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The foreign exchange markets (forex or FX) are the largest trading venues in the world, featuring about $3 trillion per day in turnover. On the forex, international currencies are pitted against one another, with millions of traders picking their favorites on a 24/5 basis. Not to be left out of the massive global currency trade, the Chicago Mercantile Exchange (CME) offers a collection of FX futures products based upon the most popular forex pairs.


From the U.S. dollar to the Indonesian rupiah, currency values regularly fluctuate according to pressing economic, social, and political issues. For the British pound (GBP) and British pound FX futures, Brexit has been the premier catalyst driving market volatility since June 2016.

Trading FX Futures Successfully: Addressing Volatility

FX futures feature periods of enhanced pricing volatility in relation to the exchange rate variance of the underlying forex pairing. Central bank actions, political upheaval, and economic performance are the three primary factors behind a currency, or currency pair’s, relative value. In the case of the GBP, the Brexit vote and transition process has brought levels of volatility not seen since Black Wednesday in September 1992.

If you’re going to trade forex pairs or FX futures, then it’s a good idea to be aware of these three market fundamentals:

  • Central banking activity: The periodic raising or lowering of interbank lending rates plays a key role in the valuations of a domestic currency.
  • Politics: Import/export tariffs, elections, regional trade agreements, or extraordinary events such as Brexit can have dramatic impacts on currency exchange rates.
  • Economic performance: Economic growth, output, and consumption are all integral aspects of adopted monetary policies. Metrics such as GDP are prime factors in determining the probability of inflation, in turn influencing central banking authorities.

Successfully engaging the currency markets is dependent upon being prepared for sudden swings in exchange rates due to the factors above. Long periods of relative calm often define the market structure of FX futures, but any of these fundamentals is capable of rapidly spiking volatility.

British Pound FX Futures and Brexit

The Brexit era in the United Kingdom has presented many challenges and brought unprecedented uncertainty to the British pound sterling. From passage of the referendum in June 2016 to negotiating terms of the U.K./EU divorce, the GBP has been on an exchange rate rollercoaster for nearly three years.

In practical terms, the British pound FX (6B) is based upon the GBP/USD forex pair. Accordingly, any volatility evidenced by the GBP/USD is immediately apparent in British pound FX futures. Here are a few points during the Brexit transition where the GBP/USD and British pound FX experienced enhanced price action:

  • Vote to leave EU: When the vote to leave the EU became final, the GBP experienced a massive plunge, losing 10% against the USD in hours.
  • Article 50 evoked: A period of enhanced volatility surrounded the triggering of Article 50 of the Lisbon Treaty. Initially, a legal challenge delayed the enactment of Article 50, boosting the GBP against the USD by an immediate 1.2%. However, after passage of Article 50 by Parliament, the GBP gave back most of the gains, immediately falling 0.7% against the USD.
  • Postponement of final divorce date: In spring 2019, the U.K. Parliament reached a deadlock, prompting Prime Minister Theresa May to ask for a divorce date extension from the EU Council. An extension until October 31, 2019, was granted. The GBP enjoyed a period of relief in the aftermath, posting tight daily ranges as markets digested the political developments.

Each of these events brought enhanced volatility to the GBP/USD and British pound FX futures. While conventional wisdom tells us that markets are not fond of uncertainty, the unprecedented U.K./EU divorce took exchange rate turbulence to levels not witnessed in decades.

Which to Trade ― Forex or FX Futures?

Although it’s true that an overwhelming majority of the global currency trade occurs on the forex, standardized futures contracts offer several unique benefits to active traders. Reduced intraday margins, as well as an “all-in” fee and commission structure, make trading FX futures a viable alternative to forex currency pairs.

For a comprehensive look at your options for engaging the foreign currency trade, schedule your complimentary no-obligation consultation with a member of the Daniels Trading team today.

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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When it comes to managing risk, gold has been a tried-and-true insurance policy for the bulk of human history. For producers, speculators, and buy-and-hold investors, gold is an asset rarely ignored.

Perhaps gold’s strongest attribute is its versatility. Aside from being held in the physical form, it is readily tradable via standardized futures and options contracts. If you’re looking for a way of limiting your exposure to risks far and wide, the world’s ultimate safe-haven asset may be a suitable alternative.

Hedging Risk with Gold

Gold and gold-based assets are frequently sought by investors seeking protection from both sectoral and systemic risks. This is accomplished through the implementation of a vast array of hedging strategies, each specifically designed to compliment a unique portfolio or business operation.

