Futures Magazine July 01, 2007
Trading Techniques
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Spread trading alchemy
Exchange-traded financial futures are well-used, highly liquid instruments, offering regulation, standardization, transparency and removal of counterparty risk. They are usually the first point of
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VIX, it protects and diversifies
The Volatility Index, or commonly known as VIX, was designed to track the level of implied volatility of S&P 500 Stock Index (SPX) options, which are cash-settled index options based on the S&P 500
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Knowing how long to hold your trade
No matter how much an account is diversified, all the eggs are still in one basket known as “equity.” Absent any concrete evidence that a stock purchase was sound, investors often panic and sell too
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Channeling T-note futures
A lot can be learned from differences between the cash and futures markets of the same underlying. Consider the difference between the nominal yields on Treasury note futures and the yield on the
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Three-dimensional trading for options
Most casual retail option traders not only believe that they have the ability to pick the correct direction of the underlying security, but they also think they can get the timing right as well.
Forex Trader
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Eye on the yen
As summer reaches its zenith, the world economy and its central banks do not take vacations. The appeal of the forex market is that it continues to flow through the seasons. Prices move in
Futures 101
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Moving average crossovers
No, we’re not opening a deck of cards and telling your fortune. These colorful terms refer to patterns you probably use every day in your trading but don’t refer to by these names. Along with their
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Moving averages
While some technical indicators are more popular than others, few have proved to be as objective, reliable and useful as the moving average. Technical traders track the trends of financial assets by
Industry Trends
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The multi-tentacled global exchange
RTS Supervisory Board Chairman and University of Karlsruhe Professor Jörg Franke knows a thing or two about global exchanges. He’s the man who built up the screen-based Deutsche Terminbörse (German
Markets
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Forecasting world agricultural production
The Special Sensing Microwave Imager (SSMI) measures the temperature in the canopy and the level of moisture in the soil from both precipitation and irrigation. Because the signal is in the microwave
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Mid year economic outlook
In early May, Federal Reserve Bank Chairman Ben S. Bernanke and the Federal Open Market Committee unanimously voted to keep the Federal Funds rate unchanged at 5.25%, where it has sat since June 29,
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Tech Talk: Bullish stocks
The March 2003 Futures “Tech Talk” in “Stocks at war” displayed an analysis that clearly projected the Dow Jones Index making a bottom. In fact, the article stated, “We are confident in the model’s
Editor's Note
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Consumption
Just a week before government bonds plunged causing 10-year U.S. Treasuries to hit their highest yields in five years, investment manager Jim Rogers told an audience that they should stay away from
Book Reviews
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Commodities Rising by Jeffrey Christian
Christian warns that commodity markets swirl in a haze of conflicting crosscurrents, misinformation and even deception. He is skeptical of efforts to apply simple, mechanical formulas to a
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SuperCa$h: The New Hedge Fund Capitalism by James Altucher
SuperCash is Altucher’s last book of a trilogy, where he endeavors to point out the gaps and holes in capitalism. Previously, he penned Trade Like a Hedge Fund and Trade Like Warren Buffett. The
Market Analysis
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30-year T-bonds plummet
Holly S. Liss, vice president at CITI, says bond traders were pricing in a Fed easing, but that is no longer the case, given such factors as the unexpected rate hike by the central bank of New
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Canadian dollar achieves 30-year high
“Their exports are doing great,” says Jerry Furst, director of Investors Education Network, and while he is not expecting parity against the U.S. dollar by July, he does anticipate parity by
Breaking News
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International joint projects growing
With all the attention focused on major mergers and acquisitions among exchanges, it’s easy to forget that less committal cooperative alliances are proliferating across the globe, and have been for
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The market for credit default swaps is growing
With three years of triple-digit growth, the market for credit default swaps has been growing like crazy, observes Brad Bailey, senior consultant for the Aite Group LLC. So it is no wonder futures
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CME seals deal with CBOT
It is finished. Shareholders of the Chicago Mercantile Exchange and the Chicago Board of Trade have approved their merger. The surviving entity, the CME Group, A CME/Chicago Board of Trade Company is
Managed Money
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Commodity indexes getting more complex
The explosive growth that marked the long commodity index sector of recent years continues, but new money is looking to take advantage of sectors that have lagged the overall commodity growth,
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MFA prepares for future
At the Managed Funds Association (MFA) forum conference in Chicago this June hedge fund professionals reiterated the need for continued education and dialogue with regulators and the media as the
Options Strategy
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Profit/loss tables and risk graphs
We have all heard the adage, “A picture is worth a thousand words.” In the options market, the saying certainly holds true. To be specific, traders often draw risk graphs to provide a visual
New For Traders
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New for Traders
Globaltec has launched Wizetrade TV, an online TV network dedicated to stock traders, offering 12 hours of daily real-time online financial programming. Wizetrade TV is a subscription-based online TV
People
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MetaStock Pro (Real Time); MetaStock End-Of-Day
Price: MetaStock Pro for eSignal is $1,695; MetaStock Pro for QuoteCenter is $1,395 and MetaStock end-of-day is $499. Monthly subscriptions start at $59 per month. Complete pricing options on company
News
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Klein gets day in court
The Supreme Court of the United States has agreed to review Klein & Co. Futures Inc.’s lawsuit against the New York Board of Trade (Nybot) and its subsidiaries, which was dismissed by the New York
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CBOT bids go to the wire
In the run up to the July 9 shareholder vote on the potential acquisition of the Chicago Board of Trade (CBOT) by the Chicago Mercantile Exchange (CME), the action has been fast and furious, with
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Credit default swaps keep growing
With three years of triple-digit growth, the market for credit default swaps has been growing like crazy, observes Brad Bailey, senior consultant for the Aite Group LLC. So it is no wonder futures
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International alliances grow
With all the attention focused on major mergers and acquisitions among exchanges, it’s easy to forget that less committal cooperative alliances are proliferating across the globe, and have been for
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RJO takes on partners
One of the oldest private futures brokers is taking on partners in an attempt to capture more market share as futures continue to display dynamic growth. R.J. O’Brien & Associates, Inc. (RJO), has
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TT patent case may be at an end
A judge has denied Trading Technologies International Inc.’s (TT) request to push back the patent infringement trial scheduled for June 28. TT had argued that defendants eSpeed Inc. and eSpeed
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CBOE Volatility Index
The CBOE Volatility Index (VIX) options contract is on fire, trading a daily volume record of 277,260 contracts in mid May, besting the record of 208,872 contracts set a week prior. In April, the
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International news round up
ICE entered a definitive agreement to acquire the commodity trading business of ChemConnect Inc., an electronic marketplace for the $150 billion U.S. natural gas liquids (NGL) and chemicals markets.
Trader Profiles
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S&P 500 option writing strategy
Approximately 90% of the options sold in the Censura Technical Entry/Option Writing Trading Program expire worthless. In that sense Censura and its principal Jon Hansen operate a typical option
