The U.S. Commodity Futures Trading Commission approved the idea of creating a futures market for the purpose of trading in forecast box-office receipts.
Dubbed the Trend Exchange, it would empower traders and those in the industry to make bets on whether the projected revenue of a movie would reach its estimates.
Veriana Ventures, which has been behind the push to approve of Trend Exchange, says it would be a valuable tool to allow those financing films to hedge their bets and protect themselves; they pointed out it would particularly help smaller studios who struggle to obtain financing.
There is another proposal out there from Cantor Fitzgerald LP for a similar exchange which would be named Cantor Exchange if approved. This would target those wanting to invest from the general public, as there would be lower investment requirements accompanying it. A ruling on that should come next week.
Hollywood is opposing the exchanges, saying they could easily be manipulated.
Showing posts with label Futures. Show all posts
Showing posts with label Futures. Show all posts
Saturday, April 17, 2010
Wednesday, April 14, 2010
Credit Suisse (NYSE:CS) Issuing $66.6 Million in Structured Notes Linked to Commodities
Credit Suisse (NYSE:CS) announced it will be issuing $66.6 million in structured notes which will be linked to the commodities futures index - Standard & Poor’s GSCI.
The GSCI is a benchmark index of 24 raw materials.
Parameters of the structured notes are they will have a floor of 5 percent and a ceiling of 17 percent. Those are guaranteed as long as the index doesn't fall by over 20 percent from the level started at.
J.P. Morgan (NYSE:JPM) is handling the sale of the notes.
The GSCI is a benchmark index of 24 raw materials.
Parameters of the structured notes are they will have a floor of 5 percent and a ceiling of 17 percent. Those are guaranteed as long as the index doesn't fall by over 20 percent from the level started at.
J.P. Morgan (NYSE:JPM) is handling the sale of the notes.
Thursday, February 5, 2009
Commodities: Trading Commodities
Just like in trading equities or any other investment, an investor without a long term outlook and time horizon will far underperform those that are in it for the longer term. Trading commodities is no different, as those going in and out of the market find themselves on the loosing end of deals, and wonder why other commodity futures traders are so successful while they linger on the sidelines licking their wounds.
It doesn't matter if it's trading currencies, agriculture futures or precious metals futures, it's all the same. Those measuring success in short term increments will find themselves never making any money, and only looking for someone to balme for their wrong decisions.
Commodities markets are no different than any other investment market, and we need to do our homework and have a solid handle on what commodity or commodities were investing in.
Whether its gold or silver futures, wheat or corn futures, or platinum or palladium futures, it's all the same. Understand what it is that relates to the underlying fundamentals and invest accordingly.
No matter what commodities exchange you're working with, commodities brokerage or broker, if you don't have a long term outlook and investigate the commodity or commodities you're interested in, you're going to fail miserably and not understand why.
Check out the commodity news and commoditey charts, look for patterns and changes in commodity demand and surplus. Look for any information on the commodity you're going to invest in, and make a decision on whether you want to invest in options or futures. You could in the case of ETFs of course go that route.
Commodity futures trading or commodity options trading isn't for the faint of heart, which is why it's even more important not to just throw your money at something hoping it will stick. If you don't have the time or are clueless, research commodity brokerages and individual commodity brokers to see which is the best fit for your desired strategy and risk tolerance. Also don't throw all your money into one commodity trade, as you could lose it all.
Over the long term, gold commodities, silver commodities, oil commodities look good for futures rising, while over the longer term a number of grain like wheat commodities, corn commodities and soybean commodities should perform well as middle classes grow in Asian countries.
Gas as a commodity investment should also do well over the long term.
The U.S. dollar is not a place you want to place your money, as over the long haul it's going to be under tremendous downward pressure, and other currencies would be better to invest in if you're interested in the currency sector.
Commodity funds, commodity investments, commodity indexes, commodity stocks, commodity exchanges, ETFs, commodities prices and so on, are going to rise, and will outperform in general all other investment vehicles and sectors over the next five to ten years. There will obviously be individual commodities that won't partake in that success, which is why learning to be a futures trader or options trader and understanding the overall commodity market in relationship to supply and demand is so important.
