Financial Updates
Guidelines for Investors & Traders
| 02 August 2011
COMMODITY FUTURES AND FOREIGN EXCHANGE MARKETS:
This outline or short list shall serve as a matter of due diligence when considering trading the Commodity Futures and / or the Foreign Exchange Markets and their related investment instruments. It is vital for the investor to acquire as much knowledge, information on the topics and items listed below but not limited to the order of the list. The list consist of the major issues that needs to be address even before opening an account.
The financial Objectives of the investors should be properly laid out and emphasized as to the main goals set and prepared by the clients in relation to the financial or commodity that they will engage in trading. However, investors should also consider their financial conditions and should consult a financial adviser at all times in the course of any form of speculative investments, especially with a high degree of probable loss undertaken by an investor.
Choice of Commodity / Financial instrument base on :
Choice of : Counter-Party Banks offering FX Dealing
Services and Commodity Futures Trading
Authorized :Broker / Dealers, FCMs, FDMs
Choice of : Futures Commission Merchant / Broker - dealer
Market Maker - Counterparty , Bank & Liquidity Contributors /
: Introducing Brokers / Dealers : Guaranteed IBs / Dealing/ non dealing desk
Non-Guaranteed IBs', Overseas FX Dealers / Omnibus Trading accts.
Licenses :CFTC, NFA, FSA Complaint Licenses
Background Check - Complaints / Lawsuits
Exchanges : CBOT - Chicago Board of Trade / CME- Chicago Mercantile Exchange
: NYBOT - New York Board of Trade
: NYMEX - New York Mercantile Exchange
: ICE - Inter-Continental Exchange
: GLOBEX - Global Exchange
: EURONEXT - European Exchange
IMPORTANT ISSUES:
: Account Balance / Tranfers / sub-accounts on FX / Direct Conversions
: Bank Deposit of funds / Interest / Security /multiple accts.
: Commodity Information/ financial Futures
: Contract Sizes
: Trading Limits / commodity / Exchange
: Types of Orders/ Straight Through Price Executions for Forex
: Margin Requirements / Maintenance /
Overnight / Day requirements /
: Rollovers / fees / intrinsic values / give up trades
: Commissions / Rebates / fees / other charges
: Insurrance / FDIC / others
: Margin Calls / Deadline /
Extensions / transfers / Deposits
: First Notice Day
: Expiration / Date / Month
: Complaints / Errors & Ommissions
Conditions : Agricultural : Planting or Cycle /
Seasonal Common weather conditions
: Financials : Foreign Exchange rates,
interest rates, Derivatives, Options,
Forwards and Swaps
: Precious Metals : Gold, Silver,
Platinum, Copper
: Crude Oil, Natural Gas,
heating Oil, Gasoline
: Others
Trading : Basic Buy & Sell / Spreads / Price comparison / Accuracy
: Averaging / Scaling / Trending / Correlations
: Spread and Straddle / Net positioning / Percentage trades / Conversions
: Arbitray Hedging / Secondary market Accessibilty / FX collateralized trading
: Simplified Hedging / USD base & Foreign Currency base trading / etc.
Techncials: Tools of the Trade from RSI, MACD, trading Platforms, secondary / backup sytems, access to Reuters dealing system or any reliable voice brokers and many others to be considered before trading.
Market : Fundamental : Economic / Trade Policies
: Political Policies / Government Regulations
: Business Cycle / Investors / Market Sentiments
: Weather Conditions / Cyclical Patterns
: Market Psychology based on Behavioral price action *
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