Futures Magazine June 01, 2009
Cover Story
Grains trading outlook
The genius of Isaac Newton was revealed through the movement of the 2008-09 grain markets. Not only was it proven, once again, that what goes up, must come down, but Newton’s Third Law of Motion also
Software Review
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Vantage Point 8.0
Trading is hard work and having a tool that makes that work both easier and worthwhile is the desire of every trader. Market Technologies has been delivering that tool since 1991, when Louis
Trading Techniques
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As smart money goes, so goes the market
Since the dawn of the financial markets, many traders have focused on one weighty question: What’s the smart money doing? The presumption is that there are smarter investors than you out there,
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A crush on cattle, hogs and beans
The costs and potential profits from feeding livestock and processing soybeans can be approximated on paper by using price data on cattle, hog and soybean futures. Implied profits and losses on
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Selling puts to exploit bullish fundamentals
The rapid deflation of global commodities prices over the past nine months has left many futures markets consolidating at what many would consider depressed levels. Bailouts, stimulus plans,
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Safe profits: Trade an intraday stair
The key to making limited-risk profits is a willingness to be patient. Do not enter a trade until a situation meets your harshest conditions. A strict definition of an uptrend is a series of
Technology & Trading
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Trading through gold-colored glasses
In the first article of this two-part series on the evolving interaction between gold and currencies, we studied the transition from the gold standard to fiat money, which is not pegged to any
Forex Trader
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The euro vs. Swiss: Which will be smiling?
While the EUR/USD is the most popular pair to trade, euro-based crosspairs provide an alternative set of opportunities. Trading the euro/Swiss pair (EUR/CHF) enables traders to bypass the dollar and
Futures 101
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Using stop placements in trading
If you want to protect your house or car from unforeseen events, you can buy insurance. If you want to protect your trades from unforeseen events in the market, you can use a stop. Although a stop
Markets
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Tech Talk: Big charts, big trades
Last month the nearby hog contract signaled a major change in direction. Following a major sell-off in 2008, the nearby futures consolidated in a volatile 600-point range for a couple months, while
Editor's Note
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Stressed out
Frankly, I don’t think the banks that received government (TARP) money are the only ones undergoing stress tests these days. Almost everyone I know is a bit more tense than usual, me included. Why?
Book Reviews
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Make Money Trading: How to Build a Winning Trading Business
Trading for a living can be fatal to your finances without the right knowledge and training. The opportunity to make a living in this profession has become more alluring as millions of talented
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Big Money, Less Risk: Trade Options
Options trading can be a great way to make significant profits with less risk. Often, traders spend years studying the different strategies for making money with this challenging and potentially
Market Analysis
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Canadian dollar trade
“The Canadian dollar is basically trading off of oil prices. This correlation will continue to determine where the currency pair is headed,” says Kathy Lien, director of currency research at GFT. “In
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Lean hogs futures wild
Lean hogs were slammed in late April due to reaction to the so-called swine flu, or H1N1 virus, outbreak. Rich Nelson, director of research at Allendale, says the severe swing in hog futures due to
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Treasury bonds down
On March 18, the Federal Reserve announced a plan to purchase up to $300 billion longer-term Treasury securities over the following six months. There was an initial spike after the announcement but
Managed Money
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Register me, please
After years of fighting off efforts by the Securities Exchange Commission (SEC) to increase its regulatory authority over hedge funds, the Managed Funds Association (MFA)announced not only support
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Profiting in trendless markets
Futures contracts that are relatively trendless invite trades that generate profits from movement in volatility instead of price. Delta-neutral spreads fit this need because typically, at least
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Trend following realized
In addition to the work of Edwards, Magee, Livermore and the others mentioned in last month’s article, the 1930s and 40s saw several other advances relating to the theory and evidence for trend
Options Strategy
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Initiating a long-term volatility strategy
The premium that you pay for an options contract is comprised of intrinsic value and time value. Intrinsic value is fixed, while time value varies constantly. Implied volatility is the estimated
New For Traders
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New for Traders
CME Group launched eight new electricity swap futures contracts and 44 new natural gas swing and index swap futures contracts, new national balancing point Henry Hub swap futures and options
Breaking News
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Regulator "defines" public director
Originally published in February 2007, the acceptable practices were defined to include three operating provisions: at least 35% public representation on boards of directors, board-level regulatory
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Euro retail innovations adapt to turbulence
Two German researchers recently held a press conference in Frankfurt to announce that the notional value of an entire branch of Germany’s retail derivatives sector had risen 49% in a single year on a
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optionXpress buys Optionetics
Dan O’Neil, executive vice president of futures at optionsXpress, says the acquisition comes down to an increased need for education. “The markets have been incredibly volatile and treacherous and
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Did LTCM foreshadow recent events?
In the past decade, the world has seen a number of large-scale financial meltdowns. But first came the bankruptcy of hedge fund Long-Term Capital Management (LTCM) in the summer of 1998, which led
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SEC mulls short selling rules
The Securities and Exchange Commission’s restrictions on short selling in September 2008 threw the options industry into a frenzy, so it wasn’t hard to imagine another battle after the SEC proposed
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Icap woos LCH.Clearnet
A proposed merger between North America’s Depository Trust & Clearing Corporation (DTCC) and the European Union’s LCH.Clearnet fell apart in late April. That leaves the door open to a bid for
People
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Lawson to head Newedge Hong Kong
Previously he was managing director of Newedge Australia. He joined Fimat, which merged with Calyon Financial in January 2008 to form Newedge, in 2000 as head of futures. “Hong Kong is the gateway in
News
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CFTC “defines” public director
Originally published in February 2007, the acceptable practices were defined to include three operating provisions: at least 35% public representation on boards of directors, board-level regulatory
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Icap woos LCH
A proposed merger between North America’s Depository Trust & Clearing Corporation (DTCC) and the European Union’s LCH.Clearnet fell apart in late April. That leaves the door open to a bid for
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SEC mulls shorts rules
The Securities and Exchange Commission’s restrictions on short selling in September 2008 threw the options industry into a frenzy, so it wasn’t hard to imagine another battle after the SEC proposed
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optionsXpress buys Optionetics
Dan O’Neil, executive vice president of futures at optionsXpress, says the acquisition comes down to an increased need for education. “The markets have been incredibly volatile and treacherous and
Trader Profiles
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Namath: Just getting started
You can count on one hand the number of commodity trading advisor programs still trading that were established when District Capital Management (DCM) began its diversified program in 1978. The names
Profiles in Forex
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Hanson: Quick profits
Peter Hanson’s career in forex trading started with a journey to Stockholm, Sweden. “It was the opportunity to go to Sweden that was more appealing than any of the other options. At that time, I
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Taking advantage of 24-hour markets
The foreign exchange market is open 24 hours a day and its daily volume is over $3.2 trillion. Since the days of Brenton Woods, central banks, commercial banks, investment banks, professional money
