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