Here are a few of the more common ways that traders and investors utilize gold as a financial safe-haven:

  • Physical: Stockpiling golden bars, jewelry, or coins for emergency bartering power is a time-honored practice.
  • Corporate stocks: Capital investment in mining or refining companies is a common way of capitalizing on periodic gold appreciation. This is similar to other commodity stock buying strategies in that the value of the company is likely to rise in concert with the underlying commodity.
  • ETFs: Exchange Traded Funds (ETFs) offer traders a mode of engaging the gold markets through a professionally managed and liquid security.
  • Futures: Gold futures contracts furnish participants with an opportunity to address the asset’s value at a forthcoming point in time. Gold futures may be used to lock in profits from both bearish and bullish value fluctuations, or to take physical delivery of the metal.
  • Options: Similar to futures, options contracts allow traders to realize gains from accurate projections regarding gold’s value at some future point in time. In addition, advanced strategies such as straddles and strangles offer exclusive opportunities.

Although each of these listed assets benefit from the positive attributes of gold, they do so in very different ways. For example, a portfolio that incorporates mining stocks or bullion ETFs is designed to benefit from positive gains in the assets themselves, not necessarily from a bump in gold pricing. This is an important distinction to make, because each portfolio requires varying degrees of gold exposure in order to optimize a hedge’s strategic functionality.

Hedging with Gold: Futures and Options vs. Hard Assets

In comparison to holding bullion, buying stock, or trading ETF products, futures and options offer several unique advantages to traders. Here are a few of the largest:

  • Flexibility: One of the premier benefits of futures and options contracts is their inherent flexibility. A trader can realize profits from both long or short positions, opening the door to a variety of hedging strategies.
  • Liquidity: Futures and options are readily convertible to cash on a near 24/5 basis. This is not the case for physical bullion, stocks, or ETF products. Waiting periods, trade restrictions, and even the availability of a certified gold dealer are all considerations that must be made when dealing in these assets.
  • Leverage: In comparison to futures and options, the availability of leverage is limited in the other gold assets. Often, a greater capital allocation is required to achieve the same hedging objectives.
  • Price correlation: Stocks and ETFs are traded on exchanges independent of gold, thus their values do not track with 100% accuracy. While there are discrepancies between spot and derivatives markets, gold is the underlying asset and dictator of value for futures and options contracts.
  • Low fees: Commissions and fees are relatively low with futures and options. ETFs feature a management expense ratio, physical gold buyers often charge a service fee, and stock commissions can be extensive.

It’s difficult to rival the flexibility, liquidity, and cost effectiveness of hedging with gold futures or options. When executed within the context of a comprehensive trading plan, these products can be invaluable to active traders or long-term investors interested in hedging unwarranted risk.

Getting Started with Gold

Precious metals are unique assets ― values depend upon many factors, including current geopolitics, international finance, and global scarcity. Simply put, staying on top of the gold market is a full-time job.

If you’re in the process of developing your own golden hedging plan, the advice of an expert can help. For more information on how to actively manage your portfolio’s risk exposure with gold futures and options, talk with an industry professional at Daniels Trading today.

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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Established in the mid-1970s, the U.S. Commodity Futures Trading Commission (CFTC) is the go-to authority for American exchange-traded derivatives. Established by the Commodity Futures Trading Commission Act of 1974, the CFTC is the regulatory body of U.S.-based futures and options markets.

Exchanges, commercial banks, clearinghouses, brokers, and traders are all subject to CFTC’s oversight. If you’re actively trading futures or options on markets such as the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE), then rest assured that the CFTC is watching.

Mission And Duties

The role of the CFTC is relatively straightforward, as affirmed in its mission statement:

The mission of the CFTC is to foster open, transparent, competitive, and financially sound markets. By working to avoid systemic risk, the Commission aims to protect market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices.

In order to accomplish this mission and promote market integrity, CFTC staff conducts several central official duties on an ongoing basis:

  • Policing the derivatives markets for various abuses
  • Overseeing key individuals and institutions, including futures commission merchants (FCMs) and derivatives clearing organizations
  • Regulating the active trade of ag, energy, metal, debt, stock index, currency, and interest rate products

In addition, the 2010 Dodd-Frank Wall Street Reform And Consumer Protection Act gives the CFTC authority over the $400 trillion swaps market. Simply put, if it’s a derivative product, then it falls under the CFTC’s jurisdiction.

Organizational Format

The U.S. Commodity Futures Trading Commission is part of the federal government. It has five commissioners, each appointed by the president and approved by the Senate. No more than three commissioners can have the same political affiliation, and the president designates the CFTC chairman.

