The astronomer Carl Sagan once said there was no such thing as a dumb question. And that’s because the worst thing you can do is not ask all the questions necessary to obtain vital information. This is particularly apt when you are considering working with a commodity trading advisor, or CTA, in a managed futures… Read more.
Not too long ago, computer-based trading was limited to the institutional participants of the futures markets. Investment banks, money managers, and proprietary firms were among the few parties benefiting from exclusive technological capabilities. Over time, rapid advancements in exchange connectivity and computing power have brought the potential of trade automation to the masses. As a… Read more.
In commodity futures markets, gold, oil and corn typically grab the headlines, especially whenever there’s a surge in demand, concerns over supply or worries about political developments. Meanwhile base metal commodities — such as copper, aluminum, zinc, tin and lead — are perceived by some investors as the dowdy cousins in the sector. But in… Read more.
“Location, location, location,” is the well-known adage that underlines investing in real estate. And that’s because buyers need to protect their investment after making such a large outlay of funds. But when building an investment portfolio, perhaps “diversification” is the watchword to emphasize. Why? Because it’s one of the best-known ways to reduce your financial… Read more.
The futures markets are dynamic, ever-evolving environments. Securing the services of a competent brokerage firm is a necessity when attempting to navigate the ultra-competitive arena of active futures trading. Selecting the best futures broker for your needs can be a complicated task. In addition to low commissions and eager customer support, many trade-related factors must… Read more.
One of the greatest advantages afforded to traders who actively engage the futures markets is the ability to satisfy a wide range of objectives or goals. From actively managing the degree of risk facing an investment portfolio to speculating on forthcoming asset pricing volatilities, futures trading offers many diverse opportunities and benefits to market participants. Let’s examine three major types of trades.
When you look at futures trading, it may appear that there is a never-ending tug of war between the profit-seeking speculators and the ever-so-careful hedgers. Actually, the two factions are the ultimate odd couple: They cannot live without each other, even though they each pursue markedly different objectives. In short, hedgers and speculators both help… Read more.
Before entering the world of futures trading, investors must take the time to understand how contracts in the sector work and how they differ from trading in other, more mainstream asset classes, such as stocks and bonds. Let’s begin with a simple definition of a futures contract.
The current futures marketplace offers many advantages to investors interested in preserving or increasing their wealth via capital investment in the financial system. Diverse asset-classes, high degrees of liquidity, limited fee structures and readily accessible markets have made futures a great way of diversifying an investment portfolio.
From coffee and crude oil to S&P 500 futures and Treasuries, many different types of markets are available to futures investors.