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Union fury over public sector pay
the last 10 years. Shadow business secretary Ken Clarke also said the move should be considered among other options and criticised what he said had been an 'absurd explosion' in previous years. 'Public sector pay obviously has got to reflect prevailing
Research and Markets Offers New Report: 2008 3D Television Report
the coming years. This report is designed to provide a solid technical and market analysis of the 3DTV options and forecast the penetration of this technology into the worldwide television market. Component suppliers to the 3D television set
State-backed bank plans unveiled
the banking system was still in 'disarray', it was argued. The Government was presented with a number of options, ranging from using Northern Rock as a foundation to a mutually structured people's bank, to buying out the current relationship between the
McCain says Palin to play leadership role as ex-Governor
resigned because she is 'under federal investigation' for embezzlement or other criminal wrongdoing, we will be exploring legal options this week to address such defamation,' lawyer Thomas Van Flein said in the statement. McCain's statement of support
Workouts that Fit Your Budget
time my workout. -Mastering stairs: In addition to purchasing second-hand fitness equipment, there are a range of frugal options for working out at home. At Target, for example, I recently found a step work-out system for $60 and a mini step-counting,
Fawcett's medical treatment funded by billionaire pal
tumor was found in the same area that was previously operated on. Fawcett was faced with few treatment options and she refused to let doctors perform a colostomy on her, a procedure which leaves the patient excreting feces through the abdomen and into a
Lismore Garage World loses licence
The Office of Fair Trading has revoked the building licence of a Lismore company in northern New South Wales. Ryan'O Constructions, trading as Lismore Garage World, is the subject of five outstanding orders issued
Christians praise Scotlands ambitious measure on climate change
to reduce their own emissions and do not seek to off-load their responsibilities to poorer countries through carbon trading.' Hegarty said, ?As Scotland has shown, it is possible for wealthy governments to take the strong action if they are sincere in
Manulife cuts MPF fees
to 5% (or HK$1,000, whichever is lower) of the employee's salary to the fund. The low-risk options available for most retirement plans, including those offered for the MPF, have mainly involved between 20% to 30% exposure in equities. The majority of
eMeter Strategic Consulting Eyes DOE Smart Grid Grants
from decades of successful pilot programs is that residential power consumers love the ability to choose electricity price options that empower them with more control over their bills,' said Chris King, President of eMeter Strategic Consulting, an arm of
Slum tours give hard dose of reality in Indonesia
than unmitigated suffering, that impresses Australian tour guest Martin Roach, a 39-year-old who makes his living in share trading and poker tournaments. 'Many of the things she's worrying about are the same as us,' he said. But moving deeper into the
Memo From Myanmar: With No Clear Path Out of a Diplomatic Thicket, a Push to Redraw the Map
? said David Mathieson, the Myanmar researcher for . United Nations members are deeply divided over Myanmar, with important trading partners like Russia and China protective of the regime and other Asian neighbors often mute. The United States is
Volatile Swings in Price of Oil Stir Fears on Recovery
At the New York Mercantile Exchange, the crude oil options pit. The extreme volatility has perplexed those who follow oil prices
RPT-MIDEAST STOCKS-Gulf Arab markets fall on oil, global stocks
Abu Dhabi and Oman also retreated. Egypt's measure fell 1.1 percent, its first decline in four trading days. Saudi Arabia's benchmark bounced back from Saturday's two-month closing low, which may indicate Sunday's broad regional decline will prove
Small Talk: BGlobal powers into null9bn market
bizarre plastic pitch was involved, on grass, too. And that is why many will read last Friday's trading update from Goals Soccer Centres, which is listed on the Alternative Investment Market (Aim), with a wry smile. The company said it had traded in line
Apple patching serious SMS vulnerability on iPhone
computers running the full-blown operating system, Miller said. For starters, the stripped-down version of the OS presents fewer options for attackers, removing applications and features such as support for Adobe Flash and Java, which they might
indian shares open up on budget hopes
to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
Windows 7 may get a "Family Pack"
for Windows 7 allows for discounted upgrades to Windows 7 Home Premium and Professional, but offers no upgrade options for them. Microsoft said it may have more offers, but users will have to gamble if they want to skip the current pre-order program.
Indian shares seen positive on budget hopes
this week. The MSCI Index of Asia-Pacific shares excluding Japan was down 0.7 percent. Nifty stock futures trading in Singapore was up marginally pointing to a positive opening in India. --------------------------------------------------------------
Schreiber challenges Canada-Germany extradition treaty
a 'Hail Mary pass' by a man who, after a decade of legal manoeuvring, is running out of options for preventing his extradition to Germany where he faces charges of tax evasion, fraud and bribery. Lawyer Gary Botting, one of Canada's leading experts on
Korean Market Slips After Trading Firm
(RTTNews) - After moving up sharply in early trading, the Korean market has pared its gains with investors indulging in some heavy selling in a few front line stocks. Bank stocks are among the major losers. Telecommunications, steel and
Nikkei Down By Over 1.5% As Stocks Tumble On Selling Pressure
prices drifted lower in the Japanese market with investors awaiting fresh cues from Wall Street, which will resume trading today after a long weekend. Transport, mining, oil and metal stocks lost ground in early trading while services and information
UNITED FIBER SYSTEM - Newly Released Company Financials and Credit Information (Published 23rd June 2009)
contracting; property development, agent and investment; specialist contracting and suppling of waterproofing systems and construction installation products; manufacturing, trading, renting and staging of building; and other building products. Key
TABLE-Bangladesh key economic indicators - July 6
Thomson Reuters warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other
HYPERCOM - Newly Released Company Financials and Credit Information (Published 23rd June 2009)
in a standardised GAAP format for easy comparison. The HYPERCOM Trader report provides everything needed to answer basic trading needs. This report covers six years of financial information and includes shares information, major shareholders, income
Fire refuge heat on Brumby
the State proposes to put in place. In his statement the Premier stated work will begin on additional options for people who are unable to shelter in a prepared home or are caught in the open during a fire. 'This will include commencing development of
COLUMN-UPDATE 1-A Goldman trading scandal? Matthew Goldstein
holiday, a Russian immigrant living in New Jersey was being held on federal charges of stealing secret computer trading codes from a major New York-based financial institution. Authorities did not identify the firm, but sources say the institution is
STARREX MINING CORPORATION - Newly Released Company Financials and Credit Information (Published 15th June 2009)
standardised GAAP format for easy comparison. The STARREX MINING CORPORATION Trader report provides everything needed to answer basic trading needs. This report covers six years of financial information and includes shares information, major
APhA Advises Consumers On Acetaminophen Use
products as recommended on the labeling and seek guidance from pharmacists or other healthcare providers on evaluating medication options. This recommendation comes as the Food and Drug Administration (FDA) convened a public advisory committee meeting on
Quartz-Clean ?the ideal multi-purpose cleaner for kitchens from ITC
Email International Trading & Consulting (ITC)Printable Version Quartz-Clean from International Trading & Consulting (ITC) (ITC) is a non-hazardous, multi-purpose cleaner which has been extensively used in commercial kitchens in Europe.