Taking a consistent look at gold as a commodity people are looking to park their money safely, as well as the commodity silver is a must going forward. Both of those should do well in the near and long term.
Commodities will continue to be hot, and those who prepare and are ready and willing to take the risk, should experience extraordinary success in commodity options, futures, funds and ETFs in the near and long term.
It doesn't matter if it's trading currencies, agriculture futures or precious metals futures, it's all the same. Those measuring success in short term increments will find themselves never making any money, and only looking for someone to balme for their wrong decisions.
Commodities markets are no different than any other investment market, and we need to do our homework and have a solid handle on what commodity or commodities were investing in.
Whether its gold or silver futures, wheat or corn futures, or platinum or palladium futures, it's all the same. Understand what it is that relates to the underlying fundamentals and invest accordingly.
No matter what commodities exchange you're working with, commodities brokerage or broker, if you don't have a long term outlook and investigate the commodity or commodities you're interested in, you're going to fail miserably and not understand why.
Check out the commodity news and commoditey charts, look for patterns and changes in commodity demand and surplus. Look for any information on the commodity you're going to invest in, and make a decision on whether you want to invest in options or futures. You could in the case of ETFs of course go that route.
Commodity futures trading or commodity options trading isn't for the faint of heart, which is why it's even more important not to just throw your money at something hoping it will stick. If you don't have the time or are clueless, research commodity brokerages and individual commodity brokers to see which is the best fit for your desired strategy and risk tolerance. Also don't throw all your money into one commodity trade, as you could lose it all.
Over the long term, gold commodities, silver commodities, oil commodities look good for futures rising, while over the longer term a number of grain like wheat commodities, corn commodities and soybean commodities should perform well as middle classes grow in Asian countries.
Gas as a commodity investment should also do well over the long term.
The U.S. dollar is not a place you want to place your money, as over the long haul it's going to be under tremendous downward pressure, and other currencies would be better to invest in if you're interested in the currency sector.
Commodity funds, commodity investments, commodity indexes, commodity stocks, commodity exchanges, ETFs, commodities prices and so on, are going to rise, and will outperform in general all other investment vehicles and sectors over the next five to ten years. There will obviously be individual commodities that won't partake in that success, which is why learning to be a futures trader or options trader and understanding the overall commodity market in relationship to supply and demand is so important.
Taking a consistent look at gold as a commodity people are looking to park their money safely, as well as the commodity silver is a must going forward. Both of those should do well in the near and long term.
Commodities will continue to be hot, and those who prepare and are ready and willing to take the risk, should experience extraordinary success in commodity options, futures, funds and ETFs in the near and long term.
Wednesday, February 4, 2009
Commodities: Choosing Commodities Futures Broker
Commodities over the next five to ten years will outperform the majority of other investments by a long shot, and so it's extremely important to understand the sector, how it operates, and the best way to invest in them. To that end, let's look at one key element involved in your successful entry as a commodity trader into the sector: choosing a commodities broker or commodities futures brokers.
Just so you don't get confused, you may hear a commodities broker called a futures broker, commodity futures broker, commodity or commodities broker, or a commodities brokerage. Either way, when you hear those terms and other forms of them, it's referring to those who can help you make decisions and execute the proper trades.
One key thing to keep in mind is you're choosing two things when looking a trading commodity options or futures. You're choosing a commodity futures brokerage company, as well as an individual commodities broker within that firm. Both are important decisions going forward.
Of course if you're experienced to a certain degree and understand the various elements of trading in commodity futures and options already, you could simply trade through an online commodity brokerage at very low prices per trade. But this article assumes you prefer to use a live human commodity broker, not the internet.
So what should be considered in making a decision on choosing a commodities futures broker? Like almost any other type of investing or business, you want to check into the length of time they've been in business, if there are any ethics violations that were substantial (in finance there will always be disgruntled people complaining when they lose money). I'm talking here about real ethics violations that are either criminal or show a lack of concern about the client. Also a commodity brokerage firm needs to be competitive on commissions, unless they've shown they have outperformed their rivals in such a way as to deserve high commissions. And lastly, you need to know what types of services the futures or options brokerage offers.
