Futures Broker

Category Archives: Futures Broker

The futures market comprises mainly of two players, namely, the hedgers and the speculators. While the former use futures as a safety or protection blanket, the latter is a group of traders who handle the trading accounts of those investing in the futures.

Futures trading can be arisky business that can require guidance and consultancy. Whether you are an individual or a firm, you need to be well-versed with the rules of the game. Futures brokers are always there to help you with advice and help you in matters related to futures trading. A rule of futures trading is that one canonly use those funds that have been termed as risk capital.

We at Cannon Trading help your understanding of the big and small things about futures brokers and trading. Apart from that, we also aid you in making the most out of the market; and, no matter how volatile and risky it is we offer the best advice we possibly can on trading. Under this category of futures broker, we write about the latest and informative articles that you should read to get equipped on the recent events in the futures markets.


How to Trade Futures With Cannon Trading

April 15th, 2019 Filed under Future Trading News, Futures Broker, Futures Trading | Comment (0)

How to Trade Futures

Beginning your portfolio in the futures market can be a daunting, if ultimately rewarding, task. While there are many factors that determine a trader’s success, the most profitable portfolios are built by traders who are thoughtful and strategic from the outset. Therefore, it is important to know the steps a successful trader takes when beginning in the market.

The first step for any successful trader is to find a qualified professional broker. At minimum this means someone who works at a brokerage that is registered with the CFTC and member of the NFA, is willing to display a public profile and has a verifiable track record of expertise. Transparency is key in any broker-client relationship, and a qualified broker should be up front about all the ways in which they can help you reach your highest potential in the futures market.

Once you’ve determined these basic qualities in a potential broker, it is important to assess your needs and goals in the market and identify which brokers will best help you meet them. Begin familiarizing yourself with the various market exchanges, analyze your own assets and financial goals, and specify your strengths and weaknesses as a new trader. Once you have a basic idea of what you will need from your broker, go through your options and see which brokerages offer the help that you need. What types of trading platforms are offered by the broker? How available are they on a daily basis, both during and after trading hours? What do they consider their specialty in futures trading? What commission rates do they offer? These are all important questions to ask when interviewing a potential broker. Ideally, as a first-time futures trader, you will find a broker who is available both during and after trading hours, offers a variety of platforms, and has a broad range of experience in the field. And remember, a low commission rate is only a factor, and not the whole of selecting a trader, bargain basement rates often accompany poor broker service.

After selecting a broker, you will be set up on a trading platform that you both have determined is best for your needs. Every trading platform should offer a demo period. It is important to trade in the demo mode for 3 to 4 weeks to get comfortable with the platform and begin identifying your trading strategy. One important thing to remember is to follow the trend. Every futures market follows a certain trend with set guidelines that determine the market’s direction. As you take your demo time to become more familiar with your chosen area of the futures market, your trading should reflect the trend of this market. Another important rule of thumb is: don’t overplay a market. It is easy to be overcome by a series of successful trades, but it important to stay on task, trade objectively and avoid frequent entrances and exits into any given market. When in the trial period, try to journal the ebbs and flows of your given market every day. Seeing the market volatility laid out from your trial run will help you stay calm when you’re ready to trade, thus avoiding rash, and often costly, decisions.

After your trial run, it is time to go live. Do not get caught living in demo mode, if you have done your research and followed your demo run closely, you will be ready to go into the live market with confidence in your strategy, and trust in your broker to help you through the more challenging trading days. Start off by trading one contract, and communicate with your broker frequently to confirm that they are available when you need them. As you expand your portfolio, spread out your risk capital by diversifying your portfolio into a few different markets. Continue to follow your strategy, journal the trends, and stay in close communication with your broker.

