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One of the most attractive attributes of the global metal futures trade is diversity. From platinum to iron ore, a broad-spectrum of assets is available to trade, each with a unique market dynamic. Whether you are interested in hedging systemic risk or in active speculation, metal futures offer an avenue by which to pursue almost any financial goal.

Metal futures products are divided into three primary categories:

  • Precious: Precious metals are naturally occurring elements that have economic value. They exhibit scarcity, utility, and frequently act as forms of currency. Gold, silver, and platinum are examples of precious metals.
  • Base: A base metal is considered to be common and therefore not precious. Due to their physical properties and availability, base metals are used in an industrial capacity. Examples are copper, zinc, and aluminum.
  • Ferrous: A ferrous metal is one that is comprised largely of iron. Highly corrosive and recyclable, ferrous metals are used in the manufacturing of tools, automobiles, and railroad tracks. Alloy steel and cast iron are well-known examples.

The CME Group offers an extensive collection of futures contracts facing these three classifications of metal. Although most traders and investors are aware of precious offerings such as gold and silver, a limited number actively engage the base or ferrous markets.

However, this is beginning to change. Featuring growing volumes, CME copper futures are gaining momentum and the attention of metals traders worldwide.

Copper Futures

The full-sized copper futures contract from the CME is a premier venue for trading base metals. Averaging more than 100,000 traded contracts per day, institutional and retail traders alike regularly engage this budding market.

Here are the contract specifications:

Symbol HG
Contract Size 25,000 pounds
Price Quotation U.S. cents per pound
Tick Size $0.0005 per pound
Tick Value $12.50
Expiration Monthly
Settlement Physical Delivery

Along with gold and silver, copper is a top three metal product in terms of daily traded volume. Valuations are largely driven by global economic growth, disruptions to the supply chain, and regional geopolitical events. Cyclical industries such as construction play a major role in ongoing demand levels and are frequently referenced as relevant copper price news.

Copper Price News 2018

Last year proved to be a banner year for copper. As commercial lending and new construction reached multi-year highs, economic growth flourished around the globe. Copper reflected this phenomenon, with cash prices jumping from $5,512 MT on January 1, 2017, to $7,215 MT at year’s end, a gain of 30%.

The consensus view toward copper pricing is for 2018 to extend the gains of 2017. Estimates from Goldman Sachs project a 12% rally to $8000 MT, a level last seen in 2013.

Several pieces of copper price news are driving the bullish sentiment for 2018:

  • Robust global economic growth led by the United States, European Union, and China are expected to foster a spike in industrial output.
  • A supply deficit of 104,000 metric tons is forecasted. Disruptions in the supply chain stemming from mining labor disputes may play a key role in copper production levels. A 43-day strike in Chile’s Escondida mine derailed global outputs by 10% in 2017. With no long-term labor agreement in place, a 2018 strike is possible.
  • As industrial production levels increase on an international scale, commodities such as copper, iron ore, and crude oil are expected to be in high demand. This dynamic is likely to place additional strain on limited supplies and promote a widespread rally in commodity values.

This year is projected to be a strong year for growth in both developed and emerging markets. Given an increase in global demand and a deficit in supply, copper is widely viewed as a safe bet to continue 2017’s bull run.

Getting Started in Copper

Figuring out which copper price news items are market drivers and which are not can be a complicated task. In order to approach copper futures from a position of strength, securing the services of an experienced industry professional is a must. A free consultation with a licensed commodities broker at Daniels Trading is a great first step in making copper futures work for you.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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E-mini futures products give active traders the ability to engage the world’s most popular contracts on a more manageable scale. Whether a trader is interested in crude oil, currencies, or the equities indices, the CME Group has an E-mini contract ready to satisfy almost any market-related objective.

In the active trade of the E-minis, technical analysis and the pricing chart reign supreme. By following a few simple steps, you can build a fully customized E-mini futures chart that’s specifically designed to complement your trading strategy.

Building an E-Mini Futures Chart

A few decades ago, pricing charts were created solely by hand. Traders physically plotted individual price points on graph paper using a pencil and straight edge. The result was a visual representation of the numbers traditionally expressed via ticker tape.

In the contemporary marketplace, charting applications automatically interpret live data streaming directly from the exchange. Pricing charts can be constructed in many different ways to address the trader’s specific needs and desires. Using the advanced functionality of a software trading platform, creating a chart from scratch is a relatively straightforward endeavor.

Selecting a Target

The first step in developing a useful E-mini futures chart is to select your target instrument. If you have no idea which product or strategy to focus your efforts upon, there is little cause for alarm. After a period of time spent studying charts, the ambiguities of price action lifts and opportunities begin to present themselves.

A good place to begin searching for an ideal target is among the most popular E-mini futures contracts available on the CME Globex:

Product Symbol Product Symbol
E-mini S&P 500 ES E-mini Russell 2000 RT
E-mini Nasdaq 100 NQ E-mini Natural Gas QG
E-mini Dow YM E-mini Euro FX E7
E-mini Crude Oil QM E-mini Copper QC
Chart Type

After selecting a product, deciding what type of chart to create is the next task. Chart type is a key element in the creation of a useful visual representation of pricing data. You must be able to easily read and interpret it within the context of your trading strategy.

Here are a few chart types commonly found in the technician’s toolbox:

  • Open High Low Close (OHLC)
  • Candlestick
  • Line
  • Point And Figure

Each chart type is best suited to distinct styles of trading. Some trading approaches require that data be in a specific format in order to function properly. For instance, if a trader is interested in strategies involving traditional Japanese candlestick patterns, then a basic line chart simply won’t do.

Interval

Perhaps the single most important factor in constructing an E-mini futures chart is selecting the proper interval. A chart’s interval is the predefined period by which pricing data is grouped. Time increments and tick or volume counts are frequently used intervals.

In most cases, time is the preferred interval among active futures traders and investors. For intraday traders, durations ranging between 1 minute and 4 hours are typically referenced. Day traders rely heavily on daily charts, while swing traders and long-term investors consider weekly and monthly charts as being best-suited to their needs.

Studies and Analytics

After you decided on the product, type, and interval, you’re ready to add any desired analytical tools to the chart. This is the arena where charting becomes an art form and where creativity is often rewarded — the sky is truly the limit.

Indicators and studies are easily applied in accordance with the charting software’s supported functionality. Technical devices — such as Fibonacci expansionsmoving averages, or Stochastics — are examples of tools that traders routinely add to an E-mini futures chart. These devices are helpful in the crafting of trade-related decisions.

Becoming an E-mini Chartist

The collection of E-mini equity index futures contracts offered by the CME Group is ideal for many intraday and day trading approaches. The E-mini S&P 500, E-mini Nasdaq 100, and E-mini Dow consistently exhibit the liquidity and volatility necessary to sustain profitability in the marketplace. Learning to chart these products competently is a great first step toward achieving your trading goals.

For more information on how to make technical analysis a part of your trading repertoire, schedule a free consultation with a member of the team at Daniels Trading.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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Rooted in 18th century feudal Japan, candlestick charting techniques were originally devised to track the pricing variations of rice. Early Japanese futures traders used variations of candlestick charts while engaging prominent markets, specifically the Dojima Rice Exchange. It was not until the late 1980s that candlesticks caught on in the West.

One area in which candlestick charts excel is in the identification of market reversal points. Being able to determine trend exhaustion is a powerful tool, and candlestick reversal patterns are great way to accomplish this task.

The Anatomy of a Candlestick

Before a trader can begin scanning the markets for patterns, it’s necessary to understand the anatomy of a candlestick. Each candlestick records the open, close, high, and low price value for a defined period. Based on this information, every candlestick has three basic parts:

  • Body: The body of a candle is the range between the opening and closing values. If a candle’s open is above its close, then it is shaded. If the close is above the open, then the body is empty. Various colors may be assigned to each instance, with red and green being among the most frequently used.
  • Upper wick: The upper wick is the area between the periodic high value and the top of the body. It is expressed as a single vertical line.
  • Lower wick: The lower wick is the area between the periodic low value and the bottom of the body. It is also expressed as a single vertical line.

Anatomy is a key element in the formation of viable candlestick reversal patterns. Pattern formation is directly dependent on the relationship between the body and wicks of single or adjacent candles.

Candlestick Reversal Patterns

Traders use many different formations to identify a potential market turning point. From single-candle to multi-candle arrangements, every pattern is unique.

1. Hammer

The hammer is a single-candlestick formation that signals the bottom of a bearish trend. It exhibits several distinct characteristics:

  • Body: The hammer has a small body and may be either shaded or empty.
  • Upper wick: Very little or no upper wick is evident.
  • Lower wick: The length of the lower wick is the key element in the formation of a hammer. It must be extended and at least twice the length of the body.

A hammer illustrates the presence of extreme selling and subsequent buying pressure. This is an indication that price has rejected further extension to the bear and may be poised to rebound or recover fully.