As far as ethics go concerning choosing a commodities futures brokerage firm, the best thing to do is check with the National Futures Association to see if there have been any disciplinary actions taken against the futures firm.
While this could happen to any brokerage company in general, it is in your best interests to ask your potential commodities broker to explain what brought the complaint and how it was resolved. Many times, as I mentioned, disgruntled commodity traders that lost some money complain simply because they lost some money.
One thing to be careful when checking out a commodities brokerage is the number of years they've been in business. If you check them out and find a clean record, all that may mean is the commodity brokerage hasn't been in business long enough to have the inevitable complaints that come against it.
So if you look for a futures brokerage that has been around for about five years or longer, you can be assured that they at minimum know how to run a business, and should have a track record of arbitration over complaints from clients. It's not that they have complaints that should worry you (as long as they're not in abundance) but how they handled the complaints and how the aritrators ruled.
Because some commodities brokerage firms can settle disputes before they are presented to the NAF, and so their complaint record could look "clean," you should perform due diligence with those you know who may be trading options or futures with the company, or go to industry organizations like the National Introducing Brokers Association to aid you in your search.
As far as commissions charged by a commodity futures broker, that's probably the least factor to consider when trading commodity options or futures. It may be more profitable if you're starting out in trading commodities to use a more experienced, and probably more expensive commissioned commodities brokerage firm.
When you learn the ropes and take care of doing your own homework, you could then trade with discount commodity futures firms which can save you a significant amount of money if you make a lot of options or futures trades.
One thing to be aware of in connection to commissions is in how the commodities brokerage or commodities futures broker handles the way they encourage you to invest or trade commodity options or futures.
There's a practice called churning, where the commodity broker continue to invest your money in options in order to earn commissions, and do little if anything to make you money. If you're charged above $90 for a round-turn, or even above $100, be very cautious of using the firm and trusting your money with them.
In most commodity investment firms you can get by with $85 a round turn or less, so go with them, as they're as reputable as any.
Another thing to look for with these types of companies is their fixation on commodity options, which require your money upfront and not on the backend. This is why these types of firms push you toward options, as they generate more money for them because of the upfront costs, so they don't have to wait for the backend.
You also get no possibility of margin calls or deficits because of the utilization of options. This doesn't mean investing in options is wrong or unethical, just that unethical companies push many people disportionately into the sector, and not much more than separating them from their money happens, as they continue to "churn" or turn over their money, gaining a commission each time the practice is enacted.
Although these types of commodity futures brokerages could be anywhere in the USA, the majority are on the east coast of southern Florida or in the Los Angeles region.
After selecting a commodity brokerage options and futures company, then comes the important part of making a decision on who your individual broker will be.
The two most important aspects here are experience and knowledge of commodities markets, and absolute honesty and integrity.
Because you should be looking at a long term relationship with a commodities futures broker, you should also fell like that individual is able to communicate well with you, so personality could be a secondary element of importance. The reason that's so important with a futures broker is even if you're doing farely well with you investments, you could start to have doubts if open communication isn't one of the strengths of the broker.
From there, make sure you communicate your goals and purpose for investing in futures or options, as they could even change from trade to trade, depending on why you're entering the commodities market.
Finally, in choosing a broker make sure they're knowledgeable about whatever commodities options or futures sector you want to invest in. You don't want him to be good in grains but not know about precious metals. You want him to be good in both if that's part of your commodity investing strategy.
So choose you commodity futures trading firm well, and zero in on the commodity futures broker even more once that is completely. Commodities are going to outperform other investment sectors in the years ahead, and those with a long term strategy and who do their homework will be much more successful than those that don't.
Just so you don't get confused, you may hear a commodities broker called a futures broker, commodity futures broker, commodity or commodities broker, or a commodities brokerage. Either way, when you hear those terms and other forms of them, it's referring to those who can help you make decisions and execute the proper trades.
One key thing to keep in mind is you're choosing two things when looking a trading commodity options or futures. You're choosing a commodity futures brokerage company, as well as an individual commodities broker within that firm. Both are important decisions going forward.
Of course if you're experienced to a certain degree and understand the various elements of trading in commodity futures and options already, you could simply trade through an online commodity brokerage at very low prices per trade. But this article assumes you prefer to use a live human commodity broker, not the internet.
So what should be considered in making a decision on choosing a commodities futures broker? Like almost any other type of investing or business, you want to check into the length of time they've been in business, if there are any ethics violations that were substantial (in finance there will always be disgruntled people complaining when they lose money). I'm talking here about real ethics violations that are either criminal or show a lack of concern about the client. Also a commodity brokerage firm needs to be competitive on commissions, unless they've shown they have outperformed their rivals in such a way as to deserve high commissions. And lastly, you need to know what types of services the futures or options brokerage offers.
As far as ethics go concerning choosing a commodities futures brokerage firm, the best thing to do is check with the National Futures Association to see if there have been any disciplinary actions taken against the futures firm.
While this could happen to any brokerage company in general, it is in your best interests to ask your potential commodities broker to explain what brought the complaint and how it was resolved. Many times, as I mentioned, disgruntled commodity traders that lost some money complain simply because they lost some money.
One thing to be careful when checking out a commodities brokerage is the number of years they've been in business. If you check them out and find a clean record, all that may mean is the commodity brokerage hasn't been in business long enough to have the inevitable complaints that come against it.
So if you look for a futures brokerage that has been around for about five years or longer, you can be assured that they at minimum know how to run a business, and should have a track record of arbitration over complaints from clients. It's not that they have complaints that should worry you (as long as they're not in abundance) but how they handled the complaints and how the aritrators ruled.
Because some commodities brokerage firms can settle disputes before they are presented to the NAF, and so their complaint record could look "clean," you should perform due diligence with those you know who may be trading options or futures with the company, or go to industry organizations like the National Introducing Brokers Association to aid you in your search.
As far as commissions charged by a commodity futures broker, that's probably the least factor to consider when trading commodity options or futures. It may be more profitable if you're starting out in trading commodities to use a more experienced, and probably more expensive commissioned commodities brokerage firm.
When you learn the ropes and take care of doing your own homework, you could then trade with discount commodity futures firms which can save you a significant amount of money if you make a lot of options or futures trades.
One thing to be aware of in connection to commissions is in how the commodities brokerage or commodities futures broker handles the way they encourage you to invest or trade commodity options or futures.
There's a practice called churning, where the commodity broker continue to invest your money in options in order to earn commissions, and do little if anything to make you money. If you're charged above $90 for a round-turn, or even above $100, be very cautious of using the firm and trusting your money with them.
In most commodity investment firms you can get by with $85 a round turn or less, so go with them, as they're as reputable as any.
Another thing to look for with these types of companies is their fixation on commodity options, which require your money upfront and not on the backend. This is why these types of firms push you toward options, as they generate more money for them because of the upfront costs, so they don't have to wait for the backend.
You also get no possibility of margin calls or deficits because of the utilization of options. This doesn't mean investing in options is wrong or unethical, just that unethical companies push many people disportionately into the sector, and not much more than separating them from their money happens, as they continue to "churn" or turn over their money, gaining a commission each time the practice is enacted.
Although these types of commodity futures brokerages could be anywhere in the USA, the majority are on the east coast of southern Florida or in the Los Angeles region.
After selecting a commodity brokerage options and futures company, then comes the important part of making a decision on who your individual broker will be.
The two most important aspects here are experience and knowledge of commodities markets, and absolute honesty and integrity.
Because you should be looking at a long term relationship with a commodities futures broker, you should also fell like that individual is able to communicate well with you, so personality could be a secondary element of importance. The reason that's so important with a futures broker is even if you're doing farely well with you investments, you could start to have doubts if open communication isn't one of the strengths of the broker.
From there, make sure you communicate your goals and purpose for investing in futures or options, as they could even change from trade to trade, depending on why you're entering the commodities market.
