Futures traders have numerous products, tools and strategies to take advantage of price extremes and ranging markets, but pairs trading is something completely different. Pairs trading uses correlations and divergences between two markets to capture a potential profit. While it isn’t riskless, investors who understand how pairs trading works and know how to control risk … Continued
The stock market comes to mind when people think of trading. After all, stocks breed excitement. Equities have been on a tear for most of 2020. Some potential investors find bonds mysterious, but it all comes down to lending. Companies and governments require funding as well, and they often meet their need for capital by … Continued
All of the attention in markets was focused on crude oil the week of April 20, when on that Monday and Tuesday, the price of West Texas Intermediate (WTI) crude oil fell to a new all-time low, below zero, and to negative $40.32 per barrel in the expiring May futures contract. Any trader who had … Continued
Most traders don’t pay much attention to foreign currencies or their value relative to the dollar. But everything that’s traded has a dollar component. Whether it’s gold, crude or soybeans, traders buy and sell them priced in dollars. That’s why rises and falls in the value of the dollar can have a direct impact on … Continued
A savvy futures trader’s take on the markets Rip van Winkle slept for 20 years, but that was 200 years ago. Today, van Winkle’s smart phone would probably disturb his slumber after a mere 12 years. So suppose the Washington Irving character nodded off back in 2007 and awoke last month. He would have been … Continued
A savvy futures trader’s take on the markets How about this for a new idea: The Beach Exchange. It’s based on the treasure hunters who scan the shoreline with metal detectors in search of hidden objects of value. It’s not just a hobby because some beachcombers make a living by selling the rings, watches, coins … Continued
Crude oil and the U.S. dollar have a marriage made in a therapist’s office. Sometimes there’s frustration, sometimes there’s tension—but they are forever tied to each other. As if to celebrate this union, crude oil and the dollar are doing something they’ve only done 11 times in the past 35 years. They’re moving in the … Continued
A veteran futures trader’s take on the markets
A veteran futures trader sees opportunity in recent volatility