2. Bearish/Bullish Engulfing Patterns

Engulfing patterns are two-candle formations that act as strong evidence that a market reversal may be forthcoming. They are found near the upper and lower extremes of a price range and illustrate that the prevailing trend has been contested and is becoming exhausted.

A bearish engulfing pattern appears near the top of a periodic extreme. It is comprised of the following elements:

  • Candle one: A relatively small, empty body with proportionate wick lengths.
  • Candle two: A much larger, solid body with proportionate wick lengths.

A bullish engulfing pattern has an opposite configuration and is found near the bottom of a periodic extreme:

  • Candle one: A relatively small, solid body with proportionate wick lengths.
  • Candle two: A much larger, empty body with proportionate wick lengths.

The key element of an engulfing pattern is that the second candle’s body encapsulates the entire first candle. This illustrates an initial test of an extreme and strong reversal against the established high or low value of the trading range.

3. Morning and Evening Stars

A three-candle formation, morning and evening stars are extremely popular candlestick reversal patterns. Each is found in the midst of a strong trend and depicts a directional move in price, period of compression, followed by a reversal.

The evening star is found in uptrends, signaling growing bearish participation:

  • Candle one: Large empty body with relatively short upper/lower wicks
  • Candle two: Small empty body with relatively short upper/lower wicks
  • Candle three: Large shaded body with relatively short upper/lower wicks

The morning star appears in downtrends, signaling growing bullish participation:

  • Candle one: Large shaded body with relatively short upper/lower wicks
  • Candle two: Small shaded body with relatively short upper/lower wicks
  • Candle three: Large empty body with relatively short upper/lower wicks

Morning and evening stars clarify the process of trend reversal. They feature robust price action, a period of slowing, and a dramatic change of course. Due to their extended duration, stars are often used in risk management, specifically in determining stop loss locations.

Incorporating Candlesticks into Your Strategy

For more information on how candlestick reversal patterns can help elevate your trading, check out the e-book “12+ Candlestick Formations Every Trader Should Know” available at Daniels Trading. It provides an in-depth synopsis of the whats, whens, and hows of approaching the markets using strategies based on candlestick charting techniques.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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In the fast-paced arena of online futures trading, being able to enter and exit a market efficiently is of paramount importance. Having the ability to instantly open a new position or close an existing one is critical to managing risk while promoting reward. In turbulent trading conditions, the use of various market order types can be a viable way of managing the chaos.

According to the U.S. Securities and Exchange Commission (SEC), a market order is an order to buy or sell a security immediately upon an open exchange. While this type of order has several drawbacks, it’s the only sure-fire way to adjust your current market exposure within the blink of an eye.

Executing a Market Order

Market orders provide traders a unique functionality that differs from other order types. While limit and stop-limit orders are placed at the exchange to be filled at a specific price or better, market orders are executed instantly at the best available price. Buy market orders are filled at or near the current ask price and sell market orders are filled at or near the prevailing bid.

Before the era of online futures trading, the procedure for executing a market order varied depending upon what type of trader you were. If you were a floor trader, then a verbal queue or hand signal was used to instantly buy or sell contracts of a desired product. In the event that you were an off-the-floor trader, then a phone call to your broker was necessary.

Under the open-outcry auction format, pit traders had a definitive speed advantage over participants not privy to the floor. In the digital futures marketplace, executing various market order types is as easy as clicking the buy market or sell market button on your trading platform.

Market Order Types

Aside from market orders coming in basic buy and sell varieties, they are instrumental to the functionality of two distinct order types:

  • Market-if-touched (MIT): MIT orders are placed upon the exchange at a specific price level in the same fashion as a traditional limit order. However, when the market touches a specified level, the MIT order is immediately filled at the best available price. MIT orders are regularly used by intraday traders to capture entry for breakouts and range trades or to lock in profits during periods of enhanced volatility.
  • Stop: Stop orders are similar to MIT orders but are primarily used to close out existing positions. Stop orders are placed at specific levels to be executed instantly at the best available price when hit. In contrast to MIT orders, the buy/sell functions for stop orders are reversed. For instance, in an active short position, the stop order is placed above current price to be executed when the market rallies to the specified level.
The Market Order Trade-Off

The single largest advantage to using the MIT and stop order types is the certainty of execution. In fast-moving futures products, such as WTI crude oil, or in contracts exhibiting limited liquidity, it can be a challenge to enter or exit the market at a specific price. Limit and stop limit orders can be skipped — MIT and stop orders cannot.

