ARIF HABIB COMMODITIES (An Arif Habib Group Company) April, 2013

Size: px
Start display at page:

Download "ARIF HABIB COMMODITIES (An Arif Habib Group Company) April, 2013"

Transcription

1 ARIF HABIB COMMODITIES (An Arif Habib Group Company) April, 2013

2 Arif Habib Group serves over 100,000 local /international clients base Our success factors include continuous investment in Intellectual Capital, strong IT Strategy, capacity building and insistence on Best Practices The Arif Habib Group ranks amongst the largest and oldest financial services in Pakistan today Managing assets in excess of PRs. 37 billion (US$ 617 million), the Group holds interests in the securities & commodities brokerage, investment and financial advisory, investment management, commercial banking, commodities, private equity, cement and fertilizer industries

3 Why Arif Habib Commodities? We are a wholly owned subsidiary of Arif Habib Limited. We are one of the top most and oldest broker registered with Pakistan Mercantile Exchange. We stand amongst the pioneers of the country s commodity brokerage industry. Industry Leaders Professionals Team & Qualified Analysts Round the Clock Superior Service (5am-2am) Research on range of commodities including Agriculture, Precious Metals, Base Metals and Energy Daily Research, SMS Alerts and Regular Trading Calls Online & Offline Trading Lowest commission starting with Rs.25. We offer Account Opening from Rs.25,000/- Minimum margin requirement at 4.25% Customized market watch for PMEX Strong Relationship Management Focused Investor Education

4 Pakistan Mercantile Exchange (PMEX) technology driven, demutualised, on-line commodity futures exchange in Pakistan Trades Regulated by SECP with No Credit risk Pakistan s first and only Commodity and Futures exchange operational since Apr 2007 Active Contracts at PMEX are Gold 1, 10, 100 Troy Ounce, Silver 10, 100, 500 Troy Ounce and Crude Oil 10, 100 Troy Ounce. TOLAGOLD Physical Delivery. Other Contracts include Sugar, Wheat, Rice, Palm Oil 3 Contracts trade at a point of time for futures. E.g. Dec, Jan, Feb First Physical Gold Delivery in Aug Contracts for Spot Mon, Tue, Wed, Thurs, Fri Biggest Exchange of Pakistan in terms of Traded Volumes by Jun Daily Traded Value has crossed Rs.8bn between Guaranteed Settlement on T+0 basis Contract Expires on Last Friday of Preceding Month

5 Financial Institutions Category of Investor in Futures Markets Agricultural - Farmers Industries Individual/Retail Investors Government Suppliers discover information about future prices of commodities Speculators Hedgers to transfer risk to some other party Arbitrageurs to take advantage of price difference in different markets

6 Categories of traders in Futures Markets Hedgers Producers Farmers Consumers Refineries, Food processing companies Speculators Institutional proprietary traders Brokerage Firms Spot Commodity traders Hedge funds Supplier Farmers, miners, oil producers etc Arbitrageurs Brokerage Firms Investors

7 Pakistan Commodity Exchange trade in Spot/Futures A market in which multiple buyers and sellers trade commodity - linked contracts on the basis of rules and procedures laid down by the exchange. This includes: Spot trade for immediate delivery of the commodity (Physical) Forward contracts (Off Market) Futures trading (Through Exchanges) Market takes global perspective in to account to determine prices including Global Financial Crises, EU Stability, World Economic Growth Forecasts, Employment Data, Interest rate environment, US Dollar/Euro Parity, Safe Haven, Ease of Access and Central Bank/Government actions

8 Pakistan Mercantile Exchange (PMEX) provides Overnight Liquidity and Currency Risk Hedge at no cost Biggest Exchange in terms of Membership Investment Portfolio diversification Best Risk Management Practice in the country 100% institutional shareholding Low cost of trading starting with Rs.25 in Gold, Rs. 45 in Silver and Rs35 in Crude Oil Low Margins - High leverage with no cost (In Gold 22 times, Silver and Crude Oil 13 Times) Hedging against Inflation/ Arbitrage with other exchanges Highly liquidity and Idle Balances earn interest

