Futures Trading

Category Archives: Futures Trading

Futures trading is done by two main parties, one of which is the hedger and the other one is the speculator. Where a speculator is there to trade for either their own accounts or that of their clients, a hedger always uses futures as a possible protection from losses. Hedgers can also be described as individuals or business owners who are more risk averse. Speculators and hedgers are likely to benefit from futures trading if the trader has a strong ability to analyze the markets and understands that future behavior. Though futures can behigh risk, they offer an equally high return and are thus very tempting.

In case you are new to futures trading you need to understand how things work. We at Cannon Trading are there to help with your understanding of all the elements of futures trading and also counsel and advise you with the same. Our knowledge base featured on our website, is a store house of information. In order to know every aspect of futures trading, you must read through these articles that have been listed in this category archive. Go through it and get better informed!


Weekly Newsletter #1065 Trading Signals Directly to your Inbox and Support and Resistance Levels 9.06.2021

September 3rd, 2021 Filed under Futures Trading, Trading Guide, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1065

Dear Traders,

Get Real Time updates and more on our private FB group!

VAREA Signal Trading Alerts

Directly to your Inbox!

  • A dynamic research tool for Futures traders based on revolutionary algorithmic IP. Experienced management team has combined decades of trading experience with superior programming capability to produce this unparalleled algorithmic trading product.
  • Daily email to traders identifying trading opportunities (signals) on more than 20 specific tickers per a discrete set of rules and conditions/algorithms.
  • Packages are signals only (Basic, $99/month) or signals with execution suggestions by VAREA trading specialists (Premium, $199/month) and get a free month of the Premium product when you sign up. Contact your broker for implementation instructions to get you started.
Verea Trading Signals - Example
Verea Trading Signals - Example
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

9-06-2021

Support and Resistance 9.06.2021

 

Weekly Levels

Weekly Support and Resistance Levels

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

https://mrci.com

Date Reports/Expiration Notice Dates

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


Futures Trading Levels for June 30th, 2021

June 29th, 2021 Filed under Day Trading, Future Trading News, Futures Broker, Futures Trading, Index Futures | Comment (0)

Cannon Futures Daily Blog

Dear Traders,

Starting June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Tomorrow is also the last trading day of the month!
Last trading days and first trading days of the months will at times have unique characteristics. Possible larger moves, sharper turns, higher volume.
Large traders/ funds will try to “close the books for the month”, book profits or losses etc.
Do you homework, go over notes from your journal, study the charts from prior last/ first trading days and be prepared.

 

Get Real Time updates and more on our private FB group!
To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Futures Trading Levels

for June 30th

Economic Reports, source: 

 www.BetterTrader.co

 

 

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 for June 29th, 2021

June 28th, 2021 Filed under Day Trading, Future Trading News, Futures Broker, Futures Trading, Index Futures | Comment (0)

Cannon Futures Daily Blog

Dear Traders,

Starting today, June 28, 2021, CME Group has removed the trading halt between 3:15 and 3:30 p.m. CT on CME Globex for Equity Index products.
This enhancement will allow market participants to access liquidity continuously throughout the trading day and manage event risk that occurs during the trading session with greater ease.
Subject to regulatory review and effective June 28, 2021, CME and CBOT will eliminate the 3:15 p.m. – 3:30 p.m. Central Time (CT) trading halt on CME Globex which currently exists for certain Equity futures and options contracts.
The halt was initially implemented to account for transactions conducted via open outcry in the trading pits and is therefore no longer necessary.
June is almost over and just like that next week is 4th of July and the beginning of what we consider “summer trading”…
Summer trading USUALLY = less volume, narrower ranges but also larger moves on certain reports.
Below is a video I put together a few years ago on trading using overbought and oversold conditions – still very valid in m opinion.

 

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Get Real Time updates and market alerts on Twitter!
Get Real Time updates and more on our private FB group!

To access a free trial to the ALGOS shown in the chart along with other tools? (Arrows possible buy/sell, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Futures Trading Levels

for June 29th

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.

