Futures Day 1 Flashcards
what happens to demand after it gets traded enough that it price pushes through?
many times, it becomes supply
how many touches on trend line to trade on opposite side?
3 touches or more
what is FTD, FND, LTD
what is contract rollover, near month contract, forward month contract
when do you stop trading one month and start trading the next contract?
it’s based on volumethe day forward contract exceeds the volume of the near contract, is the day you begin trading the new contract.
what isESZ12@ES@ES.D (slide is wrong “has no @”)
@ES, @ES.D is for chartingESZ14 is for trading.D - only for Day session@ES - includes overnight session
continuous contracts
what is Settlement?What is availability of Profits?
what is margin?Initial Margin?Maintenance Margin?
maintenance margin is for carrying trades over night.
why have margins?
what is leverage
what is limit move?
mainly in commodoties market- Limits can expand if a market closes limit- exchanges decide limit rule before next days open- not all limit moves close limit- each exchange will handle limits differently- check exchange website for current limits
what is lock limits?
stops do not protect you in a limit move unless stop was filled BEFORE market went limitset up alerts to let you know it will get close to limit move- some markets have “circuit breakers” instead of limit moves- circuit breakers stop the trading for a set amount of time- once trading resumes the market may move beyond that price level unlike a limit move- applies mostly to the energy and stock index markets
what is volume
what is open interest?
used for swing/position trading.not for day tradinghow many contracts are open
price action and open interest
what is H M U Z and when do they expire?
3rd friday of each monthMarch, June, Sep, Dec
what is contract, min price movement
what is tick, tick value, point, point value
what time to get out of futures?
around 3:55-3:58pm eastern.