The job of preserving the integrity of America’s markets is a big one. To accomplish this task efficiently, the CFTC is broken into four divisions, each with a unique collection of responsibilities:

  • Clearing and risk (DCR): Tasked with oversight of dealers, large traders, and futures commission merchants (FCMs) involved in the derivatives clearing process.
  • Enforcement (DOE): Administers the Commodity Exchange Act through investigating suspected violations and prosecuting offending parties.
  • Market oversight (DMO): Promotes transparent and fair markets though monitoring derivatives trading platforms and swap data records.
  • Swap dealer and intermediary oversight (DSIO): Oversees the registration and compliance of U.S. derivatives exchanges and National Futures Association (NFA) members. In addition, the DSIO addresses the swap industry under the authority outlined in Dodd-Frank.

Another facet of the regulatory bureaucracy are the 10 offices used to address special issues facing the CFTC. Here are the 10 offices, with their self-explanatory titles and acronyms:

  • Chief Economist (OCE)
  • Data and Technology (ODT)
  • Executive Director (OED)
  • General Counsel (OGC)
  • Inspector General (OIG)
  • International Affairs (OIA)
  • Legislative Affairs and Intergovernmental Affairs (OLIA)
  • Office Of Minority and Women Inclusion (OMWI)
  • External Affairs (OEA)
  • Whistleblower Office (WBO)
The U.S. Commodity Futures Trading Commission Is a Good Thing

Like most financial regulators, the CFTC is often viewed as having an overreaching and negative influence on the markets. While there’s certainly an argument to be made against legislation such as Dodd-Frank, the CFTC does provide a degree of consumer protection. Without a formal and official governing body, instances of market manipulation and outright fraud would likely increase exponentially.

An ideal place to begin your journey into futures and options is through securing the services of a reputable brokerage firm. For more information on the CFTC, or the security and integrity of the derivatives marketplace in general, reach out to a certified broker at Daniels Trading today.

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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Frequently referred to as the “wild west” of the financial markets, oil futures trading has a reputation for being an incredibly volatile endeavor. Far from securities like the Dow 30 or S&P 500, crude oil is one venue where the risk is almost always on.

Of course, there is risk and then there is RISK. For some, the periodically extreme pricing fluctuations of West Texas Intermediate (WTI) or North Sea Brent (Brent) crude oil suggest pending disaster. To others, the wide daily ranges and consistent price action represent opportunity in its purest form. If you’re hungry for a market that brings lightning-fast breakouts, strong trends, and regular volatility, then oil futures trading may be just your game.

Volatility + Leverage = Large Profits

Oil futures trading is a discipline that combines robust pricing volatility with extensive assumed leverage to generate extraordinary profits. However, in order to do this successfully, it helps to understand why oil prices are inherently volatile and how leverage is applied.

Several key market drivers affect global oil values. These factors can send prices tumbling or spiking, depending on how energy traders and investors interpret them. Here are a few categories of these important underpinnings of the oil market:

  • geopolitics
  • industry reports
  • armed conflicts
  • economic cycles
  • seasonal pricing trends

From release of the weekly Energy Information Administration (EIA) crude oil stocks report to an unexpected act of terror, any of these market drivers is capable of sending oil prices reeling. Due to this fact, the second part of the equation, leverage, is critical. Apply too much and an unfortunate swing in price can quickly drain your trading account, but if you apply too little then a great opportunity is lost forever.

To illustrate this point, let’s examine how leverage works for the WTI crude oil contract available on the Chicago Mercantile Exchange (CME):

  • Contract size: 1000 barrels
  • Price quote: U.S. dollar and cents per barrel
  • Minimum tick size: $.01 per barrel, $10 per tick
  • Intraday margins: Typically $1000 per contract; may vary according to market conditions and broker.
  • Maintenance margins: Holding a position through each day’s electronic close requires a minimum account balance of $3400 per contract.