9 Pakistan Mercantile Exchange Products International Commodities Most traded on PMEX Gold 1 ounce contract (5 Year return over 200%, 3Year return over 100%, 5 Year Annual Return over 31% upto 2012 in rupee terms) Crude Oil 10 barrel contract (17% 5 Year Annual Return in Rupee Terms) Silver-10/100 ounces contract (28% 5 Year Annual Return in Rupee Terms) Domestic Commodities IRRI-6 Rice/Wheat/Sugar/Palm Oil Futures Contract Financial Futures KIBOR Futures Contract

10 Pakistan Mercantile Exchange Trading Value traded over Rs.118bn by August 2011(6-fold growth in one year s time) Contracts traded 110,000 on average during (160% YoY increase)

11 Pakistan Mercantile Exchange Benefits of diversification - an illustration Diversifying portfolio Correlation Matrix USD/PKR KSE100 Gold Silver Crude USD/PKR KSE Gold Silver Crude 1 Returns* 0.5% 14.6% 22.2% 71.2% 15.1% Inflation adj.* -12.4% 1.8% 9.3% 58.3% 2.2% *based on relative returns average since Jul-2010 to Dec-2011

12 PMEX Trading Procedures Online Trading Market Timings: 5AM to 2AM Contract Period: Physical Delivery: Upto 7 Days, Cash Settled Contracts: 30, 60, 90 days Order Placement: Investor completes and delivers Account opening form along with check (Online fund transfer facility) to obtain Login ID and Password from Arif Habib Commodities to enter main screen client trade portal of PMEX Single Screen customized market watch along with online account statement, reporting on clearing and settlement

13 Investment in Gold Used as Jewelery major demand in India And alternative asset major demand by China Currency Hedge(Average rupee depreciation stood at Annual 7.5% during 20 year period ending 2009) Inflation Hedge (Average CPI stood 7.5% per annum and gold return over Annual 21% during 10 year ) Taxation(PMEX donot deduct) Leverage at no cost(13:1 for Oil, Silver and 22:1 for Gold) Diversification Exposure to Global Economy No Local Manipulation Safe Haven Long/Short Positions Liquid Investment Lack of reliable alternative assets Hedge against uncertain future Gold can be sold to someone outside Pakistan Locals loosing faith in economic growth

14 Contact Us: Arif Habib Commodities (An Arif Habib Group Company) Karachi Stock Exchange Building Stock Exchange Road Karachi Commodities Help Desk: Phone: Fax: Website: Follow us on Facebook/arifhabibcommodity, Twitter/ahcommodities

15

Invest Trade Hedge COMMODITY MARKET REVIEW 2012

Invest Trade Hedge COMMODITY MARKET REVIEW 2012 COMMODITY MARKET REVIEW 2012 Invest Trade Hedge Pakistan Mercantile Exchange, 9 th Floor, PRC Towers, 32-A Lalazar Drive, MT Khan Road, Karachi, Pakistan. Despite a disappointing 2011, many commodities

More information

Currency Trading Opportunities at DGCX

Currency Trading Opportunities at DGCX Currency Trading Opportunities at DGCX About DGCX Region s 1 st and largest derivatives exchange Commenced trading in November 2005 Since launch over 6.8 million contracts traded with a value in excess

More information

Chapter 1 - Introduction

Chapter 1 - Introduction Chapter 1 - Introduction Derivative securities Futures contracts Forward contracts Futures and forward markets Comparison of futures and forward contracts Options contracts Options markets Comparison of

More information

Mechanics of the Futures Market. Andrew Wilkinson

Mechanics of the Futures Market. Andrew Wilkinson Mechanics of the Futures Market Andrew Wilkinson Risk Disclosure Options and Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading

More information

Online Share Trading Currency Futures

Online Share Trading Currency Futures Online Share Trading Currency Futures pic Currency Futures Introduction Currency futures contracts can be hard-working additions to any investor s or trader s portfolio. They provide a way to hedge the

More information

Online Share Trading Currency Futures

Online Share Trading Currency Futures Online Share Trading Currency Futures Wealth warning: Trading Currency Futures can offer significant returns BUT also subject you to significant losses if the market moves against your position. You may,

More information

Brokerage/ E-trading. www.company.com

Brokerage/ E-trading. www.company.com Brokerage/ E-trading OSYS & World Best Voted Trading Platform OFFER: Cyprus Company Set Up & Brokerage Account To: Trade Tax Free on International Markets Act as Director of the Company and Repatriate

More information

INTRODUCTION TO COMMODITY TRADING KASB SECURITIES LIMITED KASB SECURITIES LIMITED

INTRODUCTION TO COMMODITY TRADING KASB SECURITIES LIMITED KASB SECURITIES LIMITED INTRODUCTION TO COMMODITY TRADING KASB SECURITIES LIMITED KASB SECURITIES LIMITED Commodity Trading KASB Securities One of the oldest and largest pure agency brokerage firms in Pakistan today providing

More information

Manual for SOA Exam FM/CAS Exam 2.

Manual for SOA Exam FM/CAS Exam 2. Manual for SOA Exam FM/CAS Exam 2. Chapter 7. Derivative markets. c 2009. Miguel A. Arcones. All rights reserved. Extract from: Arcones Manual for the SOA Exam FM/CAS Exam 2, Financial Mathematics. Fall

More information

Reading: Chapter 19. 7. Swaps

Reading: Chapter 19. 7. Swaps Reading: Chapter 19 Chap. 19. Commodities and Financial Futures 1. The mechanics of investing in futures 2. Leverage 3. Hedging 4. The selection of commodity futures contracts 5. The pricing of futures

More information

Futures Contract Introduction

Futures Contract Introduction Futures Contract Introduction 1 The first futures exchange market was the Dojima Rice exchange in Japan in the 1730s, to meet the needs of samurai who being paid in rice and after a series of bad harvests

More information

A Trader s Guide to Futures

A Trader s Guide to Futures CME GROUP EDUCATION A Trader s Guide to Futures Thought Leadership with a Global Perspective How the world advances cmegroup.com/education TABLE OF CONTENTS SECTION 1 What Are Futures? 4 SECTION 2 Who

More information

CommSeC CFDS: IntroDuCtIon to CommoDItIeS

CommSeC CFDS: IntroDuCtIon to CommoDItIeS CommSec CFDs: Introduction to Commodities We re here to help To find out more, call us on 1300 307 853, from 8am Monday to 6am Saturday, email us at cfds@commsec.com.au or visit our website at commsec.com.au.

More information

Corporate and Investment Banking. Standard Bank Africa Commodity Index Exchange Traded Note

Corporate and Investment Banking. Standard Bank Africa Commodity Index Exchange Traded Note Corporate and Investment Banking Standard Bank Africa Commodity Index Exchange Traded Note Introduction to Commodities as an Asset Class 2 The Standard Bank Africa Commodity Index 4 Standard Bank s Blue

More information

Assumptions: No transaction cost, same rate for borrowing/lending, no default/counterparty risk

Assumptions: No transaction cost, same rate for borrowing/lending, no default/counterparty risk Derivatives Why? Allow easier methods to short sell a stock without a broker lending it. Facilitates hedging easily Allows the ability to take long/short position on less available commodities (Rice, Cotton,

More information

Getting Started in Stock Market

Getting Started in Stock Market Getting Started in Stock Market Getting Started in Stock Market Introduction to Stock Market Primary & Secondary Market Demat and Trading Account Why Trade in Stock Market Investment and Types of Investors

