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Are 0% Rates the New Normal?

Though they employ the same word, the two phrases “return to normal” and “new normal” are diametrically opposed. If you’ve witnessed a live television commercial break in the last month, then you’re probably aware of society’s return to normal; while interest rates, on the other hand, are threatening a new normal as they fail to lift off 0%.

What to Do When Markets Slow Down

There’s a tale that circulates among traders every year around this time to help “explain” lulls in market activity. It interprets any slowness in stocks and commodities as market participants in the northern hemisphere going on summer vacation.

Is It Time to Hedge Your Stocks?

A thought many people have after things don’t go their way: I should have hedged! The key to hedging, unfortunately, is doing so when things ARE going your way. To use a sports analogy, bettors on the side of the Atlanta Falcons in the 2017 Super Bowl preferably would have hedged when they were up 28-3 and their opponent’s, the New England Patriots, odds to win were 11-1. By the time Tom Brady won the overtime coin flip, you could buy the Falcons at lower prices than before the game started. This would be akin to your stock investment growing by 1,000% and falling back to below where you go in.

You Don't Need an Opinion to Trade

Traders can be the types who feel the need to comment on everything. Is forming an opinion around Elon Musk and newly wealthy crypto traders beneficial if you aren’t trading bitcoin or doge? Are you doing yourself a disservice by researching lumber’s supply and demand if it’s unlikely that you’ll take a position? Is your witty social media post about Taylor Swift worth upsetting the Swifties in your life if you don’t listen to her music? In trading and in life, relieving yourself of an uncompromising opinion can sometimes empower you to enjoy the simple back and forth.

Trading Crude Oil | How to Do Futures

The Small Exchange has given you access to Small US Crude Oil futures, but how will you use them? Learn how to trade our newest product, and find out why you might add energy to your watchlist!

It's Time to Trade Crude Oil

If the Colonial Pipeline hack taught us anything, it’s that everyday people need greater access to energy (and that the Colonial Pipeline Company needs better cybersecurity). Last week, drivers scrambled to purchase gasoline at many multiples of what they’d been paying at the pump just days prior. While you can’t put gas in your car from your computer, a trading platform can help you quickly hedge against soaring energy prices as a supply-crunching story develops.

Trading Commodities | How to Do Futures

Looking for insight into trading hot markets like corn and gold? In this video we will be discussing different ways to trade commodities!

Is This the End for Technology Stocks?

People call for “the end” of stuff maybe too often. The 93rd Academy Awards hosted 9.85 million viewers (down 58.3% from last year), which had many remarking that movies could soon be obsolete as consumers continue to favor tv shows. Another interesting spread trade that’s picking up speed pits technology stocks against the energy sector. From the start of February to April’s conclusion, the former underperformed the latter by more than 30%.

Doomsday Indicator or Rare Opportunity

Talking heads can share many attributes whether they represent politics, finance, or sports. One mutual trait that’s been particularly relevant lately is overdramatizing events. “That team would NEVER draft that player,” fictional NFL commentator says minutes before said team drafts said player. The Fed and interest rate analysts currently find themselves in a similar dance.

When to Buy Futures | How to Do Futures

Are you interested in buying stocks, commodities, or both, but don't know if you have the right product and timing? Learn different ways to analyze when the best time might be to buy a futures contract using product context and advanced statistics!

Reducing Stress in Buying Stocks

Buying stocks can create as much internal struggle as purchasing real estate or as little as choosing an outfit for today. The distinction between the two is a matter of expectations.

Getting Over Trader's Block

Most markets are safely between year-to-date extremes, and the VIX index is at its lowest level since news of the pandemic initially felled equities back in February 2020. With all of that said, last week was one of the year’s best for active futures traders.

Trade Entry Checklist | How to Do Futures

Sometimes just having access isn't enough! Learn how to enter a futures trade using product context and advanced statistics at our Trade Entry Checklist Seminar.

How to Choose a Currency Cross

Trading foreign exchange markets can often feel like picking a winner at the Masters: you try to execute on a general opinion only to be met with a whole mess of choices.

The Anti-Outlier Trade

Most people like talking about a good outlier story: Can you believe bitcoin is up over 1,000% since the start of 2019? Did you see WTI crude oil futures went negative last year? How crazy was that rally in GameStop from below $20 to above $400 in a matter of weeks? But trading an outlier isn’t as easy.

Mean Reversion | How to Do Futures

You can compute a mean and standard deviation for any market, but how do you know if it reverts to that mean? Learn how to trade everything from stocks and bonds to currencies and commodities using statistics at this week's Mean Reversion Seminar!

