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Learn How to Trade Commodity Futures
Work With a CMI Mortgage Broker and Get Professional Real Estate Service and Great Loan Rates. Canadian Mortgages Inc. Call Us Today at 1 888 465-1432
Duration : 56 sec
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if petrol prices are rising because banks/brokers/pension funds are investing in 'futures', does that mean its our fault? we are making profits for our investments/pensions by paying more for not just fuel, but all commodities moved by road/rail. The irony that we may have a good pension payout because we've paid more and more money out in the interim isn't making me smile……
The price of petrol is high due to high demand. The consumer (you) continue to drive gas guzzling SUVs and use gas as if there were no tomorrow. Then you got China and India who rode bikes and horses. Now, they got more cash than the US and a burgeoning middle class who want the same things as everyone else; a nice car, and house. Therefore, the price is the fault of the consumer. I invest in futures and oil companies. If you speculate that the price of gas is going up tomorrow due to high demand and you are correct, you will make a profit, if it goes the other way around, then you stand to lose money. There is nothing wrong with futures and gas companies. The system hasn't changed, but demand has gone up.
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Hi,
I am new at the commodity trading. I was wondering what would happen at the end of the future contract. for example, If I buy One gold future contract at $90,000 (100 ounce * $900)…and I put 5% for intial margin..
what if price won't move above my purchase price($900) by the time my contract expires…does that mean I have to pay to my borker the total value of the contract…$90,000..and what would happen if I wont be able to pay the total amount to my broker.that means I wont be able to trade till i pay the full amount..please let me know..
thank you
Jason
If you need to ask this on yahoo, you shouldn't be trading gold futures.
Nothing wrong with trading of course but better to start with something simpler like the gold ETF (symbol GLD in any regular share trading account).
To answer your question though, check with your broker. You normally have the option to automatically roll over the contract to the next month, or have it closed out for cash. You won't be expected to stump up 90k for the physical gold.
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US Department of Energy:
“”The projections in the OCS access case indicate that access to the Pacific, Atlantic, and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030.”"
Fortune Magazine: “”The infamous December 2000 “Enron loophole” is the topic du jour in Congress. That legislation didn’t just make it easier for savvy traders to buck the system. It exempted entire over-the-counter electronic exchanges (where trading takes place directly between parties, without an intermediary broker) from regulatory oversight by the Commodity Futures Trading Commission.
As a result, capital zoomed to new unregulated exchanges like Atlanta-based ICE, an American firm operating under U.K. regulation, where trading volume tripled from 2005 to 2008, representing 47.8% of global oil futures trading.”"
http://www.eia.doe.gov/oiaf/aeo/otheranalysis/ongr.html
http://money.cnn.com/2008/07/07/news/economy/oil_prins.fortune/index.htm?section=money_mostpopular
Link for Fortune magazine article via CNN
It has come to light that a very few oil speculators actually control the market. The layer of speculation, by a few, precludes actual free market forces for they are being manipulated. Thus, resolving the oil speculation would reduce oil prices immediately
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How can I become a Commodities broker, where can I get the training & education so I know all about Futures and Options to be a sucessful broker?
I suggest you start by learning about futures and options trading from some of the better books on the subject. One of the best is "Options, Futures, and Other Derivative Securities" by John C. Hull. This is an advanced text, any you may want to start with some lower level books first. I also suggest if you to not have some background in statistics and basic calculus you will want to get some texts on those subjects.
One book I consider "must read" is "Options Volatility & Pricing" by Sheldon Natenberg.
Before becoming a broker you will also need to take appropriate license examinations, such as the Series 3 exam for "Futures and Commodities". There are special preparation courses for these exams, if you are interested, such as the one at
http://www.aitraining.com/series3.htm
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