share, etc.) without a significant loss in value.
Imbalance- a situation in which the opinion of the crowd regarding the direction of the future price movement becomes one-sided and the crowd seeks to realize its opinion (OPENS POSITIONS).
- these are the positions of the crowd (weak money), opened due to the liquidity of the Market Maker (strong money). Simply put, these are the positions of weak players in which the counterparty is the ONLY strong player (MM).
Alive- a market model in which there is no market maker and the price movement is due to the preponderance of one of the parties (buyers or sellers). The movement of the live market, in my opinion, is chaotic; unpredictable.
Market Maker Market- a market model in which a large player provides liquidity to the crowd at the time of a strong imbalance. The market-maker market, in my opinion, is natural and predictable.
It seems to me that: ANY LIQUID FUTURES CONTRACT (including for US indices) COMBINES LIVE MARKET AND MARKET MAKER MODELS. It all depends on the phase the market is in and how twitchy it is.

On fig. 1. shows the state of the market balance. In a calm market, MM places two orders (long and short) with some spread. There is also liquidity within this spread. This liquidity is provided by the crowd. The price can move both up and down within the spread (spread between MM orders) if there is a slight imbalance.

A minor imbalance is an imbalance in which the liquidity of one of the parties of the CROWD (for example, buyers from among the crowd) is sufficient to satisfy the desire of the other side of the CROWD (for example, sellers) IN THE MARKET. Thus, the balance point (price value at the moment) moves within the spread of a market maker that does not have an open position. Moreover, MM can rearrange its orders in the glass (an order for long and short) along the price movement and not open positions. This is the LIVE MARKET phase, the movement is chaotic, as a rule, there is a sluggish sideways movement. As long as the value of the imbalance is within the limits in which liquidity is provided by the crowd, the market will be unpredictable and boring. Any transactions (intraday) in such a market, in my opinion, have a 50/50 chance of success.
If for some reason (news, chart patterns, whatever) the imbalance grows to values ​​at which one side of the crowd is unable to provide liquidity, then a market maker comes into play. At the moment, if you look into the glass, it will look like taking out the liquidity of one of the parties inside the spread and hitting large orders of the market maker.

On the chart, it becomes clear how smooth price movements are replaced by a dense “sausage”, it is growing, but the market is not going anywhere. The opinion of the crowd becomes one-sided, as a result of which the crowd aggressively seeks to open positions (in this example, shorts). Most often this happens at the moment and after the breakdown of a significant price level.


< на золото>
THE OPINION OF THE CROWD: “Time matters here, and you need to open a position at this very moment, because “now everything is like ... sya!”. Hence the density of everything that happens on the graph.
When the desire of the crowd to sell is satisfied, the market comes into a new state of balance. All sellers have gained positions on short positions and then they sit waiting to see what will happen.


The only thing left for the market maker to do is to stretch his spread upwards (move the upper order for short higher) and wait for the scalpers that opened short to start closing, then other weak holders with a longer stop value. And it will be natural to close short positions with a purchase, but there is practically no liquidity for shorts, it is already in open positions.
This is followed by an impulse price movement upwards (unloading the positions of weak holders) and here the following options are possible:
1. Fuel ran out, open interest closed
2. As a result of the impulse, the imbalance has changed, and with it, the open interest has changed in the opposite direction.
3. Fuel has run out, but open interest remains, i.e. there are holders who suffer losses and do not close their positions.
I'm interested in the third option, because. it is from it that a trend can form. The trend will be when weak holders suffer losses for as long as possible, or, even better, average their positions.
So, we have a trade, an exit from it and we are waiting for the continuation of the movement further. For this, it is necessary that shortists with a loss average out. At the same time, they will have a certain average price for open positions. Those who averaged out probably noticed that in very rare cases they give you this price, and if they do, it’s not for long, so that you don’t have time to close. This situation, in my opinion, should be looked for. Graphically, it looks like this: the price first rests against the average value or tests (pierces for several ticks) it. And better than both.
And finally, a good example. Futures for gold. Friday 06/07/2013

The implementation is slightly different, because the pose was taken not in the region of the average price, but earlier. One contract is closed on local highs, the second with a stop at breakeven is left in the hope of a significant increase, which, alas, did not happen (closed in used).