Finally, in choosing a broker make sure they're knowledgeable about whatever commodities options or futures sector you want to invest in. You don't want him to be good in grains but not know about precious metals. You want him to be good in both if that's part of your commodity investing strategy.
So choose you commodity futures trading firm well, and zero in on the commodity futures broker even more once that is completely. Commodities are going to outperform other investment sectors in the years ahead, and those with a long term strategy and who do their homework will be much more successful than those that don't.
Tuesday, February 3, 2009
Commodity Futures and Fortunes
Commodities are going to be increasingly important in the years ahead; both as a hedge and as an investment. No matter what happens in the world, people will need raw materials and food, and that means the growing middle class in China and India, as well as other Asian countries, will drive a lot of the commodity futures prices in the short and long term.
That means that gold futures, oil futures, sivler futures, and commodities and futures of all sorts will be extremely profitable for those that do their homework and are patient in their commodities investments.
While there will always be commodities speculators in the market, those that are investing in commodity futures to make predictable profits, are those that have a long term outlook, which eliminates much of the price fluctuation connected to commodity futures and options coming from those speculators moving in and out of the markets.
Those investing in commodities in the short term run much higher risk than those looking at the long haul, just like those investing in equities. Commodity futures and options over the long term in the current global market have a more predictable pattern than maybe any other time in futures trading, because of the booming Asian markets which will need many things that it can now afford, in contrast to the past when the need was there but not the means.
Also benefitting now and in the future will be commodity futures brokers who will be increasingly looked to for advice in the realitively unknown area for most commodities trader wannabees.
Another potential beneficiary will be those in business who depend on trading in commodity futures to ensure they get their raw materials to operate their business, as well as lock in a price they can count on in the future.
While that could obviously backfire in the sense that the price could be less in the future than the commodity futures trader wanted, it still guarantees they'll receive their shipment if supply drops in relationship to demand, which the future pretty much guarantees.
If I was a commodity broker, I would be putting together some training or lessons that potential commodities investors just entering the market would find easy to understand. People overall don't understand commodity options and futures, so those commodity brokers ready and able to make it easy and simple to understand, will gain a lot of the upcoming commodity trading business that wasn't there before.
In other words, there's going to be a lot of new investors wanting and needing to learn how to trade commodities. The futures brokers ready for them will do a ton of new commodity futures and options business, and will do their clients a great service.
It seems most commodity futures brokers should be ready to explain the value of having a long term outlook concerning their futures contracts, and that the various forces that can impact prices make that a necessity for success over the long haul.
Those new to investing in commodities will need to understand that everything from weather, acreage, demand, scarcity and politics all play a role in determing upward or downward price movement in commodity prices.
With the U.S. dollar also ready to start plunging, it would be smart for futures brokers to be ready to put their clients' money into currencies that are ready to move upwards against the dollar, as well as into gold futures which will assuredly skyrocket going forward. Silver futures and oil futures should also enjoy upward movement for some time.
So looking ahead, those businesses, brokers, investors and farmers connected to commodities should enjoy unprecedented prosperity. Like anything else though, those best prepared and who have done their homework will be the most profitable in the ongoing commodity bull market.
Whether it be oil or gas futures; gold and silver or other precious metals; grains or livestock; currencies like the yen or yuan; or if commodity trades are done on the internet or whether you're a broker, farmer, or investor, those participating in trading in commodity options and futures from whatever side of the sector, should be wildly successful and build significant wealth and fortunes.
Commodity investing and futures trading demands discipline and courage, as well as doing your homework. No matter what part you play in the overall field, be ready for the raging commodity bull market about to ramp up again, as the raising middle classes in Asian countries look to raise their standard of living by the increasing demand they're able to afford.
From mining companies, farmers, business owners and countries, those best prepared and ready to run will enjoy extraordinary success as demand for raw materials is the largest it has ever been in the history of the world.
So we need to be prepared from whatever place we're in in relationship to investing in commodity futures and options, and watch as commodity prices surge as unprecedented demand carries everyone to heights they never imagined.