At Cannon Trading, our brokers are experienced, transparent, knowledgeable, and available. For over thirty-years we have provided top-quality individual service to our clients. We offer a variety of trading platforms and work with several introducing brokers, making it easy for us to customize our services to your trading needs. Our trade desk is available 24/7, and our brokers answer the phones right away during trading hours. Our clients not only benefit from our experienced brokers, but also access to our daily newsletter and frequent articles summarizing the market trends, outlining tips and tricks, and taking our clients step-by-step through the process of conquering the futures market. We also offer competitive commission rates to new clients. As a new trader to the futures market, working with a brokerage you can trust is paramount, and our clients have trusted us to be their market allies for decades.

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. Past performance is not indicative of future results. 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.


How to Select a Commodities & Futures Broker

March 12th, 2019 Filed under Commodity Brokers, Futures Broker, Futures Trading | Comment (0)

Futures Broker

Selecting the ideal futures broker is one of the most important steps a trader can take. Whether you are brand new to futures trading, or an experienced trader looking to expand your portfolio, the futures broker you choose will undoubtedly be integral to your trading success. It is important to weight your options and select a broker that will meet your needs at a firm that offers you the maximum value for that support.

The first decision you will want to make is whether to hire a Transactional or Relationship-Based Broker. Transactional brokerage firms offer clearing services and of course, access to exchanges. However, transactional firms will not assign you a personal broker and therefore can only offer base level support. It is truly a “one size fits all” approach.

Relationship-based brokers are highly involved in their traders’ progress. These brokers provide one-on-one service to each account, and will do everything in their power to ensure their traders are equipped for success. Relationship-based brokers work with their clients to evaluate their needs, provide them with the proper technology and support for trading, and communicate frequently to reevaluate and renovate accounts for maximum success.

After a trader has determined which of these two types of brokers will most benefit them, the next step is to evaluate how much support the trader will need. There are a few basics to choose from when it comes to broker support, the first is 24-hour vs. business hour support, and the next is access to a support team vs. access to a dedicated futures broker.

Even experienced brokers usually choose a firm that offers access to 24-hour trading support from a dedicated Futures broker. The futures markets run all day, and therefore the need for 24-hour support is probable. However, not all firms offer 24-hour support, and some that do only offer access to a support team, not a dedicated broker. While a support team can be helpful in low-stakes scenarios, it is possible to get caught in a high-stakes situation in which a dedicated broker would be more helpful.

When making the decision between 24-hour and business-hour support, and a support team vs. a dedicated Futures broker, a trader should consider their experience level and how comfortable they would be in a risky market situation on their own.

Another factor a trader should consider when choosing the support level that best meets their trading needs is execution services. Execution is the completion of a buy or sell, and there are many kinds. Some traders prefer self-directed execution through online trading, others prefer Futures broker assistance, still others opt for strategy execution, in which an automated system completes the execution based on a specific guided strategy. There is also newsletter execution, options execution, and managed futures. Some brokerage firms only offer one of these types of execution, others offer two or three, and still other offer all to their clients to pick and choose as they see fit. When selecting a broker, it is important to first determine which of these types of execution will work best for you, and make sure the brokers you are interested in offer them.

Once you have determined a brokerage offers the support level that is right for you, the next thing you will want to consider are the tools offered by the firm the help you with your trading. These include trading technology, research and reports, and access to futures commission merchants that specialize in the aspects of the markets that match your needs.

In today’s markets, having access to the latest and best technology is essential. Fast, stable, and reliable direct market access are the bare minimum features you should look for in a trading platform. While some brokerage firms only provide access to one trading platform, many offer access to a multitude, so that each client can choose the platforms that best suit their needs. It is important to ask a potential Futures broker which platform they believe will work best for you, a good broker will be direct about this. Keep in mind that a broker at a firm with only one trading platform is obligated to sell you on that platform, and not choose something specific to you. A good broker-assistance platform will also give you access to quotes and charts. You may not always need these resources, but they’re great to have around to improve your trading skills.

A good brokerage firm will also offer fundamental and technical research and a variety of reports to all of its clients. These include news reports and a calendar of major releases. Traders do not want to be caught without up-to-the-minute information regarding the markets. Brokerage firms worth pursuing will provide this information frequently and in detail.

