Build Your Trading IQ

Basics, building blocks & resources for new traders

What is Slippage in Futures & Forex Trading?

By | May 24, 2017

Slippage occurs when the actual execution price differs from the expected price of an order. As a result, the fill price of an order is different than the price at which it was submitted. It most commonly occurs with market orders during periods of heightened volatility but slippage can also occur in large orders & limit (stop) orders as well.Read More

Trade Futures Using a Simple Spread Strategy

By | May 17, 2017

A spread is a basic trading strategy in which a trader buys and sells two contracts, one each of a different but complementary financial instruments. This trade is designed to allow the trader to potentially benefit from the difference in price between the two financial instruments. Read More

Futures Pricing and Front Months

By | May 16, 2017

A futures contract is a forecast of what market participants project the prices of the products to be in the future at contract expiration. This price is known as the cash price which represents the current value of the underlying product. Understanding the relationship between the cash price and the futures contract front months can help traders form trading ideas to help guide their strategies. Read More

Use Stop/Loss Orders in Your Futures Trading Strategy

By | May 15, 2017

Stop/loss orders can potentially serve as tools to help traders manage their risk. They are implemented by the trader to automatically sell a long position or buy back a short position once a predetermined price threshold has been crossed. Read More

Managing Excess Margin

By | May 12, 2017

Excess margin can be defined as the amount of equity in a brokerage account above the minimum margin requirements.

Managing excess margin is an important concept in futures trading as failure to maintain sufficient levels of margin can result in possible liquidation and/or fines from the broker trade desk.Read More

Using the Donchian Channel to Measure Volatility

By | May 11, 2017

Developed by Richard Donchian, also known as the Father of Trend Following, the Donchian Channel is a moving average indicator that’s simple to use and packed with valuable information.

The Donchian Channel helps identify breakouts or overbought/oversold market conditions and measure overall market volatility. Read More

Trade Futures Based on Seasonal Trends

By | May 9, 2017

Have you ever noticed that some products you consume are more readily available during a particular part of the year? Some futures contracts may have seasonal trading trends that could potentially follow a ‘peak’ time of year when the product has historically been used most by consumers and businesses alike. Read More

Trading Forex Online: 4 Questions New Forex Traders Should Ask

By | May 5, 2017

Trading the foreign currency exchange market, commonly referred to as Forex, presents new traders with many items for consideration before getting started. These include your approach to select a broker, trading platform and risk management strategy among many more. Below are some initial questions to ask yourself as you prepare for online forex trading.Read More

What is a Futures Contract?

By | May 3, 2017

Understanding the fundamentals behind the futures industry is an important component for every new and aspiring futures trader to grasp.

To paint a clear picture of how futures trading has evolved into its current state, it’s helpful to review the definition of a futures contract and the origins of trading.Read More

Simple Moving Average (SMA): A Backbone of Technical Analysis

By | April 27, 2017

Simple moving averages (SMA) are used in many different technical indicators and can also serve as a stand-alone tool for analyzing price movement.Read More