More information

MODEL TEST PAPER COMMODITIES MARKET MODULE

MODEL TEST PAPER COMMODITIES MARKET MODULE MODEL TEST PAPER COMMODITIES MARKET MODULE Q:1. Which of the following can be the underlying for a commodity derivative contract? (a) Interest Rate (b) Euro-Indian Rupee (c) Gold (d) NIFTY Q:2. Daily mark

More information

P R O F E S S I O N A L R E S P E C T I N T E G R I T Y D Y N A M I C E X C E L L E N C E BMD CRUDE PALM OIL FUTURES

P R O F E S S I O N A L R E S P E C T I N T E G R I T Y D Y N A M I C E X C E L L E N C E BMD CRUDE PALM OIL FUTURES P R O F E S S I O N A L R E S P E C T I N T E G R I T Y D Y N A M I C E X C E L L E N C E BMD CRUDE PALM OIL FUTURES Advantage & Opportunities A BRIEF HISTORY CPO futures launched since October 1980 by

More information

KERFORD INVESTMENTS (UK) LTD Authorised and Regulated by the Financial Conduct Authority (FCA)

KERFORD INVESTMENTS (UK) LTD Authorised and Regulated by the Financial Conduct Authority (FCA) KERFORD INVESTMENTS (UK) LTD. Authorised and Regulated by the Financial Conduct Authority (FCA) Registered Office: 43-45 Dorset Street, London W1U 7NA Administration Office: 14 Basil Street, London SW3

More information

Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

More information

Futures Trading: The Way to Go?

Futures Trading: The Way to Go? Futures Trading: The Way to Go? Terence Lee Private Client Service 25/02/11 Disclaimer The information contained in these course materials provided is the option of the Course Trainer and not Phillip Futures.

More information

Introduction to Futures Contracts

Introduction to Futures Contracts Introduction to Futures Contracts September 2010 PREPARED BY Eric Przybylinski Research Analyst Gregory J. Leonberger, FSA Director of Research Abstract Futures contracts are widely utilized throughout

More information

BUSM 411: Derivatives and Fixed Income

BUSM 411: Derivatives and Fixed Income BUSM 411: Derivatives and Fixed Income 2. Forwards, Options, and Hedging This lecture covers the basic derivatives contracts: forwards (and futures), and call and put options. These basic contracts are

More information

A Presentation on Gold. Gold 1

A Presentation on Gold. Gold 1 A Presentation on Gold Gold 1 About Club Kautilya Gold 2 Index Introduction 4 Why to Invest in Gold 5 Factors Influencing the Market 7 Why Gold is a Safe Heaven 9 Investment Vehicle NSEL E-Gold 10 12 Gold

More information

Leveraging on opportunities with crude palm oil futures

Leveraging on opportunities with crude palm oil futures Leveraging on opportunities with crude palm oil futures Azila Abdul Aziz Chief Executive Officer / Head of Listed Derivatives KENANGA DEUTSCHE FUTURES SDN BHD (A member firm of Bursa Malaysia Derivatives

More information

An approach on how to trade in commodities market

An approach on how to trade in commodities market An approach on how to trade in commodities market Last decade there emerged a new avenue for retail investors and traders to participate: this was the new modified electronic platform of commodity derivatives.

More information

Chapter 15 - Options Markets

Chapter 15 - Options Markets Chapter 15 - Options Markets Option contract Option trading Values of options at expiration Options vs. stock investments Option strategies Option-like securities Option contract Options are rights to

More information

Commodities. Precious metals as an asset class. April 2011. What qualifies as an asset class? What makes commodities an asset class?

