AD Derivatives Podcast Featuring Ilan Levy-Mayer, VP at Cannon Trading

Welcome to the AD Derivatives podcast led by Director of Derivatives; Greg Magadini.

Featuring: Ilan Levy-Mayer, Vice President of Cannon Trading!

Cannon Trading Company has been based in the Beverly Hills financial district since 1988. They are a member of the National Futures Association, the Better Business Bureau, the Beverly Hills Chamber of Commerce, and registered with the CFTC (Commodity Futures Trading Commission). Cannon Trading has been mentioned in several publications, including the Online Broker's Review in Futures magazine and the Reader's Choice Award in Technical Analysis of Stocks & Commodities magazine.

Introduction and Background

The Amberdata Derivatives Podcast features an insightful conversation with Ilan Levy-Mayer, a partner at Cannon Trading. Ilan's journey into trading is unconventional, transitioning from a professional basketball player to a successful trader and partner at Cannon Trading. After a career-ending injury, he moved back to the US and entered the business world, ultimately joining his brother at Cannon Trading in 1998.

Transition to Trading

Ilan discusses his initial misconceptions about trading, expecting it to revolve around simple supply and demand principles. However, he quickly learned the complexities of the market, emphasizing the multitude of factors influencing trading decisions and outcomes.

Adapting to Market Changes

Cannon Trading, founded in 1988, has navigated numerous market cycles. Ilan attributes their longevity to adaptability and a focus on service rather than direct trading profits. As a brokerage house, their income comes from providing services such as education, client support, and risk management, rather than from trading itself.

Technological Evolution

The podcast highlights the technological advancements in trading, from the absence of online trading in the late 90s to the current state where trades are executed with a click of a button. Ilan notes the importance of staying compliant with regulations and maintaining a robust understanding of both the technology and the markets.

Client Base and Broker Model

Cannon Trading serves a diverse clientele, including hedgers, speculators, and online self-directed traders. They assist clients in finding the right trading platforms, understanding market dynamics, and managing risks. Their focus on customer service, technical support, and risk management helps clients navigate the complexities of futures and commodities trading.

Commodity Market Dynamics

The discussion dives into the resilience of the commodities market, driven by natural hedgers and speculators. Ilan believes commodities trading will remain relevant due to the fundamental need for hedging in various industries. The fair and transparent nature of futures trading, where all orders go to the same exchange, is contrasted with other markets like stocks or forex.

Market Volatility and Specific Cases

Ilan recalls the extreme volatility during the COVID-19 pandemic, particularly the unprecedented negative oil prices in April 2020. He explains the operational challenges and client inquiries during such times, emphasizing the need for preparedness and understanding market dynamics.

Cryptocurrency Trading

The conversation shifts to cryptocurrency trading, particularly Bitcoin and micro Bitcoin futures on the CME. Ilan acknowledges the complexities and potential advantages of trading regulated crypto products compared to unregulated off-exchange platforms. He also touches on the interest and participation of clients in these markets.

Technical Insights and Trading Strategies

The podcast provides technical insights into various markets, including precious metals, oil, and agricultural commodities. Ilan discusses the operational aspects of taking delivery of physical commodities, the contango in futures markets, and the trading opportunities presented by market inefficiencies and trends.

Conclusion

Cannon Trading positions itself as a knowledgeable and service-oriented brokerage, catering to a wide range of clients with varying needs and expertise levels. Their commitment to providing valuable information, education, and support is evident in their daily blog and personalized client interactions.

Additional Information and Contact

Listeners are encouraged to visit Cannon Trading's website for more information, access to their daily blog, and to explore their trading services. Ilan emphasizes the importance of realistic expectations, continuous learning, and utilizing available resources to succeed in trading.

Final Thoughts

The podcast concludes with a reminder that trading, much like professional sports, requires dedication, practice, and resilience. Ilan's journey from a basketball player to a trading professional exemplifies the diverse paths one can take to achieve success in the dynamic world of trading.

AMBERDATA DISCLAIMER: The information provided in this research is for educational purposes only and is not investment or financial advice. Please do your own research before making any investment decisions. None of the information in this report constitutes, or should be relied on as a suggestion, offer, or other solicitation to engage in, or refrain from engaging, in any purchase, sale, or any other investment-related activity. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose.