Having a strategy for when
and how to take profits on futures
trades is one of the more important aspects of the business of trading. New commodity traders are often conflicted
with the emotions of fear and greed.
Fear will often cause traders to take profits too early and greed often
causes traders to stay in a trade too long and give...
Notional funding is simply an agreement a client has with a
Commodity Trading Advisor (CTA) to trade his or her managed futures account at
a level beyond the amount of cash deposited. The amount above the cash
deposited to the adjusted trading level is called notional funds. For example, an investor could open a managed
futures account with $200,000 in cash...
A good case can be made for the copper market to be a star performer among commodities in the next few years. However, you wouldn’t know it by the price action lately. Copper futures prices are down about 25% from 2018 and have lost about half their value since the all-time high set in 2011. Copper has...
Crude oil futures have been under pressure in recent weeks,
as the news and fundamental picture is growing more bearish. The trade war with
China has pressured the market along with a rising dollar and weaker outlook
for demand worldwide. The biggest issue might be the prospects for the “oil
glut” to continue to grow, as the US continues to pump...
The excitement in the oil markets have subsided somewhat
after the strike on the Iranian General, but the fear of what is coming next still
lurks. These events usually cause a pop
higher in the oil markets and volatility spikes. Now, it is trickier to figure
out where the crude oil market is heading when the next attack could happen at
any...
