Commodidex - 0_public:trading

2pct_rule

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

✅ 2% Rule One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk. The 2% Rule also creates a structure for your trading decisions, as illustrated in Table 2. For example, assuming you have a USD 50,000 account and you want to buy 5 Canadian Dollar contracts, the 2% Rule tells you that you could risk no more than 20 ticks on the trade (5 contracts x U…

basis

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:06:50+00:00

Basis pinned pricing risk_management * futures and basis prices often have inverted relationshipAn introduction to trade and commodity finance * mines and refiners need a minimum price for their material to be able to produce * when futures are high , basis prices tend to be low

bunker_trader

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Bunker Trader ---------- LIFE OF A BUNKER TRADER Bunker trading is a crucial function in the shipping industry as bunker fuels constitute approximately 60%-70% of the total voyage costs. Bunker fuel is the fuel oil used to power ships during their journeys.

cash_trade

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Cash Trade * 2 days from execution date

exit

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Trading Exit * reaching targets for profit or loss * no meaningful moves in price * exits due to end of the day * due to upcoming news event

forward

Anonymous (anonymous@undisclosed.example.com) — 2025-01-30T22:22:46+00:00

Forward ---------- There was no forward business, no futures, nothing. Forward Curve The forward curve is simply the price relationship between different contracts months at a point in time. The prices could represent futures contracts or even physical forward contracts calling for delivery of a commodity.

insider_trades

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Insider Trades

leverage

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Leverage ---------- Leverage is the ability to control a large contract value with a relatively small amount of capital. In the futures market, that capital is called performance bond, or initial margin, and is typically 3-12% of a contract's notional or cash value.

liquidity

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

indicators basics Liquidity Summer Season * The market's current low liquidity during the summer months has further amplified this downturn. Low Liquidity “It is the lack of physical activity — confined only to desperate covering of nearby physical contracts — that has caused the drying up of their normal futures activity, reducing the liquidity,” said Pam Thornton, a veteran commodity trader at Nightingale Investment Management, who’s best known for her role at former cocoa hedge fund Ar…

margin_call

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Margin Call ---------- Even though utilities could be making serious money (depending on whether governments are regulating prices and/or putting on caps), the high prices and volatility are driving up the requirements for collateral (cash) the utilities/traders must deposit to hedge their positions, and this is creating a serious liquidity crisis for the utilities.

marked-to-market

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Marked-to-Market At the end of each trading day, trades are “Marked-to-market.” This means that the closing price of the futures contract is compared to the purchase price or previous close, and money is either deposited to the client account or withdrawn from the client account.

plan

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

✅ CME Course "Building a trade plan" Trading Plan “He who fails to plan is planning to fail” -Winston Churchill Any solid trading plan consists of the following five components. cmegroup.com/building-a-trade-plan * Objective cmegroup.com/building-a-trade-plan * Methodology cmegroup.com/building-a-trade-plan * Risk Management cmegroup.com/building-a-trade-plan * Trading Strategies cmegroup.com/building-a-trade-plan * Trader Log cmegroup.com/building-a-trade-plan It is extremely imp…

pnt

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

PNT ---------- PNT is an acronym for privately negotiated trades, which may be reported through Clearport, CME Group’s clearing service for over-the-counter markets, or directly into CME Clearing.

risk_control

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

✅ CME Course “Master the trade: Futures” Risk Control * The first variable to control risk is deciding which futures market to trade. * The second way traders control risk is with the number of contracts they trade. * The third way is to set stops that are within your risk tolerances.

shorting

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Shorting ---------- Alternatively, if a trader expects a stock price to go down, they would place one sell order to enter the trade and one buy order to exit the trade. This is more commonly known as “shorting” or “shorting a stock”—the stock is sold first, then bought back later.

spread

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Spread ---------- The fund loaded up on put options, which rise in value as prices fall. It took short positions in both Brent and WTI crude futures too, including spread trades betting oil contracts for immediate delivery would weaken fastest.

stop_loss

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Stop Loss First up is where you’ll place your stop-loss order for the trade. Stops should not be set at random levels. Indeed, a stop needs to be placed at a logical level, where it will tell you if you’re wrong about the direction of the trade. Also, avoid placing a stop where it could easily be triggered by normal market movements.

technical

Anonymous (anonymous@undisclosed.example.com) — 2024-12-09T21:11:41+00:00

trading_and_analysis technical Technical

trade_flow

Anonymous (anonymous@undisclosed.example.com) — 2024-12-17T18:53:37+00:00

Trade Flow The US needed companies like Paramount, he explained, to increase its control over key commodity flows, such as oil exports from Russia and rare metals, currently dominated by China. Penalising Russia for the war was important, but aggressive sanctions risked pushing commodity trading further into the shadows and ultimately undermining the primacy of the dollar.

trade_imbalance

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Trade Imbalance The huge trade imbalance between China and Russia since the invasion of Ukraine has led to some 150,000 teu of empty boxes becoming stranded in Russia. Sept'23: “Containers are piling up in Russia, which means that second-hand prices are very low there – you see a 40ft high-cube container on sale in Moscow for less than $1,000, while in other parts of the world it is almost double, or more.”

trade_the_news

Anonymous (anonymous@undisclosed.example.com) — 2024-10-23T21:03:37+00:00

Trade the News News can be broadly classified into two categories: * Periodic or Recurring: This includes the scheduled releases of news that moves the markets, including interest rate announcements by the Federal Reserve, economic data releases, and quarterly earnings reports from companies.