Video: A Futures Trade Worth “Stalking”

05/03/2012 8:30 am EST

Focus: FUTURES

Hubert Senters

Founder, HubertSenters.com

A tradable trend move unfolding now in corn futures represents a compelling opportunity even for less-experienced traders, says Hubert Senters, profiling the market and key factors when trading it.

There is an old saying among traders: "If you can't trade, then trade corn!" Now, that does not mean that it's easy to trade. What it does mean is that the corn market trends well once it gets started.

Right now, corn is starting to move again, so it's a good idea to take a look at this popular grain commodity.

Just make sure you know what the "limit move" is on corn. "Limit up" or "limit down" in the futures markets is the maximum price advance or decline in a futures contract from the previous day's settlement price permitted during one trading session.

See also: Limit up and Limit Down Trading

The futures exchange where the contract trades will set the limit. Limit prices often expand for the next trading session if prices hit their current limit move during the current session. Often, many spot month contracts do not have a price limit.

Locked limit is a situation where the contract moved to its limit price move for the day and trading has all but stopped. This usually results when there is an order imbalance of too many buyers or sellers.

Watch the video below for more details on how to trade this commodity:

See also: The Ideal Market for New Traders

By Hubert Senters, co-founder, Trade the Markets

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