularly useful in the agricultural industry as the quantity of these products can be difficult to predict due to weather, low fertility, and other factors. The inconsistency within these markets will sometimes cause discrepancy, opening the door for the more profitable technique: commodity arbitrage. 

 

Commodity arbitrage is a process in which a commodity is simultaneously bought and sold in two separate markets in order to take advantage of a said price discrepancy. For example, one may buy crops in a state where the harvest is large and thus the supply is high with low demand, pay the shipping cost, and still profit from selling in a state with a lesser bounty and thus an inverse supply and demand. 

 

Finally, there is speculation. This process is popular with traders who are looking to make a profit in agriculture. When speculating, the user is never physically handling the commodity, only the contracts. By carefully watching the market, users can predict rises and fall in prices across several regions to buy and sell accordingly. 

 

Risks Involved

Naturally, there is a large risk involved when agricultural futures trading on the commodities market. Operating in this space is inherently based on prediction alone, with missteps leading to an overabundance of assets, a shortage of assets, or losing more money than you initially invested.  Cannon Trading will help you to get started by partnering you with a professional futures broker. Our professional team members will help to advise you on a strategy that is right for you to help get you started investing in the agricultural commodities market based on your net income, and experience level. We will help to advise you on an investment vehicle that is right for you and help with all of your trading needs and questions when they arise with our extensive background and knowledge of the agricultural futures market. Don’t go it alone, start your commodities trading journey with expert assistance from Cannon Trading. 

 

Disclaimer – 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.  

 


MLK Holiday Hours & Trading Levels 1.17.2020

January 16th, 2020 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Allow Cannon Trading to make 2020 the year of a BETTER Trading vision!!
🙂
MLK Holiday this Monday here at the US.
Please see holiday hours below and here.

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

1-17-2020

Futures Trading


Economic Reports, source: 

https://bettertrader.co/ 

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.


Free Trial to Proprietary ALGOS & Futures Levels 1.16.2020

January 15th, 2020 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

_________________________________________________

Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Allow Cannon Trading to make 2020 the year of a BETTER Trading vision!!
🙂
The following screen shot is from this morning, ES chart, using some proprietary ALGOS. Two nice winners. We also had losers today using the same signals but if you are struggling with your trading, you may want to take these ALGOS for a test drive and see for yourself if it helps or not……(comes with full explanation on the concept which is what I call simpler way of trading)

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

1-16-2020

Futures Trading


Economic Reports, source: 

https://bettertrader.co/ 

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.


Trading Emini  MICROS contracts & Futures Levels 1.15.2020

January 14th, 2020 Filed under Future Trading News | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Allow Cannon Trading to make 2020 the year of a BETTER Trading vision!!
🙂
Open a futures trading account with as little as $750!
$100 day-trading margins
Live, real-time charts
Have you been following the markets for a while now? Not able to make the switch from demo to live trading?
Well now with the MICROS contracts being 1/10 the size of the mini indices, you can start trading a LIVE account with as little as $750** using the smaller MICROS.
The MICRO e-minis have now been around for approx. 6 months. Good volume overall!
Here are some thoughts ( my personal thoughts….):
·    The MICROS are a good tool for perhaps hedging a trade you are in. Example, you are short ES, market going against you but you dont want to get stopped or get out, you buy x number of contracts to hedge x% of your current position.
·    MICROS may be a good start for newcomers and smaller accounts.
·    MICROS can be a nice transition from trading a demo account and before moving on to the standard size.
·    MICROS may provide more flexibility for traders who like to average up and down…..
·    Last but not least, the MICROS could be a good way to initiate longer term positions with lower leverage.
Either way, the MICROS have a few good things to offer as well as some pointers to understand, read more…..
Account Details
·    Trade CME Micro E-Mini Futures contracts on the S&P, Dow Jones, Nasdaq100, and Russell 2000. You can learn more about the MICROS here.
·    Other futures contracts are available based on account size and margin requirements.
·    Offer is for new accounts only.
·    Existing clients, please contact your current broker to make sure MICROS are set up properly in your current account.
*Exchange fees are $0.20 per side. NFA fees are $0.02 per side. Platform fees will vary but can start from $0.1 per side.
** While the MICROS are a smaller contract, there is still large degree of risk in trading futures and futures trading is not suitable for everyone. Read disclaimer here and feel free to reach out and speak to a licensed broker at + 310 859 9572

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

1-15-2020

Futures Trading


Economic Reports, source: 

https://bettertrader.co/ 

 

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.

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  • Using Bollinger Bands and Parabolics
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