SEC probes ETF use in insider trading
The Securities and Exchange Commission is investigating whether Wall Street traders are using exchange-traded funds as a means of disguising insider trading
View full post on UK Business Stories
Outsourcing Derivatives: An International Trend That Makes Good Business Sense
Advantages of using WSD’s derivatives solutions include:
Approximately 95% of medium sized and community banks in the U.S. outsource foreign exchange services and Derivatives trading to financial institutions. A similar trend is occurring on a global basis. Many have concluded that it’s best to outsource such derivatives trading in FX, Commodities and Metals to companies that specialize in such processing, products and services as their specialize in providing such solutions not only by way of IT and software but also to overall turnkey solutions which are considered end to end but most of all risk management and infact overall project management at a flick of a button. There are two main reasons for this line of thought. First, it’s the Derivative specialist, not the bank or financial Institution that’s making the initial and recurring resource investments. Secondly, the Derivative specialist assumes the responsibility for managing these resources and for much of the business risk.
Reasons for Outsourcing Derivative Services
Many businesses currently involved in foreign exchange (FX), metals and commodities either on the buy, sell, retail or wholesale side are succumbing to escalating costs and thinning profits. Despite tremendous growth in existing and emerging global FX and other derivative markets, increased competition and direct costs are becoming disproportionate to profitability. With tapering profits and the cost of management, risk, compliance and technology constantly on the rise, institutions are reconsidering both the feasibility and necessity of offering derivative products and services. As an alternative, institutions are now outsourcing derivative trading to companies such as WSD NZ to improve balance sheets, increase profitability, introduce new revenue streams, maintain client confidentiality and share holder confidence. In emerging markets such as India where many Institutions have large client bases but don’t have the wherewithall to enter into derivative business even if they have the capital resources. WSD is there the perfect partner that can come in and start this division or product for the company considering the business with little or no investment but with joint management capabilities between WSD and the Institiution wishing to get into the business.
Banks and Financial Institutions
Whether as a “free” or “fee-based” product offering foreign exchange services or derivatives trading can enhance a financial institutions revenue stream while meeting a market need. Yet, the costs for creating a derivative processing environment (from a technical, compliance, back office and human resource perspective alone) can be enormous. As such, banks and financial institutions are under constant pressure to keep overhead costs to a minimum so they can focus resources on developing new profit opportunities. On the other hand, there are many smaller institutions that do not have an Derivative or FX facility despite the necessity and demand. Their risks are different yet substantial. If clients require derivative services and their bank does not offer them, their clients will have no choice other than to patronize a competitor that does. The opportunity cost for the bank is not only the loss of a customer’s business but the potential loss of their deposits and loans as well.
As a derivative and foreign exchange specialist, WSD provides unique, safe and sound solutions for institutions that offer FX, Commodity and metal derivative products but whose costs are outpacing profits as well as banks that do not offer such services but need this as part of their product arsenal to meet client needs, fend off competitors and create a new revenue stream.
Why Outsource to WSD Instead of a “Partner” Bank?
The most important reason for choosing WSD to outsource your derivative and FX is because WSD is not a bank or an NBFC.
Banks and financial institutions must evaluate the competitive threat a correspondent bank or NBFC or alternative provider poses when outsourcing because they may have access to confidential customer banking information, whether institutional or personal. This poses a threat not only to a customers’ right of privacy but to the bank who must protect their customers anonymity and the banks’ assets from being directly or indirectly solicited.
Even if a bank has a correspondent relationship with a partner bank, the partner bank may not be able to offer customers the greatest rates of exchange which will translate into less profit on your bottom line. The partner bank may not also offer a full line of derivatives and FX services that customers require, once again putting those customers entire business portfolio at risk of loss to a competitor.
Since WSD is not a bank or NBFC, WSD is not a direct competitor. We are a licensed, regulated non-banking financial institution that handles purely derivative brokerage globally and solutions provision including white label services that values the sanctity of confidentiality and provides transparent value-added derivatives and FX products, services and turn-key outsourcing solutions.
Think of WSD as your derivatives division to reduce overheads, increase profitability, create new business opportunities, protect your client list and save capital investment costs AND MOST OF ALL TO MANAGE YOUR RISK!!
Corporate Customers
For corporate customers, WSD’s outsourcing services provides a complete global payment and foreign exchange back-up for their clients – including foreign currency transaction processing.
WSD also provides private branded partnership agreements where you gain the benefits of WSD’s turn-key on-line foreign exchange (and derivatives) products and services without the burdening costs related to building and maintaining a sophisticated infrastructure.