Commodities. Precious metals as an asset class. April 2011. What qualifies as an asset class? What makes commodities an asset class? Commodities Precious metals as an asset class April 2011 What qualifies as an asset class? Broadly speaking, an asset class is simply a grouping of assets that possess similar characteristics. Defining

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

2 Stock Price. Figure S1.1 Profit from long position in Problem 1.13

2 Stock Price. Figure S1.1 Profit from long position in Problem 1.13 Problem 1.11. A cattle farmer expects to have 12, pounds of live cattle to sell in three months. The livecattle futures contract on the Chicago Mercantile Exchange is for the delivery of 4, pounds of cattle.

More information

track, or replicate, the performance of an underlying index. Futures-based ETFs, on the other hand, invest in

track, or replicate, the performance of an underlying index. Futures-based ETFs, on the other hand, invest in Commodity Futures ETFs 1. Characteristics of Futures-based ETFs i. Definition Traditional ETFs represent baskets of securities that track, or replicate, the performance of an underlying index. Futures-based

More information

Saxo Bank:The Smart Choice

Saxo Bank:The Smart Choice Saxo Bank:The Smart Choice A Danish Investment Bank The Saxo Bank Representative Office, Limassol, Cyprus February 14, 2014 SAXO BANK: Why Saxo Bank EU- regulated fully licensed Danish bank, 4th biggest

More information

Hedging Foreign Exchange Rate Risk with CME FX Futures Canadian Dollar vs. U.S. Dollar

Hedging Foreign Exchange Rate Risk with CME FX Futures Canadian Dollar vs. U.S. Dollar Hedging Foreign Exchange Rate Risk with CME FX Futures Canadian Dollar vs. U.S. Dollar CME FX futures provide agricultural producers with the liquid, efficient tools to hedge against exchange rate risk

More information

Alternative Asset Classes Page 1 ALTERNATIVE ASSET CLASSES: AN INTRODUCTION

Alternative Asset Classes Page 1 ALTERNATIVE ASSET CLASSES: AN INTRODUCTION Alternative Asset Classes Page 1 ALTERNATIVE ASSET CLASSES: AN INTRODUCTION PART OF SOUND PORTFOLIO MANAGEMENT IS DIVERSIFYING INVESTMENTS SO THAT IF ONE TYPE OF INVESTMENT IS PERFORMING POORLY, ANOTHER

More information

Frequently Asked Questions on Derivatives Trading At NSE

Frequently Asked Questions on Derivatives Trading At NSE Frequently Asked Questions on Derivatives Trading At NSE NATIONAL STOCK EXCHANGE OF INDIA LIMITED QUESTIONS & ANSWERS 1. What are derivatives? Derivatives, such as futures or options, are financial contracts

More information

I) LSE OVERVIEW 2 a. Operational Insight 2 b. Associated Issues 2 II) REGULATORY DEVELOPMENTS 2

I) LSE OVERVIEW 2 a. Operational Insight 2 b. Associated Issues 2 II) REGULATORY DEVELOPMENTS 2 CONTENTS Page I) LSE OVERVIEW 2 a. Operational Insight 2 b. Associated Issues 2 II) REGULATORY DEVELOPMENTS 2 III) MARKET OVERVIEW 3 a. LSE - Chart 1 3 b. Market Profiles 4 c. Volatility Profile 4 IV)

More information

INTRODUCTION TO COMMODITY TRADING

INTRODUCTION TO COMMODITY TRADING INTRODUCTION TO COMMODITY TRADING Capademy Tutorial Series Option Banque Training Series Vol. 1 Commodities are the raw ingredients or components of almost everything we consume or use in our everyday

More information

CHAPTER 22: FUTURES MARKETS

CHAPTER 22: FUTURES MARKETS CHAPTER 22: FUTURES MARKETS 1. a. The closing price for the spot index was 1329.78. The dollar value of stocks is thus $250 1329.78 = $332,445. The closing futures price for the March contract was 1364.00,

More information

Hedging Strategies Using Futures. Chapter 3

Hedging Strategies Using Futures. Chapter 3 Hedging Strategies Using Futures Chapter 3 Fundamentals of Futures and Options Markets, 8th Ed, Ch3, Copyright John C. Hull 2013 1 The Nature of Derivatives A derivative is an instrument whose value depends

