Key Takeaways Currency trading is similar to pairs trading, in that you’re buying one currency and selling another Forex trading involves leverage, which can magnify gains as well as losses Carrying a currency position from one day to the next requires “rolling”  Did you know that more than $5 trillion of currency changes hands every […]

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The foreign exchange market (forex) allows investors to trade two currencies against each other. Forex rates are what it costs to exchange one country’s currency for another country’s currency. Trading forex is essentially pairs trading: You’re buying one currency and selling another. Let’s look at the U.S dollar versus the Canadian dollar (USD/CAD) as an […]

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Having been shunned for decades by investors opting for the “safety” of buy-and-hold strategies that haven’t exactly panned out, futures’ time has come. And with it, so has the technology to trade them. If you’re new to futures, let’s start with the basics. Maybe it’s because the 1982 movie Trading Places still has resonance in […]

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Any day of the week traders can tackle a mountain of futures reports. The downside? You risk being buried under an avalanche of data. The following reports are known for timely info. They just might keep you efficient (and sane), while potentially energizing your trading. 1) Oil’s Petroleum Status Report Every Wednesday, 10:30 EST, the […]

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Mention futures trading at a party and your friends will likely think of farmers and pork bellies. Then there’s Hollywood, which often tells the story of the little guy making fortunes while the bad guys go broke. That’s what trading futures is all about, right? Well, not exactly. At least not if you ask smart investors […]

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Now I know what you’re thinking. Futures? Don’t those end up as truckloads of grain in your driveway? Don’t crazy people use futures to try and corner the global orange juice market? Maybe you’ve read about them in the press, and they sound interesting but way too confusing and scary. Here you’ll get to know […]

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A futures calendar spread has a pretty intimidating name. But the spread is pretty straightforward when broken down one word at a time. You may know that an options calendar spread contains two options contracts on the same underlying with different expirations. So, a futures calendar spread is a trade of two futures contracts on […]

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If you’re trading futures-based ETFs, beware of the “rolling risk.” These days, trading terms may not be as complicated as “supercalifragilisticexpialidocious.” But close. Like flying nannies, market words are weird and wonderful. Understanding references like “contango” and “backwardation” could hold the secret to your success when you try to make sense of price moves in […]

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Trading the slope of the yield curve using Treasury futures is a little like skiing the slopes of Utah. Steep or flat, there’s something for everybody. Just remember, when the slope changes, it can change fast. The yield curve represents yields across several maturities ranging from short term (1 month) to long term (30 years). […]

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The idea of hedging a stock portfolio with low-cost index futures can make you feel like that anxious kid again. Something spooky and unpredictable with every trading day, right? Maybe not. Bear in mind, hedges can be expensive. Before implementing a hedge, consider booking some of your gains, and rebalance your portfolio to the right […]

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