WSD’s Outsourcing FX solution offers direct access to a diversified global payments product line to service all of your current and future customers international currency needs. Our flexible state-of-the-art online system WSD Direct offers instant access to a full-service trading desk without substantial capital investments.
Key Reasons to Choose WSD as your Derivatives and FX Outsourcing Specialist
* Increase revenue and profits derived from “fee” or “free” based services
* Improve operational efficiencies and productivity levels by outsourcing administrative tasks
* Deliver new value propositions to customers to enhance business relationships
* Expand service lines to capture more business from existing customers
* Achieve more competitive exchange rates through wholesale purchasing
* Control costs and maximize investment capital – if cash is not tied up in capital expense, it can be reinvested in areas offering greater ROI
* Leverage the Internet to streamline and automate FX products, services and processing transactions
* Acquire industry expertise and expedite market entry
* Enhance account management through real-time management reports on the purchase, sale and trading of foreign currencies and income generated from each product
WSD’s Credentials: Experience, Global Acuity and Security
Experience & Global Acuity
With its world headquarters in Auckland NZ and offices in the U.S., UK, China, Africa, Dubai and Thailand, WSD Global Markets Ltd. is one of New Zealand’s leading FX and financial services companies. WSD’s management team consists of multi-lingual experts with over 100 years of experience in global FX and derivatives.
WSD provides comprehensive FX outsourcing products and services including 24-hour access to multiple sources of information, liquidity and prices in the world’s OTC and exchange-traded currency markets. FX products include spot, forwards, options, exotics and EFP’s (exchange for physicals).
Security
Unlike many countries that do not provide adequate protection for client funds, New Zealand has a strong regulatory framework that is strictly enforced. Client assets are protected by “Segregation” laws where client funds are deposited in segregated bank accounts. This ensures that client assets are never co-mingled.
Further asset protection is enforced in NZ by requiring regulated, licensed companies like WSD to provide professional indemnity insurance coverage for the protection of client and company assets against unforeseeable events that if left uninsured, may result in the loss of client funds.
Under this system, clients are secured to the extent that WSD is regulated under NZ and licensed under both NZ and U.S. laws. The professional indemnity insurance policy in effect acts as an added layer of protection for client assets and is one more important reason why WSD is the right choice for outsourcing your derivatives and FX products and services.
WSD Global Markets LTD (NZ) Limited Accreditations
Authorized Futures and Options Firm by New Zealand Exchange Limited
Authorized and Regulated by the Securities Commission.
Full Broker & Clearing Member of the Dubai Gold Commodities Exchange
WSD Global Markets Limited is a registered branch office of Wall Street Derivatives Inc, USA which is registered as a Futures Commission Merchant (FCM) with the CFTC and a member of the NFA.
WSD: The Right Outsourcing Solution Specialist
Numerous banks face similar dilemmas.
* They have a critical process with increasing cost and decreasing profits
* They require significant investment in new technology in order to compete
* They must decide on spending money on technology investments and human bloating overheads or outsource
Outsourcing Derivatives and FX to a company that specializes in a service to manage resources like WSD will allow your bank to focus on their core competencies and bottom line. Operating costs will be reduced because of the specialized knowledge and economies of scale of WSD’s resources. Capital costs will be reduced because WSD is making the capital investments, not the bank. Furthermore, it’s faster and less expensive to leverage WSD’s existing resources than it is to build it from scratch. By outsourcing FX to WSD, your bank will be able to invest more of its internal resources in core areas and produce exceptional returns.
It is imperative to choose an outsourcing service provider that can put all the pieces together. WSD can provide a comprehensive, fully integrated solution that will benefit your bottom line and allow your bank to remain competitive in the 21st century.
Outsourcing Derivatives: An International Trend That Makes Good Business Sense
Advantages of using WSD’s derivatives solutions include:
Approximately 95% of medium sized and community banks in the U.S. outsource foreign exchange services and Derivatives trading to financial institutions. A similar trend is occurring on a global basis. Many have concluded that it’s best to outsource such derivatives trading in FX, Commodities and Metals to companies that specialize in such processing, products and services as their specialize in providing such solutions not only by way of IT and software but also to overall turnkey solutions which are considered end to end but most of all risk management and infact overall project management at a flick of a button. There are two main reasons for this line of thought. First, it’s the Derivative specialist, not the bank or financial Institution that’s making the initial and recurring resource investments. Secondly, the Derivative specialist assumes the responsibility for managing these resources and for much of the business risk.