More information

A Trader s Guide to Futures

A Trader s Guide to Futures CME GROUP EDUCATION A Trader s Guide to Futures Thought Leadership with a Global Perspective How the world advances cmegroup.com/education TABLE OF CONTENTS SECTION 1 What Are Futures? 4 SECTION 2 Who

More information

Hedging Strategies Using

Hedging Strategies Using Chapter 4 Hedging Strategies Using Futures and Options 4.1 Basic Strategies Using Futures While the use of short and long hedges can reduce (or eliminate in some cases - as below) both downside and upside

More information

Brief Overview of Futures and Options in Risk Management

Brief Overview of Futures and Options in Risk Management Brief Overview of Futures and Options in Risk Management Basic Definitions: Derivative Security: A security whose value depends on the worth of other basic underlying variables. E.G. Futures, Options,

More information

Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008

Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008 Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008 Performance Summary Below are summary performance numbers for Last Atlantis Partners, LLC share classes. To download detailed

More information

9 Questions Every ETF Investor Should Ask Before Investing

9 Questions Every ETF Investor Should Ask Before Investing 9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment products like mutual funds, closed-end funds,

More information

An Assessment of Prices of Natural Gas Futures Contracts As A Predictor of Realized Spot Prices at the Henry Hub

An Assessment of Prices of Natural Gas Futures Contracts As A Predictor of Realized Spot Prices at the Henry Hub An Assessment of Prices of Natural Gas Futures Contracts As A Predictor of Realized Spot Prices at the Henry Hub This article compares realized Henry Hub spot market prices for natural gas during the three

More information

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to DerivativesĀ»

More information

EXCHANGE TRADED OPTIONS

EXCHANGE TRADED OPTIONS EXCHANGE TRADED OPTIONS A SELF STUDY GUIDE TO TRADING EQUITY OPTIONS NZX EDUCATION This document is provided for general information purposes and is not intended as, and shall not constitute, investment

More information

Crabel Capital Management, LLC

Crabel Capital Management, LLC Commodity Trading Advisors (CTAs) provide advice and services related to trading and investment strategies utilizing futures contracts and options on futures contracts on a wide variety of physical goods

More information

Best ETF Trading Practices

Best ETF Trading Practices Presented by QQQ TM Also inside: 2 Why best trading practices matter 3 The value of a pretrade analysis 4 Evaluating ETFs for trading efficiency 5 Mechanics of ETF trades 5 Relationships between ETF trading

More information

CBOT Precious Metals AN INTRODUCTION TO TRADING CBOT ELECTRONIC GOLD AND SILVER

CBOT Precious Metals AN INTRODUCTION TO TRADING CBOT ELECTRONIC GOLD AND SILVER CBOT Precious Metals AN INTRODUCTION TO TRADING CBOT ELECTRONIC GOLD AND SILVER Introduction The Chicago Board of Trade offers electronic trading on two of the world s most actively traded precious metals

More information

PRICE PATTERN IN FUTURES MARKET

PRICE PATTERN IN FUTURES MARKET PRICE PATTERN IN FUTURES MARKET Objective This part explains the concept of Basis which is the price difference between an underlying asset and its future. How basis can be used for effectively hedging

More information

Derivative: a financial instrument whose value depends (or derives from) the values of other, more basic, underlying values (Hull, p. 1).

Derivative: a financial instrument whose value depends (or derives from) the values of other, more basic, underlying values (Hull, p. 1). Introduction Options, Futures, and Other Derivatives, 7th Edition, Copyright John C. Hull 2008 1 Derivative: a financial instrument whose value depends (or derives from) the values of other, more basic,

More information

The original purpose of futures contracts was to provide a facility for people to hedge their price risk.

