Tag Archives: Forex

Futures

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Standardization of contracts, clearing system, the existence of regulatory oversight and centralization of commerce serve as the basis of futures markets – one of the most efficient, highly organized and competitive pricing systems in the world. All traders are divided into two categories: hedgers and speculators. Hedgers buy and sell futures contracts to protect against risk of adverse changes in the price of the underlying asset in the future. Thus they are able to guarantee yourself a real standard of profitability of its core business operations. Hedging becomes more and more popular all over the world. In the U.S., for example, hedging is a prerequisite for obtaining a number of benefits and subsidies from the government and loans from banks.

Other members of the futures markets are speculative investors who are in search of profits, buy and sell futures contracts to profit from the resale of futures contracts at favorable prices for them. Thus, speculators buy when they expect a rise in prices and sell when the expected fall in prices. Speculative participation in futures trading has become increasingly popular with the development of alternative methods of participation. At that time, as many Futures traders still prefer to make their own decisions, such as what to buy and sell and when to buy and sell, others use the services of professional traders by creating managed trading account or participating in futures funds. Futures contracts are traded may be used in combination with stocks, bonds and other investments to achieve greater diversification and potentially higher overall rate of return. Speculative trading in futures contracts creates the possibility of implementing a substantial profit within a relatively short period of time, but also proportional probability of significant losses. Possibility of realizing large gains or losses relative to the size of the original capital, due to the high degree of leverage existing in the form of speculative investment. Only a small amount of money needed in order to control far more valuable assets. While the futures trade, characterized by a high degree of leverage, attracting investors looking for the possibility of significant profits, it also may not be appropriate for investors with low tolerance for risk.

Comments Commerce

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The rejection of the plan helps the American auto industry. yesterday was enough for the stock market falls around the world, the consequences of rejection could be blanks for the United States, and could extend the recession, while the stock fell, Several traders sold the USD / JPY. The yen reached values than 13 years ago, was around 90.89 and then reach 90.00; lows in the 88.14-the lowest value since 1995. Traders sold the pair, but rumors that the Bank of Japan will intervene in the market and / or the Ministry of Finance, he managed to bring the pair to 90.00. The maximum free night remained changes in 91.87. The book, is under pressure and failed to hold yesterday’s gains, recorded in the minimum and maximum 1.4851 at 1.5120, the new maximum weekly. The euro held steady at 1.3320, after the highs of 1.3407 yesterday in the evening, lows in the 1.3249. Traders want to sell at 1.3410 and at 1.3440, suggesting the short-term top, and the end of the recovery with a possible correction. USD / CHF is back on the 1.1800 to 1.1753 lows, closed firm at 1.1750.

USD / CAD 1.2283 recorded the minimum and maximum at 1.2510. Double awaiting action in the pair, however, technical levels were broken. In my view the USD began Friday with a technical trade. U.S. data to be published today will be negative for the USD, so I think that added pressure on the greenback, but may recover the American currency to end the day.

Good weekend. GBP / USD Resistance 3: 1.5150 Resistance 2: 1.5100/10 Resistance 1: 1.5080 New York: 1.4918 Support 1: 1.4850 Support 2: 1.4740 Support 3: 1.4680 Comments Commerce in both directions despite the recovery of the euro. The pair came under pressure. There were offers of sovereign states. He kept control over the 1.5100 sales, but it will be prudent to wait a bit. At night there was a technical trade as traders defined strategies. Liquidity was moderate. Closed on 1.4850. Monday: No publications Resistance 3: 1.3480/90 Resistance 2: 1.3450 Resistance 1: 1.380/1.3400 New York: 1.3327 Support 1: 1.2750 Support 2: 1.2680 Support 3: 1.2600 Comments The pair managed to gain ground. Maybe the pair begin a reversal, but the pair should be firm in my view 1.3180. It is advisable to go long. Stops are being installed in 1.3420. I do not think that the pair continue falling. Several traders are taking profits despite the prevailing uncertainty. Monday: All times EASTERN (-5 GMT) 24:30 EUR President Trichet will speak Trade foreign exchange (FOREX) involves the existence of losses due to the risk inherent in any transaction.