Reasons for Outsourcing Derivative Services
Many businesses currently involved in foreign exchange (FX), metals and commodities either on the buy, sell, retail or wholesale side are succumbing to escalating costs and thinning profits. Despite tremendous growth in existing and emerging global FX and other derivative markets, increased competition and direct costs are becoming disproportionate to profitability. With tapering profits and the cost of management, risk, compliance and technology constantly on the rise, institutions are reconsidering both the feasibility and necessity of offering derivative products and services. As an alternative, institutions are now outsourcing derivative trading to companies such as WSD NZ to improve balance sheets, increase profitability, introduce new revenue streams, maintain client confidentiality and share holder confidence. In emerging markets such as India where many Institutions have large client bases but don’t have the wherewithall to enter into derivative business even if they have the capital resources. WSD is there the perfect partner that can come in and start this division or product for the company considering the business with little or no investment but with joint management capabilities between WSD and the Institiution wishing to get into the business.
Banks and Financial Institutions
Whether as a “free” or “fee-based” product offering foreign exchange services or derivatives trading can enhance a financial institutions revenue stream while meeting a market need. Yet, the costs for creating a derivative processing environment (from a technical, compliance, back office and human resource perspective alone) can be enormous. As such, banks and financial institutions are under constant pressure to keep overhead costs to a minimum so they can focus resources on developing new profit opportunities. On the other hand, there are many smaller institutions that do not have an Derivative or FX facility despite the necessity and demand. Their risks are different yet substantial. If clients require derivative services and their bank does not offer them, their clients will have no choice other than to patronize a competitor that does. The opportunity cost for the bank is not only the loss of a customer’s business but the potential loss of their deposits and loans as well.
As a derivative and foreign exchange specialist, WSD provides unique, safe and sound solutions for institutions that offer FX, Commodity and metal derivative products but whose costs are outpacing profits as well as banks that do not offer such services but need this as part of their product arsenal to meet client needs, fend off competitors and create a new revenue stream.
Why Outsource to WSD Instead of a “Partner” Bank?
The most important reason for choosing WSD to outsource your derivative and FX is because WSD is not a bank or an NBFC.
Banks and financial institutions must evaluate the competitive threat a correspondent bank or NBFC or alternative provider poses when outsourcing because they may have access to confidential customer banking information, whether institutional or personal. This poses a threat not only to a customers’ right of privacy but to the bank who must protect their customers anonymity and the banks’ assets from being directly or indirectly solicited.
Even if a bank has a correspondent relationship with a partner bank, the partner bank may not be able to offer customers the greatest rates of exchange which will translate into less profit on your bottom line. The partner bank may not also offer a full line of derivatives and FX services that customers require, once again putting those customers entire business portfolio at risk of loss to a competitor.
Since WSD is not a bank or NBFC, WSD is not a direct competitor. We are a licensed, regulated non-banking financial institution that handles purely derivative brokerage globally and solutions provision including white label services that values the sanctity of confidentiality and provides transparent value-added derivatives and FX products, services and turn-key outsourcing solutions.
Think of WSD as your derivatives division to reduce overheads, increase profitability, create new business opportunities, protect your client list and save capital investment costs AND MOST OF ALL TO MANAGE YOUR RISK!!
Corporate Customers
For corporate customers, WSD’s outsourcing services provides a complete global payment and foreign exchange back-up for their clients – including foreign currency transaction processing.
WSD also provides private branded partnership agreements where you gain the benefits of WSD’s turn-key on-line foreign exchange (and derivatives) products and services without the burdening costs related to building and maintaining a sophisticated infrastructure.
WSD’s Outsourcing FX solution offers direct access to a diversified global payments product line to service all of your current and future customers international currency needs. Our flexible state-of-the-art online system WSD Direct offers instant access to a full-service trading desk without substantial capital investments.
Key Reasons to Choose WSD as your Derivatives and FX Outsourcing Specialist
* Increase revenue and profits derived from “fee” or “free” based services
* Improve operational efficiencies and productivity levels by outsourcing administrative tasks
* Deliver new value propositions to customers to enhance business relationships
* Expand service lines to capture more business from existing customers
* Achieve more competitive exchange rates through wholesale purchasing
* Control costs and maximize investment capital – if cash is not tied up in capital expense, it can be reinvested in areas offering greater ROI
* Leverage the Internet to streamline and automate FX products, services and processing transactions
* Acquire industry expertise and expedite market entry
* Enhance account management through real-time management reports on the purchase, sale and trading of foreign currencies and income generated from each product
WSD’s Credentials: Experience, Global Acuity and Security
Experience & Global Acuity
With its world headquarters in Auckland NZ and offices in the U.S., UK, China, Africa, Dubai and Thailand, WSD Global Markets Ltd. is one of New Zealand’s leading FX and financial services companies. WSD’s management team consists of multi-lingual experts with over 100 years of experience in global FX and derivatives.
WSD provides comprehensive FX outsourcing products and services including 24-hour access to multiple sources of information, liquidity and prices in the world’s OTC and exchange-traded currency markets. FX products include spot, forwards, options, exotics and EFP’s (exchange for physicals).
Security
Unlike many countries that do not provide adequate protection for client funds, New Zealand has a strong regulatory framework that is strictly enforced. Client assets are protected by “Segregation” laws where client funds are deposited in segregated bank accounts. This ensures that client assets are never co-mingled.
Further asset protection is enforced in NZ by requiring regulated, licensed companies like WSD to provide professional indemnity insurance coverage for the protection of client and company assets against unforeseeable events that if left uninsured, may result in the loss of client funds.
Under this system, clients are secured to the extent that WSD is regulated under NZ and licensed under both NZ and U.S. laws. The professional indemnity insurance policy in effect acts as an added layer of protection for client assets and is one more important reason why WSD is the right choice for outsourcing your derivatives and FX products and services.
WSD Global Markets LTD (NZ) Limited Accreditations
Authorized Futures and Options Firm by New Zealand Exchange Limited
Authorized and Regulated by the Securities Commission.
Full Broker & Clearing Member of the Dubai Gold Commodities Exchange
WSD Global Markets Limited is a registered branch office of Wall Street Derivatives Inc, USA which is registered as a Futures Commission Merchant (FCM) with the CFTC and a member of the NFA.
WSD: The Right Outsourcing Solution Specialist
Numerous banks face similar dilemmas.
* They have a critical process with increasing cost and decreasing profits
* They require significant investment in new technology in order to compete
* They must decide on spending money on technology investments and human bloating overheads or outsource
Outsourcing Derivatives and FX to a company that specializes in a service to manage resources like WSD will allow your bank to focus on their core competencies and bottom line. Operating costs will be reduced because of the specialized knowledge and economies of scale of WSD’s resources. Capital costs will be reduced because WSD is making the capital investments, not the bank. Furthermore, it’s faster and less expensive to leverage WSD’s existing resources than it is to build it from scratch. By outsourcing FX to WSD, your bank will be able to invest more of its internal resources in core areas and produce exceptional returns.
It is imperative to choose an outsourcing service provider that can put all the pieces together. WSD can provide a comprehensive, fully integrated solution that will benefit your bottom line and allow your bank to remain competitive in the 21st century.
Launch of New Exchange For Commodities Trading Uplifted Singapore’s Image as a Financial Hub
Singapore’s financial market landscape will have a new player by the end of August – the Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product exchange. The Monetary Authority of Singapore (MAS) granted ‘Approved Exchange’ (AE) status to SMX on 12 August 2010, the final approval needed to operate as a regulated and licensed exchange.
SMX offers a comprehensive platform for trading a diversified basket of commodities including futures and options contracts on precious metals, base metals, agriculture commodities, currencies and commodity indices. Four derivatives products will initially be on offer at the SMX namely, West Texas Intermediate and Brent crude oil futures, gold futures and euro-US dollar futures. The SMX’s target is to pick up between 3 and 5 percent of the 7 billion derivatives contracts traded in Asian markets. SMX will be offering Singapore’s first gold futures contract with physical delivery at vaults in Singapore.
SMX’s key agenda is to create a viable Asian price discovery and benchmarking system, Asia which has evolved to become the leading producer and consumer of commodities still concurs with the western markets which are the price setters. Being at proximity to the productions centers and the consumption markets it will facilitate transparent price discovery based on demand supply fundamentals. The state-of-the art electronic trading platform allows for multiple connectivity option and enables vibrant commodity trading within the Asian markets during Asian time zone.
Singapore is already the third largest oil trading center after New York and London, the top bunker port in the world, the fifth largest foreign exchange trading center and the eighth largest center for over-the-counter derivatives, and with the SMX coming live on August 31st, it will play a pivotal role in the commodities market drawing international investors and trading houses to its shores. Singapore is well positioned to transit from being a regional hub to a global commodities trading hub.