After looking at the contract specs for WTI crude, you can see that taking a substantial intraday position may be done with as little as $2500. In fact, many oil futures trading strategies do just that in an attempt to secure fast profits. Take the following hypothetical scenario for Hayden the retail energy scalper:

  • During pre-session preparation, Hayden estimates that North American fracking output is likely up due to friendly weather and the high oil prices of summer. Accordingly, Hayden believes that a surprise supply glut may be alluded to in the weekly EIA crude oil stocks report. The EIA report is due out in a few hours at 10:30 AM EST.
  • Hayden pours over price charts and notes that August WTI crude oil is pushing intraday and yearly highs at $74.86 per barrel. It is now 10:28 AM EST.
  • Hayden places a sell stop-market multi-bracket order for two contracts of August WTI at $74.74. Tight 1:1 and 1:2 risk vs. reward management parameters are implemented, using profit targets of 10 and 20 ticks with a stop loss of 10 ticks.
  • The clock chimes 10:30 AM EST. The EIA reports a supply build of 4 million barrels, well in excess of consensus estimates. August WTI instantly crashes to $74.48 before finding any bids.
  • Hayden’s sell stop market orders are filled at $74.69 due to slippage, but still manage to secure both the 10 and 20 tick profit goals. The cash register rings and a lightning-fast $300 is credited to the account.

To many traders and investors, the above scenario may seem to be a pipe dream. Price could have just as easily run Hayden’s stops, right? Absolutely. But, given an adequate definition of risk and a positive expectation on the trade setup itself, oil futures trading strategies such as these may be extremely profitable.

Oil Futures Trading Isn’t Just for ExxonMobil

If you’re interested in becoming involved in global oil, a consultation with an industry pro at Daniels Trading is a solid first step. However, there’s no substitute for observing the live action of these exciting markets. Check out WTI crude oil, as well as the entire energy complex, on a free 14-day trial of the dtPro platform today.

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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Financial leverage is the use of debt to secure additional assets. Businesses and individuals both implement leverage. For example, if you have a car loan or a mortgage, then you’re already using leverage.

In many ways, leverage is the backbone of the global derivatives markets. Market participants depend on the extension of credit to buy and sell financial instruments via the mechanism of margin trading. Although there are certainly very real dangers to leverage, the potential upside often outweighs the assumed risk.

Benefits of Trading Leverage in Futures

When it comes to active trading, leverage is the extent by which you use your capital resources to buy and sell financial instruments on margin. The availability of margin is a key element of trading leverage, and the degree and application vary from market to market, broker to broker.

In practice, your ability to leverage capital in traditional equity products is much less than in futures. Securities and Exchange Commission (SEC) requirements define margin as being a minimum of 50% of the aggregate position value. Conversely, futures margins are vastly reduced at 3% to 12%. This significant difference frees up active future traders to take positions in multiple markets well in excess of their available capital resources.

The extensive leverage local to futures products offers active traders several advantages:

  • Boosts buying power: Minimal risk capital may be used to control much larger positions in the open market.
  • Allows for diversification: All major asset classes are included, from equities to livestock.
  • Enhances returns: The larger the assumed leverage, the greater the potential returns.

Leverage is the ultimate double-edged sword. However, without its presence in the derivatives trade, high barriers to entry would limit participation to only those with an extremely large net worth.

3 Advantages of Trading the E-minis

If you’re going to participate in the futures markets, then you’re going to be trading leverage. No matter the product ― E-minis or otherwise ― the extension of credit by a broker facilitates trade. In return, a preset fee and commission structure act as compensation for the broker’s services. This client-broker relationship ensures that trading activities may proceed unencumbered and that the necessary resources for margin trading are available.

In comparison to full-sized futures contracts, the E-minis offer three essential benefits to parties interested in trading leverage:

  • Reduced margins: E-mini products provide traders reduced day-trade and maintenance margins relative to full-sized futures. For instance, equities index products — such as the E-mini S&P 500, E-mini DOW, and E-mini NASDAQ — offer day-trade margins for as little as $500 per contract.
  • Diversification options: E-minis come in many forms, representing a wide variety of asset classes. Currencies, equities, and commodities may be incorporated into any trading plan. As a result, it’s possible to either hedge risk, pursue speculative opportunities, or do both.
  • Capital allocations: In many cases, E-mini futures require a much smaller financial commitment than their asset class or full-sized counterpart. As an example, E-mini DOW futures provide traders with a way to engage the DJIA without buying shares of all 30 member companies. With a minimum tick value of $5.00, the E-mini DOW also lets traders participate in the market without tying up huge chunks of risk capital.

Debt and credit often carry negative connotations. However, when it comes to futures, trading leverage is an essential part of the industry. Although using leverage may be hazardous to your financial wellbeing, it also makes futures trading possible while promoting efficient markets.

Getting Started with the E-minis

The E-mini lineup of futures products is a great way to enjoy the benefits of trading leverage without tying up a majority of your risk capital. For more information on the E-minis, check out the online educational suite available at Daniels Trading. Featuring expert market analysis, webinars, and guides, it provides valuable resources to aspiring and active E-mini traders.

