Futures (Cedar Falls, IA)

A monthly trade magazine that presents news, analysis and strategies to inform and educate traders in futures, options and derivatives markets. Provides analysis of global markets and information on price movement, volatility, and future trends. Articles

Articles from Vol. 37, No. 11, October

Automated High Frequency Retail Trading
The combination of electronic markets, complex algorithms and computers has led to a revolution in trade automation. Lower brokerage fees and affordable data and software packages have extended that revolution to retail traders.The growth in the electronic...
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Automated High Frequency Retail Trading: The Combination of Electronic Markets, Complex Algorithms and Computers Has Led to a Revolution in Trade Automation. Lower Brokerage Fees and Affordable Data and Software Packages Have Extended That Revolution to Retail Traders
The growth in the electronic trading of stocks, futures and options and the accompanying increase in volume, lower commissions and speed of order execution have created market data networks that support high frequency trading by the retail customer,...
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Beans Don't like Wet Feet
The old timers always said "beans don't like wet feet." This is because beans are susceptible to diseases like bacterial blight, pod and stem blight, downy mildew, phytophthora rot, sclerotinia stem root, sudden death syndrome and a myriad of others....
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CBOE, CBOT Settle
A decades long battle between former members of the Chicago Board of Trade (CBOT) and the Chicago Board Options Exchange (CBOE) over exercise right privileges (ERPs) again approached its conclusion when CME Group and CBOE announced a settlement agreement...
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CFTC Issues Report on Index Traders
Seeing all the reaction following the release of the Commodity Futures Trading Commission's report on "Commodity Swap Dealers and Index Traders," I felt like a slacker. Here I had barely cracked the report when a half dozen or so groups had commented...
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CFTS Issues Report on Index Traders
Seeing all the reaction following the release of the Commodity Futures Trading Commission's report on "Commodity Swap Dealers and Index Trader," I felt like a slacker. Here I had barely cracked the report when a half dozen or so groups had commented...
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Crude Companion
The key to trading crude oil effectively is understanding exactly what it is, and it may not be what you think. Here, we'll look deep into the barrel to uncover some useful information about the commodity Americans have come to love and hate - like no...
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Crude Companion: The Key to Trading Crude Oil Efficiency Is Understanding Exactly What It Is, and It May Not Be What You Think. Here, We'll Look Deep into the Barrel to Uncover Some Useful Information about the Commodity Americans Have Come to Love - and Hate - like No Other, and Apply What We Learn in a Trading System
Crude oil is not that useful in the form comes out of the ground. It requires a lot of processing to make it into the products that we all know and love. Nor is all crude oil the same. Different oil fields deliver crude oil of varying viscosity and...
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Electrification of Markets
The revolution of electronic trading has created huge growth and provided numerous opportunities, but it also has created some challenges to traders.A click of a mouse is all it takes to trade a market. Like the toddler in the E*Trade commercial demonstrates,...
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Electrification of Markets: The Revolution of Electronic Trading Has Created Huge Growth and Provided Numerous Opportunities, but It Also Has Created Some Challenges to Traders
A click of a mouse is all it takes to trade a market. Like the toddler in the E*Trade commercial demonstrates, electronic trading provides unprecedented access by anyone at anytime to a multitude of global markets and trading information. Conceptually,...
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Exploiting Relationships in Metal Futures
By comparing volatilities and valuations among futures options on gold, silver, copper and aluminum, we can see which markets are priced highest relative to their cash counterparts and glean ways to exploit those relationships in trading.Option values...
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Exploiting Relationships in Metal Futures: By Comparing Volatilities and Valuations among Futures Options on Gold, Silver, Copper and Aluminum, We Can See Which Markets Are Priced Highest Relative to Their Cash Counterparts and Glean Ways to Exploit Those Relationships in Trading
Option values depend primarily on time and volatility--enough time for prices to vary and sufficient price volatility to make time worthwhile. Options on metal futures reflect these valuation principles. On a relative basis, the most valuable options...
