How to profit from commodity futures
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How can you make profit from commodity futures.?
This is the question often asked by investors who are trading in commodities futures.
If you are planning an investment in commodity futures, you should understand the different investment strategies involved.
In futures trading, commodities are mainly classified into two, according to the nature of the commodity — metals and energy and agro commodities. Compared to metals and energy, price movement in agro-commodities is fully influenced by the climatic conditions, supply-demand scenario, government policies etc. But in case of metals and energy, we have also to consider the economic conditions, especially the leading economic builders and geopolitical conditions.
To trade in agro commodities, you should understand their seasonal and off-seasonal movements at national and international levels. You should also know the demand-supply scenario of the agri producing-consuming countries.
Seasonal and off seasonal movements include the supply and demand in the peak season and off-season. Usually in peak season, supply would increase and so price declines. In off-season, supply would decline and hence price increases. Beside this, you need to consider the international demand�supply and seasonal changes because if you take a specific commodity, the production period may be different in various producing countries.
In the case of metals and energy, economic and geopolitical conditions are the main driving factors. Demand and supply, government policies and reserves also can affect the prices alongside. Considering the case of precious metals, depreciation of currency, geopolitical tension and economic recession are the supportive factors.
One of the most useful advantages of commodity futures trading is the better price discovery and minimization of price risk. This ensures efficient price signals, which enable producers to plan their production strategy and stockists to plan their stocks in an effective manner.
Beneficiaries
The beneficiaries of commodity future trading are not only the producers but also the exporters, hedgers, arbitragers and also the speculators. All these participants are the elements of the market. Without any of the elements, the market mechanism will collapse. There is a common misconception that speculators are spoiling the market, but actually they are providing liquidity and direction to the market.
The primary benefits of commodity futures trading include finding the maximum price and minimizing the risk. Since futures trading helps to find the prices of commodities after many months in advance, the risk of loss is limited.
There are different methods that traders can use to invest in particular commodities safely. They include hedging and arbitrage.
Hedging
In hedging, farmers can sell their agricultural products in advance and ensure profit. By estimating the production, trade can be executed on a price better than the spot price. The rate is likely to be highest for the farthest month future contract. By estimating the supply of a commodity by that month, the trade can be activated.
Stockists, exporters and traders can also use this method. A stockist can hedge his stock with the futures and avoid unexpected price variations. Exporters can use this method effectively and hedge their order book with the same commodity in the futures market.
The actual role of producer is to sell their products into the market. Never change a producer as a buyer. Buyers include stockists, millers, dealers, exporters etc. This is the actual buyer-seller principle in the futures market.
Use of the warehouse receipt is another facility in futures trading for easy transaction and as a collateral security. By taking the commodity to the warehouse within a stipulated time period in the prescribed quantity and quality, the warehouse receipt can be obtained and trade be settled. The warehouse receipt will act as a collateral security, which will make the money supply to producers and stockists.
Optionally, trade may be settled by buying from the future market the equal quantity of the commodity sold earlier.
Arbitrage
Another method to participate in futures market is through arbitrage. Those who possess enough quantity of the commodity can sell it at the best price available in the spot market and collect full price in cash then itself. Using a fraction of that cash, the commodity may be bought and sold from the future market. Profit from the future market transaction would be an additional income.
Arbitrage is also a less risky method of trading. In these case traders can encash the price differences of the same commodity in different exchanges by selling of commodity, which has high price and buying the lower priced; and revise the trade whenever it comes in a common rate or convergences of prices take place.
Speculation
In speculation, trade has no direct relation with the physical commodity one possesses. You execute trades by studying the market and following the price movements. Speculation is mostly intra-day in nature. But speculation is more risky compared to other trading methods.
Highlights from the 2007 Quality of Living Survey
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Canadian, European and Australian cities continue to dominate the rankings this year, which saw little significant movement among the top 50 cities.
Zurich, Geneva, Vienna, Vancouver, and Auckland remain the top scoring cities on the Quality of Living index. One of this year’s biggest improvements has been in Osaka, rising 8 places to 42 from 51. Improvement was also seen in Oslo, which climbed five places from 31 to 26.
The rankings are based on data collected between September and November 2006 and the data is regularly updated to take account of changing circumstances. Only 215 cities have been considered in the Quality of Living 2007 rankings and any assessment will be revised in the case of any new developments.
The top five cities in Asia were:
- Auckland (tied for 5th)
- Sydney (tied for 9th)
- Wellington (12th)
- Melbourne (17th)
- Perth (21st)
Osaka (tied for 42nd) was the lowest ranking Asian city in the top 50.
The top five cities in Europe were:
- Zurich (1st)
- Geneva (2nd)
- Vienna (tied 3th)
- Dusseldorf (tied for 5th)
- Frankfort (7th)
The lowest ranking European city in the top 50 was Milan (tied for 49th).
The top five cities in the Americas were:
- Vancouver (3rd)
- Toronto (15th)
- Ottawa (tied for 18th)
- Montreal (22nd)
- Calgary (24th)
The lowest ranking Americas city in the top 50 was Seattle (tied for 49th).
Quality of Living Reports include:
A city-to-city index comparison (any city can be selected as a base)
- An evaluation and commentary describing the quality-of-living rating for each of the 39 factors
- The methodology for establishing quality-of-living differentials between cities
- A Quality-of-Living Allowance Grid that allows you to translate the quality-of-living index into hardship allowancesQuality of Living vs. the quality of life
The Quality of Living index is based on several criteria used to judge whether an expatriate is entitled to a hardship allowance. A city with a high Quality of Living index is a safe and stable one, but it may be lacking the dynamic je ne sais quoi that makes people want to live in world-renowned cities such as
Slagin Parakatil
Geneva, Switzerland
Comcast Easily Tricked Into Giving Your Personal Info To Wiseass Teenagers
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Here’s a clip from the Cmd Radio show demonstrating how someone armed with only a phone number and address can social engineer your personal information out of Comcast.
Like many companies, Comcast doesn’t train its customer service reps enough in security verification. The result is that anyone can call up, pretend to be a service tech, and get your info. Criminals can pick up pieces from one company and use them to get more information out of another, and so on. They can use the end result to steal your identity, your bank account information, and other fell deeds.
Guess that’s what happens when you outsource staff all your customer service to facilities with incompetent and poorly trained employees. — BEN POPKEN
005 - Social Engineering [Cmd Radio] (Thanks to Rich!)
Download the clip (MP3)
Download the full show (MP3)
Basic Tips On Personal Finance
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By jupita fanklin [ 21/09/2006 ]
[ viewed 65 times ]
Do you ever wonder where your money goes every month? Does it
sometimes seem as though you cannot afford to do things because
your financial obligations are holding you back? If you find that
you are asking yourself these sorts of questions, perhaps you
should take a look at your financial situation and assess whether
you are practicing good personal finance management or not. Good
personal finance management spends within their income, plan for
the future and solve financial problems as they arise. Poor personal
finance management pay more, do without and fall behind. If you
find yourself in the second category, you can do something about
it. You can learn to take charge of your finances by planning your
personal finances.
Planning your personal finances doesn’t always come naturally,
and even if you’re just beginning to take your financial matters
seriously, then you likely need a few personal finance tips.
Evaluate your current financial situation. One of the most
important goals for most people is financial independence.
Collect accurate information about your personal financial
situation. Calculate your net worth which includes the real
estate, saving and retirement accounts, and all other assets.
This will help you decide how much money you can set aside
for meeting future needs and goals.
A basic personal finance tip is to make a budget. A personal
finance budget is information made up of your income and expenses
and the more accurate this information is, the more likely you
are be able to meet your goals and realize your dreams. A personal
finance budget should be made for at most one year at a time and
include a list of your monthly expenses.
All expenses must be included. To be sure of that go through all
your paid bills, check register and credit card receipts to find
expenditures that recure every month and expenditures that happen
less frequently. Personal finance budgeting requires some small
sacrifices. To be able to make good personal financial decisions
and set priorities, you must know where your money is actually
going. Start your budget and accomplish your goals.
Get an electronic bill pay. This is a very convenient way to pay
your bills. You pay them electronically, by direct withdrawal
from your bank account. The transaction is processed immediately.
You can even link your bill pay service to your personal finance
budget, so that your expenditures are automatically entered in
the appropriate category. Personal financial management can be
really easy.
Make an investment and finance plan. Now that the fundamental
state of your personal financial security has been established,
the time has come for the more prosperous part of your personal
financial life. You need to make a personal finance plan of what
you really want in life that money can buy. Your personal financial
plan can be as simple or as detailed as you want it to be. Find
out how to finally start to implement this plan and get the money
to finance it. This is the long term part of your financial. This
journey is the most interesting and exciting part of personal
financing you can have toward financial freedom.
You can prepare for a secure personal financial future by following
these simple tips. When you take control with your money,you don’t
have to worry about debt taking control of you.
Accounting And Finance Online Schools
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Online accounting and finance schools offer certificate and degree programs that develop skills necessary for professional positions. Students will get the education needed to qualify for certification examinations and be able to offer a range of financial services.
Advantages to accounting and finance online schools are that there is no commuting, no classroom competition, no deadline pressure, and students can learn at your own pace. Enrollment takes place at any time, and students have the option of completing a program in just months, not years, through studies in online accounting and finance colleges.
Online studies in accounting and finance will include computation, classification, record keeping, and verification of numerical data. Students in online college accounting and finance programs will learn how to develop and maintain financial records, record credits and debits, compare current and past balance sheets, summarize details ledgers, review statements, review invoices, and prepare financial reports.
Programs through online accounting and finance universities will give students exposure to accounting software; acquire knowledge of financial statements, journals, ledgers; consider tax preparation and banking processes; use information applicable to payroll, payables, and receivables; manage inventory, cash flow, and debt, and much more.
Online accounting and finance degree programs teach principles of accounting and bookkeeping, personal finance, and fundamentals of spreadsheets. Other accounting distance learning courses may include estate planning, fundamentals of financial planning, personal finance, employee benefits, income tax, insurance, investments, and planning for retirement, among others.
Online accounting and finance school programs offer degrees from accredited institutions. In addition to taking courses to achieve accounting and finance degrees, students will study important subjects that relate to career development in business, communications, and social sciences. Programs through accounting and finance colleges online are designed to help prepare students for a broad range of careers. With certificates from online accounting and finance schools, students will be prepared to enter into professional practice.
If you are interested in learning more about Online Accounting and Finance Schools, feel free to research our site for more in-depth information and resources.
DISCLAIMER: Above is a GENERAL OVERVIEW and may or may not reflect specific practices, courses and/or services associated with ANY ONE particular school(s) that is or is not advertised on SchoolsGalore.com.
Copyright 2006 - All rights reserved by SchoolsGalore.com, in association with Media Positive Communications, Inc.
Notice: Publishers are free to use this article on an ezine or website, provided the article is reprinted in its entirety, including copyright and disclaimer, and ALL links remain intact and active.
By: Michael Bustamante
Visit the Traditional School Directory at SchoolsGalore.com to find Online Accounting and Finance Schools, Colleges, Universities, Vocational Schools, and Online Schools
How Can You Finance A Mortgage?
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Most homeowners purchase their houses through mortgage finance or a loan. There have been many changes in home mortgage financing and loans in the past ten years, bringing many benefits to homebuyers. These changes also bring some significant tradeoffs. The greatest benefit a homeowner received from the changes in mortgage finance is that there are more choices. More choice means a homebuyer can effectively shop around for the best mortgage finance deals and make better decisions.
There are a number of specialized mortgage finance institutions that provide mortgage finance products. Savings and loan mortgage finance institutions are also known as thrift associations, since lenders take the deposits of their customers and use the money to create mortgage finance and loan products. Thrifts declined during the 1980s when interest rates were erratic, and mortgage failures were at an historic highpoint. Thrift institutions were replaced later on by mortgage finance bankers, who originate the mortgage finance product and offer them to investors. In the 1990s, mortgage brokers arrived on the scene. These are freelance mortgage finance agents who handle loans for a number of lenders and sell them to several clients that may include investors or homebuyers. Mortgage brokers remain popular with homebuyers who are looking for mortgage finance advice. Because these brokers have relationships with several lending firms, they represent the best source of mortgage finance advice concerning the current real estate market. Another good source of information for homebuyers who are looking to make a final mortgage decision is the Internet.
The general rule in the 1980s was that only individuals with good credit could obtain a mortgage finance loan. In the current market, nearly anyone can apply for such a loan if they want to buy a house. If you have excellent credit, you will probably find a mortgage finance loan that covers the total purchase price of a home. Having bad credit does not necessarily mean that you will not be able to get a mortgage finance loan, however. It is still possible, but you will pay a higher interest rate. Homebuyers who are getting their first house and how do not yet have a credit rating also have mortgage finance loan options available to them. These loans typically have low down payments and flexible standards defined in the underwriting.
The loan approval process has been made much faster because some of the underwriting has been streamlined. Computers have allowed mortgage finance loan information to be accessed rapidly, In fact, some finance companies offer approvals online or by using computer programs. The concept of “credit scores” has also led to a decrease in the number of finance loans that are rejected. Credit scores can offer some relief in usually strict mortgage loan approvals, so applicants have less of a problem.
The modern mortgage finance market has developed a number of new mortgage products as well. When interest rates began to fall, homeowners took advantage of the decreases to refinance their mortgages. In order to reduce the expense of refinancing, lenders than began to offer mortgage finance loans without discount points.
By: Chris Snow
To discover more articles about finance and investing visit www.a1-finance.com
North Finance Reviews
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North Finance has been on the market since 2001. North Finance addressed at Lymasol Cyprus; however, North Finance registered at Belize. Like two sides of coin, this forex broker has two different sides, bad and good side. North Finance’s good side is competitive spread, easy new account opening, small minimal capital, easy deposit and withdrawal operation, interesting leverage, free Meta trader trading platform, good customer support, bank guarantee, swap free policy, IB business opportunity, trading varieties. North Finance is not good at news matter, no news tab in this broker’s Meta trader, and busy server at news release.
In this forex broker, the spread is quite interesting; begin from 2 up to 10 pips in the news time and no commission. It is very easy to begin trading in North Finance, you can open account within 10 minutes from all over the world through the internet. The minimum capital to start forex trading in North Finance is $100; moreover, no minimal deposit and withdrawal at this forex broker, you also do not have to pay charge in deposit and withdrawal operation in North Finance. This forex broker accepts deposit via wire and electronic payment (e-gold). Credit leverage in this forex broker is very attractive, especially for low capital trader; begin from 1:1 up to 1:500.
This forex broker use Meta trader, instant execution and quotation system with eleven different languages. However, regrettably, North Finance’s Meta trader does not support news that is one of important factor in forex trading. North Finance also support mobile trading; you can download Meta trader mobile freely at this forex broker. North Finance is very good in customer support; you can access customer support 24 hours 5 business days lively on North Finance live chat.
Furthermore, this forex broker’s customer supports is very friendly and helpful. Not only good in customer support, this forex broker is also good in deposit and withdrawal operation time via e-gold. Deposit and withdrawal operation in this forex broker is very fast, almost finished in only five minutes. If you deposit $5000 or more at North Finance, you get free Visa Electron card that you can use to withdraw or shopping in any places in the world that have Visa Electron logo. You don’t have to worry putting your money at this forex broker; your deposit above $100,000 is bank guarantees. However, you have to becareful when trading in North Finance at big news is released, this forex broker’s server frequently very busy during big news time. North Finance has the good policy for Moslem trader; swap free for Moslem trader in this forex broker. This forex broker offers excellent opportunity to join a profitable business with them as IB (internet broker). North Finance has had IB forex brokers in more than twenty different countries, some of them are at Russia, China, Malaysia, South Africa, etc. In North Finance, you not only can trade forex, you also can trade CFD on futures, stocks, metals.
In conclusion, North Finance can be very considered as a good forex broker. This forex broker can be one of good choice when you decide to start forex trading.
By: Larry Perkins
This article originally taken from Find Trusted Forex Broker.
Uk Finance For Business
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Running a business and becoming successful in that venture requires a lot finance and financial assistance. In UK finance for business can be got from different sources. Business related financial services are provided by many organizations in that field. UK finance for leasing a company or organization, UK finance for debt collection, UK finance for Venture Capital can also be arranged.
There are companies that help a business in hire purchasing and arranging for leasing. You can approach such dedicated companies for such services. UK Finance for hardware funding for the information technology business is also available in companies. Leasing services for small businesses, agricultural and industrial funding operations are available in companies dedicated to that service. A company called Richard Mares Asset Finance in UK finances for agricultural and industrial setups. If you need information on UK finance for equipment leasing, mortgages and commercial finance then you can approach companies like 1st Leasing Company and 1pm.co.uk. Many options for UK finance are available with them. Just check out their website for more details on the different types of finance available with them. For UK finance from £5,000 upwards you can approach companies like 1pm. They work closely with their clients to provide what they need.
