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LearnInvesting.com: Commodity, Futures

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 Commodity Futures Trading Commission

Commodity, Futures
The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States Government, created by Congress in 1974. It is responsible for recording and monitoring the trading of futures contracts on United States futures exchanges. The CFTC has the authority to fine, suspend, or sue the company or individual in a federal court in cases of misconduct, fraud, or if a rulebreaking occurs.

Posted by learninvesting on Saturday, August 05 @ 22:30:56 CDT (8477 reads)
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 Option

Commodity, Futures
In finance, an option is a contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). The other party (the writer or seller) has the obligation to honor the specified feature of the contract. Since the option gives the buyer a right and the seller an obligation, the buyer has received something of value. The amount the buyer pays the seller for the option is called the option premium.

Most often the term "option" refers to a type of derivative which gives the holder of the option the right but not the obligation to purchase (a "call option") or sell (a "put option") a specified amount of a security within a specified time span. (Specific features of options on securities differ by the type of the underlying instrument involved.)

Posted by learninvesting on Sunday, August 20 @ 21:32:44 CDT (12614 reads)
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 Futures exchange

Commodity, Futures
A futures exchange, or futures and options exchange is a corporation or mutual organization which provides the facilities to trade derivatives such as futures contracts and options.

This type of exchange originated from exchanges where future contracts on commodities were traded, so called commodity exchanges. Later, future contracts on other products, such as short term interest rates or bonds, were offered. Nowadays, the contracts traded are not just futures, but also options, options on futures, and other varieties. The method of trading is called exchange trading, as opposed to over-the-counter (OTC) trading. Although strictly speaking derivatives exchange would be a more appropriate name, most exchanges of this type still refer to themselves as a futures or a futures and options exchange. The term derivatives may lead to confusion, as most derivatives are traded OTC, and most derivatives, such as swaps are rarely exchange traded.

Posted by learninvesting on Sunday, August 20 @ 00:40:54 CDT (9222 reads)
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 Contango

Commodity, Futures
Contango is a futures market term. It is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price. Or a far future delivery price higher than a nearer future delivery.

Posted by learninvesting on Saturday, August 05 @ 22:27:21 CDT (8582 reads)
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 Chicago Mercantile Exchange

Commodity, Futures
The Chicago Mercantile Exchange (CME or, simply, "The Merc") (NYSE:CME) is the largest futures exchange in the United States. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a not-for-profit organization. The exchange demutualized in November 2000, and went public in December 2002, becoming the first US exchange to do so. The Chief Executive Officer of the Merc is Craig S. Donohue.

Posted by learninvesting on Saturday, August 05 @ 22:17:01 CDT (4230 reads)
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 Chicago Board of Trade

Commodity, Futures
The Chicago Board of Trade (CBOT) NYSE: BOT, established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million contracts.

Posted by learninvesting on Sunday, August 20 @ 21:10:30 CDT (6760 reads)
(Read More... | 3704 bytes more | 175 comments | Score: 3.85)

 Mock Trading Made Easy

Commodity, FuturesPracticing your trading is probably the most important part of the LearnInvesting.com courses. You can read the course hundreds of times, but until you finally commit to actually mock trading yourself, you will never truly understand how all of the pieces fit together.

With this in mind, LearnInvesting.com has created a web based trading simulator. Which will provide you an easy way to mock trade. LearnInvesting's Mock Trading is an interactive on-line mock trading software package.

First off, LearnInvesting's Mock Trading is an online program by which a trader can develop their skills and practice trading the Futures market (sorry Options trading is not available at this time) without risking a penny. This experience is valuable and allows you to gauge your readiness for taking the leap into trading real money in real time with a broker. LearnInvesting's Mock Trading operates off delayed quotes.

LearnInvesting's Mock Trading can be an asset when testing new techniques and systems. It can also allow you to get familiarized with different commodities markets -- which is very helpful as each market has its own characteristics and personality. Knowing this can alert you to potential rewards and (even more important) potential volatility and risk.

Check it out!!!

Posted by learninvesting on Friday, May 06 @ 23:22:16 CDT (24470 reads)
(Read More... | 65 comments | Score: 3.87)


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CAUTION:

TRADING COMMODITIES, STOCKS AND/OR COMMODITY OR STOCK OPTIONS INVOLVES RISK. MONEY CAN BE LOST AND/OR MADE TRADING ANY SECURITY AND/OR OPTION. PAST PERFORMANCE OF A TRADING SYSTEM OR MARKET IS NOT NECESSARILY INDICATIVE OF THE FUTURE PERFORMANCE OF THAT SAME SYSTEM OR MARKET. MOCK TRADING AND ITS HYPOTHETICAL PERFORMANCE RESULTS ARE INHERENTLY LIMITED AND SHOULD ONLY BE USED AS A LEARNING TOOL AND NOT A MEASURE OF FUTURE PERFORMANCE. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.


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