News

Does Crypto Belong in Your Portfolio? | Newsletter Lite

Ethereum - a cryptocurrency with a $400 billion market capitalization that’s second in the space only to Bitcoin* - fell more than 25% from its highs of a week prior at one point last Tuesday, September 7th. Nasdaq futures made new all-time highs the same day.

Will Stock Volatility Come Back?

There comes a time when stocks grind higher at such an innocuous pace that one starts to wonder if this whole trading thing might be over. Has the mixture of the Federal Reserve and monetary controls taken risk out of the market? Will S&P 500 Volatility Index readings of 30, 40, and 50 become a thing of the past? Are put options on stocks headed to free?

Will Pot Stocks Ever Go Up?

Pot is maybe the least cool it’s ever been. Prices for Small Cannabis futures are down 14% since their launch in June, and pot stocks like SNDL, HEXO, and TLRY are down more than 50% from this year’s highs back in February.

The Best Dips to Buy

Almost every market since the invention of markets has dipped in price. Corn in the 1930s, original vinyl pressings of Fleetwood Mac’s Rumours in the early aughts, and stocks at the start of the pandemic all have this in common, and they’ve all managed to fight their way back.

The Small Exchange and Fellow Chicago Innovation Awards Winners Ring the Nasdaq Closing Bell, Reports Business Wire

Business Wire reports on Small Exchange and fellow Chicago Innovation Awards winners ringing the Closing Bell of the Nasdaq Stock Market.

Reasonable Strategies for Shorting Stocks

So, you think the stock market is going to crash. You’ve crunched the numbers and measured the charts, and now you’re ready to put your idea into play. The only problem: you don’t know when, and the time between now and the next crash could be costly.

A Data-Driven Approach to Trading Crude Oil

Crude oil can be viewed as one of the few markets that trades in a range; that is, the price of a barrel of crude has been as high as $145 and as low as $10 while always existing somewhere in between.*

Making Probabilities Out of Prices

Option traders often write off futures as being uninspired. Devotees of the “more clever” derivative might use their countless strikes across several expirations each with its own set of Greeks to discount futures’ simplicity in the same way the cool kid at your high school harshed on U2 in favor of R.E.M. or Pavement’s complexity and artistry.

When’s the Next Crash?

Will this be the down day that kicks off the next stock market crash?! Buy-and-hold investors and contrarian traders alike ask themselves the same question with opposing hopes when equities take a dive like they did last Monday.

Value Investing for Interest Rates

What goes for “valuable” in a given year can seem truly random. So far in 2021, GameStop (GME) has gone from trading in single and double digits for more than two decades to a high of $483*; Dogecoin went from a range of $0.001-0.017 since inception to $0.57 highs†; and even Pokémon cards‡ are worth hundreds of thousands of dollars more than they used to be.

Increase Your Paths to Profits

In 2021, one idea simply isn’t enough. It’s not just McDonald’s, but McDonald’s x BTS*. It’s not just Nike, but Nike x Ben & Jerry’s*. It’s not just Looney Tunes, but Looney Tunes x HBO x Lebron James*.

Are Stocks Climbing Too Fast?

The S&P 500 took 27 years to increase by $2,000 (going from $300 in 1990 to $2,300 in 2017). Just last week, the equity index notched another $2,000 in less than an eighth the time.* This exponential rise has been cause for uneasiness and questions among investors.

CME Joins Battle for Retail Bond Traders With Micro Futures, Reports Bloomberg

Bloomberg reports on CME Group trying to lure small traders by offering simpler-to-understand contracts that compete with a similar set of products introduced last year by the Small Exchange.

The New Doge is an Old Dog

What if there was a market that, after months of laying dormant in a range of just a few pennies, rose by nearly 100% on guidance from a major influencer? That’s right, the next Dogecoin could be 2YR Treasury yields.

How to Invest in the Future of Pot Stocks | How to Do Futures

The first futures on pot stocks are here! Now you can invest in and trade 21 strains of pot stocks with one low-cost future: Small Cannabis \ S420. Small Cannabis futures carry a size just over $1,000 and cost only a few hundred dollars to trade. Find out more about this new product and how to strategize around cannabis companies' future growth in our Seminar on Investing in the Future of Pot Stocks, part of our How to Do Futures video series.

Trading the Future of Pot Stocks

It’s hard to tell what will be cool years from now when you’re in the moment. If you stocked up on television sets in the 90s as screens started to increase in size and picture, then you’d likely be sitting with great losses on your inventory’s value by the time the aughts rolled around. On the flip side, had you taken a liking to European sports cars in the 60s, your collection could have returned thousands of percentage points by now. Pot stocks find themselves in a similar position. As laws concerning the usage of cannabis start to loosen across the United States, producers and distributors of its products have gained some renown and percentage points themselves. The question now looms: will pot stocks go the way of the television set or Ferrari?