Here are several advantages to implementing market, MIT, and stop orders:

  • Ability to cut losses immediately
  • Capitalize upon unexpected momentum and developing breakouts
  • Lock in profits on the fly

Conversely, conducting trade exclusively via market orders has a few drawbacks:

There is an ideal time and place for the use of various market order types. If speed is of paramount performance, then the instant execution a market order provides is well worth the cost. If time is not of the essence, a more structured order entry approach may be optimal.

Becoming Proficient in Market Orders

The market order is a valuable addition to the short-term trader’s tool box. Whether you’re interested in momentum trading on compressed time frames or in aggressive risk management, market orders provide a wealth of options.

Daniels Trading’s flagship software suite dt Pro offers many advanced order types, including one-click market order functionality. A complimentary trial of dt Pro is a great way to experiment with all order types and determine which are best suited for your trading plan.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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Perhaps the single most important aspect of engaging the financial markets profitably is the development of a comprehensive trading plan. A rules-based approach to active trading promotes a consistent dialogue between the trader and the marketplace.

Entering the arena of active trading without first having a plan is like driving a car equipped with a shattered windshield — you may get from point A to point B, but the odds of doing so safely are reduced dramatically. By investing the resources necessary for building and implementing a viable trading plan, a trader will be able to avoid the many pitfalls standing in the way of success in the marketplace.

What Should a Successful Trading Plan Include?

Successful trading is a process. No matter how sophisticated a strategy is, or how extensive the available resources are, a trader must clearly define three distinct elements within the context of any trading plan:

  • Market entry and exit
  • Risk
  • Psychology

Having each of these topics fleshed out in detail is vital to the structure of a comprehensive approach to the markets. Each topic is interrelated with the others. If one item is missing, the integrity of the entire trading plan is compromised.

1. Market Entry and Exit

At its core, active trading is the art of knowing when, what and how to trade. Implementing a set of concrete guidelines that govern market entry and exit is crucial to trading in a competent manner.

Executing a trade is a fairly straightforward act. A simple mouse-click on an order DOM or a call to a broker can open or close a position at market. However, the methodology behind the decision to buy or sell a security is a key driver of performance.

A viable strategy clearly defining market entry and exit brings the following attributes to the trading plan:

  • Promotes trade-related consistency and efficiency
  • Creates a statistically verifiable track record
  • Reduces the impacts of fear and greed on profitability

Understanding market entry and exit thoroughly is an important part of any successful trading plan. Consistent and efficient habits in the marketplace are essential to sustaining a viable “edge” over the competition.

2. Risk Management

Aggressive risk management is an integral part of trade-related efficiency. Each and every time traders enter the market, they’re putting capital into harm’s way in the hopes of realizing a return. Although risk is unavoidable, reckless trading is not.

Industry professionals often cite risk management as the primary factor in successful trading. Here are several factors that traders must consider to adequately address the role of risk in any trading plan:

  • The inherent volatility of the product being targeted must be respected.
  • Prudent money management ensures account liquidity is preserved.
  • Balancing risk and reward promotes economical use of available capital resources.

Risk is an ever-evolving entity that may change without notice. However, the trader is in full control of how much risk is assumed on a specific trade. A robust trading plan ensures an efficient use of capital in the face of any unexpected adversity.

3. The Psychology of Successful Trading

Adopting the trading methodology that is most suitable for one’s psychological makeup is a key element in optimizing performance. Specific skill sets and predispositions lend themselves better to certain strategies over others. Simply put, not every type of trading is a good fit for every individual.

These attributes are typically present in a successful trading plan:

  • User-friendly: The objective of the trading plan must be clear-cut and make sense to the user, with execution being second nature.
  • Comprehensible: The trader needs to be comfortable with the technology and methods that govern a strategy’s implementation.
  • Promotes discipline: In order for a plan to perform up to its capabilities, the plan must be trusted by the trader. This ensures that the strategy is executed in a consistent manner over time.

Realizing steady gains in the marketplace is a product of tenacity, dedication and competence. If the trading plan makes sense to the user, seamless execution is possible. Any conflicts surrounding the implementation of the plan are eliminated when the trader’s psychological needs are fully addressed.

Getting Started

Building a viable strategy for market entry and exit, accounting for risk, and overcoming psychological barriers are integral parts of a robust trading plan. If one of these items is neglected, performance is sure to suffer.

