Questions-Answers about trading

How to trade cattle futures


How do I trade stock futures?

The first step to trading Dow futures is to open a trading account or, if you already have a stock trading account, to request permission from your brokerage to trade futures. Most major brokerages such as E*Trade, TD Ameritrade, and Interactive Brokers offer stock index futures.

How do you hedge cattle futures?

The sequence of events would be as follows:

  1. Obtain cash price bid for livestock.
  2. Obtain futures price for appropriate month.
  3. Examine basis and compare with historical basis data. If the decision is to lift the hedge,
  4. Buy futures contract for appropriate month.
  5. Sell livestock on cash market.

How much money do you need to trade futures?

Some small futures brokers offer accounts with a minimum deposit of $500 or less, but some of the better-known brokers that offer futures will require minimum deposits of as much as $5,000 to $10,000.

What weight are live cattle futures based on?

They are buying a piece of paper.” Ulmer also said that the value of feeder cattle futures is based on cattle commingled weighing 700-900 pounds, and of every flesh score – from fleshy to green and from gant to full.

Do futures trade 24 hours?

However, with futures, the markets are open virtually 24/7* during the week, allowing you to trade on your schedule, when it works best for you. … So, with the exception of two brief maintenance breaks during the day, you can trade futures non-stop from Sunday evening to the close of the stock market Friday afternoon.

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What is the difference between live and feeder cattle?

Feeder cattle are weaned calves just sent to the feedlots (about 6-10 months old), and live cattle are cattle which have attained a desirable weight (850-1,000 pounds for heifers, and 1,000-1,200 pounds for steers), to be sold to a packer. The packer slaughters the cattle and sells the meat in carcass boxed form.

What does it mean to hedge cattle?

Hedging is buying or selling futures contracts as protection against the risk of loss due to changing prices in the cash markets. Hedging is a risk-management tool for a producer who is feeding livestock to market and wants protection from falling prices in the cash markets.

Can you make a living trading futures?

The short answer is yes. The longer answer is, yes you can make a living trading the futures market but you have to consistently do a lot of things right. Most traders simply do not yet possess the necessary trading skill, discipline, patience, or realistic attitude to succeed long-term in the markets.

How can I make money in futures?

You can make money trading futures if you follow trends, cut your losses and watch your expenses.

  1. Follow Trends. Futures markets have trends, just like other securities markets do. …
  2. Cut Losses Short. …
  3. Margins and Expiration Dates. …
  4. Brokers and Expenses. …
  5. Read More:

Which futures trading platform is best?

Best Online Futures Brokers

  • Best for Low Commissions: Generic Trade.
  • Best for High Volume Traders: Discount Trading.
  • Best for Professional Traders: Interactive Brokers.
  • Best for Active Traders: Lightspeed.
  • Best Mobile Platform: TD Ameritrade.
  • Best for Education: Charles Schwab.
  • Best for More Futures Options: E*TRADE.
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Why are feeder cattle more expensive than live cattle?

Feeder cattle are weaned calves that have reached a weight of between 600 and 800 pounds. … Feeder cattle typically need to gain more than 500 pounds before they reach slaughter weights, so corn prices have a big impact on feeder cattle prices.

What weight is considered feeder cattle?

Feeder cattle are weaned calves that have been raised to be 600-800 lbs. Once a calf reaches a minimum weight, it is sent to a feedlot with the goal of putting on weight aggressively. Traditionally, feeder cattle must be mature enough in order to go to the feedlot and be fattened prior to slaughter.

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