Managed Futures Programs And Commodity Trading Advisor (CTA)
SMC Comtrade Limited, a key constituent of SMC Group of Companies, came into existence at the very start of Commodity Exchanges in India. It seems as though much of the literature available leaves the reader in a state of confusion; perhaps a majority of the bewilderment stems from the fact that most option theory is based on stock option trading and the transition to commodities isn’t without its hitches.
Base Metal Tips : Copper futures fell during noon trade in the domestic market on Thursday as investors and speculators exited positions in the industrial metal as soft China manufacturing and services data signaled a worsening slowdown in the world’s biggest metals consumer, darkening the demand outlook for copper.
Kotak Securities defines a futures contract as an agreement between two parties – a buyer and a seller – wherein the former agrees to purchase from the latter, a fixed number of shares or an index at a specific time in the future for a pre-determined price.” When the actual transaction is executed, all the details are agreed between the two parties.
Having understood the varying styles of online trading, you can now arrive at a share market strategy after having all the data points concerning how often you trade, the amount of time you should devote to trading, the amount of capital that is at your disposal in addition to the maintenance requirements of your trades.
It is not all good news however, because these types of strategies suffer at major turning points and in periods where markets are choppy or range-bound because at inflection points, they will generally be positioned to take advantage of the prevailing trend and often don’t react quick enough to mitigate losses associated with the turnaround.
Years ago, famed futures trader, Jake Bernstein, put together a book on seasonal trends detailing dozens of seasonal patterns that occur throughout the year in the various commodity markets, along with the historical record of what percentage of the time the markets stayed true to each seasonal pattern.
In the first half of 2016, investors increased gold exposure as the Federal Reserve showed caution on raising interest rates due to concerns about global growth, while Britain’s vote to leave the European Union curbed appetite for risk and pushed the metal to a two-year high in July.
Though the market, as well as the strategies used, are different from normal day trading, the basic rules remain the same such as, being consistent, vigilant about market changes and currency values, money management, putting a stop loss value, setting a realistic outcome, market know-how, expert advice and a calm mind.
Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
On August 23, 2012, the CFTC issued a final rule that amends Part 4 of its regulations to reflect changes made to the CEA by the Dodd-Frank Act Dodd-Frank redefined the terms commodity pool” commodity pool operator” andcommodity trading advisor” to include involvement with swaps activities and transactions.
Similarly, the wide-based National Stock Exchange index Nifty fell by 20.40 points, or 0.36 per cent, to close at 5,588.70. Also, SX40 index, the flagship index of MCX-SX , closed 49.23 points, or 0.44 per cent lower at 11,048.71. Brokers said the selling pressure sparked soon after the rupee falling to record lows in forex markets on reports of heavy capital outflow from equity markets.
Generally, the only exemption available to traders that exercise discretionary authority over client accounts requires that the firm have not more than 15 clients in any 12-month period and not hold itself out to the public generally as a commodity trading advisor Holding out to the public as a CTA” is a potentially very low standard of conduct which is likely to include any active solicitation activity directed at any prospective investors other than close friends and family.
The West Texas Intermediate for November delivery on Friday increased $0.85 to settle at $51.45 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose $0.92 to close at $57.17 a barrel on the London ICE Futures Exchange, Xinhua news agency reported.