Economic Reports, source: 

 www.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 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


CME MICROS: Micro Mini Futures Contract

January 6th, 2021 Filed under Futures Trading, S&P 500 | Comment (0)

CME MICROS, more commonly known as Micro E-Mini Futures Contracts, have been trading with great success since they were first introduced by the CME Group in 2019.   In terms of liquidity, for both smaller and newer futures traders, the Micro E-Mini has made futures trading more affordable and  accessible to the independent investor, who may not have large amounts of risk capital to invest.

Standard futures contracts and Mini Futures Contracts are sized to a certain value multiplied by the futures price.  For example a mini contract sells for $50 x the contract price.  The E-mini S&P 500 has a contract size of $50 times the E-Mini futures contract price, which if the contract price is say $1,240, then the contract value is $62,000.

CME states all four of the Micro E-Mini Futures Contracts are 1/10 the size of their respective E-mini futures counterparts – allowing all traders futures exposure without the notional constraints of the larger contracts.  These Micro Minis include the follow contracts:  S&P 500, Nasdaq-100, Russell 2000, and the Dow Jones Industrial Average.

 

What Is a Micro Mini Futures Contract

Micro E-Minis are one-tenth of the size of a traditional E-Mini contract, which allowing for lower margins and requires a significantly lower investment capital than their standard counterparts.

If the S&P 500 index is 2950, the micro e-mini value is 5 times the value of the index or $14,750 versus the value of a  standard e-mini contract, which is 50 times the price, and would set an investor back $147,500.  While the contract value is significantly higher, so is the exposure to market fluctuations.  This is where the benefit of the Micro E-mini comes in.

The Micro E-Mini contract is a significantly smaller contract than the mini or standard futures contract, which can set an investor back several thousand dollars.  The micro E-mini offers a much more affordable way for traders to access the equity index futures markets.

 

How Do Micro E-Mini Futures Contract Work?

While a standard E -mini S&P 500 futures contract has a value of $50 times the contract price – the Micro E-mini S&P 500 futures contract has a value of just $5 times the contract price, making this a much more affordable futures contract vehicle.

Your upward and downward exposure to fluctuations in the market is significantly reduced.

Most traders will use MICROS for short term trading, and can day trade the micros with less than $2,000 in the account.  Both losses and gains are smaller relative to the Mini S&P, but there are still risks associated even if you trade Micro E-Mini Futures.

Open a new trading account here

 

Why Invest in Micro E-Mini Futures

Experienced traders will enjoy the efficiency of the contract, the ability to sell short with ease, and the possibility of benefitting from short- and long-term profit and loss tax rules.  New traders will appreciate more affordable options of Micro E-Mini Futures Contracts, that incur less risk at just $5 times the contract value and have lower margins.

This allows new investors with limited assets to participate in this exciting market with limited exposure to risk, and for a much larger pool of traders.  Cannon is excited to bring in new traders, as well as, offering more diverse and flexible portfolio of futures trading options to new and  current clients.

Contact Cannon Trading here for more details on investing in Micro E-Mini Futures Contracts, or other futures investments.

“The MICROS offer a few advantages for both new and experienced traders”, says Ilan Levy-Mayer, Cannon’s VP. “If one wants to move from demo to live trading, one can start with the MICROS and utilize less capital and ease into the live trading part with smaller contracts. Another advantage is the ability to scale in and scale out and last but not least, longer term trades or maybe swing trades might be better utilized using the smaller MICROS.”

In addition to the micro e-minis, Cannon Trading brokers can also help investors trade MICRO gold.  Learn more here.

Appx Daily & Monthly Volume(December 2020)

Micro E-mini S&P March Contract (MESH21) Daily Volume – 57,180

Micro E-mini S&P March Contract (MESH21) Monthly Volume – 1,143,585

Micro E-mini Nasdaq March Contract (MNQH21) Daily Volume – 227,598

Micro E-mini Nasdaq March Contract (MNQH21) Monthly Volume – 4,551,970

Micro E-mini Dow Jones March Contract (MYMH21) Daily Volume – 50,061

Micro E-mini Dow Jones March Contract (MYMH21) Monthly Volume – 1,001,220

Micro E-mini Russell March Contract (M2KH21) Daily Volume – 34,335

Micro E-mini Russell March Contract (M2KH21) Monthly Volume – 686,700

Micro gold Feb Contract (MGCG21) Daily Volume – 51,118

Micro gold Feb Contract (MGCG21) Monthly Volume – 1,022,350

 

Benefits of the Micro E-Mini Futures Contract

The economical aspect of the Micro E-Mini is perhaps its largest draw. In the S&P a trader traditionally must maintain a minimum margin of $13,000, but with the new Miro E-Mini, that margin may now be as low ae $1,300. With these lower margins, more and more traders will now be able to make investments based on where they think the markets may be headed with Stock index futures contracts. Those who now trade with exchange-traded funds (ETFs) can now more easily expand to the futures market.