Do You Even Pairs Trade?

The market is like Katy Perry, hot and then cold. How do you trade in this kind of environment?

Picking a Side in the Battle of Yields

Every so often a market reaches an inflection point, and traders ask themselves: is this a flash in the pan or is the landscape actually changing? Examples include the British pound’s decline following the initial Brexit vote (it rebounded) and GameStop stock earlier this year (GME is up around 1,000% YTD*).

Is the US Dollar Just Getting Started?

The US dollar market is kinda like GameStop stock (bear with me for a second). Both markets rallied off historical lows to start 2021, fell back to those lows in February, and have recently awoken yet again. So where does that leave USD and GME on the Ides of March?

Technical Analysis | How to Do Futures

Technical analysis finds its way into almost every trader's strategy - all the way from market makers to the self-directed investor. Frank covers what technical analysis technically is, highlights some of its most common uses, and advocates for the everyday trader to create their own indicators after creating some statistical foundations at this week's seminar.

Trading Metals That Don't Rust

In the rush to find the next hot product filed under the much-memed acronym NFT, many traders are passing up the old classics - gold and silver. While they may not be able to get these metals to rust, new market participants are seeing if gold and silver can break as they move investment out of traditional vehicles and into newer assets like Bitcoin and whatever an NBA Top Shot technically is (DISCLAIMER: I own three NBA Top Shot Moments).

When Will the Steepening Stop?

While “The Steepening” may sound like a Hollywood-produced thriller wherein an animated monster made of tea leaves terrorizes some unassuming small town, it’s in fact the increase in the spread between short-term and long-term interest rates.

Trading the Yield Curve | How to Do Futures

S2Y, S10Y, and S30Y futures are here and ready for you to trade right now! You can access the 2YR, 10YR, and 30YR Treasury Yield all with ease thanks to the new suite of interest rate products from the Small Exchange: Already an interest rate pro? Put together your steepeners, flatteners, and inversion strategies with 1:1 ratios and simple pricing convention. Grab some information about our new offering and get going on trading the Small Yield Curve!

Are Interest Rates the New Crypto?!

Interest rate markets aren’t “new” or “in vogue” or “what Elon Musk is tweeting about,” but they are moving. Just two months into 2021, ephemeral infatuations with Shiba Inu-based cryptocurrencies and video game retailers have subsided, but yields have continued to keep pace with more enduring trends like the bullish run in Bitcoin.

Extra! Extra! Headline Moves Market!

Last week, Federal Reserve Chairman Jerome Powell said he would not “even think about” lifting interest rates off their current 0-0.25% level as the US economy continues to work through the pandemic.* But, like, what does that even mean for markets and the everyday trader?

How High Can Stocks Go?

Infinity. Stocks can theoretically go infinitely high. Anyone who’s looked at selling calls or shorting stocks might know this fact given the ominous -∞ that sits next to their maximum loss potential. Hmm...well then how can AAPL be worth more than any other company in the world at a relatively small price of around $130? AMZN is above $3,000. Berkshire Hathaway A shares are above $350,000!

Learn how to day trade futures

Want to learn how to day trade futures, check out our YouTube seminar!

Living in a Post-GameStop World

The rivalry between Wall Street and Main Street has inspired everything from works of art to public protests, and the 2021 version of this age-old dichotomy is…(adjusts glasses)...the stock price of a video game retailer?

Pairs Trading | How to Do Futures

Pairs trading can give you access to unique, diversified opportunities...

Foreign Exchange: A Market by Christopher Nolan*

Entering the foreign exchange market is like watching a Christopher Nolan movie for the first time. What’s the timeline here? How does this development affect the other plot lines? Is Leonardo Dicaprio’s character even alive? It can be difficult to make heads or tails of these two universes’ innerworkings actually affect each other.

Selling Stocks at All-Time-Highs*

There’s something attractive about selling a new all-time high in a market. Maybe it’s the rush of pretending to be Spider-Man stepping in front of a runaway train rampaging through the Upper East Side. Or it could be the potential for glory if you sell the high print and scurry off like Charlie with a golden ticket. Most likely, though, it’s simply the opportunity to sell something that’s never been this expensive before.

Don't Turn Yourself Around

Last week’s activity has many traders asking questions: How should markets react to certain real-world events? Is there any correlation between the state of the collective consciousness and the performance of financial instruments? Where do we go from here?

