edge-clear-futures-broker

Edge Clear Futures Broker

At Edge Clear, we are led by industry experts who understand the complexities of trading. Our mission is to simplify your costs and provide you with a seamless trading experience that combines the best of technology, service, and risk control.

Key Features of Edge Clear:

  • Mission Statement: EdgeClear’s mission is to redefine the trading experience by providing unparalleled customer service, robust technology, and a personal touch. We are committed to empowering our clients, from entry-level traders to seasoned professionals, with tools and support that enhance their trading journey. Our focus is to be a catalyst for success, offering a platform where expertise meets innovation in the trading world.
  • Your Personal Broker: Giancarlo Saraceno
  • Sierra Chart: Experience the power of Sierra Chart, a versatile trading platform with advanced charting, cross-platform compatibility, and reliable data feeds, providing traders with an intuitive and dynamic trading experience.
  • Zero Order Routing Fees for Teton: Keep costs down with Edge Clear – enjoy the benefit of zero transaction fees specifically for Teton Order Routing. Experience efficient and cost-effective trading without the burden of additional transaction charges.
  • Professional Services: Elevate your trading experience with our comprehensive professional services. From EdgeQX, a quant-fund program for automated trading, to CTA managed accounts tailored to your goals, and personalized CME membership consultations, we offer a range of solutions designed to optimize your trading journey.
wholesale trading structure and price action

Wholesale Trading: Reading Market Making Structure and Price Action for Better Trades

Can you spot our market maker, aka wholesale, in the screenshot above?

What is Wholesale?

Wholesale is at the core of what moves the financial markets every single day. In fact, wholesale is a key driver of all markets. This fact is important to understand because the financial markets (stocks, options, futures, forex, crypto, etc) are the same as any other market. People get together and exchange products of interest for a gain or loss.

Wholesale in the financial market is performed by market makers, facilitating the exchange of financial assets between participating buyers and sellers.

There are two terms we should be familiar with to understand the business decisions and actions of the wholesaler, inventory and supply.

A wholesaler collects inventory at “best price” depending on current market conditions with the goal to later resell that inventory for a profit.

This inventory becomes supply when the wholesaler is ready to sell the products to buyers in the market for a profit.

Learn more with live narration of how I read price action.

 

Simple Analogy of How Wholesale Conducts Business

To illustrate how this wholesale works in the financial markets we are going to look at through the lens of retail arbitrage.

A retail arbitrageur, or retail arbitrage seller, will look for discounted items in local stores and deals online with the goal of reselling those items for a profit.

On a larger scale, most convenience and grocery stores operate this way, but that’s another topic for another day. Retail arbitrage is typically easier to understand because anyone can do it.

Let’s walk through this illustration from the retail arbitrageur’s (wholesale) perspective. Let’s call our wholesaler for this analogy, Bob.

Bob is looking to buy several shoes, not for his own fashion, but to sell to other people interested in those shoes in his local market.

Bob goes into shoe store 1 and looks for shoes in his price range.

Bob is looking for a specific number of Air Jordans (AJ’s) since he knows his local market has a special interest in those shoes.

Store 1 only has a limited supply of AJ’s so Bob knows he will have to go to another store to find enough AJs to sell to his local market for the profit he wants to walk away with.

In addition to the AJ’s in stock at store 1, Bob also buys some Adidas and Pumas with the purpose of selling those to Store 2 which should also give him more money to fill his inventory of AJ’s. He purchases as many as he can and heads to Store 2.

On the way to store 2 however, Bob met some customers who bought some of his excess inventory. Of course he sold those for more than he paid for them at store 1.

At store 2, they have AJ’s but still not enough to fill his target inventory. Store 2 also was looking to build their inventory of Adidas and Pumas which allowed Bob to sell the rest of his excess inventory.

Bob purchases as many AJ’s as he can get from store 2 plus other brands to repeat the process on his way to store 3. Because of the sold excess inventory, Bob was actually able to purchase the AJ’s to build his inventory even more at a discounted rate.

On to store 3 and AJ repeats the same steps, selling some excess inventory along the way. And once again, thanks to his sells from the excess inventory, Bob was able to fill his target inventory from store 3 at an even bigger discount, also going beyond the inventory of AJ’s Bob was targeting.

Now Bob quickly heads back to his local market with a full inventory, plus excess, marketing all the new shoes in his inventory along the way through his social media outlets. Of course, he sold a few pairs along the way to his target market.

Once he reaches his local market, Bob is met with excited (emotional) shoe enthusiasts ready to buy the AJ’s from him, without knowing, or even caring, that Bob payed much cheaper than they are paying to buy them from Bob.

The more shoes Bob sells from his inventory, the lower his supply gets and as a result the more he charges for the remaining shoes in his supply.