If you’re interested in exploring what a fully customized strategy can do for your portfolio, check out the online futures trading options available at Daniels Trading. A veteran of more than 20 years in the futures industry, Daniels Trading has a vast collection of resources at the ready to help you achieve your market-related goals.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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The modern world of active trading exists in an online, exclusively digital format. Internet connectivity, computing power and software platforms have replaced the hand signals and verbal queues of yesteryear. Today’s trader is part analyst, entrepreneur, and technology practitioner.

In the contemporary marketplace, the difference between success and failure often comes down to how efficiently a trader conducts business. A large part of optimizing performance depends upon selecting the best trading software for your venture into the futures markets.

Where Do I Start?

Selecting the software platform most suitable for your approach to the markets can be a challenging task. The trade of currencies, futures and equities offer a wide-variety of software products, each with a distinct collection of attributes. Ensuring that a trading application has the capabilities necessary to service your style and objectives is critical to maximizing the probability of success.

In order to make an educated decision, it’s a good idea to clearly define your market-related goals and objectives. This is readily accomplished by addressing the following questions thoroughly:

What type of trading will be the focal point of day-to-day operations?

Different strategies and styles require specific functions from the trading platform. For instance, high frequency algorithmic traders demand different features than discretionary swing traders. Developing a comprehensive trading plan can help to identify your primary needs and the software functionality that will be necessary to satisfy them.

What markets and products will I be trading?

Each market presents participants a unique set of challenges. In futures trading, products facing a broad spectrum of asset classes are offered, all with a specific signature. Understanding the inherent volatility, liquidity and overall behavior of a market is crucial to identifying the best trading software for the job.

Having an idea of your strategy, targets and goals is the first step in addressing your software needs. By first eliminating as much of the guesswork as possible, you will be able to focus on achieving profitability from a sound technological foundation.

Be Sure That You Have Adequate Functionality

After taking an in-depth look at the type of strategies and markets involved in your comprehensive trading plan, it’s time to decide on a suitable platform. When it comes to selecting the best trading software for your needs, adequate functionality is of paramount performance.

The functions and features of trading software are local to three main areas:

Analytics

Technical and fundamental analytical packages are commonly included by any software trading suite. Advanced charting capabilities, indicators and custom studies are regular features important to technical trading strategies. Conversely, a live news feed or real-time tote board may be included for traders who prefer to make decisions based upon fundamental market drivers.

Order entry

A crucial aspect of active trading is the ability to enter and exit the market with maximum efficiency. The availability of market, limit, and stop orders can enhance or diminish the effectiveness of any strategy. Chart trading applications or a conventional order entry DOM are other factors that may play a major role in a strategy’s execution.

Trade management

Properly aligning risk to reward depends greatly upon active trade management. Advanced management strategies such as OCO bracket orders, trailing stops or options for trade automation are popular methods of augmenting profitability.

Many software trading packages are broker-direct, meaning specific platforms are offered to clients on a discounted or complimentary basis. Reduced commission structures, direct market access (DMA) or server-side hosting are a few advantages of specialized broker-direct platforms.

Choosing the Best Trading Software

Selecting trading software that is designed with your style and objectives in mind is a task best not overlooked. For more information on the software products available for futures, contact the industry professionals at Daniels Trading. Led by the robust dt Pro software suite, Daniels Trading furnishes clients with a wide range of platform options.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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In the environment of active futures trading, technical analysis is the premier method of study. It is an examination of price action, as influenced by market participants, and traders use it to craft trade-related decisions, rules, strategies, and systems.

There are literally hundreds of technical trading rules, each with various applications on the marketplace. Let’s take a look at five of the most common rules.

1. The Trend Is Your Friend

It’s almost a cliché, but the old market saying “the trend is your friend” is one of the most popular trading rules. A trend is a directional move in price, commonly evaluated via pricing charts.

There are many strategies designed for spotting and engaging trending markets. Trendlines, moving average crossovers and momentum oscillators are a few examples. However, when dealing with trends, there are two simple rules to live by:

  • Market entry is most favorable in concert with the prevailing trend
  • Avoid going against the prevailing trend

Trend recognition offers traders a means of limiting risk and possibly realizing extraordinary rewards. Although a basic concept, always remember that “the trend is your friend!”

2. Respect the Fibonacci Sequence

The Fibonacci sequence is a series of integers where each represents the sum of the two preceding numbers. Also known as the “golden ratio,” Fibonacci numbers are found throughout nature and frequently applied to the realm of active futures trading. Fibonacci expansions, spirals and retracements are several of the most commonly used in technical analysis.

