London Futures Trading By CME
It is been reported by Reuters on Wed Mar 2, 2011 that the world’s biggest oil trading bourse, CME Group Inc is looking at launching a futures exchange in London in order to capture more emerging market business.
This news is announced by CME Group Inc’s CEO, Craig Donohue to Reuters Future Face of Finance Summit on 2nd March 2011. According to Craig Donohue, the company is looking at a market that has benefited from its relative proximity to Asia. Hence, London is a perfect market for futures and over-the-counter trade.
London has been better positioned geographically to take advantage of booming demand for commodities in Asia, while stricter regulation in the United States in the wake of the financial crisis has also encouraged some to trade elsewhere.
A move into the London commodities market could significantly raise the stakes for CME and ICE as they compete for market share.
“We have fairly significant ownership stakes in a number of countries like Malaysia and Dubai so we are also going to be looking, and I think London will be included in that, to think about more flexible arrangements for CME group on a going forward basis.” Donohue said. Read more…
Futures Options Trading Market Updates
Futures Options Trading Market Updates For 1 Oct 2010
On 1 Oct 2010 (Friday), corn hits the lows of the day trading below the uptrend line. If prices rebound next week that means the trend remains up and new longs can be considered. It’s important to note that the market is becoming more volatile as prices near yearly highs. Even though the USDA report was slightly negative, it doesn’t elevate the bullish case.
Soybeans traded lower below the suspected neckline without forming the right shoulder. 1097.0 is the neckline support low and if it holds, a rebound shall develop next week and the right shoulder shall develop too, this could be a resumption of the uptrend.
On the other hand, the wheat market traded lower Friday with prices below the 50% level.
Now let’s have a look on the Softs. The cocoa market had a very large down day on Thursday in what some consider a flash crash but prices recovered quickly, then traded lower again on Friday. Read more…
Futures And Options Trading
Most people invest their money in savings bond or the stock market. In fact, Futures and Options Trading are better way to invest your money and have fun at the same time. Most savings plans give you set interest rates overtime. Unless you have a lot of money invested, the interest really doesn’t make that much return for you. The meager interest on a money market account or a savings account will only give you a few cents and maybe dollars a month. Some of the investment plans will not even allow you to take the money out of the bank without losing the interest.
What is Futures Trading?
A futures contract is an agreement between two individuals or entities to deliver and to buy some important assets/commodities where the unit price, the payment, delivery date, and the quantity and quality of the asset/commodity ordered are clearly stated in the contract. Some of the important futures trading in the financial world are oil futures trading, gold futures trading and FOREX futures trading. The good thing of futures trading is that both parties are spared from uncertainty and market risk, futures saves them from the trouble of haggling just to get the needed commodity or the underlying asset.
The Hedgers
The buyer and the producer (called the hedgers) both have hedged their risk by having a futures contract: the buyer is secured that he will have his supplies after a certain period of time while the producer is sure that his assets will be disposed upon closure of the futures contracts. Domestic and international corporations, banks, insurance companies, mutual fund managers, and trading firms are the main hedgers in futures market.
In fact, futures contract is indeed a straight forward activity that involving a buyer and a seller. However, because of the present of the third party, namely speculators, more colors have been added in to the futures trading market.
The Speculators Read more…