Welcoming the exchange, Ms. Rebecca Lee, a senior team member at SingaporeSetup.com said “Singapore as an international financial center aims to establish itself as the Asian commodity trading hub. The new generation international commodity and derivative trading platform is no doubt a significant milestone to this effect. In fact, the government had announced tax incentives in 2004 to promote commodities derivative trading sector in Singapore, and last year the incentive scheme was further enhanced by relaxing certain restrictions on CDT companies and by extending the 5% concessionary corporate tax rate to 2013. The pan-Asian exchange will escalate Asia’s role in the commodities trading market. Most of the international trading houses are turning towards the Asian markets to hedge and Asia will continue to be a major engine of growth for the global commodity market. In this scenario Singapore with its comprehensive industry infrastructure and efficient platforms will remain a preferred destination for investment companies, international trading companies and other financial sector players like brokers, analysts and fund managers”.
LSE chairman heads towards the exit
The London Stock Exchange (LSE) is planning for the exit of Chris Gibson-Smith, its chairman, by sounding out potential non-executive directors about their interest in the role.
View full post on UK Business Stories
Major Futures Trading Exchanges-Chicago Mercantile Exchange, Chicago Board Of Trade & Nymex
Futures trading is one of the ways to make money and grow your wealth overtime. Many people only invest in stocks. However, trading futures contracts like copper, wheat, corn, coffee, soybeans, pork bellies, cattle, crude oil, gold, ethanol, heating, gasoline, silver, interest rates, currencies and others can be highly lucrative.
If you want to profit from commodities than futures trading is the best and direct method of getting access to the commodity market. There are several active futures trading exchanges in the US. Three of the world’s largest futures exchanges are located in Chicago.
The largest futures trading exchange in US is Chicago Mercantile Exchange (CME). A large number of futures contracts get traded on CME that includes commodities, stock index futures, foreign currencies, interest rates, environmental futures and others.
The commodities futures that get traded on CME include live cattle, milk, lean hogs, feeder cattle, butter, limber, pork bellies, Goldman Sachs Commodities Index and fertilizer.
Now, one of the ways to trade stock market is to trade stock indexes like the various S&P 500 like the S&P 500 Midcap, Small Cap as well as the Russell 2000 and the NASDAQ 100. CME provides you with the opportunity to trade futures contracts on these stock indexes as well as their mini versions the E-Minis.
GLOBEX is the Electronic Trading Platform owned by the CME Group that allows the electronic trading of these contracts almost 24 hours a day. So you can easily trade almost all these contracts from the comfort of your home electronically using your computer.
The second most important futures exchange is the CBOT ( Chicago Board of Trade).The futures contracts that are available on CBOT include agricultural futures like the soybeans, ethanol, rice, corn, wheat and others. Mini contracts on corn, soybeans and wheat are also available for trading on CBOT.
Interest rate related futures contracts that get traded on CBOT include Treasury Bonds, FED Funds, spreads, municipal bonds, German debt and swaps. Dow Jones Industrial Average (DJIA) futures popularly known as Dow futures and its E-Mini version plus gold and silver futures and their mini versions also gets traded on CBOT.
Now the best place to trade crude oil, natural gas, gasoline as as well as a host of other energy futures in the NYMEX (New York Mercantile Exchange).This is infact the global hub for energy trading and offers futures contracts on unleaded gasoline, heating oil, electricity, light sweet crude, natural gas, propane and coal.
Futures contract on precious metals like gold, silver, platinum and palladium also get traded on NYMEX. Futures contracts on metals like copper and aluminum also are available on NYMEX.
Mr. Ahmad Hassam has done Masters from Harvard. Download this simple 1 Minute Forex Trading System FREE that makes money anytime. Know this shocking Dow Futures secret that can make you rich!
Commodity Futures Trading / Commodity Options Trading
Commodity trading involves the exchange of primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The products are uniform; one of its quantity or fraction serves the same purpose as any other. Considering the following cases – a barrel of oil, an ounce of gold, and a bushel of wheat – one is pretty much like another. The most extensively traded and most liquid commodities are Oil and Gold.
There are some differences also. This difference is owing to shipping costs, differences in composition, etc. For example, some oil does sell for a diverse price than that from another source. Commodities are usually traded in the form of futures. It can be also traded on spot markets, where the trading is happened immediately in exchange for cash or some other good.
