Talking heads can share many attributes whether they represent politics, finance, or sports. One mutual trait that’s been particularly relevant lately is overdramatizing events. “That team would NEVER draft that player,” fictional NFL commentator says minutes before said team drafts said player. The Fed and interest rate analysts currently find themselves in a similar dance.
Buying stocks can create as much internal struggle as purchasing real estate or as little as choosing an outfit for today. The distinction between the two is a matter of expectations.
Most markets are safely between year-to-date extremes, and the VIX index is at its lowest level since news of the pandemic initially felled equities back in February 2020. With all of that said, last week was one of the year’s best for active futures traders.
Trading foreign exchange markets can often feel like picking a winner at the Masters: you try to execute on a general opinion only to be met with a whole mess of choices.
Most people like talking about a good outlier story: Can you believe bitcoin is up over 1,000% since the start of 2019? Did you see WTI crude oil futures went negative last year? How crazy was that rally in GameStop from below $20 to above $400 in a matter of weeks? But trading an outlier isn’t as easy.
You can compute a mean and standard deviation for any market, but how do you know if it reverts to that mean? Learn how to trade everything from stocks and bonds to currencies and commodities using statistics at this week's Mean Reversion Seminar!
The market is like Katy Perry, hot and then cold. How do you trade in this kind of environment?
Every so often a market reaches an inflection point, and traders ask themselves: is this a flash in the pan or is the landscape actually changing? Examples include the British pound’s decline following the initial Brexit vote (it rebounded) and GameStop stock earlier this year (GME is up around 1,000% YTD*).
The US dollar market is kinda like GameStop stock (bear with me for a second). Both markets rallied off historical lows to start 2021, fell back to those lows in February, and have recently awoken yet again. So where does that leave USD and GME on the Ides of March?
Technical analysis finds its way into almost every trader's strategy - all the way from market makers to the self-directed investor. Frank covers what technical analysis technically is, highlights some of its most common uses, and advocates for the everyday trader to create their own indicators after creating some statistical foundations at this week's seminar.
In the rush to find the next hot product filed under the much-memed acronym NFT, many traders are passing up the old classics - gold and silver. While they may not be able to get these metals to rust, new market participants are seeing if gold and silver can break as they move investment out of traditional vehicles and into newer assets like Bitcoin and whatever an NBA Top Shot technically is (DISCLAIMER: I own three NBA Top Shot Moments).
While “The Steepening” may sound like a Hollywood-produced thriller wherein an animated monster made of tea leaves terrorizes some unassuming small town, it’s in fact the increase in the spread between short-term and long-term interest rates.
S2Y, S10Y, and S30Y futures are here and ready for you to trade right now! You can access the 2YR, 10YR, and 30YR Treasury Yield all with ease thanks to the new suite of interest rate products from the Small Exchange: Already an interest rate pro? Put together your steepeners, flatteners, and inversion strategies with 1:1 ratios and simple pricing convention. Grab some information about our new offering and get going on trading the Small Yield Curve!
Interest rate markets aren’t “new” or “in vogue” or “what Elon Musk is tweeting about,” but they are moving. Just two months into 2021, ephemeral infatuations with Shiba Inu-based cryptocurrencies and video game retailers have subsided, but yields have continued to keep pace with more enduring trends like the bullish run in Bitcoin.
Last week, Federal Reserve Chairman Jerome Powell said he would not “even think about” lifting interest rates off their current 0-0.25% level as the US economy continues to work through the pandemic.* But, like, what does that even mean for markets and the everyday trader?
Infinity. Stocks can theoretically go infinitely high. Anyone who’s looked at selling calls or shorting stocks might know this fact given the ominous -∞ that sits next to their maximum loss potential. Hmm...well then how can AAPL be worth more than any other company in the world at a relatively small price of around $130? AMZN is above $3,000. Berkshire Hathaway A shares are above $350,000!
Want to learn how to day trade futures, check out our YouTube seminar!
The rivalry between Wall Street and Main Street has inspired everything from works of art to public protests, and the 2021 version of this age-old dichotomy is…(adjusts glasses)...the stock price of a video game retailer?
Pairs trading can give you access to unique, diversified opportunities...