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Fed Not in a Hurry to Raise Rates
One of these days, the Federal Reserve is going to raise interest rates, but don't hold your breath. Notwithstanding surprisingly strong second quarter gross domestic product growth, the Fed still has grave doubts about the economic outlook given continued...
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Forex Story: Only the Strong Survive
No sector has seen the revolutionary growth of forex, particularly retail forex. But along with unprecedented access to currency markets came sleazy practices and outright fraud. Revolutionary change is often followed by a more conservative period where...
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Forex Story: Only the Strong Survive: No Sector Has Seen the Revolutionary Growth of Forex, Particularly Retail Forex. but along with Unprecedented Access to Currency Markets Came Sleazy Practices and Outright Fraud. Revolutionary Change Is Often Followed by a More Conservative Period Where the Excesses of the Prior Period Are Brought in Line. That Appears to Be What Is Happening in the Booming Retail Forex Market
In the "old" days, say 10-15 years ago, the foreign exchange market was the playground of big banks and multinational corporations. Few looked behind the curtain as the deep, liquid market was a closed club, fitted with direct dials to key bank players....
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Forex Trading and the U.S. Elections
This month represents the quadrennial opportunity for forex traders to the U.S. elections. The election campaign is fast approaching its apex and all markets are paying closer attention to the probabilities of the outcome. At hand is an interesting...
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From ECNs to Exchanges
Two major electronic communications networks (ECNs or so-called dark pools) moved closer to the light of full exchange status when BATS Trading received SEC approval for exchange status and Direct Edge announced a partnership with the International...
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Hot New CTAs: Back to Basics
Managed futures has seen a return of long-term trends in 2007 and also greater interest in the traditional commodity futures markets. The year has also seen some dramatic reversals that would test the mettle of the most experienced risk managers.This...
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Hot New CTAs: Back to Basics Managed Futures Has Seen a Return of Long-Term Trends in 2007 and Also Greater Interest in the Traditional Commodity Futures Markets. the Year Has Also Seen Some Dramatic Reversals That Would Test the Mettle of the Most Experienced Risk Managers
This is the 19th year Futures has profiled emerging commodity trading advisors (CTAs) and it has been an interesting year. While in general it has been a very positive year for futures traders, 2008 also has included some major reversals that had the...
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How the Energy Landscape Will Impact the Election
Energy and metal markets have been on a wild ride the last few years and what has pushed them may not be what you think. To determine where we are headed requires an examination of how we got to where we are.In the first six months of this year the moves...
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How the Energy Landscape Will Impact the Election: Energy and Metal Markets Have Been on a Wild Ride the Last Few Years and What Has Pushed Team May Not Be What You Think. to Determine Where We Are Headed Requires an Examination of How We Got to Where We Are
In the first six months of his year the moves in oil were just stunning. Oil surged from around $91 per barrel to a high of $147.24, the biggest six-month move in the history of the oil market. The move was explosive, but the larger question remains...
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Indian Exchanges: The Electronic Silk Road
This time next year, if all goes according to plan, U.S. traders will be able to access India's booming financial futures markets. Here's a look at the key players and impending milestones in one of the world's most exciting derivatives markets.Among...
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Indian Exchanges: The Electronic Silk Road: This Time Next Year, If All Goes According to Plan, U.S. Traders Will Be Able to Access India's Booming Financial Futures Markets. Here's a Look at the Key Players and Impending Milestones in One of the World's Most Exciting Derivatives Markets
Among other things, Jignesh Shah knows his numbers and his history. "In the 16th Century, India accounted for 15% of world trade and 50% of world GDP," he says. "At present, India's share of world trade is just 0.5% and GDP is about 2%." (See "GDP...
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Last Year's HNC Scorecard
Although every year we profile emerging CTAs, we preface the story with the qualification that the feature is "not an endorsement but a review of new talent," we certainly like it when our Hot New CTAs follow up that distinction with solid performance....
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Leaver Appointed CEO at DME
Thomas Leaver was named CEO of the Dubai Mercantile Exchange (DME). Previously he was the COO of DME. "I am confident that [Leaver] will build on the successes achieved to date and lead the exchange through its next phase of development and growth,"...
