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About Futures

A futures contract is a legally binding agreement made between two parties to buy or sell a commodity (including a financial commodity) at an agreed price, on a specified date. Futures contracts are based on a standardised quality and quantity of the commodity.

Below is a selection of articles relating to Futures Trading:

 
Futures Contracts - Laying Down the Foundations
Jordan Craw

Following on from the previous E-Ticker article, Stock Weightings on the SPI 200, this article aims to give new traders especially, a stronger understanding of Futures Contracts and their purpose within the financial markets.
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Trading World Commodity Markets with Safety
Matt Kirk

Gaining market knowledge is the first crucial element in trading any of the US contracts. There are many fundamental and seasonal factors to take into consideration. Just like trading the SPI you must determine your entry level, stop loss level and your profit level and then maintain complete discipline throughout the course of the trade.
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Focus on the Futures
Noel Campbell

The readers of our newsletter have varying backgrounds with regards to the trading techniques they have used and the level of experience that they bring to the table.
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Leverage - A Key Benefit Of Share Futures
Noel Campbell

Safety in the Market has been advocating the benefits of trading Individual Share Futures (ISF’s) over recent months to our clients.
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Discount and Premium
Noel Campbell

Over the weeks that the Trading Tutors Newsletters have been published we have touched upon several areas related to the successful trading of futures.
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Spot 1, Spot V or Just Spot the Dog?
Aaron Lynch

With many traders and investors becoming interested in the futures market there are a number of questions that I am commonly asked so I thought it appropriate to cover these issues.
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Pressure Point Analysis
Noel Campbell

Several stock indices around the globe have been powering up since the lows in March this year.
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Putting Together a Price Forecast
Noel Campbell

The SPI200 has experienced a seemingly unstoppable rally over the past 5 months and public interest in the markets is once again on the rise.
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Stock Indices and ABC Trading
Aaron Lynch

Of recent times, trading the SPI200 has been a little frustrating when trading only with ABC trading rules. There has been a strong trend in effect though it has been difficult to enter. Trades have been opening outside our limits or if you note the swing chart since the start of October there has not been a lower swing bottom only higher swing tops. From time to time certain markets that may in fact be your favourite do everything they can to make sure you can’t trade it. This has been a topic that has been raised in my discussions with students as a trading tutor with Safety in the Market.
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Pricing of Individual Share Futures (ISF)
Noel Campbell

Over the past few weeks I have put the topic of ISF aside. This week I have received several calls relating to how the price of an ISF relates to the price of the underlying stock. We advocate that a trader follows the chart of the stock to identify a trade and calculate the entry and exit points. The orders given to the broker are based on prices associated with the underlying stock.
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Gold – Safe haven or trading opportunity?
Jordan Craw

It is common knowledge amongst the majority of the public at large that in times of uncertainty commodities such as Gold provide a safe haven to capital. Looking at an overlay chart of the Dow Jones and Gold Futures contracts, illustrates the inverse nature of the relationship these two heavy weights share more times than less.
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Dow Jones
Aaron Lynch

The Dow Jones is the leading indicator for the global markets and most traders have noticed recent movement in this market and wondered how far it can travel and when we may see a pause in the strong bull run. Since March this year the Dow Jones futures contracts DJ-SPOTV has rallied above 10,000 points, a level not seen since mid 2002. Understanding the upcoming movement in the Dow may give us a lead into the movement of our domestic market. The chart below shows the strong run since March this year.
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Editor: Back To The Future Can Be Scary
Tom Scollon

Meeting that 'ex' again, revisiting that restaurant that gave you food poisoning and so many other experiences in life can impact greatly on how we 'feel' about life's aspects. Good and bad experiences are remnant on our emotional sub conscience hard drive – rarely does it get lost like that critical document you can’t find on your computer.
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Sugar’s Back on the Table
Noel Campbell

Back in late 2003 I wrote about the potential for an explosive run in Sugar based on 30 Year cycles. Let me say right up front that the Sugar market did not take off in late 2003 as I anticipated it might.
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Wesfarmers an Exercise in Patience
Aaron Lynch

Searching for a level of certainty in the market seems to be the challenge for traders at the moment. Glancing at world markets we see a variety of landscapes, the American markets have seen a long anticipated pull back with uncertainty being openly discussed by the media.
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ABC Trading in a Strong Trend
Noel Campbell

A student who has taken the time to study when ABC Trading works best will have no doubt that a strong trend is the key. We have seen over recent months how incredible the run up in Soybeans has been.
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The Story On Most People’s Lips – Oil
Aaron Lynch

This week has proved to be a very interesting week indeed. I have had the pleasure of watching the markets go by from Singapore and two things have dominated the news here. The Dow Jones rallying and holding above 10,000 points and the price action in oil hovering above the $40 US a barrel.
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The Power Of The First Range Out
Aaron Lynch

This statement was one that was passed around at the recent Interactive Trading Workshop in Brisbane. The idea of price forecasting and repeating ranges was well covered here and this has sparked the thought to put pen to paper and look at some examples.
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Sugar, A Call To Action?
Noel Campbell

Based on a 30-year cycle this could be a big year in the Sugar (SB) futures contracts. This can’t be taken as a foregone conclusion though. The importance of the 30-year cycle is revealed with some quick calculations, 30 years represent 360 months.
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Focus on Futures
Noel Campbell

Trading in a futures market is not an area where the unfamiliar should tread. There are a number of traps for new players to watch out for and some lessons seemingly can only be taught through experience.
 Read more

 
Focus on Futures – Handling Contracts
Noel Campbell

Last week I wrote briefly about the benefits of futures compared with the popular trading vehicle of options.
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It’s about Time (by Degrees)
Noel Campbell

How far can the Aussie market go? I was in two minds what to write about this week but have decided to go with a topic that will be a bonus for all readers.
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C’mon Aussie C’mon
Noel Campbell

Last week I wrote about some technical ponderings on the Aussie Dollar contract traded out of Chicago.
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Sugar High?
Noel Campbell

It’s no secret to an established Trading Tutors Newsletter reader that I’ve been watching for a big rally in the price of Sugar.
 Read more

 
CSL – Constructing a Price Forecast
Noel Campbell

In this week’s article I have something that has the potential to be extremely exciting and profitable.
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The End Is Near?
Noel Campbell

The Share Price Index (SPI) and therefore the Australian market as a whole, has been rocketing up over the past six months since the intermediate low in August.
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All-Aboard the SPI200 Express
Noel Campbell

The articles about the potential top in February and then the resurrection of the beast led to some interesting responses from readers.
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Time for Coffee
Noel Campbell

For a Gann Trader and analyst the bigger picture, through the use of historical data, gives the best perspective.
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Corroborating Evidence
Noel Campbell

When it comes to my ABC trading these days it has become a case of always looking for some back-up evidence to support the trade.
 Read more

 
Just A Speed Bump Or Something More Sinister?
Noel Campbell

It''s been an interesting couple of weeks on the SPI200 since the passing of the March Equinox.
 Read more

 
The Futures Bright
John Jeffery

Futures are extremely risky and should never be traded under any circumstance.
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Australian Stock Market has the Serious Wobbles
Noel Campbell

The party being held at the ASX has come to an abrupt end with global bourses suffering heavy losses over recent weeks.
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The Future’s Bright, Part Two
John Jeffery

Last week I wrote about the different futures contracts in the Safety in the Market software and how we use continuous contracts to complete our analysis.
 Read more

 
Keeping an Eye on Coffee
Noel Campbell

Back in Trading Tutors Newsletter Issue #100, I wrote about the potential for a big run up in the Coffee market (KC-SpotV).
 Read more

 
Let’s Be Upfront About It
Noel Campbell

In the last edition of Trading Tutors Newsletter when I penned an article, I wrote about a short trading opportunity of NAB.
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Entering The Market With Safety
Noel Campbell

A couple of weeks back in our Trading Tutors Newsletter I wrote about a pending Double Top set-up on NAB.
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Performance within Sectors
Aaron Lynch

In speaking with traders recently at a number of events I was asked many questions about where I see oil moving to.
 Read more

 
What A Balancing Act!
Noel Campbell

It seems like every week I want to start off saying, “Aren´t we at an interesting time in the market?”.
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Elliott on the SPI Updated
Jordan Craw

