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Trading Insight on Futures Market Volatility from a Season Trader / Broker & Trading Levels 3.26.2020


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To be honest I don't have much to share other than what I have tried to share and educate blog readers over past few weeks.....
This is a situation that I don't think any of us ever experienced on many levels and definitely not in the markets either.
What I can share with you are some memories I have from 9.11.2001 and the big market correction we had in 2008.....
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected...
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and than trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything...if you are not sure,contact usand we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy....
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Ive receivedsome questions about thepricelimits or circuit breakerswe have seen mostly in stock index futures.Hopefully thisexplainsthingsa bit better:
A price limit is the maximum price range permitted for a futures contract in each trading session.When markets hit the price limit, different actionscanoccur depending on the product being traded. Markets may temporarily halt until price limits can be expanded,they mayremain in a limit condition orthey maystop trading for the day, based on regulatory rules.
This is for Stock Index futures but keep in mind MANY other markets are experiencing LARGE swings and moves.
Overnight limits (5:00 P.M. 8:30 A.M., Central Time): the futures contract is limited to a 5% price move up or a 5% price move down, based on the futures contracts prior days settlement price (3:15 P.M., Central Time).
This applies to the main stock index futures contracts available, such as theES, MES, NQ,etc.
What is so dangerous you may ask?
If you are long an ES during the night session and the market is limit down (5%) you can NOT get out. There is a chance that when the market opens up at 8:30 AM CDT that the market will then go down the 7% limit with out you being able to exit. That means that on certain situations you can lose MORE than you have in your account.
If you don't understand how the circuit breakers/ price limits work...make sure you call us and talk to a broker at + 1 310 859 9572
This only applies for the overnight sessionending at8:30 A.M.CentralTime.At that point,a new set of rules kick in ONLY to the downside....
-7% Trading Halt 15 mins
-13% Trading Halt 15 mins
-20% Closed for rest of day

Our brokers here at Cannon will be happy to chat about the markets, futures, options, futures spreads and much more! Feel free tocontact usat any time.
Futures Trading Levels

3-25-2019


Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.



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About the author


Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company . He is also a CTA of Levex Capital Management and his daily blog was voted the #1 Futures Blog from Trader's Planet.

His experience in the industry dates from the beginning of online trading, and he has also developed several trading systems over the years. In addition, Ilan has written several articles about trading methods and trading psychology, and has been quoted and published several times in SFO magazine, Futures, and Bloomberg. He has been invited to speak at the Chicago Board of Trade, a significant distinction.

Ilan specializes in analyzing the markets based on timing methods, proprietary technical indicators, using support and resistance levels and looking at multiple time frames.

Take a step in the right direction and contact me today, Toll-Free: 800-454-9572 or direct: +310-859-9572. You may also directly e-mail me, Send mail.

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Disclaimer: This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading. 

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