The final tool that a trader should look for in a brokerage firm is access to a variety of Futures Commissions Merchants (FCMs) that specialize in aspects of the commodity futures markets that are relevant to that trader. Every FCM is different, and none of them specialize in everything, so a broker that offers options is key. You will want to talk to your potential broker about the clearing firms they offer, and what the advantages and disadvantages are of each FCM they offer. A good broker will be honest about the disadvantages of every FCM, that’s why they offer more than one!

Once you have determined that a few firms offer everything you need, it is time to look at value. It is important to have a clear understanding of each brokerage’s commission rates and all additional fees that are charged. Do not be afraid to talk to potential brokers about these rates, and read any material on their website or in contracts thoroughly. Another way to determine the firm with the best value is to look at Margins and Leverage. While the overnight margin will remain the same no matter what broker you choose, some brokers will offer special rates for certain types of trading. A good brokerage will also offer $500 margins to a day trader as long as that privilege is not abused. A transactional firm will allow a trader to use a $500 margin to ruin, but a relationship-based broker firm will insist that traders be safe and smart with their funds.

It is important to remember that low margins and high leverage are not the only factors you should be looking at in a brokerage firm. Ask the brokers how they manage risk, monitor leverage, and what maximum leverage they would recommend to you as a client. Some Futures broker even offer risk controls on your account, to protect you when you have reached a maximum leverage level.

Selecting a futures broker can be a daunting process, but the prepared and inquisitive trader will find an ideal match. Knowing your needs, your experience, your knowledge, and your financial health will help you not only find a brokerage firm that’s right for you, but also help your broker create a trading plan to maximize your success. You don’t need to find the most expensive firm for great results, many excellent firms are also great values. And you also don’t want to go straight to the lowest-cost provider, many bargain basement firms offer little to no guidance to their clients. Take your time selecting a Futures broker, get on the phone, ask questions, be direct and detailed, and find a broker who you trust to get you where you need to go.

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. Past performance is not indicative of future results. 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.


Gold weekly chart +Support & Resistance Levels 6.21.2018

June 20th, 2018 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading Platform, Futures Broker, Gold Futures, Metal Futures | Comment (0)

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

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Dear Traders,

Follow us on Twitter and receive real time trade updates, market developments and breaking news!!
Gold WEEKLY chart for your review below.
This Sunday night I got the first weekly sell signal since the end of 2017. You can see the little red arrow along with the current bar marked in red. Just because a signal happened, does not mean we will see a sell off but for me personally it is a good probability that the pressure is stronger to the downside. I like some of the option plays one can do using vertical put spreads.
The chart above includes some proprietary studies/ALGOS.
These ALGOS along with a 15 minutes one on one session is available for a free trial.

To sign up and more info visit: https://www.cannontrading.com/tools/intraday-futures-trading-signals 

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.

Futures Trading Levels

06-21-2018

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2801.25 7461.33 25029 1737.83 7109.66
Resistance 2 2789.75 7398.92 24944 1725.87 6961.28
Resistance 1 2780.25 7351.58 24803 1718.83 6857.81
Pivot 2768.75 7289.17 24718 1706.87 6709.43
Support 1 2759.25 7241.83 24577 1699.83 6605.96
Support 2 2747.75 7179.42 24492 1687.87 6457.58
Support 3 2738.25 7132.08 24351 1680.83 6354.11
Contract August Gold #GC_F July Silver #SI-F Aug. Crude Oil #CL-F Sept.  Bonds  #ZB_F Sept.  Euro #6E_F
Resistance 3 1284.9 16.48 67.89 144 27/32 1.1749
Resistance 2 1281.7 16.43 67.12 144 19/32 1.1713
Resistance 1 1276.7 16.36 66.33 143 31/32 1.1685
Pivot 1273.5 16.31 65.56 143 23/32 1.1649
Support 1 1268.5 16.24 64.77 143  3/32 1.1622
Support 2 1265.3 16.19 64.00 142 27/32 1.1586
Support 3 1260.3 16.12 63.21 142  7/32 1.1558
Contract July  Corn #ZC_F July Wheat #ZW_F July Beans #ZS_F July SoyMeal #ZM_F July Nat Gas #NG_F
Resistance 3 367.0 509.2 917.00 348.10 3.04
Resistance 2 361.8 499.6 906.50 343.00 3.01
Resistance 1 358.0 493.9 898.00 338.10 2.98
Pivot 352.8 484.3 887.50 333.00 2.95
Support 1 349.0 478.7 879.0 328.1 2.9
Support 2 343.8 469.1 868.50 323.00 2.89
Support 3 340.0 463.4 860.00 318.10 2.87