Commodity futures trading, also known as commodity options trading, creates a contract to sell or buy the goods for a fixed price by a certain date in the future. This contract period is the major reason of the huge potential for profit and loss. Future trading also involves all the exciting aspects of trading, as it intrinsically occupies predictions of the future and consequently uncertainty and risk.
The commodity futures trading puts some obligations on the buyers and sellers. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers.
This article is written for www.orientfinance.com. Orient Financial Brokers (OFB) S.L.P. conducts brokerage in Foreign Exchange, Futures, and Commodities in the Middle East.
Futures Exchanges – Knowing Where To Do Business
Good for you! You’ve been reading, you’ve put together a trading rules to lay the foundation for your futures trading plan and you’ve even been paper trading to prove your trading plan. Now you are ready to learn more about where you will be doing your business; it’s time to talk about the futures exchanges.
General Futures Exchange Information
As you know at this point, you will not actually do business with the futures exchanges listed below. You will work with your broker who will take your futures orders to the exchange floor for you. Since you have been paper trading, you probably have already established an account for commodities trading so we won’t go over that again. While there are futures exchanges throughout the world, we will focus on the ones in the US. The markets we will outline are in Minneapolis, Kansas City, New York and Chicago.
History of Futures Exchanges in the US
The modern futures trading began in Chicago, IL in the early 1800s. Chicago, with its location at the base of the Great Lakes, is close to the farm of the U.S. Midwest which made it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused extreme changes in price. An exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the burden of finding a buyer or seller. In 1848, the Chicago Board of Trade (CBOT), the world’s first futures market, or futures exchange, was formed. Trading was originally in futures and the first contract was written on March 13, 1851.
Futures Exchanges
Different futures exchanges trade different commodities. In addition, each future exchange accepts different futures orders. Since not every exchange allows every order it is necessary to talk with you broker about which orders are permitted in the markets you trade. The following is a list of the major commodity exchanges, their commodities, and the orders that they accept:
Chicago Board of Trade
Location: Chicago, IL
Commodities
o Corn
o Oats
o Soybeans
o Soybean Oil
o Soybean Meal
o T-Bonds
o T-Notes
o Muni Bonds
o 5 Year Notes
o 2 Year Notes
o DJIA Index
Acceptable orders: Market, Market on Close, Limit, Stop, and Fill or Kill Orders
Chicago Mercantile Exchange
Location: Chicago, IL
Commodities
o Live Cattle
o Lean Hogs
o Lumber
o Feeder Cattle
o Pork Bellies
Acceptable orders: All futures orders are acceptable.
Index and Option Market
Commodities
o S&P 500
o Mid-cap 400
o NASDAQ 100
Acceptable orders: All futures orders are acceptable.
International Monetary Exchange
Location: Chicago, IL
Commodities
o T-Bills
o Euro Dollars
o Canadian Dollar
o Euro Currency
o Australian Dollar
o Mexican Peso
o Euro Yen
o Japanese Yen
o British Pound
o Swiss Franc
Acceptable orders: All futures orders are acceptable.
New York Comex
Location: New York, NY
Commodities
o Copper
Acceptable orders: For Copper only, acceptable are Market, Market on Close, Limit, Stop, and Fill or Kill.
Commodities
o Gold
o Silver
Acceptable orders: For Gold and Silver, acceptable are Market, Market on Close, Limit, Stop, and Fill or Kill. Stop Limits are acceptable only on a not-held basis.
New York Cotton Exchange
Location: New York, NY
Commodities
o Cotton
o Orange Juice
o Dollar Index
Acceptable orders: Market, Market on Close, Limit, Stop, and Fill or Kill.
New York Coffee, Sugar & Cocoa Exchange
Location: New York, NY
Commodities
o Coffee
o Sugar
o Cocoa
Acceptable orders: All futures orders are acceptable.
New York Mercantile Exchange
Location: New York, NY
Commodities
o Unleaded Gasoline
o Platinum
o Palladium
o Heating Oil
o Crude Oil Natural Gas
Acceptable orders: All futures orders are acceptable.
New York Futures Exchange
Location: New York, NY
Commodities
o New York Stock Exchange Index
o CRB Index
Acceptable orders: All futures orders are acceptable.
Kansas City Board of Trade
Location: Kansas City, MO
Commodities
o Kansas City Value Line
o Kansas City Mini Value Line
Acceptable orders: All futures orders are acceptable.
o Kansas City Wheat
Acceptable orders: Market, Market on Close, Limit, Stop and Fill or Kill.
