The trading of traditional futures contracts, from grains to gold, was essentially developed as a way of managing risk. Along the way, investors gained a window into what those underlying commodities were worth on any given day, which brought more funds and liquidity into a marketplace.
The buying and selling of securities in the contemporary financial environment is a multifaceted discipline. People from all walks of life participate in the markets, creating a diversity of strategies and objectives.
Perhaps the oldest standardized mode of trade involves the swapping of foreign currencies. Exchanging one form of money for another has long been an unavoidable aspect of travel, as well as a speculative endeavor. Whether you’re a professional arbitrager or simply striking out abroad, the currency trade is an indispensable component of international commerce.
Over the course of 2017, cryptocurrency trading went from being a fringe concept to the financial mainstream. People from around the globe have warmed to the notion of exclusively digital forms of money, as have active traders. The result has been the birth of a brand new asset class.
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.