Day Trading | How to Do Futures

Futures can give access to day trading strategies not allowed in stocks and options due to pattern day trading rules, and the Smalls do so in a size that fits the everyday trader. Find out what exclusive benefits futures products hold and how to use them in our seminar on How to Day Trade. Frank presents the strategy behind day trading futures and how Small Exchange products can help in all your short-term scalping needs.

Make a Resolution That Counts

In 2021, why not abandon plans for physical improvement that will be abandoned by February anyway? Save yourself the sadness of that stationary bike you paid too much money for transforming into a coat rack and those veggies you saved from waste growing mold. Instead, invest in your mental, emotional, and financial wellbeing with a less attractive resolution: take losses in futures trades that could protect against larger losses.

Are You Actually in Love with USD?

British pounds were up 2.25%, or $0.03, last week, ascending to new highs going back to 2018. The move came amid sighs of relief from those worried about Brexit and cries of pain from US dollar bulls. Small US Dollar (SFX) futures continue to make new lows as pounds gain stream. So, the question becomes: how bad can this get?

While We Wait for Stocks to Move

Neilsen accounts for most of this growth in the sector of screen usage defined by app/web on a smartphone, of which trading platform usage is a subsector. So what has the stock market given traders with more screen time? Other than high prices, not much seemingly...

Trade Size | How to Do Futures

The keys to sizing up your trades can take your favorite strategies to the next level. Learn how to size your trades in everything from stocks and bond to commodities and currencies using futures, shares, and options at our Trade Size Seminar!

Citadel-backed exchange turns Treasuries trading upside-down

The Small Exchange product rises when the yield on 10-year notes increases, and falls when the rate decreases - that’s novel. 

The Small Exchange Launches New 10-Year Treasury Yield Future

Welcome to the Future of Interest Rates

In 2020, people rarely go to their platforms with the intention of trading interest rates. It’s usually Tesla, Bitcoin, [insert marijuana company] in some order, especially for the growing millennial class of market participants. So why is the Small Exchange bringing you a brand-new interest rate product?

Animal Spirits at Stock Market Highs

Small Stocks (SM75) futures have made new all-time highs 5 of the last 9 trading days (56%). For context, SM75 made new highs just 5% of days going back to 2017. The phenomenon known as “positive drift” dictates that stocks move higher more often than not (+0.05% average daily move in SM75 vs 0% theoretical), sure, but is this recent activity too much?

Going From A to Z in FX Trading

With most people stuck at home this holiday season, foreign exchange markets might be the closest you’ll get to skiing the Alps or catching some rays down Mexico way in the next few months. Thankfully, FX markets are moving.

Are Energy Stocks Cool Again?

What do energy stocks, Steely Dan, and crocs have in common? They all were once considered trendy, fell out of fashion, and have recently made a second run at popularity.

Meet Small Exchange, A 2020 Benzinga Global Fintech Awards Finalist

Chicago Innovation Award Winner - Up-and-Comer Award

Small Exchange adds tech index future

Reasons Investors Should Trade Small Exchange Products

The Small Exchange Raises $4M to Bring Futures Trading to Everyday Investors

OCC welcomes the Small Exchange

The Small Exchange Announces Access To New Markets Via CQG

Wedbush Futures Partners with The Small Exchange

'A Chance To Change The World'

The Small Exchange Opens. Launches Small, Standard, And Simple Futures Products.

The Small Exchange Opens, Signs New Partners and Introduces New Product Suite

“We are absolutely thrilled the Small Exchange will commence operations with the public beginning June 1. I can’t say enough about the Smalls team, the support of our investors, vendors and participants for helping us get to the starting line”

Futures exchange wins new partner for June 1 launch

The Small Exchange, which is targeting retail traders, has landed Interactive Brokers as a partner.

The Small Exchange - Futures that don't look like futures

CFTC Approves New Futures Exchange Aimed at Individual Traders

The Small Exchange takes a big step with futures catered to retail traders.

FIA announces fintech startups chosen for fifth annual Innovators Pavilion

The Small Exchange Secures OCC Clearing and Settlement Services

Small Exchange Partners with CyrusOne to Provide Access to New Future Exchanges in Aurora

The Small Exchange Raises $10 Million from Citadel Securities and Jump Capital in New Strategic Financing Round

New exchange to provide greater futures access to individual investors.

Citadel Securities and Jump Capital are backing an exchange that's opening the futures market up to Main Street

Citadel Securities and Jump Capital, the venture investing arm of the Chicago-based Jump Trading, each invested $5 million in the Small Exchange.

Tastytrade, Peak6 invest $10 million in new exchange

Three Chicago trading industry entrepreneurs are betting on a new futures exchange upstart aimed at retail traders.