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Commodities
Spot and derivative markets for trading goods which are uniform in all aspects
845 Questions
Does the Plunge Protection Team exist?
The Working Group on Financial Markets (colloquially the Plunge Protection Team) was established explicitly in response to events in the financial markets surrounding 19th October 1987, known as Black Monday.
They were to give recommendations for solutions for "enhancing the integrity, efficiency, orderliness, and competitiveness of financial markets and maintaining investor confidence".
Why does a commodity futures market exist within the broader commodities market?
The commodity futures market was invented to stabilize the market for consumers of bulk commodities. If you make breakfast cereal and you use a million bushels of wheat a year, it's nice to know you can get the wheat you need and nicer to know what it will cost. Futures eliminate uncertainty.
How much does a derivative trader earn in an year?
Hello, I work as a Derivatives Trader in Chicago
The problem is that compensation levels for our field are very random and there's also a lot of roles that could be considered "Derivatives Trader"
You could mean
A Discretionary options trader for a proprietary firm
A Flow Trader at an investment bank
An Algorithmic trader at a Quant house
Keep in mind a lot of these methods are merging the trading business is an ever changing animal. I can only really give you my own compensation numbers.
I work as a first year trader at a chicago proprietary firm that specializes in fixed income, commodities, and index futures as well as listed equity derivatives (the only thing we dont trade is currency)
In Trading the longer you work for a company, the better your P&L, etc the better your salary will be.
My first year expected earnings will be about 170,000. This probably isn't typical, I've had a really amazing year.
Where can you buy and sell gold bullion?
The U.S. Mint lists on its site hundreds of coin dealers that will sell you gold or silver. You can find the site here: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=lookup
Just put in your state and see what dealer may be near you.
The real question is, what type of gold do you buy? It's very easy to get ripped off by some of these coin dealers as they prey on the fact that most don't know anything about investing in gold.
I wrote a free White Paper called "How Gold Investments Can Secure Your Retirement" that can give you some insights. You can find it here: www.fedupbook.com/whitepaper
What is the toll-free number for LTD Commodities?
They do not have a toll-free number. it is long distance
What do you mean by price fix hedge in commodity trading?
A price-fix hedge enables an importer or an exporter to lock into a future price for a commodity planned for import or export without "actually having a crystallised physical exposure to the commodity.
In addition taking into consideration the definition of commodities in financial investment like Forex, water is not a commodity. Commodities are unique, valued and monetized. What makes commodities valuable to the exchange market is the availability of it in a larger quantity with rich features in a region and lesser or no availability of it in another region. For example Gold is found vastly in South Africa compared to other regions in the world. This makes it a valuable commodity in the exchange market for buying, selling and keeping as monetary reserve. However water cannot be viewed in this manner because it is predominantly found everywhere not like Crude oil.
What are the drawbacks in commodity futures trading?
The main disadvantages are:
1. Leverage. Can be a disadvantage if it encourages trading with too high a risk for a particular strategy. A carefully devised money management plan is essential.
2. Overtrading. The instant nature of electronic futures trading coupled with low commission costs and tight spreads can encourage a trader to take additional trades to those determined by their trading plan.
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Futures are more expensive to start with than Options, but Futures also make you more of a profit. Rich people have been investing in futures and options forever, and most people don't realize that you can do it as well with a relatively small investment.
The best way to increase your possible profit, and limit your losses is to use the "straddle" method. This is where you bet the price will go up as well as down. You will lose one way, but win on the other. Also, it doesn't matter to you if the price goes up or down, because you can make money on either one. To do this effectively, when you place your order with the broker (which should be between 10AM-12PM EST or 2PM-3:30PM EST), make sure you say: *EXAMPLE* "I want to buy the November Crude oil future at 5105 and sell the December Crude Oil future at 5095." "I also want a stop-loss on EACH position 50 points from entry." Once the price moves 60 points+ in either direction, call your broker back IMMEDIATELY and tell them "I want to place a trailing stop loss on my Daily US Light Crude open position activated at 60 points above open and trailing by 10 points."
This now ensures that you can not lose money, but only break even worst case scenario. You gain 50 points one direction, you lose 50 points the other, and the remaining 10 points will cover the broker's fees for the trades. If you are watching the market closely, you should be able to decide when is a good time to unload and make an easy profit. Hopefully this helps. Good luck, and Happy Trading!
What is the difference between product and commodities?
In marketing, a product is anything that can be offered to a market that might satisfy a want or need. Like something PRODUCED.
A transportable article of trade or commerce, especially an agricultural or mining product.
Like rice, or wood.
The price of copper in 2010 is about 3.50 USD/lb or 0.20 USD/oz.
What does it mean that the futures contracts are in contango?
The simple answer: When the the futures contract price is higher than the expected spot price when the contract becomes due, or during the lifetime of the contract. When the contract becomes due, the price should be exactly or very close to the spot price (the price of the commodity right now) on the day that it is due. But more often than not, this is not the case. So there would be a decline in prices as the contract approaching the last trading day (or even last minutes of trading that day) as the 'future price' is then matched to meet the spot price.
Non-perishable commodities such as oil or gold are typically contango, as it would cost money to insure, store, etc the underlying commodity. This would make the 'future' price of a contract 12 months from now greater than the spot price to buy the same barrel of oil today. Remember, one of the objectives of futures contracts is for suppliers to lock in a price to guarantee that they will have xx barrels of oil, gold, etc in the future at $yy.yy sales price today.
Contango is just an adjective that describes the actual phenomena of the futures price falling to line up with the spot price as the contract approaches maturity.
The opposite of contango is backwardation.
What is the ticker symbol for gold futures?
GCA is active 100oz COMEX contract. Use this to figure out specific expiration dates.
What is the market price in the stock market?
The market price is the current amount the stock is selling at on the New York Stock Exchange, the AMEX or any other global exchange.
Is there security transaction tax on commodity or not?
There is a tax similar to STT and it is called Commodity Transaction Tax. The CTT is applicable @ the same rate of 0.017% (like STT) chargable on the value of trade.
What is the name of the catalog that is similar to ABC distributing catalog?
LTD Commodities and Lakeside Collection
Will the bullion prices crash in the near future?
It depends on what is meant by "crash?" Take platinum, for instance. If you look at the price of platinum a couple of months back, it was $2500 at spot. Now, it's a little under $900, which is around a 60% drop. If that's not a crash, I don't know what is. Keep in mind, though, that the the movement of the stock market has a dramatic impact on precious metals prices. Spot prices are low, but premiums are high. This has created extraordinary profit opportunities in the precious metals market. For this reason, now is actually a terrific time to buy precious metals.
Yes, but I don't think you want to. Its spot price was $10,600 per ounce over the summer; its current spot price is under $800.
Congressional 1989 6 coin set what is it worth?
The value of a Congressional 1989 6 coin set varies depending on several factors. For example, if the set is in mint condition, it has the potential to be worth $150 or more, while sets in lesser condition are worth dramatically less.
Lack of profit in the introductory stage of the product life cycle is very often the result of what?
Large investment costs in product development
what political factors affect the retail industry in aystralia