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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Futures trading is a unique discipline. There are no time clocks to punch, 401ks, or employee health insurance policies ― your success depends upon how well you use all available resources. Simple as that.

Trading leverage is a big part of maximizing your financial potential as a trader. If you’re seeking massive returns, then the flexibility of futures may be an opportunity you can’t afford to miss.

Leverage Is Truly a Double-Edged Sword

Virtually all trading literature warns against the perils of leverage, and rightfully so. Losing a large amount of money can be an incredibly negative experience that affects a person’s financial well-being and physical health.

However, there’s an upside to leverage ― traders can use it to produce extraordinary gains. In futures, trading leverage is an essential part of the business and a primary reason that people from around the globe enter the marketplace.

As a derivative product, futures contracts offer traders a unique application of financial leverage. In fact, they feature several characteristics not found anywhere else in the capital markets:

  • Low capital requirements: Reduced margins augment purchasing power and are a premier benefit of the futures markets. Margin requirements may be as low as 5%, a fraction of the 50% required by stocks.
  • Liquidity: Traders can quickly and inexpensively convert futures to cash. This feature differs greatly from such hard assets such as real estate, essentially freeing up capital for immediate reinvestment.
  • Flexibility: A trader can take long or short positions in the markets of equities indices, currencies, debt, or commodities. The inherent flexibility of futures furnishes individuals with the ability to leverage risk capital in a vast number of ways.

There simply aren’t many venues where a market participant is able put up a small amount of capital, control a large quantity of a valuable asset, and enjoy maximum liquidity. Due to these attributes, the application of leverage via futures trading is a viable way of realizing large profits.

3 Ways Trading Leverage Enhances Gains

Traders can apply futures leverage in almost infinite ways, limited only by the imagination of the individual. However, no matter which approach you take, responsible money management is a prerequisite to enjoying any of benefits leverage may provide.

Here are three ways that the trading leverage of futures can bolster returns:

  • Position sizing: The ease of increasing position size in futures is superior to more conventional investment vehicles. Lower margin requirements allow for enhanced buying power, making it easy to add exposure to long or short positions. Subsequently, the profits from beneficial moves in pricing are increased. For example, Avery the energy trader has a strong bearish bias toward the WTI crude oil market. Being already short one lot of WTI crude oil, Avery decides to sell three more at market, effectively increasing the trade’s per tick exposure to $40. For every cent WTI crude oil falls, Avery’s profitability is now $40 compared to the original $10.
  • Strategic freedom: When trading more than one lot, the added leverage opens the door to a vast number of strategic options. From exiting the market at multiple profit targets to combining scalp and trend strategies, the added trading leverage can enhance gains exponentially. Let’s assume that Avery’s bias has proven correct and WTI crude oil has quickly fallen by 25 cents from average entry. The position is already in the green by $1000, a tidy profit. However, Avery sees no reason to exit the position, expecting more downside in WTI’s immediate future. The added leverage gives Avery the freedom to take off a few contracts and rack profits, while holding the others for larger gains. In effect, the potential rewards from the trade can be huge in comparison to assumed risk.
  • Advanced return on capital (ROC): The leverage available in futures allow for trading accounts to control asset values far in excess of deposits. Due to this fact, returns on positions can be extensive and rapid. This increases the probability of significantly compounding ROC without having to spend years or committing additional funds doing so.
Understanding the Ins and Outs of Leverage

Perhaps the most important thing to know about trading leverage is that it magnifies the intensity of both wins and losses. When things go well, leverage is a trader’s best friend. When they go poorly, the implications can be devastating.

A great place to further your education on leverage is the online educational suite available at Daniels Trading. Featuring expert insights into money management, strategy, and psychology, it’s a valuable resource for anyone pondering how to use leverage in the marketplace.

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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If you have ever picked up the business section of your local newspaper or tuned into CNBC, then chances are you’ve heard of the U.S. equities indices. From the traditional Dow Jones Industrial Average (DJIA) to the tech-driven NASDAQ, stock index products provide investors a vast array of unique financial opportunities.

In practice, there are many ways of trading the U.S. equities indices. Among the most popular are exchange traded funds (ETFs), futures, mutual funds, and the outright purchase of corporate stocks. Launching on May 6, 2019, the Micro E-mini futures products offered by the Chicago Mercantile Exchange (CME) will provide active traders with yet another way of engaging these exciting markets.