The Small Exchange Continues to Innovate With First Cannabis Equity Index Future Product (S420) for Small Investors

On the Heels of Its One Year Anniversary, the Small Exchange Experiences Tremendous Growth and Momentum with Monthly Average Volume Up 42% from the Previous Year

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%.

Small Exchange to launch first US cannabis future

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 | Newsletter Lite

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.

Learn How to Trade 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? Small US Crude Oil offers a direct line to one of the world's most consumed energy sources in a small size that give you a more manageable trade in a historically volatile market. Find our what benefits Small US Crude Oil futures hold and how to use them in our seminar on Trading Crude Oil, part of our How to Do Futures video series.

Small Exchange CEO Donnie Roberts Excited by First Year of Trading, Reports John Lothian News

John Lothian News reports on the challenges, growth and opportunities of new futures exchange Small Exchange in this one-year reflection interview with President and CEO Donnie Roberts.

It's Time to Trade Crude Oil | Newsletter Lite

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.

The Small Exchange Introduces Small US Crude Oil Futures, Reports Business Wire

Business Wire reports on the launch of Small Exchange's Small US Crude Oil Futures. Through SMO, small investors and traders can now access institutional quality crude oil instruments.

Learn How to Grow a Small Account | How to Do Futures

Growth is essential for any trader, but it’s even more important for those managing smaller accounts. Learn some high probability strategies using lower cost, less risky products than traditional futures in our seminar on Growing a Small Account, part of our How to Do Futures video series. With these strategies you can incorporate advanced trading metrics and Small Exchange derivatives to create edge in the market and potential growth in your account.

Learn How to Trade Commodities | How to Do Futures

Futures can give direct exposure to assets not available with stocks and ETFs such as corn, oil, gold, interest rates and foreign exchange. Smalls provide access to these unique markets in a size that fits the everyday trader. Find out how these markets tick in our Seminar on Trading Commodities, part of our How to Do Futures video series.

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 | Newsletter Lite

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? Futures can give access to 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. Learn different ways to analyze when the best time might be to buy a futures contract in our Seminar on Buying Futures, part of our How to Do Futures video series. Frank presents the strategy behind buying futures using product context and advanced statistics!

Reducing Stress in Buying Stocks | Newsletter Lite

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.

Learn How to Use a Trade Entry Checklist | How to Do Futures

Sometimes just having access isn't enough! Learn how to enter a futures trade in our seminar on Trade Entry Checklist, part of our How to Do Futures video series. Frank presents how to enter a futures trade using product context and advanced statistics and how Small Exchange products can help in all your trading, investing and hedging needs.

Learn How to Trade Interest Rates | How to Do Futures

The Small Exchange has launched the next evolution of interest rate products - Small 10YR US Treasury Yield future. S10Y simplifies variables in interest rates into a single, succinct yield so that you can skip the calculations that translate yield to price and just trade rates. Learn about trading opportunities with interest rate products as Frank guides you through a history of rate markets along with how to access this unique asset class in our seminar on Interest Rates, part of our How to Do Futures video series.

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.

Learn How to Trade 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 the whole process from computing the mean and standard deviation to assigning probabilities and choosing a market in our seminar on Mean Reversion, part of our How to Do Futures video series. Frank presents the strategy behind trading mean reversion with everything from stocks and bonds to currencies and commodities using statistics.

Do You Even Pairs Trade? | Newsletter Lite

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?

Learn 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. Find out what technical analysis technically is, learn some of its most common uses, and ideate on how the everyday trader can create their own indicators after establishing some statistical foundations in our seminar on Technical Analysis, part of our How to Do Futures video series.

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.

Learn How to Trade the Yield Curve | How to Do Futures

Small 2YR Treasury Yield (S2Y), Small 10YR Treasury Yield (S10Y), and Small 30YR Treasury Yield (S30Y) futures are here and available for trading right now! You can access 2-Year, 10-Year and 30-Year Treasury Yields all with ease thanks to this 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. Find out how to use them in our seminar on Trading the Yield Curve, part of our How to Do Futures video series.

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 | 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 Day Trading, part of our How to Do Futures video series. Frank presents the strategy behind day trading futures and how Small Exchange products can help in all your short-term scalping needs.

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?

Learn How to Pairs Trade | How to Do Futures

Pairs trading can give you access to unique, diversified opportunities by combining two markets into a single strategy. Pairs can offer a neutral bias on asset classes such as stocks, so that your trade hinges on how two products relate to each other as they move higher or lower. Learn how to pairs trade everything from stocks and bonds to commodities and currencies using futures, shares, and options in our seminar on Pairs Trading, part of our How to Do Futures video series.

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?

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? | Newsletter Lite

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...

