Trade Commodity Futures » commodity futures options

Isn't oil a strategic commodity?

admin — Tue, 13 Jan 2009 05:11:05 +0000

If it is and I believe it is, I do not believe it should be traded on the futures and options market where pure speculation can be used to drive up the price and essentially hold consumers hostage to their demands for the higher price. I believe there have been commodities removed before due to extreme situations.
Oil is virtually a necessity, and as such should not be subject to gambling (speculation). There is supposed to be a supply and demand market. There is no lack of present supply, only speculation of a lack. As long as this can be perpetuated, indefinitely,the sky is falling, the hurricane is coming, Iran is building a nuke, etc., the price can be artifically manipulated by "someone". This needs to stop, and the only way to stop it is to remove oil and gasoline from the Futures Market. No one should be allowed to play games with vital resources, for fun or profit.

I strongly agree with you. Oil is necessary to our every day lives and economy. I believe is is along the lines of water…if water didn't fall from the sky and had to be mined..these companies would charge the hell out of for it even though we need it for life. I think the oil companies should be government run for no profit…just make enough to reinvest in exploration.

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What normally goes up along with Gold?

admin — Sun, 11 Jan 2009 02:55:14 +0000

When gold prices go up… what other commodities tend to go up… or any stocks/options/futures price go up besides gold mining companies?

What other commodities, oil, currency, etc?

sometimes oil and silver it really depends…

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Why don't more people like day-trading/investing?

admin — Thu, 08 Jan 2009 23:35:24 +0000

With enough knowledge, a person can start from $5,000 and have $20,000 by the end of the month. And I truly mean enough knowledge, because there is a very high learning curve. But once you reach that stage, the financial rewards are huge. I'm currently making $5,000 profit a month and I just learning about trading/investing in stocks, futures/commodities, and options as my main hobby about six months ago. I expect to have enough experience and strategy to be making $10,000 profit per month by the end of this year.

Aside from few people in Honolulu who I know also trade successfully, there is barely anyone that I know who has a passing interest in this stuff. So I'm honestly wondering, why don't more people get into trading/investing when the financial rewards are huge?

Anything with a high reward has a high risk and day trading is such an example. You can make hundreds, thousands and even millions in no time… but your can lose it also. Most of the success in day trading is based on luck. If you are lucky, keep at it. What's right for you isn't necessarily right for everyone. Keep records of your wins and losses and consider writing a book for another stream of income. That way you can get even more money selling your experiences whether they turn out positive or negative.

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MadAboutOptions: AMTD

admin — Thu, 08 Jan 2009 19:46:15 +0000

Matt Buckley and Jud Pyle discuss Ameritrade Holdings Corp. (AMTD)

Duration : 3 min 59 sec

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Technorati Tags: options

Trading stocks!?

admin — Wed, 07 Jan 2009 02:45:42 +0000

I want to start trading stocks, options, commodities, futures – does anyone know of any good platform for that? Please help.

Start small and then build! Trying to trade everything in the laundry list of securities you laid out is a recipe for disaster. Start with stocks would be my advice, then move on into options as your experience and understand of the market grows. Then you can branch out further into commodities and/or futures if the situation warrants it. In order to actually trade, I would hook up with an online broker. Look for a mix of price as well as service to help make your decision. I like the discount brokers like Fidelity and Schwab, because they give you low costs (though not the lowest) with the best service, and a lot of great online tools to help you get started with investing. I'd check out both of their websites to see what you like.

I'd also ask one other question-why so gung ho about trading stocks? Do you already have a stable foundation of mutual funds built up? Stocks are sexy but also risky…make sure you build in a safety net.

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Why oil price is going up after US won the war and get into Iraq. Going down when Bush is going to step down?

admin — Mon, 05 Jan 2009 01:47:40 +0000

Why oil price is going up after US win the war and able to get involve in Iraq operation? Possible someones in power push-up the oil price intentionally for their own benefits / profits?
Why oil price going down when Bush is going to step down from being US president?
Why US oil companies are try to sell their oil mill in Iraq to China or other countries?
Because change of power in US?
Why regulators allow crazy speculation in oil price, commodities, future options… before this US financial crisis?
Will this USD700 billion bill-out able to save US economy while these group of regulators still in power?
How to control to ensure the fund is properly used and not just to bill out useless companies?…
This financial crisis is a financial scam? .. more to be happened?

Ask the democrats majority in congress, it went thru the roof under their promise to lower gas prices in 2006, can you say ELECTION YEAR, those silly Dem’s will do anything from destroying the countries economy to losing a war to win an election

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Have most people moved their money out of stocks and into commodities?

admin — Sat, 03 Jan 2009 02:39:16 +0000

The stock market is down from it's highs by quite a bit. There must be more options purchasing and commodities, futures and foreign markets playing going on.
Or bonds…

Of course. Big investors & hedge funds buy commodities to hedge against expected depreciation of dollar, inflation and weakness of financial (stock) markets, as commodity prices are inversely correlated to stock markets performance. This fact explains a large part of the all-time-record prices recently reached by several commodities.

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What we should do to protect our human rights when politicians gangs up with financial speculators?

admin — Thu, 01 Jan 2009 02:04:05 +0000

I felt very sad and angry by looking at the current market where the heartless politicians and financial speculators have teams up to speculate in future options for commodities, oils, currencies, …
They have using the terms like "free trade", "market force", "shortage", … to legalise their speculations activities to be able to speculate in these markets.
They also have controlled in the medias and "professional bodies" to lies to common people what they are doing are not speculations.
These speculators are making billions of profit from their activities while the common people especially the poors were killed without bleeding.
With the authorities to speculates freely in all markets, these speculator can be classified as licensed killers.
What should we do to protect our human rights?

The only thing I can think of is by protesting

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Is the options/futures hedging such a good thing?

admin — Tue, 30 Dec 2008 02:13:40 +0000

OK…I spent more than 6 months reading on complex mathematical economical models, but because of that I totally lack the terminology behind the microecomics. One such thing is the futures/options hedging….

So, as far as I understand it – it sounds too good to be true, but do I miss something???
I understand it…like this example:

An investor buys 100,000 eur/usd units. The price is 1.4000.
However, the investor fears of lower price of 1.3900 and hence she puts call option on that price…or a future contract.
If the price reaches 1.3900 she(the investor) exercises the option and hence she is insured and doesn't lose anything.
If the price goes up – she gains money.

Now, I read about delta hedging and this doesn't sound that complex too, thuogh I need an hour or 2 to completely understand it.
I also see that you can get advantage from options/futures in many instruments. Such as:

Options,
CFD (illegal in USA)
Forex

But not commodities???

Pls. explain in 1-2 sentences your view…

Thanks alot in advance!

i don't think you understand this at all. you probably need a simpler book.

"she puts call option" makes no sense at all. if you bought euros and feared a drop in value you might buy puts or you might sell euros in the futures market to hedge. you might hedge all of your euros or maybe only part of them or you might not want to hedge at all. there are many possibilities and some are complex. you need to understand basic hedging first.

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Best books I should read before investing into Futures and Options market?

admin — Sat, 27 Dec 2008 23:51:57 +0000

Would like to invest into Indian F&O market and Commodity derivatives market. Can you please suggest books I should read before I venture into this market

Futures, Options and Swaps by Robert W Kolb.
For Indian market you can refer to the NCFM study materials.

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