Economic Reports, source: 

http://app.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.


How Discount Futures Brokers Saves Your Time and Money

June 14th, 2018 Filed under Futures Broker, Futures Trading | Comment (0)

You’ve just decided that it’s time to open a trading account. Maybe you’ve already spent time studying the markets and mapping out your trade strategy – or you’ve put it on your to-do list.

However much time you plan on devoting to this task, or how intently you plan on concentrating on it, you’ll also have another important thing to consider – seriously: who to use as your futures broker. At the most basic level, trading is putting your money at risk – in the hands of a brokerage house responsible for handling your funds and executing/clearing your trades. Those trades will incur commissions and require margin to hold in your account – and all these components call for their own analysis.

If you’ve decided to open an account with a discount broker, it’s presumed you’ll be selecting a trading platform with which you’ll place your own trades, unassisted. As the name implies, commissions for trades placed through a discount broker are less – often meaningfully – than full-service brokers. Commissions are that main fixed cost of trading, so the more trades you make, the higher your fixed costs, the greater the impact on your account’s bottom line. So, certainly you want to be mindful of this aspect of your trading. And to that end, make sure you understand how commissions are quoted, the several elements of a commission and how they’re presented to you overall.

Futures commissions are almost always charged on a per-trade basis and are quoted as “per side.” Two sides – a buy and a sell (in either order) constitute a “round turn. ”The elements of a commission include the exchange fee, the National Futures Association (NFA) fee, the brokerage fee and possibly other fees (routing fees, platform fees, etc.) The bottom line when you’re doing your shopping: understand the total per side / per round turn commission – not leaving out any of its elements – so that you have an accurate assessment of this cost to your trading, so you can compare among those firms with which you’re considering opening your account.

To quote Warren Buffet, “Price is what you pay; value is what you get.” When opening a futures trading account, this translates to: know what you want/need to be the trader you want to be: the features of your trading platform, the availability of your broker, the support the clearing firm provides, the clearing firm’s day-trading margins, whether the clearing firm is staffed with an overnight desk, etc. Find what you want, become comfortable with its costs, open your account, plan your trade and trade your plan.

One last word regarding trading platforms: there’s no argument that placing trades via an online trading platform with instantaneous access to the futures markets is by far the most efficient means of trade execution – compared to dialing up a futures broker, providing verbal trade instructions that the broker needs to listen to, repeat back to you to make sure the order is understood and then place the trade on your behalf. So, look for a trading platform you’re comfortable using. There is a fairly wide range of choices available for you to single out for yourself. Almost all FCM’s offer their own proprietary platforms and they support the many third-party ones available as well.


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.


Trading Crude Oil Futures

June 13th, 2018 Filed under Commodity Brokers, Commodity Trading, Crude Oil, Day Trading, Energy Futures, Futures Broker, Futures Trading, futures trading education, Options Trading, Trading Guide | Comment (0)

Tips for day trading NYMEX crude oil futures

By Ilan Levy-Mayer, VP Cannon Trading Co, Inc.

When it comes to day trading futures contracts, crude oil futures are assumed one of the leading positions as far as trading volume.

 

During the month of May 2018,  crude oil futures averaged around 1 Million contracts traded per day! That actually surpasses contracts like the ten-year notes, mini SP, mini Nasdaq and others who have traditionally been leaders’ in terms of volume.

 

Part of the growth in crude oil futures is attributed to day trader participation. Day traders, by definition, will enter and exit their positions during the same trading day. This adds volume to the market traded.