Learn How to Determine Trade Size | How to Do Futures

The keys to sizing up your trades can take your favorite strategies to the next level. Futures are more capital-efficient than stocks, but their complex design and large size have kept modern traders from adopting them for speculative and risk management needs. Learn how to size your trades in everything from stocks and bond to commodities and currencies using futures, shares, and options in our seminar on Trade Size, part of our How to Do Futures video series.

Citadel-Backed Exchange Turns Treasuries Trading Upside-Down, Reports Bloomberg

Bloomberg reports on Citadel-backed Small Exchange's new Treasury futures product which 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, Reports Business Wire

Business Wire reports on the launch of the Small Exchange's new 10-Year Treasury Yield Future, the first product that allows trading of treasury futures in yield.

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 | Newsletter Lite

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 | Newsletter Lite

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? | Newsletter Lite

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, Benzinga

Benzinga recognizes the Small Exchange, a 2020 Benzinga Global Fintech Awards Finalist, for its disruptive innovations creating diverse change within the financial services space.

Small Exchange Wins Up-and-Comer Chicago Innovation Award

The Small Exchange, a new futures exchange bringing more participants to the futures market, wins the Chicago Innovation Up-and-Comer Award.

Small Exchange Adds Tech Index Future, Reports Global Investor Group

Global Investor Group reports on the new Small Technology 60 Index Future, known as STIX 60, which tracks the most active information, retail, media, and biotechnology stocks.

Reasons Investors Should Trade Small Exchange Products, Benzinga

Benzinga reports several reasons why investors should trade Small Exchange products, including the size being tailored to any account, the low fees, and upcoming options offering.

The Small Exchange Raises $4M to Bring Futures Trading to Everyday Investors, Reports Built in Chicago

Built In Chicago reports on the launch of Small Exchange and its goal to bring futures trading to the masses with a recent $4 million funding raise from Interactive Brokers and Phillip Capital Group.

Options Clearing Corporation (OCC) Welcome the Small Exchange, Reports Business Wire

Business Wire reports on OCC, the world's largest equity derivatives clearing organization, congratulating the Small Exchange on its success launch.

Wedbush Futures Partners with the Small Exchange, Reports Cision PR Newswire

Cision PR Newswire reports on Wedbush Futures partnering with the Small Exchange, a new futures exchange offering smaller, standardized products created for all market participants.

The Small Exchange Opens, Launches Small, Standard, and Simple Futures Products, Reports Benzinga

Benzinga reports on the Small Exchange's chance to change the world with its opening and launch of small, standard, and simple futures futures products.

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

Business Wire reports on Small Exchange opening for business on June 1st with support from 18 partner firms and a brand new product suite.

Futures Exchange Wins New Partner for June 1 Launch, Reports Crain's Chicago Business

Crain's Chicago Business reports on Small Exchange, which is targeting retail traders, landing Interactive Brokers as a partner.

Tastytrade's Sosnoff Launches the Small Exchange, Reports Crain's Chicago Business

Crain's Chicago Business reports on the launch of Small Exchange, an online trading exchange that plans to cater to retail traders with smaller derivatives contracts than those available at the big exchanges, like CBOE Global Markets.

CFTC Approves New Futures Exchange Aimed at Individual Traders, Reports The Wall Street Journal

The Wall Street Journal reports on newly approved Designated Contract Market (DCM) the Small Exchange, built for individual traders.

FIA Announces Fintech Startups Chosen for Fifth Annual Innovators Pavilion

The Futures Industry Association announces the 20 companies which have been chosen to exhibit in the FIA Innovators Pavilion at the 35th Annual Futures and Options Expo.

The Small Exchange Secures OCC Clearing and Settlement Services, Reports Business Wire

Business Wire reports on Small Exchange securing clearing and settlement services with the Options Clearing Corporation (OCC), the world's largest equity derivatives clearing organization.

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

Bloomberg reports on Small Exchange partnering with CyrusOne, which operates more than 45 data center facilities across the United States, Europe and Asia, to provide market access.

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

Business Wire reports on Small Exchange raising $10 million in strategic financing round from Citadel Securities and Jump Capital.

The Small Exchange Announces Access To New Markets Via CQG, Reports Cision PR Newswire

Cision PR Newswire reports on Small Exchange, a new futures exchange offering smaller, simpler products aimed toward retail customers, being available for trading through CQG, a leading global provider of high-performance technology solutions for traders, brokers, commercial hedgers, and exchanges.

CQG Partners with the Small Exchange, Enhancing Futures Accessibility for Market Participants Worldwide, Reports Business Wire

Business Wire reports on Small Exchange, a new futures exchange backed by award-winning innovators focused on retail customers, partnering with CQG, a leading global provider of high-performance solutions for trading, market data, technical analysis, and risk and account management, to enhance futures accessibility for market participants worldwide.

Tastytrade, Peak6 invest $10 Million in New Exchange, Reports Crain's Chicago Business

Crain's Chicago Business reports on three Chicago trading industry entrepreneurs betting on a new futures exchange upstart aimed at retail traders.