Trade Commodity Futures » commodity future broker

Mortgage Brokers Canada

admin — Thu, 08 Jan 2009 19:45:59 +0000

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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Business Broker Training

admin — Thu, 25 Dec 2008 21:42:03 +0000

Business Broker Training
business broker opportunity, business brokering become business broker, become a business broker, becoming business broker, becoming a business broker, broker business school, broker training courses, brokerage business, training business broker training, business broker careers, business broker education, business brokerage career, business broker job, business broker schools, how to become a business brokers, how to become a business broker,mortgage broker training,how to become a mortgage broker, how to become a real estate broker, real estate training

Duration : 1 min 6 sec

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is it our fault that gas/petrol is so expensive?

admin — Tue, 23 Dec 2008 19:44:03 +0000

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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Gold Future contract?

admin — Sun, 21 Dec 2008 19:56:55 +0000

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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Which will bring the price of gas down faster – Offshore drilling or Open records of Oil Future Trades?

admin — Fri, 19 Dec 2008 20:01:04 +0000

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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Commodities broker?

admin — Wed, 17 Dec 2008 18:34:20 +0000

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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What line of study should I go into to become a stock broker?

admin — Mon, 15 Dec 2008 20:52:11 +0000

I would like to get into brokerage, and am currently going to start school to finish my B.A in finance. Am I headed in the correct direction? I am also interested in commodities and future securities. What is a recomeded degree program that will help me break into the lucrative field of brokerage and help me get into a good firm?

Go into the Derivatives course of its being offered.

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how should i contact any commodity broker from comex nymex in india? i also want to get the accurate advisory?

admin — Fri, 12 Dec 2008 01:30:59 +0000

i mean comex nymex gold silver copper and crude oil futures

Icici Direct deals with commodity in India along with leading share brokers,. Contact them and receive accurate advisory.

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Commodities: Advanced Strategies for Trading Soybeans

admin — Thu, 11 Dec 2008 23:27:02 +0000

Soybeans posted a new all-time high on Friday, February 15. Our historical analysis of commodities reveals that runaway bull markets are the best candidates for trading the long side of any commodity or stock market

Duration : 18 min 27 sec

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Business Broker Versus Merger and Acquisition Advisor

admin — Wed, 10 Dec 2008 04:12:04 +0000

Most business owners only sell one business in their lifetime. The results of that sale can have a major impact on the financial future of the family. For most business sales we recommend that the seller engage a professional specializing in business sales to assist. There are two broad categories of professionals that engage in business sales business brokers and merger and acquisition advisors.

What should the seller be looking for? This article will discuss the type of services offered by both groups and help the business seller decide which professional to use.

The first criteria is type of business. Generally, business brokers specialize in “Main Street” types of businesses such as dry cleaners, gas stations, restaurants, and convenience stores. M&A advisors specialize in more B2B types of businesses such as manufacturers, distributors, information technology firms, etc.

Size of Business BB’s specialize in businesses under $1.5 million in revenues and M&A’s represent larger businesses or smaller businesses with a high component of technology or intellectual property.

The Targeted Buyer BB’s are generally targeting individual buyers while M&A’s are seeking to locate corporate buyers.

Business Valuation BB’s specialize in commodity type businesses that have “rule of thumb’ valuations that are consistently applied to arrive at a business selling price. There is usually a pretty narrow range of valuations applied to these businesses. M&A’s are recommended where there can be a broad interpretation of “strategic value” and rules of thumb do not apply. A high component of Intellectual Property, a unique niche, a hard to penetrate customer base are characteristics that can demand strategic value and purchase prices can vary widely.

Complexity of Transaction BB’s are generally selling to individual buyers that have a finite approach structuring the transaction. The contracts are usually fairly straight forward and the negotiations focus on price, financing, and seller notes. For the M&A’s the targeted audience is the corporate buyer with vast experience in acquiring businesses. They employ both an internal legal team and outside council and make the purchase contracts quite complex. The number one goal is protecting the corporation. The contracts are 35 pages of complex legal language and schedules of reps and warranties. The seller will need someone that is familiar in navigating in that environment. Corporations generally send in a due diligence team that is well versed on finding every little wart in a seller company and will attempt to reduce transaction value during the process. The seller will need good advisors to offset these pros.

Exclusivity because the BB’s are targeting individual buyers, their audience is vast so exclusivity is sometimes required and sometimes not required. Business sellers often engage multiple non exclusive BB’s to insure the broadest coverage in presenting their business to the buyer audience. BB’s are often part of a network of BB’s to help broaden this exposure. Sunbelt Business Brokers and BBN are two very good networks.

M&A’s require exclusivity because they are targeting corporate buyers and the audience of potential buyers is finite. These corporate buyers have M&A departments or sometimes the president handles the process. If a target is presented to a corporate buyer by more than one professional the credibility immediately drops and the chance of serious interest drops significantly.

Number of Clients Represented BB’s want to represent as many business for sale as they can. When contacting their vast network of individual buyers it is a real benefit to have a vast inventory of companies. Because on this, their approach is more of a mass mailing, mass email, post the business on a business for sale Web site, type of approach and their attention is spread over 25 or more simultaneous clients.

M&A’s usually limit their number of engagements to 3 or 4 per professional at a time. Their approach is very hands on and labor intensive. M&A’s usually rely on a direct selling approach of calling the buyers and talking with the M&A department or the president. Often M&A’s will have specific industry niches and will have a customized data base of contacts. They often have had several prior contacts with the buyers and are able to penetrate the call screening that is set up to protect these individuals. A corporate buyer does not buy through a posting on a business for sale Web Site. A corporate buyer will open 2% or less of letter solicitations. A corporate buyer will read less than 1% of unsolicited and unknown emails. Corporate buyers demand personal and professional contact to get their interest.

Up Front or Monthly Fees BB’s generally will charge a minor up front fee to begin the engagement or have a simplified valuation completed. Generally there is no monthly fee charged. M&A’s generally charge either a substantial up front fee or a monthly fee in the $3500 to $10,000 per month range depending on the size of the business.

Success Fees BB’s generally charge a success fee of 10% of transaction value. M&A’s generally have a sliding scale based on the anticipated size of the business. The known Wall Street firms that sell the mega businesses will not touch a transaction where they are not guaranteed $1 million in fees. The big regional firms require at least $750,00. The M&A firms that deal in the lower end usually charge considerably less than that with a minimum or $150,000 cash at close. If your transaction value is in the $10 million range, count on paying your M&A firm $300K to $400K.

Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.

If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad interpretation of value in the marketplace, an M&A firm is the right choice. In the final analysis, is a swing of 20% in your company’s selling price worth $5,000 per month for 8 months?

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