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Futures Contract Trading
 | 1af9A futures contract has a limited life span. It is also not the cash commodity that is really in play here. Instead, traders use a futures contract for hedging against price fluctuations or to gain some profits from potential variations in the price of commodities. In other words, if you are the buyer of the futures contract, you will agree with the seller to buy the underlying commodity at a set date and at a fixed price. The change in price between the fixed price and the actual price of the underlying commodities, will determine whether you gain profits or suffer losses on your futures contract. The seller and the buyer usually liquidate their respective short and long positions independently before the futures contract expires, and very rarely take delivery of the commodities in play. Fluctuations in futures contract pricing Fluctuations in the price of a futures contract are driven by a variety of different and largely unpredictable factors. Interest rates make the greatest power plays. If you are in a currency futures contract, the policies and activities of the Federal Reserve, U.S. Treasury and foreign central banks, will impact interest rates and then, currency pricing. If you are playing stock indexes, you will find that your futures contract is influenced by anything that influences the stock market in general. Once again, interest rates are a serious factor to consider. If these hike there will some pain in the stock market and pressure on your much hoped for gain. Naturally not only interest has an impact. General economic factors, seasonal influences as well as the expected future pricing of a commodity should all be kept in mind. The price of a futures contract is a great deal more turbulent than that of the average stock on the stock market. A commodity could be upwardly mobile one year and in a downward spiral the next. Nobody who trades in a futures contract can afford to rest on his or her laurels. The commodity trader will (ideally) need to make use of both fundamental analysis and charting, to better predict what the future could hold. Fundamental analysis is a bit of a hard slog: supply and demand need to be closely monitored. If there is greater supply than there is demand, the commodity price will most certainly plunge and if there is too little supply to meet the demand, the futures contract trader could make very good gains from the resultant commodity price increases. Pricing
changes in commodities are generally influenced by fundamentals, natural disasters, poor seasons, politics and perception. You can use charting to find those formations or patterns that pre-empt bullish or bearish shifts. Bar charts make for a simple, yet effective tool for the futures contract trader. It contains information on the particular futures market price movements, volume and open-interest. These commodity charts are compiled daily, weekly and monthly. The historical patterns will abet your efforts to gain a long-term view of the market. You should however also be looking at things like moving averages and oscillators when planning your trades.
Who plays the futures contract game?
As we mentioned earlier in this article, there are two motives for buying futures contracts: One is for hedging commodity price changes and the other for making money out of those inevitable changes. Those who hedge are generally also those who have some sort of a requirement for the underlying commodity. In example, if the commodity is wheat, it may be a miller that is hedging against higher future wheat pricing. The speculator on the other hand, has no interest in the underlying commodity and will buy a futures contract purely to make a quick buck.
Effectively there are two types of futures contract hedges: a long hedge and a short hedge:
Short hedge - Futures are sold, normally by a trader who either owns the underlying commodity or who stands to suffer some sort of a loss if the pricing drops.
Long hedge - Futures are bought, normally by somebody who uses or processes the commodity, because there is concern that the pricing will increase. The trader could sell the futures contract at a later date, potentially for more than he would have to pay the producer at that point in time - and pocket the profits.
The speculators have a role to play here too, albeit that they do not have a natural long or short position. Their sole aim is to buy low and sell high. In the process, they cause the liquidity needed as they frequently take the opposite side of the trade of the hedger.
Advantages of futures contract trading
There are a variety of advantages to be had from in futures contracts:
* Owing to volatility one can potentially make more money sooner from futures contract than from on the stock market if your judgement is sound. If not, you could end up losing more money faster too.
* Futures are highly leveraged investments. You only need to raise a small fraction, between 10% and 15% of the underlying futures contract value as margin, whilst enjoying the full value of the contract as it dips and peaks. The money put up, is a performance bond. A further upside is that there is no interest on the difference between the margin and the full contract value.
* The way in which a futures contract trades, makes it one of the most fair and efficient markets. It takes place publicly by open outcry after all.
* Comparatively low commissions are charged on futures contract trades, and only once a position is liquidated.
* The majority of the commodity markets are liquid and broad. There is quick turnaround on futures contract transactions, and subsequently a smaller chance that adverse market movements will take place between the decision to trade and the execution of the trade.
Ian Jackson
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