Minneapolis Board of Trade
Location: Minneapolis, MN
Commodities
o Minneapolis Wheat
o Minneapolis White Wheat
Acceptable orders: All futures orders are acceptable.
Author: Stephen Bigalow
Article Source: EzineArticles.com
Provided by: Duty tariff
The Futures Markets
One hallmark of a free market system is risk. Most producers (as well as consumers) face the risk that prices of goods (or commodities) they produce will change between the time they invest their resources to produce the goods and the time they are ready to sell their output. While in some cases long-term supply contracts at prearranged prices can be made, most prices, especially those of financial assets, commodities, and raw materials, are subject to almost constant fluctuations. Futures markets reduce the uncertainty and risk associated with these fluctuations by allowing market participants to enter into contracts, called futures contracts, which fix the price of a specified asset at a future date.
Futures contracts help the realmarket participants by facilitating hedging and help investors by making speculation easier. A futures contract is an agreement between two traders to exchange an asset at a predetermined future date (called the delivery date) at the “futures price.” In the case of futures markets, the “asset” has been standardized as to the quantity, quality, the delivery point, and the date of delivery. The trade may take place at a “futures exchange” or “over-thecounter” (OTC)-a service provided by many financial institutions. OTC market allows large transactions to take place at lower cost and without the risk of moving the market price. Almost all transactions now take place over the phone or electronically, replacing the close physical contact that used to characterize trading on exchanges.
A futures contract differs from a “spot” contract mainly in terms of the date of execution of the contract: A spot contract is executed immediately after the contract is made whereas a futures contract is executed at a prearranged future date. A futures contract differs from a “forward” contract in that the futures contract is for a standardized asset whereas the asset in a forward contract can be tailor-made. The oldest futures exchange in the United States, the Chicago Board of Trade was established in 1848. Futures contracts in tulips, however, were traded in Holland in the 17th century. Commodities, raw materials, and financial assets including interest rates and currencies form the bulk of the assets traded on the futures markets. There are, however, futures contracts for many exotic assets like weather.
The Chicago Mercantile Exchange offers futures contracts on snowfall, “cooling” or “heating” degree days in the United States, Canada, Europe, or Asia-Pacific, and even a future contracts on hurricanes. Futures markets facilitate the process of “price discovery” by providing information on current and possible future prices as assessed by market participants based on available information. This process is facilitated because futures markets provide improved liquidity and reduce counterparty risk for buyers and sellers of contracts over alternative arenas where comparable contracts could be traded. Improved liquidity comes from standardization of contracts, which makes trading easier for speculators.
Since all the characteristics of an asset have been standardized, a speculator can focus on the single element of the assets that is of interest to him/her-the price. Futures markets reduce the risk for traders by a practice called mark-to-market. Futures exchanges reduce the counterparty risk for a buyer or a seller in two steps. First, the buyer (or seller) of a futures contract enters into a contract to buy (or sell) a futures contract with the futures exchange, not with the trader who may enter into the opposite side of the transaction-in this case, the entity who may sell (or buy) the futures contract. This reduces the nonperformance risk, or the counterparty risk, from that of an unkown (and sometimes a higher-risk) seller to that of an exchange. As long as the buyer believes that the futures exchange will not become illiquid, there is no counterparty risk.
Second, the exchange reduces the nonperformance risk for itself by taking two related steps. First, every buyer (as well as every seller) deposits a “margin” usually equal to 10 percent of the value of the contract with the exchange when the futures contract is bought (or sold). Second, every contract is “marked-to-market” every day. At the end of every trading day, the exchange calculates the current value of the contract. If the price movement during the day has resulted in a loss of the value of the contract, the loss is deducted from the margin and the buyer is sent a “margin call.” This margin call requires the buyer to add funds to the margin so that it once again equals 10 percent of the value of the contract. Similarly, the exchange pays the day’s profits to the buyer of the contract should the price movement have been in favor of the buyer.
Should the buyer not respond to the margin call, the exchange can liquidate the contract on the following trading day and prevent any further losses on the contract. With this practice of marking every contract to market every day, the exchange faces no performance risk unless the price movement during the day exceeds 10 percent against the buyer and the buyer decides to default. Futures markets are regulated by Commodity Futures Trading Commission in the United States. The objective of the regulation is to protect public and market users from fraud, manipulation, and abusive practices. Futures markets contribute to the economic welfare of a society by increasing efficiency through centralization of services to all users of an asset.
