Key Takeaways Forward curves for futures markets are typically in either contango or backwardation In a contango market, nearby prices are lower than longer-dated contracts Understanding contango versus backwardation can provide insights into overall market sentiment What does the future of a futures market look like? Determining whether that market is in “contango” or “backwardation” […]

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Key Takeaways Micro e-mini futures based on the Nasdaq-100 and S&P 500 are 1/10 the size of traditional e-mini contracts The Micro E-mini Nasdaq-100 contract is highly correlated with some of the largest tech companies Micro e-minis can offer traders flexibility during earnings season without taking positions in actual shares Quarterly earnings reports come fast […]

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Key Takeaways Select the Economic Data tab to tap into the St. Louis Fed’s FRED database Learn the simple formulas used to track Treasury futures spreads Track the yield curve with Cboe Treasury Yield indices You don’t need to be a hardcore Fed watcher or fundamental analysis bean counter to have at least a passing […]

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Key Takeaways Bitcoin will halve sometime in May 2020 Miner rewards will fall from 12.5 tokens to 6.25 per block Halving may already be baked into bitcoin prices The supply of bitcoin entering the market is about to be cut in half. This bitcoin halving isn’t some apocalyptic prediction; it’s just part of the DNA […]

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Key Takeaways Futures contracts have a minimum price fluctuation, or tick, established by an exchange For equity index futures, tick sizes, or tick values, are different than they are for individual stocks Understanding tick sizes is critical for tracking how much a futures position gains or loses each day Like a scorecard at a baseball […]

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Key Takeaways The use of leverage in forex trading can help amplify potential gains, but it can also magnify losses For actively traded forex “pairs,” such as the euro and the U.S. dollar (EUR/USD), margin rates typically range from 2% to 5% Margin trading in forex differs in some ways from margin use in other […]

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Many traders find they are able to spot the top of the market or a bearish trend in equities, but are not willing to pull the trigger on the bearish trade. For one reason or another, most people are wired to look for bullish opportunities, and quite frankly, they can miss the forest for the […]

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According to the Bureau of Economic Analysis (BEA), consumer consumption accounts for 65 % or more of the U.S. Gross Domestic Product (GDP). This means that nearly two-thirds of our entire economy depends on consumers spending money. When Jane Public stops buying because loss of employment, lower wages, decline of confidence, or simply lower the […]

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You might not trade currencies, but you should know what they’re up to. Why? Because the dollar, the yen and others tell the story of our global economy in real time. There are many “big” markets all around us, in terms of money changing hands, shares traded, or whatever. The U.S. stock market is big. […]

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While stock traders generally focus on price/earnings ratios, new product lines, revenue streams, and more, foreign exchange (forex) traders tend to drill down on economic growth and interest rate differentials to rate and rank the strength of global currencies. Sophisticated traders who are willing to dip their toes beyond the arena of stock trading will find […]

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