 

Some of the tips I am sharing below can be applied to most futures contracts as well as other financial products that are traded like stocks, forex, bonds and others. Some of the advice I am sharing is very specific to the crude oil futures trading field.

 

  1. Know the product you are trading:

 

  1. Just like a trader who trades a stock like Facebook knows what Facebook does, when its earning reports are due and other factors, so does a crude oil futures day trader needs to know a few facts about crude oil:

 

  • Contract Size: Crude Oil Futures consist of 1,000 barrels. For the trader this means that each full $1 move in crude futures = $1,000 against you or in your favor.

 

For example:  A move from 72.10 to 73.10 = $1,000 and a move from 72.10 to 72.11 = $10 (the minimum fluctuation size or the tick size). Be aware that the CME also offers the mini crude contract,  which is half the size.

 

  • Trading Hours: Crude oil futures trade on the Globex terminal between the hours of 5:00 PM CST the DAY BEFORE to 4:00 PM CST the following day. Which means 23 hours of straight trading. It is important to know that most of the volume will trade between the hours of 8:00 AM CST and 1:30 PM CST, as these hours correspond to the “pit session” of the old trading floor.

 

Another key aspect to remember is that crude oil is a deliverable commodity and the “front month” will change every 30 days or so. For example: since May 22nd 2018 we have been trading July crude oil.

 

  • Reports: There are more than a few reports that will affect crude oil future prices indirectly. These include monthly unemployment, the FOMC rate decision, and a few others.

 

However, there are two major reports that move crude oil futures and its by-products (unleaded gasoline and heating oil) sharply: The API report, which comes out at 3:30 PM CST every Tuesday, and the DOE (Dept. of Energy) inventory numbers, which come out almost every Wednesday at 9:30AM CST.

 

Take a look at this one-minute chart from Wednesday, May 16th right around the report time below to understand the volatility involved.

As you can see above, the market made a move of $700 per ONE contract in a matter of minutes, perhaps even seconds! That type of risk and opportunity is one of the factors attracting day-traders into the crude oil market.

 

  • Geo Political Events: Middle East tensions, the Iran nuclear deal, tensions between Iraq and its neighbors…these are all examples of events that affect crude oil prices. Not to mention OPEC meetings!

 

 

  1. Trading Personality:

 

In my opinion crude oil (like many other markets) will have one of the following 3 modes: trending, two-sided volatility, or Choppy/quiet/range bound trading.

 

My experience is that crude will more often fall into the first 2 categories:  strong trend or two-sided volatility.  This leads me to my next point below, different trading set-ups.

 

  1. Trading Set-Ups:

 

My preferred methods for trading crude are either breakout concept in an attempt to catch a strong move up or down once the market broke some key support or resistance levels, AND/OR counter trend methods to take advantage of when the market is oversold or overbought. Crude does seem to bring more fear and greed out of traders. So looking at RSI levels, for example, and using moving averages ON the RSI to try and get a feel for market reversals are methods worth exploring.

 

  1. Keep a journal:

 

Like with any other trading, keep a journal. Take notes on how the market reacted to certain reports, how the markets traded during certain times of the day, and action you took and emotions you had that either helped or hurt you while trading. These notes will help you going forward.

 

In summary, crude oil futures volume has increased significantly these past few years. The crude oil futures offer traders certain dynamics that other markets may not at certain times. Volatility, fear and greed are key traits for this market. Remember that trading crude oil futures specifically and futures and options in general carries a large degree of risk and is not suitable for all investors. Make sure you consult with a series 3 broker if you never traded this market before. As always, I wish you Good Trading!

 

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

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

There is not an actual account trading these recommendations.

Past performances are not necessarily indicative of future results.

Download Cannon’s new eBook, “Futures Forthright” instantly.


Quick Tip: After registering you will be emailed login information, so be sure to use an email address you have access to. If you need assistance please call us at 1-800-454-9572, a professional broker will help you through the registration process.
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