Michael Wayne

Managed Futures Trading Everywhere

Have you noticed recently that every Futures Trading Firm seems to be marketing their Managed Futures services? Claims of unique and alternative investment opportunities, diversification, CTA rankings. You name it, and there is marketing material around it. So what are Managed Futures Accounts?

The idea of managed futures is very much what it sounds like… You’re allowing someone else to manage your trading account. That someone is referred to as a Commodity Trading Advisor (CTA), and that trading account is made up of futures and futures options – much like a mutual fund would be. The difference in the managed futures fund would be that it’s made up of commodities, interest rate contracts, equity contracts and currencies. - Read More

Futures Trading – First Trade

We are asked quite a bit about where futures contracts are traded. Rather than only coming up with a bulleted list of exchanges, we thought a good place to start would be to give you a quick historical context.

Dating back to the ancient Greeks, a philosopher named Thales realized he could put to use his knowledge of mathematics and forecasting when considering the fall olive harvest. He drew up an agreement with the olive press owners with which he would give his money to them in exchange for using them, hedging on the price of the autumn harvest. It turned out that the presses were high in demand in the fall due to a bumper crop. He sold his future use of his contracts for his benefit. The futures contract was born. - Read More

Grain Futures React to USDA Monthly Crop Report

With the Wednesday, February 9th, mornings’ release of the USDA Monthly Crop report, the grains futures markets all closed higher, primarily on fears that the Corn supply is at a lower than anticipated level.  In even the most basic understanding of economics, low supply equated to higher demand.  Couple that with other reports such as [...] - Read More

Key Futures Market Indicators that Affect Investors

In this era of 24/7 news that permeates our culture, it is no surprise that the futures markets are extremely volatile and liquid. Have you tried obtaining a mortgage lately? Or maybe tried to refinance your existing mortgage, trying to lock into a piece of the recent record-low interest rates? If so, you have likely experienced the daily ups and downs of the markets, and the indicators that affect them.

Many of the key indicators are released on a monthly basis, early in the morning shortly after the opening bell. We have a listing below with brief details on each, including approximate announcement dates. In addition, we've compiled a list of some of the ongoing weekly reports from sources such as the USDA and DOE. - Read More

Facts about Corn Futures Trading and Grains Futures Trading

Trading futures on grains are thought to be one of the oldest commodities being traded in the marketplace today. A number of years ago we took a tour of the Minneapolis Grain Exchange to get a historic perspective on grains. In this electronic society we live in, it was still very cool to see the old fashioned tables and bowls set up where farmers used to come and display their product and accept bids. That being said, the trading pit itself was as quiet as they come, as the primary contracts being traded at MGEX now are Hard & Soft Red Spring Wheats. Not that Corn has sex appeal, but daily volume on the MGEX products is frequently below 10,000 contracts traded. This article will give you facts about how to trade corn futures and other grains being traded. - Read More