![]() ![]() ![]() In a sense, with futures trading 24/5, you have the tools that can help neutralize “overnight risk.” If you’re heavy holding energy companies, the same thing could be done with /CL – Crude Oil Futures, or any other number of futures contracts that correlate with your holdings. For example, if you are holding a basket of stocks that tracks the S&P 500 (SPX), and news begins to unfold overnight, you could trade /ES as a way to hedge your portfolio against a down open. When potentially market-moving news breaks outside of normal trading hours, you will see it show up first in the futures, and this “early warning signal” can be used to manage your portfolio. election and the Brexit vote.īut even more important than initiating positions in the overnight sessions is the way in which you can use futures as a proxy to manage risk in your equities portfolio. But with futures you can - and many traders do - as evidenced recently by the massive overnight trading volume surrounding the results of the U.S. One of the drawbacks when trading stocks and options is that you can only do so for about one-third of the day, and if news breaks or events happen during the other two-thirds, there’s no way to act on it. Spot forex does not trade on Globex, but across several domestic and international markets, and for that reason it is open 24 hours a day, without interruption, from 4 p.m. They cover a wide variety of areas including, but not limited to, agriculture (corn, soybeans, and wheat), energy (oil, gasoline, and natural gas), metals (gold, silver, and platinum), currency futures, as well as options on futures. Other products may have slight variations in their trading hours. CT, at which time trading is closed until the Sunday open. The schedule then repeats throughout the rest of the week until Friday at 4 p.m. However, there is a 15-minute break in trading from 3:15 p.m. CT (yes, the market is open while you’re watching weekend football), and continues until 4 p.m. For /ES, the week begins on Sunday at 5 p.m. The E-mini S&P 500 Future (traded under the symbol /ES in the thinkorswim ® platform from TD Ameritrade), trades on Globex, CME Group’s all-electronic trading platform, and is one of the products with the highest after-hours volume.īecause they’re based in Chicago, E-mini S&P 500 Futures trade on a schedule quoted in U.S. But beyond that, there’s a nearly round-the-clock world of futures, options, and currency products available to qualified account holders. ET, and some are aware that you can trade in the after-hours session until 8 p.m. Most people know that the stock market closes at 4 p.m. In financial markets, it’s the overnight trader. In the jungle you’ll find the bat, the wolf, and the ring-tailed lemur starting their day. In the desert it’s the owl, the coyote, and the jackrabbit. As the sun slides below the horizon and most of the world starts to wind down, a wide variety of nocturnal creatures begin to emerge from their daytime shelters and ready themselves for a night of activity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |