Established in the mid-1970s, the U.S. Commodity Futures Trading Commission (CFTC) is the go-to authority for American exchange-traded derivatives. Established by the Commodity Futures Trading Commission Act of 1974, the CFTC is the regulatory body of U.S.-based futures and options markets. Exchanges, commercial banks, clearinghouses, brokers, and traders are all subject to CFTC’s oversight. If… Read more.
The Commitment of Traders (COT) Report is conducted by the Commodity Futures Trading Commission (CFTC) detailing the open interest in each futures and options on commodities markets containing 20 or more traders holding position sizes large enough to meet the CFTC’s reporting level.
Daniels Trading Senior Broker Kurt Pfafflin was quoted in The Wall Street Journal/WSJ.com article(s) titled “U.S. Probes Gold Pricing.” The article examines an internal discussion at the CFTC as to whether prices are being manipulated in the world’s largest gold and silver markets, especially in light of revelations uncovered in the recent LIBOR scandal. The… Read more.
The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly: Euro 57.6 % weight Japanese yen 13.6 % weight Pound sterling 11.9 % weight Canadian dollar 9.1 % weight Swedish krona 4.2 % weight Swiss franc 3.6 % weight The US Dollar… Read more.
Part Three: Caveat Ideally, a trade room should flow like King Arthurs “round table”. Everyone should have an equal say, while having a king (moderator) ultimately set the tone. Role of Moderator All rooms will have some type of moderator in place that controls the forum. Whether they are the actual owner of the trade… Read more.
U.S. federal investigators have launched a probe of the nation's first case of mad cow disease since 2006, which was announced earlier this week in Central California, according to Bloomberg. Specifically, the Commodity Futures Trading Commission – which regulates U.S. derivatives – is delving into how and when the information was released. The U.S. Agricultural… Read more.
As you start following the futures markets, you will find that brokers, traders, and individuals in the futures/commodities industry have certain “speak”. Much like the military, where exotic terms for everything are the norm, traders have their own language that could confuse a beginner. Specific market terms are difficult to comprehend at first but are… Read more.
Futures contracts, including trading in crude oil futures, are financial instruments that carry with them legally binding obligations. Buyer and seller have the obligation to take or make delivery of an underlying instrument at a specified settlement date in the future. Oil futures are part of the derivatives family of financial products as their value… Read more.
I frequently talk with investors who are attracted to the opportunity and excitement of trading futures but afraid of the risks associated with the markets because they have limited knowledge of how the futures markets work. Being a 21st century investor requires the flexibility to use all the opportunities available in order to diversify your… Read more.
For some, it might feel like 1980 again – that's the year that the Hunt Brothers, in an attempt to corner the silver market, drove the price all the way to $50 per troy ounce before being forced to unwind massive derivatives positions. Their inability to meet margin calls helped blow up the silver market… Read more.