UK Finance for companies in the information technology sector can get their financing options from companies like Corporate Computer Lease Plc in UK. Such companies make IT more affordable and you get the UK finance for almost any technology spends. They have successful records of financing in UK for even Fortune 500 companies. This is one of the fastest growing UK finance companies.
Companies like Corporate Business Finance fund you for Plant, Machinery and for other corporate financial services. They provide finance in UK for many services like hire purchase, leasing, operating leases, factoring, release of capital, and commercial mortgages. Each and every business may need a unique funding requirement and it is a tedious task to arrange for funding when you need to run your business. A lot of time is wasted in searching for proper funding. Under such circumstances you can approach companies like these for UK finance for your funding requirements.
For new start ups it is difficult to get finance in UK or elsewhere. Most of the finance companies will fund only the established businesses. But companies like Oak Leasing help even the start ups since they understand the difficulties that the startups face. The problems that the start ups face are only initially. If they have a proper business plan they could come up. The team at Oak leasing would finance your startups and for any new equipments that you need. More details are available in their website.
There are companies that fund only the big companies. Finance for big companies is given by UK finance companies like the Benington Securities. It is a private enterprise brokerage. They cover only the corporate investments. There are many companies that provide UK finance for even individuals. Companies like Troman finance provide funds for the individuals and small business firms.
By: Bob Benson
Jeff Lakie is the owner of www.loan-source.co.uk providing Uk homeowners with great rates on secured loans. Visit our site for a free quote today.
Real Estate Finance Overseas
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After the technology bubble burst back in 2000 the stock markets suffered a bleak period of decline and investors chose to place their focus on bricks and mortar rather than falling share prices and they began investing heavily into real estate.
As a result the second home and the buy-to-let real estate markets in many countries around the world such as in the UK, US and Australia boomed. However, as the real estate affordability gap continues to widen in these nations and fewer first time buyers can even get onto the first rung of the real estate ladder, property price increases have begun to cool off and the ability to generate impressive rental yields and strong capital appreciation has slowed right down for at least the short term.
At the same time the stock markets around the world remain volatile and so now many more investors are looking overseas for alternatives to cooling domestic housing markets and bumpy rides on the stock market. Many are finding that there’s an abundance of real estate opportunity in emerging countries around the world which has created a strong demand for real estate finance overseas.
For those considering joining the jet-to-let real estate investment set here are the three main options available when it comes to raising real estate finance, loans or mortgages to buy property abroad.
1) In many of the nations that were the first to boom the property markets are now stagnant and because lenders have fewer customers to provide finance for they are actively targeting those who have yet to upsize, release equity or take out a second mortgage and offering them increasingly favourable terms, conditions and interest rates.
For anyone thinking about buying real estate overseas in a country where they believe it will be difficult for them to secure local finance or where interest rates are unattractive, the option may exist for them to re-mortgage their existing property or take out a loan secured against the equity in their primary residence.
The negative side of this option to raise real estate finance to buy overseas property is that the purchaser’s primary residence will be the security against the loan and naturally this introduces an element of risk.
2) The second option available to buyers looking for real estate finance overseas is getting a mortgage locally in the country in which they want to buy. Some countries such as Spain, Germany and France for example offer attractive interest rates and payment schedules to buyers from other European nations and many countries offer mortgages to international purchasers who can provide a decent sized deposit.
Anyone thinking about buying abroad would do well to also research which banks and lending institutions exist in that country, whether they are allowed to lend to foreign buyers and if so, are the criteria for getting a loan and the terms and conditions of the loan favourable?
3) The final option available to the majority of real estate investors looking to finance the purchase of a property abroad is an international mortgage provided by an international lender who usually has experience in the country from which the borrower heralds and also in the country in which they wish to invest which can make the whole finance process so much simpler…but the downside is that arranging such mortgages can be far more expensive than the first two options available to those contemplating their real estate finance options.
The availability or applicability of any type of mortgage or finance raising scheme discussed in this article is something that needs to be determined on an individual basis therefore this article does not constitute advice. Anyone hoping to raise finance to purchase real estate overseas should seek expert financial advice
Rhiannon Williamson writes about property abroad and currently specialises in property in North Cyprus.