The original purpose of futures contracts was to provide a facility for people to hedge their price risk. Futures Bas sicss Propex Derivatives Pty Ltd 2012 The information in this document and related documents and communication is intended for educational purposes only and does not constitute advice. Redistribution

More information

KCBOT: The Kansas City Board of Trade was formally chartered in 1876 and trades hard red winter

KCBOT: The Kansas City Board of Trade was formally chartered in 1876 and trades hard red winter Section I Introduction to Futures and Options Markets Learning objectives To know major agricultural futures exchanges To see the types of commodities traded To understand common characteristics of futures

More information

Annuity Linked TVI Index. Explained

Annuity Linked TVI Index. Explained Annuity Linked TVI Index Explained 1 Key Features of the Annuity Linked TVI Index The Index aims to deliver positive returns while moderating volatility regardless of market direction. The Index goal is

More information

Risk Disclosure Statement for CFDs on Securities, Indices and Futures

Risk Disclosure Statement for CFDs on Securities, Indices and Futures Risk Disclosure on Securities, Indices and Futures RISK DISCLOSURE STATEMENT FOR CFDS ON SECURITIES, INDICES AND FUTURES This disclosure statement discusses the characteristics and risks of contracts for

More information

Workshop Agenda Certified Commodities Analyst OBJECTIVE KEY AREAS FOCUS WHO SHOULD ATTEND. About your trainer UNIQUE MARKETS SPOT COMPLEX

Workshop Agenda Certified Commodities Analyst OBJECTIVE KEY AREAS FOCUS WHO SHOULD ATTEND. About your trainer UNIQUE MARKETS SPOT COMPLEX markets are one of the more diverse markets in the capital markets arena and feature in investment portfolios in an increasing manner although traditionally they are traded in physicals taking in the whole

More information

CHAPTER 22: FUTURES MARKETS

CHAPTER 22: FUTURES MARKETS CHAPTER 22: FUTURES MARKETS PROBLEM SETS 1. There is little hedging or speculative demand for cement futures, since cement prices are fairly stable and predictable. The trading activity necessary to support

More information

CHAPTER 16. Futures Contracts

CHAPTER 16. Futures Contracts CHAPTER 16 Futures Contracts Trading in futures contracts adds a time dimension to commodity markets. A futures contract separates the date of the agreement - when a delivery price is specified - from

More information

Overview of Korean ETF Market 2010. 8

Overview of Korean ETF Market 2010. 8 Overview of Korean ETF Market 2010. 8 1 Agenda About ETFs Overview Key success factors of ETFs New Trends of Korean ETF Industry Challenges to Korean ETF Industry 2 About ETF 3 What is ETFs ETFs are open-end

More information

Bullion and Mining Stocks Two Different Investments

Bullion and Mining Stocks Two Different Investments BMG ARTICLES Bullion and Mining Stock Two Different Investments 1 Bullion and Mining Stocks Two Different Investments March 2009 M By Nick Barisheff any investors believe their portfolios have exposure

More information

Hedging Foreign Exchange Risk with Forwards, Futures, Options and the Gold Dinar: A Comparison Note

Hedging Foreign Exchange Risk with Forwards, Futures, Options and the Gold Dinar: A Comparison Note Hedging Foreign Exchange Risk with Forwards, Futures, Options and the Gold Dinar: A Comparison Note Ahamed Kameel Mydin Meera Department of Business Administration International Islamic University Malaysia

More information

IntercontinentalExchange. Credit Suisse Financial Services Forum February 7, 2008

IntercontinentalExchange. Credit Suisse Financial Services Forum February 7, 2008 IntercontinentalExchange Credit Suisse Financial Services Forum February 7, 2008 Forward-Looking Statements Forward-Looking Statements This presentation may contain forward-looking statements made pursuant

More information

Currency Derivatives Guide

Currency Derivatives Guide Currency Derivatives Guide What are Futures? In finance, a futures contract (futures) is a standardised contract between two parties to buy or sell a specified asset of standardised quantity and quality