Eventually, Bob satisfies the majority of his local market and shoe sells begins to slow down. So what does Bob do?

Bob starts lowering prices to unload the rest of his inventory in preparation to do market research for what shoes buyers are interested in and heads back to the stores for new inventory.

As a wholesaler, Bob repeats this cycle over and over for massive profits. His local markets loves buying the shoes Bob keeps in his inventory, giving Bob a thriving business.

 

Market “Research”..

There’s one other key element that we haven’t discussed yet.

How does Bob know which markets are worth his efforts and what to sell in that market?… Customer data.

Wholesale pays for data about participants in the market which they use to make trading decisions. This data is extremely valuable to the wholesaler as it let’s them know which markets and products should give them the best opportunities to make money.

In our example, this would be equivalent to the Bob paying for customer profiles from the shoe stores and online marketplaces.

This information can help Bob develop a strategy around how he purchases and sells shoes for an efficient business.

 

Why is the recognition of wholesale so important?

Spotting wholesale’s collection of inventory can help us have a slight edge over other participants, unaware of what is behind real-time price action. Alongside wholesale, we can enter our position at “best price” and profit with wholesale as their business is creating momentum in the market where most traders are jumping into trades with more risk.

There are several technical tools and data points that can be used to identify and analyze wholesale trade price action. This article is a highlight of the core concept.

Some of the key things I look at is structure, volume (mostly by price), and VWAP.

Highlighted on the chart below is the price structure wholesale leaves behind.

Get out there and crush it!

For real-time insight follow me on YouTube and Twitter! @Mv3Trader

Comment below with your opinions and questions.

easy-to-start-businesses-for-new-entrepreneurs

Easy-to-Start Businesses for New Entrepreneurs

Easy-to-Start Businesses for New Entrepreneurs

Starting your own business is a great way to gain financial independence while doing something you truly love. There’s no need to settle for the nine-to-five grind. That said, becoming an entrepreneur requires passion and perseverance. You’ll have to put in some effort before you’re up and running. Read on for a quick guide to getting your very own company off the ground.

 

Decide on a business model

 When selecting a business model, do your research. Ideally, you will opt for a low-risk business that doesn’t require a lot of investment upfront. Accion Opportunity fund recommends trying home-based businesses. This will spare you the significant expense of commercial rent that a brick-and-mortar business requires. It also gives you greater flexibility in terms of location. Day trading is one business you can do anywhere.

 

Get the necessary education

Depending on the path you pursue business-wise, you may need to get additional educational credentials. Even if a four-year degree isn’t needed, added knowledge or professional certifications can help. For example, if you pursue day trading, you need to learn about markets. Mv3Trader helps people learn the art of day trading, giving them the tools they need to set up their very own business.

 

Establish a limited liability company

 Once you’ve decided on a business model, write a business plan to get organized. This outlines exactly how your company is run. You can then register your business as an LLC. This will offer tax advantages, protect your personal liability, and simplify your bookkeeping. Look up your state’s guidelines for LLC formation—for example, the requirements to start an LLC in South Carolina are different from those to found one in California.

 

Open a business bank account

 Once you’ve registered your LLC with your state, you should receive a confirmation notice. You can use this to open a business bank account. This is beneficial as it allows you to separate your personal and professional financial transactions. It also makes your business more credible. Finally, having separate accounts will simplify your bookkeeping and tax filing when the time comes.

Calculate your overhead costs

 Your business bank account will also be used for business expenses. Before you commence operations, tally up a list of all your overhead costs. These could include tools like computers and software. Get Sling provides an easy guide to calculating your expenses. You can then look for external funding to cover these costs. Sources of funding could include government grants, angel investors, and crowdfunding, among others.

 

Get the tech tools you need

 Once you have the startup capital you need, you can invest in the necessary equipment your business requires. As a day trader, there are a few essential items you’ll want, including a computer, fast internet connection, day trading brokerage account, and charting software. You don’t want to skimp on these basic items. It’s worth paying for top-quality products that will perform well and last you a while.

 

Figure out your tax obligations

 Finally, for the not-so-fun part: Figuring out your tax obligations. If you earn money as a business, you need to report that income and pay the appropriate taxes. Keep in mind that tax obligations vary depending on the type of income. Day trading profits are one example. This quick guide provides an introduction to day trading taxes, what you can expect to pay, and how to file.

 

If you hate the idea of sitting in an office every day, it’s time to think about alternatives. Starting your own business is a great way to break free from the hamster wheel and become your own boss. Consult the guide above to help you get there.

For more content to help you get your day trading career off the ground, check out the Mv3Trader resource hub.

Get out there and crush it!

For real-time insight follow me on YouTube and Twitter! @Mv3Trader

Comment below with your opinions and questions.