Micro E-mini Futures vs. ETFs

Internationally renowned for liquidity and volatility, the U.S. stock market is a benchmark of global economic performance. With corporate listings ranging from industrials to technology, investors have access to a diverse array of investing options. However, for many active traders, futures and ETF products are often preferred.

An ETF is a basket of investments combined into a single product, with shares then being offered for public trade. ETFs have gained a massive following in recent years, boasting an aggregate value of $5 trillion globally. Among the most popular ETFs are those that track the big four U.S. equities indices.

In the futures markets, equities products have also garnered a massive following. Contracts such as the E-mini S&P 500, E-mini NASDAQ, and E-mini DOW attract consistent trading volumes. The CME’s brand new lineup of Micro E-mini futures are the latest in equities futures, designed to give traders a low-leverage way of engaging the U.S. stock market.

Whether ETFs or futures are better suited for your situation depends on your available resources and trade-related objectives. However, for active traders, Micro E-mini and other futures products offer several unique advantages over ETFs:

  • Flexibility: In futures, traders can easily take long or short positions in a given market, making it possible to profit from rising or falling asset prices. While it’s technically possible to accomplish this in ETFs, limitations do exist in the form of extensive margin requirements and trading restrictions.
  • Low commissions: Futures feature a relatively low per round-turn commission and fee structure. ETF commissions vary but can be as much as $20 per trade.
  • No management fees: ETFs qualify as a managed fund, which means that you have to pay an annual fee to participate. On average, fees run in the neighborhood of 0.44% annually on deposit.
  • Business hours: Futures are traded electronically on a near-24/5 basis. ETFs, specifically those based upon equities, are typically limited to the exchange’s business hours.
CME Micro E-mini Equities Futures

Flexibility and leverage are two of the primary advantages of futures trading. The ability to buy or sell assets with a relatively small capital allocation offers participants opportunities that simply do not exist in other markets. Micro E-mini futures further enhance these opportunities by offering traders a chance to trade the equities indices via a smaller contract.

In much the same way the E-mini products reduce the leverage required, compared to their full-sized counterparts, the Micro E-minis minimize exposure even further. The Micro E-minis are 1/10th the size of a conventional E-mini contract. This size reduction means that you can trade the same great products with less capital and lower margin requirements. Here are the Micro E-mini futures equities indices products available at the CME:

Index Base E-mini Contract Symbol Tick Size
S&P 500 E-mini S&P 500 (ES) MES $1.25
DJIA E-mini DOW (YM) MYM $0.50
NASDAQ-100 E-mini NASDAQ (NQ) MNQ $0.50
Russell 2000 E-mini Russell (RTY) M2K $0.50

Perhaps the largest advantage to trading Micro E-mini futures is the vastly reduced tick size. For instance, the Micro E-mini S&P 500 is valued at $1.25 per tick, in comparison to the regular ES size of $12.50. Strategically, the reduced margins free up the trader to hold an open position for an extended period, regardless of drawdown or overnight margin considerations.

Getting Started with the Micro E-minis

For more information on how the CME’s new Micro E-mini equities products can benefit you,contact a broker at Daniels Trading today. Whether you’re a market newbie or a seasoned vet, Daniels can help make futures a valued part of your portfolio.

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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Whether you’re a veteran of the markets or just getting your feet wet, the question of “how to trade futures” is a crucial one. Strategy, resources, and goals all figure into the final answer — one that is unique to each individual. Deciding exactly how to trade futures can be a daunting task.

However, the good news is that the futures markets offer a vast array of opportunities and alternatives, suitable for almost any trader’s situation. One of the most popular ways of becoming involved is through the E-mini products listed for trade on the Chicago Mercantile Exchange (CME). Featuring contracts based upon the equity, metal, ag commodity, and energy asset classes, CME’s E-mini lineup of products provides active traders a collection of unique advantages.

Why Trade the E-minis?

The primary goal of anyone in the financial markets is simple: make money. Futures offer almost infinite opportunities, limited only by a trader’s imagination. E-mini products are extremely useful in the pursuit of profitability, due largely to the following key benefits:

  • Variety of offerings: From equities indices to ag commodities, E-minis offer a variety of products to active traders. If you have expertise in stocks, metals, currencies, or agriculture, the E-minis can help you capitalize on your expertise.
  • Liquidity: Not unlike standard futures contracts, each E-mini product exhibits a specific market depth. A broad spectrum of liquidity levels are represented, ranging from the extreme depth of the E-mini S&P 500 to the typically thin E-mini copper market.
  • Limited exposure: Maintenance and intraday margin requirements are typically much less than the standard or “full-sized” contracts. As an example, E-mini gold futures require a maintenance margin of $1,700 and an intraday margin of $935. In comparison, full-sized gold futures require $3,400 for maintenance and $1,500 for intraday trading.
  • Financially settled: One element of certain E-minis especially beneficial to active traders is that many of the contracts are settled financially instead of via physical delivery. This is important because it effectively eliminates any unplanned liabilities arising from being contractually obligated to assume delivery of an underlying asset.