They help users of assets in reducing risks by being able to hedge future transactions. They also help the economy by lowing “synthetic securities” to be created, which allow better management of risk, especially of financial risks associated with changes in prices and interest rates. Futures markets, however, are subject to manipulation by large traders. A humorous example of such potential manipulation was illustrated in the Hollywood movie Trading Places, which was released in 1983.
Author: Francesco Zinzaro
Article Source: EzineArticles.com
Provided by: Canada duty rates
My single best tip for Day Trading for profits at home
Your personality could hold the key and in particular one trait discipline. That in my opinion is by far the most crucial factor for being a safe trader. To get consistent profits over a long period a persons discipline will be the thing that stands out.
Discipline is always crucial for people that aim to make a consistent living as a foreign exchange trader.
When the temptation of holding out for larger profits comes when consistent, small amounts are achievable. Then success will be inevitable. Discipline will mean that the small profits you have locked in will be realised, along the way rather then riding waves on emotional and financial stress.
If it is in your nature to have a lack of discipline the foreign exchange trading business is probably the wrong one for you. Sometimes traders will have luck on their side and this will lead to large profits, but in order to trade long term only one approach will work.
To make it as a foreign exchange trader one always requires a disciplined approach. Buying a hundred dollar online course probably will not give them the desired long-term success that they desire. The truth is that if someone can read and take notes through observation and trial and error they have the ability within them to become a successful foreign exchange trader.
By studying financial charts and observing, the patterns they show people can learn a lot. Your method of success will be developed by taking lots of hard but hopefully small losses in the market, and to think you will only have wins is completely delusional.
Emotional discipline and the ability not to change your opinion constantly are crucial. Often new traders change their minds like the wind.
Many people when they start forex trading have trouble with locking in their profits. What I mean by that is most people new to trading financial markets will on occasions’ have a small profit locked in then make the fatal mistake of convincing themselves that the market will continue to trade in their favour.
You do need great discipline to develop your own successful trading methodology. If you write down two words and read them daily it may serve you well. The first word is discipline and the second word emotion. Using discipline with your trading approach each day will ensure that you develop a rigorous process that you can use. By thinking each morning about your emotional state you will be conscious about how you are feeling and crucially the way you are feeling could effect your decision making process.
The pattern that many new foreign exchange traders fall into is one of reaction to events rather then a planned consistent response regardless of market movements. Every single day currencies around the world move continuously and if you have a process your results will be consistent.
Paul Ingersole is an Australian based business person who enjoys writing.Paul discovered a great system that makes small continuous recurring profits using the internet.You can see Google Sniper at Paul’s website Article Source:http://www.articlesbase.com/day-trading-articles/my-single-best-tip-for-day-trading-for-profits-at-home-1687778.html
Day Trading- China opposes EU’s emissions scheme
- A study on Automated Forex Trading and how it works
- Swing Trading System Automated Forex Trading – Many Advantages
- Why You Should Be Using Automated Forex Trading System To Leverage Your Time And Earn a Passive Income while You Sleeping
- Wall Street opens higher Friday fueled by a strong jobs report
- Court rules for Motorola and makes Apple pull iPads and iPhones in Germany
- How an Automated Forex Trading Software Helps You Become a Successful Forex Trader
- Never so divided, never so united
- President Obama lauds as U.S. Senate reigns in insider trading by lawmakers
- U.S. Senate puts lid on multi-million dollar bonuses of Freddie, Fannie
- Business loans
- An error has occurred; the feed is probably down. Try again later.
- Trading 101
- Stocks fall Friday amid European downgrade concerns
- U.S. stocks fall as eurozone worries overshadow jobs news
- Stocks up after jobless claims hit 3 1/2-year lows
- Stocks open lower on eurozone deal doubts
- Dow holds strong gains Wednesday after Fed move
- Stocks slide on euro worries; oil trades over $100 a barrel
- Markets open down Friday despite drop in unemployment rate
- U.S. stocks rally Friday ahead of weekend Eurozone summit
- Apple shares drop 5.3% in Germany following news of Jobs’s death
- U.S. considers fraud investigation into Chinese Internet companies
- Internet Money
- Business Credit Information
- Honda widens recall for airbag problem
- GM CEO: Earnings good, but not good enough
- Chinese companies buying automaker Saab
- Suzuki demands VW return shares after alleged contract breach
- Chrysler has best September since 2007
- Honda recalls million cars worldwide
- General Motors to manufacture plug-in Cadillac ELR plug-in hybrid electric car
- GM earnings soar 92 percent on global sales
- Volkswagen postpones MAN supervisory board takeover
-