Fibonacci retracements are a popular tool for measuring a counter-trend move in a directional market. In practice, they measure the percentage of a retracement, or pullback, from a periodic extreme. The Fibonacci retracement sequence is as follows:

  • 38.2%
  • 50%
  • 61.8%
  • 78%

Traders use Fibonacci retracements to determine rules for market entry and to align profit targets and stop losses. The most commonly scrutinized levels among traders are 38.2% and 61.8%.

3. Know the Location of Support and Resistance

Price levels where moving averages, Fibonacci retracements and other technical indicators fall are referred to as areas of support and resistance. Support and resistance levels act as self-fulfilling prophecies — if enough traders respect the same ones, they function as barriers for price extension or launch points for new trends.

After determining the presence of support and resistance, guidelines for implementing the levels into a trading strategy are relatively simple:

  • Enter orders to the long (buy) from support
  • Enter orders to the short (sell) from resistance

Support and resistance levels are useful in determining forthcoming tendencies in price action. In addition, traders frequently use them to identify market entry points or to locate stop losses.

4. All Trends Must End

Understanding when a pricing trend has ended is a key element in active trading. While the goal of many strategies is to capitalize on trending markets, eventually the move becomes exhausted and the party’s over.

Spotting the end of a trend is a fine art. A common way of succeeding at this task is to determine when a market becomes “overbought” or “oversold.” This can be accomplished through the use of a group of technical tools known as oscillators.

Two of the most common oscillators are the Relative Strength Index (RSI) and Stochastics. Both assign a numeric value from 0 to 100 to the periodic price action of a security. A high reading shows that a market is becoming overbought, while a low reading suggests oversold. Values that approach the extremes are signals of trend exhaustion and possible market reversal.

5. Multi-Time Frame Analysis Is Key

Understanding the market dynamic over several different periods can be extremely useful in identifying both market state and potential entry points. Traders can place prolonged trends or consolidating price action into the proper context by observing monthly, weekly, daily and intraday charts.

The tenets of multi-time frame analysis are relatively straightforward:

  • Identify the macro market state by using longer-term pricing charts
  • Establish current trading conditions via shorter-term or intraday charts

The key element to remember when using multiple time frames is that longer time frames are more relevant to market behavior than shorter ones. For instance, when day trading, market state is best determined by a weekly or daily chart. After the condition of the market is established, you can use intraday charts to craft a plan for entry and exit.

Using Technical Trading Rules

Integrating technical analysis into your approach to the markets can be a daunting task. There are hundreds of tools and indicators to choose from, each with a unique function. Using technicals to develop a set of viable trading rules requires a skill set developed from experience and extensive study.

For cutting-edge technical analytics, be sure to check out Daniels Trading’s Market Dimensions Advisory. Enjoy access to premium futures analysis and insight, which are great for enhancing your everyday approach to the markets.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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The U.S. exports more than 2 billion pounds of beef per year, making the production and marketing of cattle a significant enterprise. In order to offer financial benefits to industry participants, the CME Group offers Live and Feeder Cattle futures products.

Each contract has distinct specifications and plays a unique role in the aggregate cattle market. Feeder Cattle are recently weaned calves, ready to be sent to the feedlot. Conversely, Live Cattle have reached a desired weight and are ready for slaughter. The relationship between the two can be complex, leaving traders to craft cattle market predictions according to a variety of factors:

  • Production/supply levels
  • Global demand
  • Market technicals

In periods where the cattle markets experience extreme volatilities, one or more of the above considerations may be out of balance. When all are simultaneously unstable, market conditions can become chaotic.

Supply-Side Analysis

The available supply of beef is a critical aspect used in the valuation of cattle futures. Supply stems from slaughter-ready Live Cattle. In turn, production costs related to Live Cattle production are key determinants of physical supply levels.

Production costs are broken down into two areas:

30% to 40% attributed to the cost of feed

The price of assorted feeds used to bring Feeder Cattle up to weight may vary. Corn, grain and soybean market volatilities may impact feed cost considerably. As the cost of these inputs increase, beef production and supply is prone to decrease.

60% to 70% attributed to the cost of feeder cattle

The supply or relative herd strength of Feeder Cattle is instrumental to market valuations. Harsh weather may reduce herd strength through limiting the availability of pasture, thus reducing animal weight. A shortage in the supply of Feeder Cattle increases costs, reducing the production and supply of beef.

When formulating accurate cattle market predictions, a producer must be aware of the circumstances that impact the supply-side dynamic. The condition of related agricultural markets, including corn and soybeans, as well as the presence of extreme weather cycles are capable of moving the cattle markets considerably.

Global Demand

In contrast to supply-side concerns that impact the cattle market, demand also plays a vital role in establishing baseline valuations.

Leading beef consumers, such as the U.S., European Union, China and Brazil, have a tremendous influence on global demand levels. Here are several factors that drive consumption and desire for beef products:

Economic outlook

The economic performance of a region or nation is a major contributor to local demand. A considerable increase in personal income typically equates to an increase in the demand of beef over other foods.

Pricing of alternatives

As the prices of chicken, pork and other meat staples rise, the price differential becomes negligible. In turn, demand for beef increases.

A prime example of global demand impacting cattle market predictions, is the 2017 reintroduction of U.S. beef into China. The lifting of the ban opened the world’s largest consumer market to the largest beef exporter. As a result, many analysts issued predictions of Live Cattle prices rallying as much as 20% by year end.

Futures Market Technicals

In addition to the fundamental market drivers related to supply and demand, technical trading levels also periodically influence cattle pricing. A highly public technical level can draw both retail and institutional participation to a perceived inefficient market.

Here are a few prominent market technicals that attract the attention of producers, traders and investors:

Historic highs and lows

Decade and yearly high and low values are used to provide relative context to the cattle market.

Popular moving averages

The 50, 100, and 200 period moving averages are frequently implemented in trade-related strategies.

Momentum indicators

Oscillators such as the Relative Strength Index (RSI) are popular among traders and industry analysts for determining whether the cattle market is overbought or oversold.

The presence of high-profile technical tools or indicators typically attract participation to the marketplace. While fundamentals drive long-term trends in cattle pricing, the location or convergence of market technicals are capable of influencing valuations in the short-term.

Making Your Own Cattle Market Predictions

Being an accurate cattle futures prognosticator is equal parts experience, know-how, and luck. However, a thorough understanding of the fundamental and technical factors behind a market move can be a valuable part of competently addressing the unexpected.

For more information on the current pulse and potential of the cattle market, consult the livestock specialists at Daniels Ag Marketing.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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Active traders buy and sell futures contracts on the open market using a device known as margin. Margin is a good-faith deposit, or down payment, on the assumed liability of a newly opened position.

Margin requirements are specific guidelines established by exchanges and brokerage firms that must be met by each trader. They are product-specific and subject to change according to prevailing market conditions. If you are going to trade futures, having an understanding of how margins work is essential.

Futures Margin Requirements

For all intents and purposes, margin is the key facilitator of trade on the futures markets. Every contract that is bought or sold is done so using financial leverage: The trader is only required to put up a small amount of capital to open and maintain a new position. This capital is known as the margin.

In the arena of short-term trading, there are two primary types of futures margin requirements to be aware of:

Initial: Initial margin is the amount of capital necessary to open and hold a position through the market’s daily electronic close. At the end of each trading session, outstanding contracts are settled by the exchange clearinghouse. If a trader holds an open position into the close, the initial margin requirements must be met in order for the position to remain open. If not, it’s liquidated.

Day: A day margin is the minimum necessary to buy or sell a contract on an intrasession basis. They are defined by the brokerage and put in place to limit the liability of both the trader and broker. Day margins vary according to broker, market, and ongoing levels of volatility.

The important aspect of margin to remember is that it’s simply a safety device. Futures margin requirements protect the trader from catastrophic loss. In the event of an unexpected drawdown, open positions are liquidated in accordance with predefined margin requirements.

How to Avoid a Margin Call

In the modern futures market, a margin call consists of having an open position closed involuntarily. This may occur for any number of reasons, but is mostly due to an unexpected loss incurred on an open position. If a trade goes negative and margin requirements are not able to be satisfied, then the position is liquidated at market.

Avoiding a margin call is relatively simple. All a trader needs to be aware of is the relationship between the initial and day requirements. Take the following trade in gold futures (GC) as an example:

Account balance $10,000
Initial margin (GC) $3,850
Day margin (GC) $1,500

An aggressive day trader is extremely bullish on the gold market and decides to buy 5 contracts at market price. Due to the time horizon, day margin requirements are critical to the trade and must be satisfied. Given the position size, here are the margin requirements of the trade:

  • 5 contracts × $1,500 = $7,500

At least $7500 must be kept in the trading account in order for the long position to remain open. If the trade turns sour and losses reduce the account balance to less than $7500, a margin call will be issued. The broker will contact the trader requesting that additional capital be deposited to the trading account to cover the outstanding liability. If the trader is holding open positions in other markets, they may be liquidated to service the necessary margin.

