RJO Futures Learning Center

General Trading

Stay abreast of industry knowledge with these article tidbits written by the RJO Futures brokers and staff. Written without time-sensitivity these articles discuss enduring topics of how and when to trade.

General Trading Articles

How to Choose a Futures Trading Platform

So how do you determine which trading platform is best suited to your needs? We attempt to help break down the decision-making process here to help you make a more informed decision in selecting a trading platform suited to support your personal trading style, goals and unique market needs.

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Scalping the Market

Scalping the market is a trading technique in which a trader attempts to profit from short-term price changes intra-day. It tends to work best in a choppy market that is not trending in one direction only. Even if the overall trend of that market is up or down, you can benefit from both directions when you scalp.

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Durable vs. Non-Durable Goods: What’s the Difference?

Put simply, durable goods are products that do not need to be purchased often, whereas non-durable goods are products that expire more quickly. The rule of thumb for this is, if it lasts longer than 3 years, it is a durable good, and if it lasts less than 3 years, it is a non-durable good.

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Hedger vs Speculator

Hedgers trade to secure the future price of the commodity (or financial instrument) of which they will take delivery, and later sell in the cash market. Then there are the investors who speculate on the price change potential. A speculator makes risky investments, anticipating a major change in the future price and trades solely for profit.

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Deep Discount or Full Service Brokerages: What’s the Right Choice?

Choosing where to open your trading account is a more significant decision than it may first For most investors, this means wrestling with one of the most common questions in the investment space: Do I use a deep discount brokerage, or go with full service?

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Basics of Breakout Trading

The earlier you can identify a legitimate price trend and enter a position, the greater the potential return on your trades. It takes experience to discern a legitimate breakout from a false one. It’s also no easy endeavor to set smart price targets and stop losses. To do so, you’ll need some basic working knowledge of breakout principles and strategies.

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Old Crop vs New Crop Futures

Late winter is the time of year we normally see old crop versus new crop trades in many of the grain markets. New traders are often confused because market prices may be different for old and new crop. New crop refers to a crop that is to be planted in the future or is currently growing and has yet to be harvested.

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The Yield Curve and Its Relation to Recession

Just as the yield curve can be a good indicator of inflation, it can also be an indicator of an impending economic recession. As the yield curve flattens, so does our economy and the odds of a recession occurring in the next few years increases. As of December 3, 2018 the U.S. has inverted for the first time since the 2008 recession.

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Factors Behind Interest Rate Changes

In the United States, the Treasury yield curve is the first mover of all domestic interest rates and an influential factor in setting global rates. Interest rates on all other domestic bond categories rise and fall with U.S. Treasury, which are the debt securities issued…

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The Yield Curve in Relation to Inflation

The yield curve is a line on a graph that plots interest rates at a certain point in time. This curve can be used as an indicator for debt in the market and can also be used to indicate how inflation will affect the economy. The yield curve can take three shapes…

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Systematic Risk and What it Means to The Everyday Trader

Systematic Risk can be defined as the risk correlated with the entire market or market segment. Systematic risk may also be referred to as “volatility”, “undiversifiable risk”, or “market risk”. Unfortunately, systematic risk is impossible to completely avoid, simply…

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Filing Taxes on Commodities Trading

Trading commodities can provide a lucrative income and each year that a person trades, he or she must complete a tax form claiming any profits. The 1099-B form is used for listing this information. This guide by RJO Futures provides insight into filing taxes on commodities trading….

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Will Blockchain Unleash the Next Energy Boom?

Few technologies of late have generated as much buzz as blockchain. Much like the hype that surrounded the emergence of the “App Economy,” startups are working overtime to disrupt virtually every industry through the integration of blockchain platforms.

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