SE IL | TNalfalfa - 7/23/2014 21:20
Yes, I want to use the stop to enter a trade as a hedge. In other words, let's say the market has reached a price that I'm comfortable forward contracting grain. I have a bad habit of waiting to see if it goes a little higher before selling and then backing out when it goes down. (A couple other reasons I do this is because basis is typically weak on forward contracts vs. waiting and my end users won't contract very far out anyway. I am thinking I could create a futures order that triggers with a trailing stop of say $0.10 on CZ15. Once the order is triggered, it would be executed at the market price. I would buy to close when I sell the cash grain.
That should work. I don't know if your trading platform will allow trailing stops but a good broker can do it.
I'm afraid you may not get much better cz15 without a pretty major event. It seems everybody and their brother wants to sell 5-10 higher. At least for a while. It may rally-but from a lower level. |
Futures Rookie