Well, and more examples of downward movement from the average price:


Hope

On American stock exchanges, futures contracts for a large number of various stock indices are traded. All these contracts are of the settlement type, that is, when the delivery date occurs, a financial settlement takes place at the current price of the asset, as a result of which profits or losses are reflected in the accounts of traders. The most popular indices that are actively traded on the US derivatives market are listed below.

S&P 500- an index of 500 securities of well-known national companies with large capitalization, traded on the NYSE stock exchange, calculated by Standard & Poor's since 1957. This is the main indicator of the American stock market, reflecting its dynamics well. Futures for the S & P 500 index are traded on the CME (Contract size $250 x S&P 500, ticker SP) Mini-contracts listed in dollars ($50 x E-mini S&P 500, ticker ES) and euro (size 50? x E-mini S&P 500, ticker EME) are also popular. .

S&P MidCap 400 and S&P SmallCap 600- derivatives of the main S&P index, they consist of 400 securities of companies with medium capitalization and 600 securities of companies with small capitalization, respectively. The size of the futures on the first index is $500 x S&P MidCap 400 (MD ticker), on the second one - $500 x S&P SmallCap 600 (SMP ticker). $100 x Index mini-contracts are listed under the tickers EMD and SMC. They are also traded on the CME.

NASDAQ 100- an index of 100 securities of the largest national and foreign companies listed on the NASDAQ stock exchange. The companies do not belong to the financial sector and are selected based on market capitalization. The index has been calculated since 1985. It is traded on the CME under the ticker ND and has a volume of $100 x NASDAQ-100. Mini futures ticker - NQ, size - $20 x E-mini NASDAQ-100.

DOW JONES Industrial Average- The DJIA index is a set of 30 largest American companies, "blue chips". It is the progenitor of all American indices, although it no longer reflects the state of the economy very indicatively. It was first calculated by Charles Dow in 1896. Index futures are traded on the CBOT under the ticker DJ and are $10 x DJIA. The mini-future is $5 x Index and ticker is YM.

Russell 2000 and Russell 1000- well-known indices reflecting the price of shares of two thousand companies with small capitalization and one thousand large ones, respectively. The indices have been calculated since 1984 by the Russell Investment Group. Mini-contracts for them are traded on the American branch of the ICE exchange, their tickers are TF and RF, the size is $100 x Index.
The stock exchanges also trade several futures for indices, dedicated not to the stock market as a whole, but to certain sectors of the American economy. We will limit ourselves to listing them: E-mini NASDAQ Biotech (biotechnology, ticker BIO), S&P Financial SPCTR (finance, ticker FIN), S&P Technology SPCTR (high tech, ticker TEC), Dow Jones US Real Estate (real estate, ticker RX).

Many traders consider futures trading to be the most professional way of Forex trading. What is a futures? This is such a special type of contract, a security, if you like, which gives the right to purchase or sell any goods. So, for example, if a trader purchases a futures contract for oil, then he receives the full right to this oil. Thanks to the use of a futures contract, there is no need to buy and sell a real product, which simplifies the life of a trader.

The best friend of a futures contract is an option contract. Very often, a trader uses these two contracts together to minimize risks.

If we consider a futures contract in more detail, then this is a document that obliges the trader to buy or sell something at a given price after some time.
As for the option contract, it does not oblige to anything, but simply provides such a right.

Unlike trading currency pairs on Forex, with the help of option and futures contracts, you can perform much larger operations, more opportunities open up.

Even in Forex, you can find such a thing as an “index”. This concept means a combination of several goods, currencies and companies at once. At the same time, their overall indicators are calculated, an average is displayed and compared with other currencies or goods. Often, the concept of "index" includes the largest organizations, the most significant world currencies, etc.

So, for example, there is an index called DXY (USDX). It shows how the US dollar is quoted against other world currencies, it can be Euro, Yen, Canadian dollar, Pound sterling, Swiss franc and Swedish krona.

There is also such a thing as "index futures" in Forex. At the same time, it is possible to conclude contracts for several goods, currencies at once, it all depends on what kind of index it is.

In Forex, you can find futures for American indices, for example, one of the most important is DJI - the Dow Jones index. Thanks to this index, you can observe how the industrial activity of the United States is developing. It should be noted that this index is the oldest among all known today. Its founder is Dow Jones & Company Charles Dow. To date, this index includes the 30 largest companies in America.

Other significant futures for US indices can also be identified, for example, the S&P 500 index. This index shows the activity of more than 500 of the largest stock companies in the United States of America. The shares of this company are listed on the largest stock exchange NASDAQ and New York.

Trading in futures (the Russian trading system) has become quite popular and profitable today. At the same time, traders make predictions about not just one company, but about the whole stock market. In order to start trading, you need to register with one of the brokers that provides such a service.

Of course, if a trader has a large initial capital, then trading can be carried out directly, without intermediaries.

You can trade RTS index futures from 10.00 to 23.50. This time is advantageous because an hour before the end of trading in futures, the foreign exchange market opens in the United States, and it has a very powerful influence on both the stock and futures markets.

It is possible to predict the behavior of the Russian market by such fundamental signs as: the prices of gold, oil, quotes of other important world currencies, as well as large companies.

The biggest advantage of trading index futures is the very low commission. If we compare it with the one that is charged when trading shares, then it is 20 times less.

Most US stock exchanges trade stock index contracts. Often, investors prefer to work with US futures indices, as this is the most cost-effective option compared to other indices. Among the American indices, the most famous are: dow jones, p500 index, NASDAQ 100 index, Russell 2000 and Russell 1000.

List of the most popular American indices

The sp500 index - this index includes five hundred of the most liquid companies in the world, whose shares are sold on the world-famous NYSE stock exchange. This sp500 index appeared on the stock exchange in 1957, thanks to the active economic activity of the American company Standard & Poor's. The p500 index represents large capitalization companies. Futures on sp500 indices with the ticker sp can be purchased on the CME for $250. A less budget option is the minimum contract for traders sp500 futures on indices with the ticker ES for only $50.
The dow jones index is one of the most popular American indexes, thanks to which all the others exist. He owes his appearance to Charles Dow. Futures for US indices are listed for sale on the Chicago CBOT. Today, the dow includes more than thirty giant US companies and their shares, on which the entire economy of the country depends. As a rule, these companies are not permanent and may change. If earlier dow jones included only industrial companies, now it has corporations covering completely different sectors of the economy. The dow trading strategy is a profitable exchange instrument. Anyone who knows how to use it can make good money on their shares.
The NASDAQ 100 Index is a well-known American stock index that trades stocks of 100
the largest companies in the financial market. The NASDAQ 100 is traded on the world famous NASDAQ exchange. Due to volatility and protracted trends, NASDAQ 100 index futures are a very popular type of trading for speculators. In use since 1985, when 2 new indices were simultaneously introduced: NASDAQ-100 and NASDAQ Financial-100. It is one of the ten most liquid futures in the world.
Russell 2000 and Russell 1000 is a popular US stock index that trades the shares of two thousand companies with a small part of capital investments and a thousand large ones. The indexes are calculated by Russell Investment Group. Futures on Russell 2000 and Russell 1000 indices can be purchased on the ICE exchange with tickers TF and RF for $100.

Futures affecting the main sectors of the economy

You can also purchase other futures for indices corresponding to various sectors of the economy on the exchanges:

S&PFinancialSPCTR — financial sector futures with ticker FIN;
S&PTechnologySPCTR is a high-tech sector future with the ticker TEC;
E-miniNASDAQBiotech is a futures contract for the biotech sector with the ticker BIO;
Dow jones USRealEstate is a US real estate futures with the ticker RX.
The concept of stock index and futures

To track the price dynamics of the market of a group of companies and their shares of any direction, stock indices are quoted.

A stock (stock) index is one of the main indicators of the dynamics of growth or decline in shares, as well as any other securities that have a certain value for the company. One of the most important indicators of the stock index is its dynamics. Based on the increase or decrease in prices, certain conclusions can be drawn regarding the overall development of any sector of the economy.
Futures is one of the types of exchange contracts for the sale of a specific type of stock, which can be reused in trading. These are certain financial instruments, thanks to which the price is set today for certain assets of the company, which will be sold soon.
Often, in the US stock markets, stocks are traded in the form of index futures. Please note that high growth or a sharp drop in stock indices makes it possible to track the position of tens, and sometimes hundreds, of stocks from its composition. The feature of tracking stock indexes attracts special attention of bidders due to high liquidity.

Stock exchanges and their functions

Stock exchanges are a market that trades in various types of securities. The currency exchange is not included in this concept, since there are special motto exchanges for trading mottoes of denominations of various countries. Today, there are about two hundred different stock exchanges in the world. However, the lion's share of transactions takes place in the world's largest stock exchange, New York.

The concept of the financial market

Futures markets are like a huge global auction where sellers and buyers set prices for underlying stocks and financial assets. Main participants in such trading are called hedgers and speculators. The difference between them is that speculators trade on the profits of buying and selling prices, while hedgers work to protect the main assets of their companies and try to prevent their prices from falling in the future.

Helpful advice! If you want to start trading futures for US indices, you should familiarize yourself in advance with questions related to saving your money, with options for an action strategy, with possible risks of financial fraud. In America, all investor rights are protected by federal government laws and financial market regulations.

How to trade futures

Futures on various indices - the main trading occurs due to hedging. Hedging is a trading operation, the main function of which is a warning against all kinds of losses during other trading operations. The main purpose of hedging is to reduce risk. At times, this can be quite difficult.

One of the most difficult economic activities - futures trading on indices is profitable, but it always has high liquidity, which is why it attracts so many people. There is an opinion that futures are something complex by definition, but this is far from the case.

Understanding CFDs

CFD is a type of simplified financial leverage, thanks to which you can operate in the financial market online. Thanks to him, you can achieve financial benefits due to the price difference between buying and selling shares without leaving your home or office. You just need to choose the right strategy of action. CFD allows you to make online a full range of financial transactions, making a profit from the right investment.

Thus, we come to the conclusion that most people believe that trading index futures is something extraordinarily complicated, but this is not entirely true. In order to master the minimum concepts of the financial market, you need to familiarize yourself with some designations of financial instruments. These concepts are simple and denote the financial leverage that can be used today to set prices for shares that will be sold in the future. The most popular futures for American indices are considered to be: dow jones, p500 index, NASDAQ 100 index, Russell 2000 and Russell 1000.

A trader who encounters futures contracts for the first time will not be able to quickly correlate the designation codes for futures and their underlying assets.

The designation of futures contracts is always formed from Latin letters combined with Arabic numerals. These numbers indicate the month and year of expiration of the contract. It is these numbers that help the investor identify a particular futures. This is due to the fact that these contracts are derivatives market instruments that are limited in time of their circulation.

How to decipher the designation of a futures contract

The full name of the futures is expressed as a combination of the letter of the instrument, the letter of the settlement month and the last digit of the year designation.

There are 3 values ​​in total - C, M and Y.

• C- asset name
• M- month
• Y- year

For example, here is what the futures symbol looks like:

Example on ESH6

As an example, consider a futures − E-mini S&P 500, which is denoted by the ticker ES. Let's take the March contract for 2019, it will look like this: ES+ letter H, meaning " March» + digit 9 , since the year is 2019. Therefore, we will look for a future with the code " ESH9».

Futures codes by month

• January - F
• February - G
• March - H
• April - J
• May - K
• June - M
• July - N
• August - Q
• September - U
• October - V
• November - X
• December - Z

As you already understood from the example above, years are indicated by the last digit in the date:

• 2018 — 8
• 2019 — 9
• 2020 — 0
• 2021 — 1

In the domestic derivatives market, the numbering of contracts occurs in a similar way. Below we will show all decryption codes of futures contracts traded on GLOBEX(USA) and FORTS(Russia), without month and year data.

Traditionally, speculators prefer to work with currency, but institutional investors cannot afford the risks that work on FOREX carries, so they use more reliable platforms, such as derivatives markets. That is why the New York Futures Exchange offers the widest variety of all known currency pairs.

Currency Futures Codes

6N- New Zealand dollar.
6R- Russian ruble.
6S- Swiss frank.
DX is the United States dollar index.
6A- Australian dollar.
6V- British pound.
6C- Canadian dollar.
6J- Japanese yen.
6E- Euro.
RF– euro against Swiss franc.
RP- euro against the British pound.
R.Y.- euro against Japanese yen.
AU- AUD/USD
ED- euro-dollar
Eu- euro ruble
GU- pound sterling - US dollar
Si- USD/RUB

Futures codes for hydrocarbons and their derivatives

The commodities market is the most interesting for investors due to fuel assets, which take the second place in terms of polarity after its derivatives. First of all, we are talking about trading in oil futures of the brand. Having studied the alphabetical when of these instruments, a trader will be able to freely customize the interface of his workplace, as well as program automatic trading systems in which it is necessary to specify the ticker of the instrument circulating on the market for correct operation.

BR- Brent oil.
CL- light brand oil.
UR- futures for URALS oil
WTI- WTI oil.
BUT- fuel for stoves.
QM– mini contract for oil.
NG- combustible gas.
XRB- gasoline 95.
DZ- diesel fuel grade L-0.2-62 (GOST 305-82)
CU- Grade A copper futures
GD- futures for refined gold bullion
PD- futures for refined palladium bullion
PT- futures for refined platinum bullion

One of the favorite instruments of commodity traders are grain futures traded on GLOBEX And SWOT. allows you to pick up tangible movements within the price corridor. At the same time, real producers and consumers can hedge their risks thanks to derivatives market instruments. Having studied the table of tickers for agricultural products, the investor will be able to easily find the instrument he is interested in in the terminal interface.

Deciphering Futures for agricultural products

ZC- corn.
ZL- soybean oil.
ZO- oats.
ZR- uncooked rice
ZS- soya beans.
ZW- wheat.

Futures codes for meat products

GF- beef.
HE- pork.
LE- live cattle.

Futures Codes for World Indices

Stock and derivatives indices are designed to reflect the general mood of the market and free the investor from the monotonous task of researching the prices of each liquid share and perceiving the stock market as a whole. Large investors will be interested in the opportunity to buy the entire index at once in the form of a futures contract, rather than choosing a specific block of shares.

• This significantly reduces the investor's risks in terms of bankruptcy or takeover of specific corporations in whose securities the trader has invested.

The index cannot go bankrupt or default.

If an issuer ceases to meet the requirements for inclusion in the index, then it is easy to replace it with a more suitable corporation. This greatly increases the stability and reliability of investments for the investor.

ES– mini-index on the S&P 500.
FCE- French index CAC 40.
FDAX is the German DAX index.
FESX- the American Dow Jones 50 index.
FTSE- American index on the Futsee 100.
HSI– Asian index HANG SENG.
MX- futures on the MICEX index
Rc- futures on the RTS index (Consumer goods and retail trade)
R.I.- futures on the RTS index
Rk- futures on the RTS index (Telecommunications)
Ro- futures on the RTS index (Oil and Gas)
RS- futures on the RTS Standard index
ER2- mini in ind. Russell 2000.
FESX- ind. Dow Jones Eurostock 50.
FSMI- ind. FSMI Switzerland.
HSI- ind. HANG SENG.
IBX- ind. IBEX 35.
MC- mini in ind. S&P 400.
MDAX- ind. MDAX Germany.
N.I.- ind. NIKKEI 225 Japan.
NQ– mini M NASDAQ 100.
SPMIB- ind. weighted by capitalization of S&P and Borsa Italiana.
VIX- ind. stock market volatility.
YM- mini in ind. Dow Jones.

Futures codes for metals

Derivatives related to metals are especially interesting in contracts for gold, silver and platinum. Bank metal accounts are rarely used to invest in gold due to the high spread and the risk of bankruptcy of the bank in which such an account is located. Buying physical gold requires significant storage costs. That is why investors are increasingly working with this valuable metal on the stock exchange through derivatives. Knowing the tickers helps the trader to easily find the contract he is interested in and work with it.

ALUM- aluminum.
GOLD- gold.
HG- copper.
PL- platinum.
LEAD- lead.
NICK– Nickel.
RA- palladium.
SI- silver.
ZINC- zinc.

Consumer goods

Consumer goods also have their futures. Large retailers and manufacturers primarily work with these assets. Private investors or small funds prefer to bypass such niche derivatives market instruments. Working with these tools requires a complete understanding of the market for these products and their features.

WITH- cocoa.
SB- raw sugar.
ST- cotton.
JO- Orange juice.
LB- lumber timber.
KC- Robusta coffee.
SB- sugar.
W- white sugar.
SU- futures for granulated sugar, manufactured in accordance with GOST 21-94

Futures codes for Russian shares

CH- ordinary shares of OAO Severstal
FS- ordinary shares of JSC FGC UES
GM- shares of MMC Norilsk Nickel
GZ- shares of JSC "Gazprom"
HY- ordinary shares of JSC RusHydro
LK- shares of NK Lukoil
MT- ordinary shares of MTS OJSC
NK- ordinary shares of OAO NOVATEK
OC- ordinary shares of OAO OGK-3
OD- ordinary shares of OAO OGK-4
PZ- ordinary shares of OJSC Polyus Gold
RN- shares of OAO NK Rosneft
RT- shares of OJSC Rostelecom
SG- preferred shares of OJSC “Surgutneftegas”
SP- preferred shares of OJSC Sberbank of Russia
SR- ordinary shares of OJSC Sberbank of Russia
TN- preferred shares of OAO Transneft
TT- ordinary shares of OAO TATNEFT
UI- ordinary shares of OAO Uralsvyazinform
UK- ordinary shares of OAO Uralkali
VB- ordinary shares of JSC VTB Bank

Government bond futures

FGBS– SCHATZ German long-term state bonds for a period of 1.75 - 2.25 years.
FGBM– EUROBOBL German LT state bonds for a period of 4.5 - 5.5 years.
FGBL– EUROBUND German LT state bonds for a period of 8.5 - 10.5 years.
G.E.– 3-month interest rate on euro/dollar.
GLONG- Mrs. British securities.
ZB- 30-year-old Amer. bonds.
ZN- 10-year-old Amer. treasurer bonds.
MP- futures contract for the rate of a three-month loan MosPrimeThe rate of a three-month loan MosPrime
O2- futures for "two-year" federal loan
O4- futures on "four-year" federal loan bonds
O6- futures for "six-year" federal loan bonds
O10- futures on "ten-year" federal loan bonds
O15- futures for "fifteen-year" federal loan bonds

As you can see, the first letters represent the beginning, or part of the asset's name in English. Latin letters are abbreviated, which allows you to predict the name, without referring to the table. Unfortunately, most of the above assets have liquidity only in foreign markets. In Russia, futures for currency, national indices and oil are considered interesting assets.

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