At a traders'' Expo in Brisbane this time last week, many of the traders I talked to expected the market was due to correct into August lows.
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Who Remembers Trading Places?
Aaron Lynch

Now I know I am asking a lot but cast your minds back to 1983 and there was a Hollywood hit with Eddie Murphy and Dan Aykroyd.
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Layering Perspectives – An Essential Skill
Noel Campbell

An analogy I have been using at recent seminars is one that emphasises the necessity for a trader to have the ability to act in a way similar to a microscope.
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Resource Revolution
Aaron Lynch

Selecting a favourite sector and tackling it head on can be a way to expand profits in the market.
 Read more

 
Counts Within Counts On The SPI
Jordan Craw

When it comes to technical trading, one of the most rewarding things apart from the obvious in dollar terms is seeing techniques and trade set-ups you have learned transpire before your very eyes.
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Finding Trending Markets
Mario La Marra

Ask any serious trader and they will surely tell you just how much easier it is to trade a consistently trending market as opposed to a market that will, at the very least, chip away at your trading capital as it whip-saws you in and out of trades.
 Read more

 
Breaking Records
Jordan Craw

Despite the risk of sounding like a broken record, it is always worth revisiting previous analysis and articles once market action has unfolded.
 Read more

 
Has The Nifty Topped Out?
Pradeep Chandrasekaran

John Jeffery and I completed the first ever Trading Tactics Seminar in South India last weekend.
 Read more

 
Little Dog, Big Dog
Jordan Craw

Knowing that the top stocks within an index carry more weight can help us establish when turns in the market have occurred.
 Read more

 
Would You Like More Sugar?
Noel Campbell

It’s been no secret that I have been talking about Sugar price movements as being one of the great trading opportunities of the past couple of years.
 Read more

 
CFDs on Stock Indices
Darryl Nagel

Many traders in Australia take advantage of being able to trade stock indices using CFDs.
 Read more

 
Coffee Kick Starts the New Year
Mario La Marra

How many times have you heard the old cliché “I can’t start my day without a Coffee
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Cocoa Moving In Harmony
Mario La Marra

What exactly does a market moving in harmony mean?
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Soybean Oil Double Tops
Mario La Marra

The Chicago Board of Trade (CBOT) Grains futures market, which consists of Corn, Oats, Rough Rice, Soybeans, Soybean Oil, Soymeal and Wheat, displayed a level of weakness over the past week.
 Read more

 
Market Tops – Are We There Yet?
Mario La Marra

At the time of writing (Monday 27th March 2006) the futures market on the Australian Share Price Index (AAI-SpotV) just crossed 5100 and I am starting to wonder whether I am truly a bear out of season.
 Read more

 
Soybeans Massive Price Gap
Mario La Marra

There is an old saying that the markets abhor a vacuum and most gaps will eventually be filled.
 Read more

 
Soybean Oil - The Bigger Picture
Mario La Marra

In Trading Tutors Issue #150 published on March 24 2006 we looked at a possible double top setup in the Composite Soybean Oil (NBO-SpotV) futures market. The price of Soybean Oil dropped to the level of the 50% Pressure Point highlighted below in Chart 1, before rallying strongly back up through the level of the double tops.
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Corn – A Good Start
Mario La Marra

When commencing to trade futures, one of the best markets to start with is Corn (C-SpotV).
 Read more

 
Silver Slumps
Mario La Marra

Last week we looked at a futures market where the margin requirement was at the lower end of the scale. This week the focus turns to Silver (SI-SpotV) and we will be looking at the higher end of the scale as the current margin required per contract is $6,075USD.
 Read more

 
Sugar Finds Support
Mario La Marra

After a very strong rally out from the 5.27 low on February 12 2004 to the most recent 19.73 high on February 3 2006, Sugar (SB-SpotV) has since retreated to an area of support in June 2006.
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Coffee Price Clusters
Mario La Marra

In Trading Tutors Newsletter # 130, I used the weekly bar chart of Coffee (KC-SpotV), Chart 1 below, to show how Coffee ran down from the December 1999 top to the October 2001 low, followed by a steady move up to another top in March 2005.
 Read more

