Commerce the Election in Actual Time with Futures | NinjaTrader Weblog

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With close to 24-hour entry, 6 days every week, futures are a most well-liked car for buying and selling probably opportunistic information & occasions. Whether or not you commerce commodities like gold or oil, or fairness indexes like E-minis, futures markets are extraordinarily liquid and supply round the clock entry for merchants.

In case you are on the lookout for a perfect instrument to commerce information & occasions, together with the upcoming US Presidential election, look no additional than the futures market.

See why futures are perfect for buying and selling information & occasions on this 3-minute video:

Information Can Hit at Any Time

As a result of futures commerce almost 24 hours a day, you possibly can act on international information occasions as they develop, adjusting market publicity as a substitute of lacking out and watching from the sidelines.

For instance, if you happen to commerce shares and an influential occasion happens through the European or Asian classes, you would need to wait till the following day to take part in that value motion. In lots of instances, together with the instance under, a lot of the massive value swings and commerce alternatives happen earlier than the US open. With futures, you possibly can handle positions any time of day and react to information because it unfolds.

What Occurred in 2016?

Of the 5.3 million E-mini S&P 500 futures contracts traded on November 9, 2016, greater than 50% of these trades happened earlier than the US market open through the Asian & European classes.

Taking a better have a look at a 15-minute interval, we see that many of the value motion additionally happened earlier than the US session began. As election outcomes have been introduced all through the buying and selling day, E-mini merchants noticed a pointy 5% drop adopted by a restoration and eventual acquire of 1% on the shut. As you possibly can see from the chart under, most of this value motion happened through the Asian and European classes.

Inventory & ETF merchants have been unable to participate within the majority of the 2016 election transfer. Futures merchants then again have been prepared and keen to take a position the motion, clocking in additional than 5 million contracts in quantity and $264B in notional worth, greater than 37 instances the liquidity traded by way of S&P 500-based ETFs and money constituents.

Subsequent week’s US Presidential election might see an identical transfer. For merchants & traders desperate to commerce and hedge the value motion, futures are the perfect instrument to commerce information & occasions.

These planning to commerce throughout and following the US Presidential election ought to have a transparent and centered threat administration technique in case of sudden developments.

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This text is meant for instructional and informational functions solely and shouldn’t be seen as a solicitation or suggestion of any product, service or buying and selling technique. It consists of content material from unbiased individuals or firms which are in no method affiliated with NinjaTrader Group (NTG) or any if its associates. The content material and opinions expressed on this article don’t essentially replicate the official coverage or place of NinjaTrader or any of its associates.

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