{"id":28,"date":"2022-09-14T20:10:58","date_gmt":"2022-09-14T20:10:58","guid":{"rendered":"https:\/\/www.e-futures.com\/blog\/?p=28"},"modified":"2022-09-14T20:10:58","modified_gmt":"2022-09-14T20:10:58","slug":"wyntk-before-trading-tomorrow-sept-15th-2022-futures-trading-levels","status":"publish","type":"post","link":"https:\/\/www.e-futures.com\/blog\/wyntk-before-trading-tomorrow-sept-15th-2022-futures-trading-levels\/","title":{"rendered":"WYNTK before trading tomorrow, Sept. 15th 2022 Futures Trading Levels"},"content":{"rendered":"
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Get Real Time updates and more on our private FB group!<\/div>\n
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The Significance of Price Banding & Stop Orders<\/h3>\n

by Mark O’Brien, Senior Broker<\/p>\n

Yesterday, at 7:30 A.M., Central Time, the Bureau of Labor Statistics released its Consumer Price Index (CPI) report, which measures the prices paid by consumers for a basket of consumer goods and services. Overall prices increased 8.3% from a year earlier, down from an 8.5% rise in July and a 40-year high of 9.1% in June.\u00a0On that news, within a single minute, the Dec. E-mini S&P 500 futures<\/a> contract fell \u00b190 points, roughly from 4160.00 to 4070.00.<\/p>\n

( see 10 seconds chart below)<\/a><\/p>\n

This was an exceptionally forceful move and it calls attention to an important control mechanism that the CME Group has implemented not just for the E-mini S&P 500 market<\/a>, but for all markets and is very important for traders to understand.\u00a0This mechanism, called Price Banding subjects orders to rules on where they can be placed in the market and rejects orders that are either placed erroneously or come to be outside a given band based on market movement.<\/p>\n

There are several important scenarios where Price Banding will affect a trader\u2019s order.\u00a0This piece looks at\u00a0STOP\u00a0orders and in the context of the move in yesterday\u2019s E-mini S&P 500,\u00a0SELL STOP\u00a0orders.<\/p>\n

The Price Band for the E-mini S&P 500<\/a> is currently set at 5.00 points, which because the market trades in .25-point increments, means there are 20 price points, or \u201chandles,\u201d where the market can trade (5 \u00f7 .25 = 20).<\/p>\n

Before the CPI report was released yesterday, the Dec. E-mini S&P 500<\/a> was trading at \u00b14160.00.\u00a0As is the case with a market that trades in the millions of contracts each day, orders of all types were being placed \u2013 and cancelled \u2013 at price points up and down the market, including SELL STOP orders below the market.\u00a0Those SELL STOP orders were subject to the Price Banding parameter of 5 points, which means if a market move resulted in a 5-point or greater price change below any SELL STOP order\u2019s price, the SELL STOP order became a SELL LIMIT order at the price within the band.<\/p>\n

By example, before the CPI report when the Dec. E-mini S&P 500 was trading at \u00b14160.00, if a SELL STOP was placed with a reference price of 4120.00 and the market declined such that it traded through 4120.00 as well as the Price Band price of 4115.00 without filling the order, the 4120.00 SELL STOP order would be converted to a 4115.00 SELL LIMIT ORDER.<\/p>\n

A full write-up on price limits and price banding can be found on the CME Group web site:\u00a0click here<\/a>.<\/p>\n

A complete list of banding information for each electronically traded product is also available:\u00a0click here<\/a>\u00a0(Excel).<\/p>\n<\/div>\n

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Emini S&P Chart<\/figcaption><\/figure>\n<\/div>\n
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\"Sierra<\/a><\/div>\n
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.<\/p>\n

<\/h3>\n

Futures Trading Levels<\/strong><\/h3>\n

09-15-2022<\/p>\n

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Improve Your Trading Skills<\/h2>\n
Get access to proprietary indicators and trading methods,\u00a0consult with an experienced broker<\/a><\/div>\n
\u00a01-800-454-9572\u00a0Explore trading methods.\u00a0Register Here<\/a><\/div>\n

<\/h3>\n

Economic Reports, Source:\u00a0<\/strong><\/h3>\n

Forexfactory.com<\/a><\/p>\n

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This is not a solicitation of any order to buy or sell, but a current market view provided by\u00a0Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Get Real Time updates and more on our private FB group! https:\/\/business.facebook.com\/groups\/1105191589938254\/ The Significance of Price Banding & Stop Orders by Mark O’Brien, Senior Broker Yesterday, at 7:30 A.M., Central Time, the Bureau of Labor Statistics released its Consumer Price Index (CPI) report, which measures the prices paid by consumers […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9],"class_list":["post-28","post","type-post","status-publish","format-standard","hentry","category-e-futures-blog","tag-eminis-sp-indices-emini-futures"],"_links":{"self":[{"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/posts\/28","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/comments?post=28"}],"version-history":[{"count":1,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/posts\/28\/revisions"}],"predecessor-version":[{"id":29,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/posts\/28\/revisions\/29"}],"wp:attachment":[{"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/media?parent=28"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/categories?post=28"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.e-futures.com\/blog\/wp-json\/wp\/v2\/tags?post=28"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}