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Metal Bull Getting Heavy
Whether traded on Comex in New York or on the London Metal Exchange, base metals are priced in U.S dollars, and the relative value of the U.S. dollar has an enormous affect on prices. During this most recent global economic expansion, a debased U.S....
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Nymex Says Yes
In the end, Nymex members and shareholders approved their acquisition by the CME Group, with 78% voting in favor of the merger, exceeding the 75% minimum required. The deal closed on Friday, Aug.22. The deal consolidates more than 98% of the U.S....
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Powers: Building from the Ground Up
Pete Powers. CEO of Cranwood Capital Management. was always interested in trading, but when he got what he thought was his big break in the institutional fixed income department at Dean Witter Reynolds, it turned out to be an order desk job. But it...
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Product Development in the Age of Indexing
Revolutionary changes have occurred throughout the futures and derivatives industry and one important aspect has been in product development generally and indexing in particular.It is hard to believe, but equity indexes (and futures and options based...
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Product Development in the Age of Indexing: Revolutionary Changes Have Occurred throughout the Futures and Derivatives Industry and One Important Aspect Has Been in Product Development Generally and Indexing in Particular
It is hard to believe, but equity indexes (and futures and options based on them) became a commonly used investment tool only 25 or so years ago. As more and more investors began to apply indexes to their strategies the demand grew for more indexed...
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The Data Delivery Revolution
I began trading the futures markets in the late 1970s. The only data source available for trading was daily charts, usually purchased from a vendor and updated by hand. Technical analysis consisted primarily of a few crude indicators. Cycle analysis,...
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The Market Itself Was the Revolution
Any discussion of the innovations most responsible for change in the futures and derivatives markets should begin with financial futures in general and Treasury futures in particular. Financial futures reshaped the entire financial market, not just...
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The Party's Over
A funny thing happened on the way to $200 a barrel oil. the price touched $147.27 and fell back to around $100 per barrel. (Who knew speculators had such power?) And though the danger of expensive oil destroying the global economy might have eased...
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Trading the Election
Barack Obama suggests a John McCain administration would be a third Bush term while McCain tries to usurp the mantle of change from Obama. Regardless of who wins, change is coming, and with change comes profit opportunity.This Nov. 4. U.S. voters will...
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Trading the Election: Barack Obama Suggests a John McCain Administration Would Be a Third Bush Term While McCain Tries to Usurp the Mantle of Change from Obama. Regardless of Who Wins, Change Is Coming, and with Change Comes Profit Opportunity
This Nov. 4 U.S. voters will choose between Republican candidate John McCain and Democratic candidate Barack Obama. The big issues will include the economy, Iraq, and energy prices. As a voter, you likely will view this contest based on the issues...
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Trading with Trendlines
Perhaps more than any other common analysis technique, trendlines reflect the notion that a pronounced price trend is the most critical attribute of any market. Here are the basics of this simple but powerful tool.When you buy or sell a natures contract,...
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Trading with Trendlines: Perhaps More Than Any Other Common Analysis Technique, Trendlines Reflect the Notion That a Pronounced Price Trend Is the Most Critical Attribute of Any Market. Here Are the Basics of This Simple but Powerful Tool
When you buy or sell a futures contract, you generally expect to make money by price subsequently rising or falling. The longer and quicker price rises or falls, the more money you make. In the best cases, price continues to make strides in the direction...
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Using Net Flow Value for Algo Profits
After examining the growth and effects of algorithmic trading in the previous installment, this article will look at ways individual traders can take advantage of how algo trading moves money from one market to another.This article is the second part...
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Using Net Flow Value for Algo Profits: After Examining the Growth and Effects of Algorithmic Trading in the Previous Installment, This Article Will Look at Ways Individual Traders Can Take Advantage of How Algo Trading Moves Money from One Market to Another
This article is the second part of a two-part series on algorithmic (algo) trading. Algo trading is about using computer automation to move money to take advantage of the best opportunities. The growth of this strategy has been particularly rapid among...
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