Archive for the ‘Futures and Commodities’ Category

Let’s say you had a pretty good idea that if you bought 10 jars of pickles you’d make a lot of money, because from what you have been reading the demand for pickles was going to go up in the future. You pay fifty cents a jar, stash the jars in your pantry and sure enough — the price of pickles doubles and you make a $5.00 profit.

But, supposing you have to have 100 jars minimum to trade. What are you going to do? The answer is to find somebody that has 90 jars and “go in on the trade” with them. Both of you share in the profit when the jars are sold. This is gives you the “leverage” you need to sell pickles in a market you could not have entered otherwise. Continue reading ‘A Tale of Ten Jars Of Pickles: Six Advantages of Futures Trading’ »

Many people are interested in speculation and betting on the global market. The best possible option available for speculation is online spread betting. This is a kind of dual trading facilitates the speculators to achieve profit irrespective of the direction of the markets. There is no intermediary brokers required for which you need to make payment for commission.

The main purpose of this speculation is to maintain an active market in all categories, a sports event, a horse race, etc. The range of markets includes gold, foreign exchange, oil, petroleum, shares and much more. It has shown a fast growth in the United Kingdom in recent years, as millions of gamblers are involved. Continue reading ‘Your Guide to Online Spread Betting’ »

Most of us have read the headlines and have seen the Dow Jones Industrial Average declining for the 6th straight week (as of Friday June 11th, 2011). This is the longest continuous decline since 2009 and has many investors worried about the state of our economy and the chance of a “double dip”. Most investors are understandably skeptical about committing money to the market at this time. However, if you have an adequate time horizon for your investment and are willing to search for value, now could be a good entry point. Continue reading ‘Investing in a Declining Market’ »

The income of Brazilian agribusiness exports reached US $8.47 billion in May, up 17.5% on the balance at the same period last year, according to data released by the Ministry of Agriculture. Sector imports increased 53.8% to US $1.56 billion on the same basis of comparison. With this, the Brazilian agribusiness trade surplus was US$ 6.91 billion last month. For comparison, the country’s trade balance registered a surplus in May of US$ 3.53 billion.

In May, the main sectors responsible for the growth of agribusiness exports were products of soybean, coffee and meat, which accounted for 57.0%, 27.4% and 13.4% respectively, the expansion of US$ 1.26 billion in the period. On the import side, purchases of forest products are in the highest position in value to US$ 302,160,000 purchased in May (28.5% higher revenue recorded in May 2010). Continue reading ‘Brazilian Agribusiness Exports Grow 17.5% in May’ »

Binary options trading is a kind of online trading that involves speculating the direction of commodities, stocks, futures, index, and currencies. It is quite similar to Forex trading in that commodities are traded, regardless of whether they are rising or falling. With this kind of trading, you have a very efficient and easy way to make a lot of money in a matter of one hour or a couple of weeks, depending on your choice of trading time. Trading here is done using a broker just like it is in the Forex and stock market.

In futures options trading, investors make money by anticipating changes in commodity prices. Commodities are items traded on an exchange and are the same no matter what their source is. Futures options trading, therefore, are investment securities that provide their owners with the right to buy commodity futures such as gold, paper, or a foreign currency at a specified price. Continue reading ‘Go With Futures Options Trading to Get High Yields’ »

Digital options are also called binary options, the name is given because the trader have 2 optional options: He can predict that the price of an underlying asset (digital options traders can choose to trade on indices, currencies and stocks and commodities) will raise – this prediction called digital CALL option, or he can predict that the price will go down – this is called digital binary PUT option.

The payoff in both cases is similar: binary options gives its holder 75% payoff, most sites gives little less than that, but in any case the payoff is incredibly high.

Every option has 2 main outcomes, if the trader predicted correctly he gets 75% profit, remember the trader don’t have to predict how big the change will be, he only have predicted the direction (up or down), it doesn’t matter if it went up by 0.01 or by 10%, anyway he will get the fixed payout which is 75%. Continue reading ‘Binary Options – Opportunity for High Profits’ »

For traders that look to increase their P/L, using a futures trading system can give you the returns you’ve been looking for.

What is a futures trading system? First, let’s start with the term “trading system”. A trading system is a set of rules that quantify how to place trades for a basket of or a single security or commodity. It is very typical for these rules to be computer-based and to have the ability to run truly in a hands-free manner.

What are futures? The term futures describes a group of contracts that are openly traded on futures exchanges across the globe. While these contracts are technically agreements to transact an amount of the underlying asset at some point in time in the future, the simplest way to think of them like stocks that expire on a certain date. Gold, stock indices (like the Nasdaq), currencies, oil, and treasury bonds are some of the most popular contracts. Continue reading ‘Why Trade A Futures Trading System?’ »

The recent end time prophecy, which centered around the prediction that the world would come to an end on May 21, 2011, received massive publicity and many lives were adversely affected. As we know, the prophecy didn’t come to pass. But there is something we can learn about financial planning and investment strategies based on the events that took place. Let’s look at it more closely:

The Parallels of May 21, 2011 and the Investment World

Prophecy:

First, there was a voice, claiming to be an authority, who utilized advertising and marketing through billboards, literature, radio time, the internet, and word-of-mouth to spread the message that the world would end. There were three types of people who responded to this message. Continue reading ‘Investments and Prophecy: The Two Are Alike’ »

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According to Warren Buffet “Margin of Safety” are the three most important words in investment. This concept is also the corner stone of the philosophy that Benjamin Graham taught.

To get an answer of what margin of safety would mean in terms of investing in commodities, we need to be able to value a commodity relative to its price. The lower the price in relation to the value, the higher the margin of safety. Commodities are also non-income producing assets, in fact there is a cost to carry the commodity. This cost is made up by the cost of money as well as the storage cost of the relevant commodity. The prudent commodity investor should thus factor in this cost when calculating value and should be more conservative in valuation to increase the safety margin. Continue reading ‘How to Get Margin of Safety With Commodities’ »

What Is Vanadium? Is The Demand Large Enough To Be An Attractive Investment?

World Resources:

World resources of vanadium exceed 63 million tons. Vanadium occurs in deposits of titaniferous magnetite, phosphate rock, and uraniferous sandstone and siltstone, in which it constitutes less than 2% of the host rock. Significant amounts are also present in bauxite and carboniferous materials, such as crude oil, coal, oil shale, and tar sands. Because vanadium is usually recovered as a by product or co-product, demonstrated world resources of the element are not fully indicative of available supplies. While U.S. domestic resources and secondary recovery are adequate to supply a large portion of U.S. domestic needs, a substantial part of U.S. demand is currently met by foreign material because it is currently uneconomic to mine vanadium in the United States, but this is changing and people are now investing in vanadium because the demand is on the rise, and vanadium fuel cells will be coming online. Investing in vanadium energy storage companies is your best chance of winning on vanadium investments. Continue reading ‘Investing In Vanadium’ »