futures trading education

Category Archives: futures trading education


Margin Requirements are your Ally + Futures Support and Resistance Levels 5.19.2022

May 18th, 2022 Filed under Future Trading News, futures trading education | Comment (0)

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Margin Requirements are your Ally

By Mark O’Brien, Senior Broker
As a rule, all futures contracts come with financial requirements in order to trade them. These requirements come in the form of margin. For the vast majority of traders – speculators – there are three types: 1.) the initial margin requirement, 2.) the maintenance margin requirement and 3.) the day trading margin requirement. The first two are established by the futures exchange on which a particular futures contract is traded. The initial margin requirement is the amount of cash you must have to initiate a position in the market. The maintenance margin requirement – typically 80-90% of the initial margin requirement – is the amount of money required to maintain the position your account. Day trading margin requirements are set by individual clearing firms and/or brokerage firms and are fractionally lower than a contract’s initial margin requirement, sometimes ±80% below the initial margin requirement.
While all these are designated as requirements, traders should also look at them as guardrails or markers that serve not just to notify you of the potential risk in the market you’re about to trade, but also to give you an idea of the risk to your account you should anticipate once you’re in the trade. Be prepared. In the event the market(s) you’re trading cause an adverse drop in your account’s balance – below the maintenance margin requirement of your position – and a margin call occurs, yes it’s an unfavorable outcome, but it’s also a genuine alert that you need to take action. It’s time to either offset part or all of the position or deposit more money (enough to bring your account back above the initial margin requirement) to keep the position. Treat margin requirements more as words to the wise rather than handcuffs. Trade with the thought that margin requirements are your friend.

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

05-19-2022

 

 

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Economic Reports, Source: 

Forexfactory.com

 

 

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.


Trader’s Checklist + Futures Trading Levels 5.17.2022

May 16th, 2022 Filed under Future Trading News, futures trading education | Comment (0)

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Trader’s Check List:

·        Review prior day statement
·        Check for any working orders on your platforms.
·        Be aware of contract rollover dates
·        Set a daily loss limit and learn NOT to overtrade
·        Understand what reports are coming out today
·        Make sure you are not distracted
·        Calculate appropriate trading size based on current volatility and account size
·        Start with Larger Time Frame charts to get proper perspective
·        Understand what your goal is
·        Measure your success or lack of
·        Spend time furthering your trading education and exploring different methods
·        Put trading in perspective and make sure the overall psychology of trading fits you.
Contact us for a demo and/ or more information here!

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

05-17-2022

Futures Support and Resistance Levels 5.17.2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

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.


Weekly Newsletter #1097 When to Exit a Trade? Trading Levels for the Week and Ahead

May 13th, 2022 Filed under Future Trading News, futures trading education, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1097

Dear Traders,

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Exiting a Trade might be more important than the entry….

“You Must Understand That There Is More Than One Path To The Top Of The Mountain.”- Miyamoto Musashi, A Book Of Five Rings: The Classic Guide To Strategy
Futures and futures options trading is a challenging activity. More so for those traders who look to trading as an occupation. So much thinking, contemplating, planning goes into trading – related to the markets you’re trading, the strategies that get implemented, the possible risk/reward outcomes. For someone new to trading, seeing the sum total of all the parts may be a lot to take in. Veteran traders will tell you the full picture keeps changing and can be daunting often.
When trading goes well, the trader’s energy and overall outlook is powerful, optimistic and energizing for other aspects of life. When trading goes unsuccessfully, most traders feel the pain in many ways outside of the obvious financial consequences.
Whether you’re a day trader, a position trader, a spread trader, or an option trader, some of the mental challenges and the questions to go with them are constant:
  • Where, When and how do I enter a trade?
  • How do I define risk and implement any type of risk control, like placing stop orders, or implementing some sort of option protection?
  • Where and how do I exit a trade, both in the event of a profitable trade and an unsuccessful one?
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

05-16-2022

Futures Support and Resistance Levels 5.16.2022

Weekly Levels

Weekly Support and Resistance Levels 5.16.2022 - 5.20.2022

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


Fine-Tune Your Risk: Tap into the Precision of a Smaller-Sized Contract

May 11th, 2022 Filed under Commodity Brokers, Future Trading News, futures trading education | Comment (0)

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Fine-Tune Your Risk: Tap into the Precision of a Smaller-Sized Contract

By Mark O’Brien, Senior Broker

 

At a fraction of one full-sized contract, Mini and Micro futures provide flexible leverage as an alternative to large contracts. Among the available fractional futures contracts, by far the most well-known and most liquid are the E-mini stock index futures: E-mini S&P 500, E-mini Nasdaq, E-mini Russell 2000 and Mini Dow Jones. With the introduction back in May ’19 of the Micro E-mini futures, there are fractional versions of the E-minis.

 

But stock index futures are not the only ones with fractional contracts. Almost every commodity sector offers futures contracts that are fractional versions of their classic full-sized contracts. They all offer opportunities to trade markets with more precise leverage and reduced margins.

 

In the energy sector, there are E-mini natural gas futures contracts at 1/4 the size of full-sized contract (1 million British Thermal Units). A one-cent move for the E-mini natural gas futures contract is equal to $25.

 

In crude oil, whose full-sized, 1,000 barrel contract is the largest energy futures contract in the world by volume, there are both E-mini crude oil (1/2 the size) and Micro crude oil (1/10 the size).

 

Mini contracts are offered in corn, wheat and soybeans. All are 1/5 the size, so a 1-cent move in each contract is equal to $10.00 compared to a 1-cent move/$50 for their mighty forerunners.

 

In metals, the renowned COMEX 100-ounce gold futures contract can be traded fractionally with a 50-ounce Mini gold and a 10-ounce Micro gold.

 

Both silver and copper offer Mini contracts that are 1/2 the leverage of their respective 5,000-ounce and 25,000-pound full-sized relatives.

 

There are Micro futures contracts with 1/10 the leverage of their full-sized bellwether currency futures for all of those listed below:

 

Euro FX

Swiss Franc

British Pound

Japanese Yen

Canadian Dollar

Australian Dollar

 

A word of caution: many of these contracts’ liquidity is concentrated in their respective front months – often right up to their Last Trading Day. Take care to check a contract’s volume/open interest before trading.

 

 

Contact your Cannon Trading broker for additional information on any of these futures contracts, including price quotation, trading hours, minimum price fluctuation, symbol code, settlement method (cash or physical), risk considerations, etc.

 

Even if you are not a client yet, you can still contact us and we are happy to help.

 

 

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

05-12-2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

 

 

 

 

 

 

 

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.


Weekly Newsletter #1096 Why do most futures traders lose money? & Trading Levels for the Week and Ahead

May 6th, 2022 Filed under futures trading education, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1096

Dear Traders,

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Why do most futures traders lose money and how can you improve your odds?

Watch the 45-minute recorded webinar where Ilan shared some of his observations of why a large percentage of traders lose money trading futures.
*Reasons why most traders lose
*Looking at tools you can utilize and improve your odds
*Review different methods/concepts of trading
*Ilan shares many tidbits that can help variety of traders
*Ilan answers questions

Watch the recorded 45-minute webinar which in our opinion contains some of the most valuable advise both new and advanced traders can utilize

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

05-09-2022

Futures Support and Resistance Levels 5.09.2022

Weekly Levels

Weekly Support and Resistance Levels 5.09 - 5.13.2022

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

https://mrci.com

Date Reports/Expiration Notice Dates
MRCI Weekly Reports 5.09.2022 - 5.13.2022

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

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