Those with long term outlooks and prepared for the upcoming period of time will be those benefitting most from the trading of commodities, including the commodity brokerages, brokers and businesses hedging their bets and locking in predictable prices and product they can make future plans with.
Commodities traders and investors will be the largest group of the wealthy in the years ahead, and will out perform all other financial sectors overall. Commodity prices will rise, and so will the wealth of those having the guts to grab the future which is assuredly coming.
That means that gold futures, oil futures, sivler futures, and commodities and futures of all sorts will be extremely profitable for those that do their homework and are patient in their commodities investments.
While there will always be commodities speculators in the market, those that are investing in commodity futures to make predictable profits, are those that have a long term outlook, which eliminates much of the price fluctuation connected to commodity futures and options coming from those speculators moving in and out of the markets.
Those investing in commodities in the short term run much higher risk than those looking at the long haul, just like those investing in equities. Commodity futures and options over the long term in the current global market have a more predictable pattern than maybe any other time in futures trading, because of the booming Asian markets which will need many things that it can now afford, in contrast to the past when the need was there but not the means.
Also benefitting now and in the future will be commodity futures brokers who will be increasingly looked to for advice in the realitively unknown area for most commodities trader wannabees.
Another potential beneficiary will be those in business who depend on trading in commodity futures to ensure they get their raw materials to operate their business, as well as lock in a price they can count on in the future.
While that could obviously backfire in the sense that the price could be less in the future than the commodity futures trader wanted, it still guarantees they'll receive their shipment if supply drops in relationship to demand, which the future pretty much guarantees.
If I was a commodity broker, I would be putting together some training or lessons that potential commodities investors just entering the market would find easy to understand. People overall don't understand commodity options and futures, so those commodity brokers ready and able to make it easy and simple to understand, will gain a lot of the upcoming commodity trading business that wasn't there before.
In other words, there's going to be a lot of new investors wanting and needing to learn how to trade commodities. The futures brokers ready for them will do a ton of new commodity futures and options business, and will do their clients a great service.
It seems most commodity futures brokers should be ready to explain the value of having a long term outlook concerning their futures contracts, and that the various forces that can impact prices make that a necessity for success over the long haul.
Those new to investing in commodities will need to understand that everything from weather, acreage, demand, scarcity and politics all play a role in determing upward or downward price movement in commodity prices.
With the U.S. dollar also ready to start plunging, it would be smart for futures brokers to be ready to put their clients' money into currencies that are ready to move upwards against the dollar, as well as into gold futures which will assuredly skyrocket going forward. Silver futures and oil futures should also enjoy upward movement for some time.
So looking ahead, those businesses, brokers, investors and farmers connected to commodities should enjoy unprecedented prosperity. Like anything else though, those best prepared and who have done their homework will be the most profitable in the ongoing commodity bull market.
Whether it be oil or gas futures; gold and silver or other precious metals; grains or livestock; currencies like the yen or yuan; or if commodity trades are done on the internet or whether you're a broker, farmer, or investor, those participating in trading in commodity options and futures from whatever side of the sector, should be wildly successful and build significant wealth and fortunes.
Commodity investing and futures trading demands discipline and courage, as well as doing your homework. No matter what part you play in the overall field, be ready for the raging commodity bull market about to ramp up again, as the raising middle classes in Asian countries look to raise their standard of living by the increasing demand they're able to afford.
From mining companies, farmers, business owners and countries, those best prepared and ready to run will enjoy extraordinary success as demand for raw materials is the largest it has ever been in the history of the world.
So we need to be prepared from whatever place we're in in relationship to investing in commodity futures and options, and watch as commodity prices surge as unprecedented demand carries everyone to heights they never imagined.
Those with long term outlooks and prepared for the upcoming period of time will be those benefitting most from the trading of commodities, including the commodity brokerages, brokers and businesses hedging their bets and locking in predictable prices and product they can make future plans with.
Commodities traders and investors will be the largest group of the wealthy in the years ahead, and will out perform all other financial sectors overall. Commodity prices will rise, and so will the wealth of those having the guts to grab the future which is assuredly coming.
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