A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.
In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises.
Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy-and-hold and value investing strategies. Day trading may require fast trade execution, sometimes as fast as milli-seconds in scalping, therefore direct-access day trading software is often needed.
In finance, a futures contract is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the forward price. The specified time in the future when delivery and payment occur is known as the delivery date. Because it derives its value from the value of the underlying asset, a futures contract is a derivative.
A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products, and futures contracts.
In finance, a contract for difference (CFD) is a legally binding agreement that creates, defines, and governs mutual rights and obligations between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time. If the closing trade price is higher than the opening price, then the seller will pay the buyer the difference, and that will be the buyer's profit. The opposite is also true. That is, if the current asset price is lower at the exit price than the value at the contract's opening, then the seller, rather than the buyer, will benefit from the difference.
Squawk on the Street, which debuted on December 19, 2005, is a business show on CNBC that follows the first 90 minutes of trading on Wall Street in the United States.
Toni Turner, President of Trendstar Trading Group, LLC, is a technical analyst as well as an educator and speaker in the financial arena. She is the author of the books: A Beginner’s Guide to Day Trading Online, 2nd Ed., A Beginner’s Guide to Short-term Trading, 2nd Ed., Short-Term Trading in the New Stock Market, and Invest to Win: Earn & Keep Profits in Bull and Bear Markets with the Gains Master Approach, co-authored with Gordon Scott, CMT. Her books have been translated into five languages.
A trader is a person, firm, or entity in finance who buys and sells financial instruments, such as forex, cryptocurrencies, stocks, bonds, commodities, derivatives, and mutual funds in the capacity of agent, hedger, arbitrageur, or speculator.
Technical Analysis of Stocks & Commodities is an American, Seattle-based monthly magazine about commodity futures contracts, stocks, options, derivatives, and forex.
Linda Bradford Raschke (/'ræʃki/) is an American financier, operating mostly as a commodities and futures trader.
A commodity broker is a firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.
Jake Bernstein is President of Network Press, Inc. in Santa Cruz, California. Bernstein claims expertise in seasonal trading and has developed methods of trading in futures markets, and has been a featured speaker at many investment conferences and trading seminars. In 1999, Bernstein was fined by the National Futures Association $200,000 and permanently barred from NFA membership for not using proper disclaimers in his materials rendering the ruling "using misleading and deceptive Promotional Material".
Denise Kay Shull is a performance coach who uses neuroeconomics and modern psychoanalysis in her work with hedge funds and professional athletes. She is also the founder of The ReThink Group. Shull focuses on the positive contribution of feelings and emotion in high-pressure decisions. She is the author of Market Mind Games which explains how Wall Street traders act out Freudian transferences in reaction to market moves. Shull postulates that human perception contains fractal elements in the same manner as the fractal geometry of nature.
PTI Securities & Futures is a money management, securities and discount brokerage firm with offices in Chicago, Illinois and Peoria, Arizona. Established in 1991, PTI Securities provides investors, fund managers and pension funds in the United States with investment consulting services.
The May 6, 2010, flash crash, also known as the crash of 2:45 or simply the flash crash, was a United States trillion-dollar flash crash which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.
Russell R. Wasendorf Sr. is the former chairman and chief executive officer of Peregrine Financial Group, also known as PFGBEST, a futures commission merchant that filed for bankruptcy protection in Chicago in July 2012.
Brian Shannon, CMT is an American writer, equity trader, technical analyst, author of the beginner's trading book Technical Analysis Using Multiple Timeframes, and best-selleing book Maximum Trading Gains with Anchored VWAP, and founder of Alphatrends.net, a stock trading education company.
Interactive Brokers LLC (IB) is an American multinational brokerage firm. It operates the largest electronic trading platform in the United States by number of daily average revenue trades. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, funds, and some cryptocurrencies.
Jason Goepfert is an American researcher and columnist focused on the development of behavioral finance. Prior to founding Sundial Capital Research, he was the manager of back office operations for Deephaven Capital Management, a Minnesota-based hedge fund, and Wells Fargo's online brokerage unit.