Cannon Trading stresses the importance of finding a broker that offers the most up-to-date technology and resources available. They also stress the importance of choosing a firm whose brokers have experience and specialize in an array of market corners, thus making it easier for them to customize their services to every trader’s needs and objectives. “At Cannon Trading we offer an expansive selection of cutting-edge technology, and our brokers are knowledgeable and experienced enough to assist any level of trader with his or her needs”.

FREE, real-time demo, with live prices of ALL MCIROS futures available at:

 

https://www.cannontrading.com/software/e-futures-international

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.

 


COVID-19 Impact on Futures Trading

November 11th, 2020 Filed under Futures Broker, Futures Trading | Comment (0)

Futures Trading

 

The sweep of the coronavirus around the world ranks as one of the most impactful events in decades. Due in large part to sweeping lockdowns of businesses, travel and social activities, global markets, particularly commodity markets, have experienced price disruptions on an unprecedented scale. Recall earlier this year, the front month crude oil futures contract (May) traded at a value below $0.00 per barrel and at the close of trading one day, its price settled at a negative value. Conversely, gold’s December futures contract recently reached an all-time high above $2,000 per ounce. These price moves and similar ones – in silver, copper, stock indexes like the S&P 500, Nasdaq & Dow Jones, lumber and others – can be at least partly attributed to abrupt changes in supply & demand patterns during this international health crisis and its effects on producers’ and consumers’ behavior.

In this environment, the case could be made to review trading strategies and make adjustments – in market selection (think “full-sized” vs. mini- or micro- contracts), risk parameters – both in terms of dollar value and price toleration – market selection/allocation, trade frequency and for automated systems, adjustments to algorithms. All this would be to expect a continuation of the last several months’ market movement/volatility.

As part of a strategy review, it would be a good idea to also be aware of any price limits or circuit breakers in place for the markets you’re trading. A price limit is the maximum price range allowed for a futures contract for a trading session. At those price limits, trading may halt for a period of time and an expanded price limit is set, or it may be stopped for the day. Circuit breakers are price limits that when hit, set a timer within which the market is restricted from moving beyond the price limit. In some markets, price limits and circuit breakers are based on percentage moves from the prior day’s closing price and thus are recalculated each day.

Grains and livestock futures contracts, for example, have daily price limits that remain in place for an entire trading session. Stock indexes have both price limits that remain in place for an entire trading session and several circuit breakers: ones that are in place overnight and others that work only during the day. During high volatility periods of time, if markets trade to circuit breakers or price limits, orders placed during at that time can be rejected by the exchange. In summary, knowing these price parameters is especially important.

For more information on how CME Group price limits and circuit breakers work, visit this link.

For specific CME Group price limits and circuit breakers, visit this link.

During this time, it’s more important than ever to be informed, aware and prepared. One of the best means available to help you is access to an experienced, knowledgeable broker. Not only do they have answers to questions regarding the items discussed above, they can look at your situation specifically and offer strategy guidance as well as educational material and information sources you may have overlooked, couldn’t find, or were unaware even existed. Contact Cannon Trading Company.

COVID-19 Impact on Futures Trading

  • Increased volatility and risk
  • New traders needed to understand limit down/ limit up
  • Wild overnight swings
  • Wild moves both ways
  • MICROS are a valid tool
  • Twitter is now a factor
  • More than ever an experienced broker is an asset

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.

 

Trading Tips You Can Use Right Away!


Watch 4 short videos on the topics of:
  • Using Bollinger Bands and Parabolics
  • Using range Bars for Day-Trading
  • The concept of Price Confirmation
  • How to Use Support & Resistance Levels
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