The E-minis offer traders a wide range of affordable alternatives to their full-sized counterparts. Featuring reduced margins and a significant variety of offerings, the E-minis can be a valuable addition to any derivatives portfolio.

The E-mini Product Lineup on the CME Globex

Developing a comprehensive game plan regarding how to trade futures is an important undertaking, and one that needs to be completed before you ever place a trade. If you’re in the process of crafting a plan for the markets, the E-mini lineup of products available on the CME Globex is certainly worth taking a close look at.

Here are some of the CME Globex’s most commonly traded Emini futures products:

Product Symbol Asset Class Exchange
Emini S&P 500 ES Equities CME
Emini DOW YM Equities CBOT
Emini NASDAQ NQ Equities CME
Emini WTI Crude Oil QM Energies NYMEX
Emini Natural Gas QG Energies NYMEX
Emini Gold QO Metals COMEX
Emini Silver QC Metals COMEX
Emini Copper QC Metals COMEX
Mini Corn YC Agriculture CBOT
Mini Soybean YK Agriculture CBOT
Mini Chicago SRW Wheat YW Agriculture CBOT
Emini Euro FX E7 Currencies CME
Emini Japanese Yen J7 Currencies CME
Learn How to Trade Futures Using the E-minis

As in all markets, each E-mini product is unique. To trade them successfully, you should implement a robust strategy that accounts for relative volatility, liquidity, and seasonal trends in pricing. Having a comprehensive plan in place before entering the live market is an integral part of achieving your trade-related goals.

Many of the benefits available via the E-minis make them an ideal venue for learning how to trade futures. For more information on what E-mini futures can do for you, schedule a no-obligation consultation with a market professional at Daniels Trading today.

Contact Daniels Trading

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

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 Kate Uhry
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Active trading is mentally, physically, and financially taxing. In order to have a legitimate shot at success, it’s imperative that you align your resources, goals, and strategy. If not, the odds of achieving long-term profitability become slight.

Finding the best futures to trade is one of the key steps in maximizing the potential of your assets. Aside from securing the services of a competent broker, choosing a suitable market or product is a critical part of trading on your terms. Let’s break down the three steps needed to identify which markets are ideal for your unique situation.

Step #1: Resource Inventory

In order to figure out which are the best futures to trade, you must first tally available resources. This exercise is no different than a store manager drawing up a daily inventory report or a chef preparing for dinner service. It’s an honest assessment of all assets at your disposal.

When it comes to active trading, resources come in three basic types:

  • Risk capital: the amount of money you want to designate for trade and commit to the markets
  • Time: hours of each day allocated for preparation, active trading, and performance evaluation
  • Talent(s): personal strengths and attributes that prove useful in the markets

These three inputs largely dictate what type of trader you can, and eventually will, become. Of course, resources vary wildly from person to person. Some have extensive capital and time, while others possess strong programming and math skills. No matter what your set of assets may be, there’s a strategy and product that’s a good fit for you.

Step #2: Defining Purpose and Strategy

The ultimate goal of active futures trading is to make money. In order to do this over the long haul, it’s imperative that your goals and strategy work in concert with your available resources.

In practice, aligning your resources, purpose, and strategy isn’t too difficult. In fact, you can accomplish it by following this progression:

  1. Revisit your resource inventory: A quick review of how much money and time you want to commit, as well as your personal strengths, is necessary.
  2. Define your purpose: Goal-setting is a key element of finding your best market to trade. It’s essential to put your objective ― whether it’s the pursuit of riches or rent money ― into concrete terms.
  3. Select a complementary strategy: Trading strategies come in all shapes and sizes. The only rule in selecting one is that it must be feasible given your resources and goals. If a strategy is too expensive or is incapable of producing acceptable returns, then consider it a nonstarter.

A trader’s resources, goals, and strategy should all work together seamlessly, without conflict. In the event performance lags unexpectedly, then a failing relationship between these three elements is a likely culprit.