 
How Much Wheat?
Mario La Marra

When presenting the session on futures trading in the Safety In The Market two day Trading Tactics Seminar, I often joke about the consequence of holding a position open in the futures market on the last trading day; especially if the market in question is physically deliverable.
 Read more

 
Coffee Harvest
Mario La Marra

By now, it is no secret that one of the futures markets that I have been watching closely and periodically trading is the Coffee (KC-SpotV) market on the New York Board of Trade (NYBOT).
 Read more

 
Financial Sector
David Dixon

Since my last article, the Australian markets have presented some fantastic trading opportunities for traders of Australian stocks and futures.
 Read more

 
Pivotal Golden Moment
Mario La Marra

Since spiking to a 26-year high of $732 an ounce on May 12 2006, Gold has sold off strongly to shed approximately 25% in value, to post a low of $546.40 on June 14 2006.
 Read more

 
Cotton On Alert
Mario La Marra

Take a close look at the daily bar chart of the Cotton Futures market (CT-SpotV) in Chart 1 below and note how this market keeps making tops at the same price level each time.
 Read more

 
Wheat Supply And Demand
Mario La Marra

am a firm believer that most of the fundamental information that may affect the price of a commodity will be built into a chart, i.e. the chart will tell me what I need to know in order to trade a particular market.
 Read more

 
Golden Break Out
Mario La Marra

In Trading Tutors Issue 176 – “Pivotal Golden Moment” we looked at the price of Gold as it was finding support along a trend line that was created after retracing from a 26-year high of $732 an ounce, in May 2006
 Read more

 
Commodity Bull Market
Mario La Marra

As the books close on 2006 it is vital that we look back on what progressed throughout the year and gain a perspective on what to expect from some of our commodity markets as we head into 2007.
 Read more

 
Gold Shines On
Mario La Marra

While the US Dollar weakened over the past year and fears of oil shortages hit the headlines throughout 2006, Gold futures surged past the $700 an ounce barrier to their highest level in 26 years.
 Read more

 
Soybeans Unfilled Gap
Mario La Marra

In his book, “How to Make Profits in Commodities”, W.D. Gann explains GAPS and what they indicate on grains as follows;
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Silver Slides Strongly
Mario La Marra

Precious metals made a very strong move southwards this past week as we experienced a global equity sell-off following the decline in the Chinese stock market.
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Support Levels in Cotton
Mario La Marra

Since trading down to the December 2004 low of 41.72, Cotton (CT-SpotV) has been vibrating within a well defined sideways channel and has been confronted with very strong resistance around the 57 to 58 cent level.
 Read more

 
Soybean Gap Filled
Mario La Marra

In Issue 196 of the Trading Tutors Newsletter we had a look at how W.D. Gann explained Gaps and what they indicate about grains in his book, “How To Make Profits In Commodities”.
 Read more

 
Cotton Futures – Fine Times Ahead
David Dixon

Trading can offer different challenges as you progress along the track. One of the challenges that I come across at times is what to do when the market I am following stops trending.
 Read more

 
Grains Critical Season
Mario La Marra

It is around this time of year, after the Fourth of July holiday in the US, that the critical growing season for corn and soybeans comes into play.
 Read more

 
Dow Bull – Now It’s Getting Interesting
Noel Campbell

It’s been just over five years since the low of October 2002 that marked the end of the bear market in the US.
 Read more

 
Trading Longer Term Moves
Mathew Barnes

Gold has been in the headlines recently, after taking out last years highs and pushing on past the $800 an ounce mark.
 Read more

 
Futures Contracts Rollover
Mario La Marra

When you notice a significant price gap on a chart, it’s important to understand which data is being used.
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Where to for the Aussie Dollar?
The Trading Tutors desk

The question on many traders’ minds at the moment is, "Where to for the Aussie dollar?".
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Golden ABCs
Rick Akdagcik

Gold has traditionally been considered a safe haven against a weakening global market – and for good reason.
 Read more

 
Sugar Dip
Noel Campbell

Welcome all Safety in the Market traders to this month’s dedicated newsletter. Equities markets have been tracking essentially sideways since October last year with no big runs in either direction.
 Read more

 
Where are the Bears?
Noel Campbell

It has now been over 2 months from the low on the SPI200 on 9 February and the market has not pulled back for more than two days.
 Read more



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