Entering the foreign exchange market is like watching a Christopher Nolan movie for the first time. What’s the timeline here? How does this development affect the other plot lines? Is Leonardo Dicaprio’s character even alive? It can be difficult to make heads or tails of these two universes’ innerworkings actually affect each other.
There’s something attractive about selling a new all-time high in a market. Maybe it’s the rush of pretending to be Spider-Man stepping in front of a runaway train rampaging through the Upper East Side. Or it could be the potential for glory if you sell the high print and scurry off like Charlie with a golden ticket. Most likely, though, it’s simply the opportunity to sell something that’s never been this expensive before.
Last week’s activity has many traders asking questions: How should markets react to certain real-world events? Is there any correlation between the state of the collective consciousness and the performance of financial instruments? Where do we go from here?
Futures can give access to day trading strategies not allowed in stocks and options due to pattern day trading rules, and the Smalls do so in a size that fits the everyday trader. Find out what exclusive benefits futures products hold and how to use them in our seminar on How to Day Trade. Frank presents the strategy behind day trading futures and how Small Exchange products can help in all your short-term scalping needs.
In 2021, why not abandon plans for physical improvement that will be abandoned by February anyway? Save yourself the sadness of that stationary bike you paid too much money for transforming into a coat rack and those veggies you saved from waste growing mold. Instead, invest in your mental, emotional, and financial wellbeing with a less attractive resolution: take losses in futures trades that could protect against larger losses.
British pounds were up 2.25%, or $0.03, last week, ascending to new highs going back to 2018. The move came amid sighs of relief from those worried about Brexit and cries of pain from US dollar bulls. Small US Dollar (SFX) futures continue to make new lows as pounds gain stream. So, the question becomes: how bad can this get?
Neilsen accounts for most of this growth in the sector of screen usage defined by app/web on a smartphone, of which trading platform usage is a subsector. So what has the stock market given traders with more screen time? Other than high prices, not much seemingly...
The keys to sizing up your trades can take your favorite strategies to the next level. Learn how to size your trades in everything from stocks and bond to commodities and currencies using futures, shares, and options at our Trade Size Seminar!
Crain's Chicago Business
The Small Exchange product rises when the yield on 10-year notes increases, and falls when the rate decreases - that’s novel.
In 2020, people rarely go to their platforms with the intention of trading interest rates. It’s usually Tesla, Bitcoin, [insert marijuana company] in some order, especially for the growing millennial class of market participants. So why is the Small Exchange bringing you a brand-new interest rate product?
Small Stocks (SM75) futures have made new all-time highs 5 of the last 9 trading days (56%). For context, SM75 made new highs just 5% of days going back to 2017. The phenomenon known as “positive drift” dictates that stocks move higher more often than not (+0.05% average daily move in SM75 vs 0% theoretical), sure, but is this recent activity too much?
With most people stuck at home this holiday season, foreign exchange markets might be the closest you’ll get to skiing the Alps or catching some rays down Mexico way in the next few months. Thankfully, FX markets are moving.
What do energy stocks, Steely Dan, and crocs have in common? They all were once considered trendy, fell out of fashion, and have recently made a second run at popularity.
Global Investor Group
Asset Servicing Times
The Small Exchange Opens. Launches Small, Standard, And Simple Futures Products.
“We are absolutely thrilled the Small Exchange will commence operations with the public beginning June 1. I can’t say enough about the Smalls team, the support of our investors, vendors and participants for helping us get to the starting line”
Crain's Chicago Business
The Small Exchange, which is targeting retail traders, has landed Interactive Brokers as a partner.
Investor's Business Daily
The Wall Street Journal
The Small Exchange takes a big step with futures catered to retail traders.
The Small Exchange Raises $10 Million from Citadel Securities and Jump Capital in New Strategic Financing Round
New exchange to provide greater futures access to individual investors.
Citadel Securities and Jump Capital are backing an exchange that's opening the futures market up to Main Street
Citadel Securities and Jump Capital, the venture investing arm of the Chicago-based Jump Trading, each invested $5 million in the Small Exchange.
Crain's Chicago Business
Three Chicago trading industry entrepreneurs are betting on a new futures exchange upstart aimed at retail traders.