Step #3: Find Your Best Futures to Trade

After understanding what you have, what you want to accomplish, and how it’s to be done, choosing the best futures to trade should be somewhat routine. The only thing left to do is to identify the products that fit your inputs. Here are the two primary elements of market behavior that will determine your most suitable futures product:

  • Size: The size of a futures contract defines your assumed risk exposure. Larger contracts can provide enhanced returns but are also more expensive to trade. The beauty of futures is that no matter your capitalization or goals, there’s a perfectly sized contract for you. For small accounts, E-mini and E-micro products may be more suitable, while their full-sized counterparts are preferable to traders seeking higher degrees of leverage.
  • Volatility: Robust pricing volatility is ideal for some strategies and disaster for others. For instance, if you’re implementing a rotational strategy, then trading markets that breakout or trend frequently isn’t a good idea. It’s imperative that the strategy complements the product being traded.

An opportune market makes it easy for traders to manage risk and conduct business efficiently. Accordingly, your best futures to trade will feature strategically optimal leverage and price action.

The Advice of a Market Professional Can Help

If you’re having trouble finding your best futures to trade, the advice of an experienced market professional can help. For tips on how to align your resources, goals, and strategy, reach out to the pros at Daniels Trading today.

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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Gold has been a standard of wealth for centuries. Prosperous nations dating back to 3000 B.C. have viewed it as a source of riches or form of currency. So, what makes gold valuable? On the surface, this question appears elementary, yet finding a succinct answer can be a challenge.

First, value is a relative term, meaning different things to different people. Subsequently, determining the value of gold depends largely on a person’s perspective. However, regardless of your background or opinions toward gold, there are three primary drivers of its value. Let’s break them down and shed some light on why bullion has a storied reputation synonymous with prosperity.

Utility

In the modern era, the industrial usage of gold is limited. Although gold is a superior conductor of heat and electricity, its high market price forces manufacturers to integrate more cost-effective metals into operations. However, for jewelers and artisans, gold is renowned for its utility.

In the physical sense, gold features several characteristics that make it especially coveted:

  • It’s malleable. Gold exhibits extreme malleability. In fact, a single ounce can be flattened into a sheet measuring five square meters.
  • It’s ductile. Aside from platinum, gold is the most ductile metal. One ounce of gold is capable of being spun into nearly five miles of wire.
  • It’s aesthetically pleasing. The only metal featuring a yellowish hue, gold is immune to corrosion. It will not rust or tarnish and has no odor or taste.

The applications of gold leaf and thread are exceedingly attractive to craftspeople of all kinds. In addition to decoration, it also serves many purposes in dentistry, electronics, and medicine. Without question, one of the underpinnings of gold’s value is tactile utility.

Scarcity

As with all commodities, the concept of scarcity is capable of driving asset prices through the roof. Disruptions to the supply chain can create unexpected shortages and spike values in short order. In the case of gold, its very nature ensures that it’s always in limited supply.

Unlike crops — or even diamond — gold is not a naturally occurring element. Its mere presence on Earth is the result of an extended meteor bombardment 200 million years after the planet was formed. Due to the fact that no new gold is being made and production is limited to what we can find and extract, scarcity is guaranteed.

While market prices may periodically ebb and flow, gold is relatively hard to come by. Due to this fact, it has always maintained a tangible value.

Human Perception

Traditions often set powerful precedents. Human perception of gold as a form of wealth and prosperity is certainly a longstanding one, traceable to early civilization. Whether being the backbone of monetary systems such as Bretton Woods or a tool for portfolio diversification, bullion has always been held in high regard by the world of finance.

As the old saying goes, “gold has never been worthless.” In many ways, this piece of conventional wisdom is the basis for bullion being a tried and true safe-haven asset. Accordingly, many institutions and governments maintain large gold reserves as an insurance policy against trying economic times:

  • United States: The U.S. is estimated to maintain gold reserves measuring 3,371 metric tons.
  • International Monetary Fund: The IMF holds around 2,814 metric tons of gold at various international locales.
  • The People’s Bank of China: The PBoC actively pursues bullion as a store of wealth, reportedly holding 1,853 metric tons.

In many ways, gold’s reputation as being a safe-haven asset is the single largest driver of its value.

Getting Started in Gold Futures

In addition to buying and holding physical bullion, gold futures offer active traders a wide variety of opportunities. From defensive hedging to speculative endeavors, gold futures can aid in the achievement of almost any financial goal.

For more information on how gold can become a valued part of your plan for the markets, schedule a free consultation with a member of the Daniels Trading team today.

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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