Let’s say that the day trader becomes interested in holding the gold position through the CME electronic close. In order achieve this goal, the initial margin requirements must be met. This may be accomplished through either reducing position size or having enough on deposit in the account to cover the $3850 per contract allocation.

Getting Started

Many traders new to the market view futures margin requirements in a negative light. In practice, margins are safeguards from the unfavorable impacts of volatility and haphazard risk management.

If you’re confused about margin and leverage, consulting an industry professional may help. For more information, check out the brokerage service suite and expertise available from the team at Daniels Trading.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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Metal commodities offer market participants a wealth of trading options. From hedging financial risk to securing the materials necessary for manufacturing, metal futures can satisfy a wide variety of needs.

An array of live futures contracts for precious and base metals are offered by the CME Group. Gold, copper, and silver are the most popular in terms of daily traded volumes. Platinum, aluminium, steel, and even uranium are less-frequently traded exotic offerings. Whether a trader is diversifying a portfolio or limiting production risk, buying or selling a futures contract related to metals can be an ideal method of achieving any number of objectives.

Gold

Around the globe, gold is synonymous with value. It has served as a mode of exchange for more than 2,000 years, with origins dating to 550 B.C. In modern times, gold has been used as backing for various international currencies, including the U.S. dollar.

Gold plays an important role in the world of finance because it’s a trusted safe-haven. During times of conflict or market turbulence, metal investors prefer holding gold instead of other assets. The gold pricing outlook can be a complex mix of prevailing financial market conditions and currency valuations, as well as current supply levels.

The CME offers several gold futures products. By far, the most frequently traded is the full-size gold contract. Here are its specifications:

Symbol GC
Quantity 100 troy ounces
Quote U.S. dollars and cents per troy ounce
Minimum price move $0.10 per troy ounce
Minimum tick value $10 per tick
Settlement Physical delivery

Average daily traded volumes of the full-sized gold contract (GC) number in the hundreds of thousands depending upon market conditions. Other gold products offered by the CME Group are the E-mini and E-micro gold futures contracts.

Copper

Copper is classified as a base metal, meaning it’s not considered precious. However, copper is valuable due to its function as an electrical conductor and overall versatility. Copper is used extensively in electrical wiring, equipment manufacturing, and coinage.

Copper futures are normally the second-most frequently traded metal on the CME Group exchanges. Daily volumes typically eclipse 125,000, drawing the interest of producers and speculators alike. Here are the contract specifications for CME copper:

Symbol HG
Quantity 25,000 pounds
Quote U.S. cents per pound
Minimum price move $.0005 per pound
Minimum tick value $12.50
Settlement Physical delivery

At $12.50 per tick, copper is more capital intensive than the full-sized gold contract. Futures margins are typically higher, thus the CME offers E-mini copper to traders who desire less exposure. The copper price outlook is dependent upon cyclical industries, such as manufacturing and new home construction.

Silver

Often thought of as “poor man’s gold,” silver has played an important role in international trade for centuries. Considered to be precious, silver’s most common applications are in coinage, jewelry, and battery production.

The least traded of the big three metals, silver live futures average a volume in the neighborhood of 100,000 contracts per day. Portfolio diversification and production hedging are common uses. The silver price outlook relies greatly upon the global financial environment and current supply levels. Below are the specifications for the CME silver contract:

Symbol SI
Quantity 5,000 troy ounces
Quote U.S. cents per troy ounce
Minimum price move $0.005 per troy ounce
Minimum tick value $25.00
Settlement Physical delivery

Perhaps the least attractive attribute of the full-sized silver contract is the $25.00 per tick value. Small negative moves can prove costly, 2.5 times that of gold. The large tick value and limited market liquidity are factors that exclude many retail participants. As an alternative, the CME Group offers an E-mini silver contract to lessen the financial commitment.

Trading Metal Commodities

The metal commodities from the CME Group include something for everyone. Whether you are looking for ways of hedging risk or of implementing any variety of day trading strategies, metals may be an ideal way of achieving your market-related goals.

As with most things, trading metal futures involves a learning curve. A great place to start is a free consultation with a futures industry professional at Daniels Trading. In a short time, DT’s team of dedicated market veterans can help shed some light on the CME Group metals offerings.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention Daniels Trading.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

Read Full Article

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