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Micro futures trading the latest PMI data triggered position
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The latest PMI data triggered position adjustments in micro futures trading, especially in manufacturing-linked equity contracts. Weak output readings suggest a potential downside risk for industrials in Q3, leading traders to trim exposure. “The law is pretty clear,” Mansour said. “If you read the Commodities Exchange Act, there’s a two-prong test and it’s, ‘Is an event kinda related to war, terrorism, assassination violence or gaming?’ Smaller Price, Bigger Benefits [2] Aside from their more efficient use of capitalâthe margin on Micro E-minis is about 5% of the contract valueâthey also offer some unique tax benefits, says McCourt. Futures have whatâs known as blended short- and long-term capital gains tax treatment regardless of how long you hold the contract. Thereâs also the ease of trading, he says. For the individual retail trader that means when you buy and sell futures they are reported as one line-item on your brokerâs statement regardless of how many trades are made. ETF flows into sectors aligned with micro futures trading exposures indicate traders are synchronizing strategies. Rotation into energy and tech ETFs mirrors micro futures volume trends over the past five sessions.