More information

Annual Shareholder Meeting. June 2012

Annual Shareholder Meeting. June 2012 Annual Shareholder Meeting June 2012 Agenda Call to Order; Opening of Polls Introduction of Directors Introduction of Management Introduction of Independent Registered Public Accounting Firm Designation

More information

Introduction, Forwards and Futures

Introduction, Forwards and Futures Introduction, Forwards and Futures Liuren Wu Zicklin School of Business, Baruch College Fall, 2007 (Hull chapters: 1,2,3,5) Liuren Wu Introduction, Forwards & Futures Option Pricing, Fall, 2007 1 / 35

More information

CME Group 2012 Commodities Trading Challenge. Competition Rules and Procedures

CME Group 2012 Commodities Trading Challenge. Competition Rules and Procedures Competition Rules and Procedures CME Group with assistance from CQG and the University of Houston, is sponsoring a commodities trading competition among colleges and universities. Students will compete

More information

Introduction to Metals Futures. Presented by Pete Mulmat and Dan Gramza September 25th, 2014

Introduction to Metals Futures. Presented by Pete Mulmat and Dan Gramza September 25th, 2014 Introduction to Metals Futures Presented by Pete Mulmat and Dan Gramza September 25th, 2014 Disclaimer Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged

More information

DGCX Contract Specifications

DGCX Contract Specifications DGCX Contract Specifications Products Gold futures Options on Gold Futures Silver Futures Currencies: Indian Rupee - US Dollar FX Futures Contract Options on Indian Rupee Futures Euro - US Dollar FX Futures

More information

Chapter Five: Risk Management and Commodity Markets

Chapter Five: Risk Management and Commodity Markets Chapter Five: Risk Management and Commodity Markets All business firms face risk; agricultural businesses more than most. Temperature and precipitation are largely beyond anyone s control, yet these factors

More information

Mutual Funds in Pakistan

Mutual Funds in Pakistan Mutual Funds in Pakistan Investors Education Seminar arranged by SECP and ICAP held on 29th January 2015 Presented By First Capital Investments Limited Definition of Mutual Fund A mutual fund is a collective

More information

The Futures Markets Canadian Securities Institute 1

The Futures Markets Canadian Securities Institute 1 The Futures Markets Canadian Securities Institute 1 Introduction This chapter provides an introduction to futures markets where exchange-traded, forward-based derivatives are traded. Forward-based derivatives

More information

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS CLIENT SERVICE AGREEMENT Halifax New Zealand Limited Client Service Agreement Product Disclosure Statement for MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS Halifax New Zealand Limited Financial

More information

Noble DraKoln. metals products Gold Futures vs. Gold ETFs: Understanding the Differences and Opportunities.

Noble DraKoln. metals products Gold Futures vs. Gold ETFs: Understanding the Differences and Opportunities. metals products Gold Futures vs. Gold ETFs: Understanding the Differences and Opportunities. Noble DraKoln Founder of Speculator Academy and author of Winning the Trading Game and Trade Like a Pro cmegroup.com/metals

More information

Example of a diesel fuel hedge using recent historical prices

Example of a diesel fuel hedge using recent historical prices Example of a diesel fuel hedge using recent historical prices Firm A expects to consume 5,, litres of diesel fuel over the next 12 months. Fuel represents a large expense for the firm, and volatile prices

More information

An Introduction to trading CitiFirst Commodity MINIs OPPORTUNITY. www.citifirst.com.au/minis

An Introduction to trading CitiFirst Commodity MINIs OPPORTUNITY. www.citifirst.com.au/minis OPPORTUNITY www.citifirst.com.au/minis MINIS INSTALMENTS SELF FUNDING INSTALMENTS TURBOS TRADING WARRANTS An Introduction to trading CitiFirst Commodity MINIs For more information and to subscribe to our

More information

3/11/2015. Crude Oil Price Risk Management. Crude Oil Price Risk Management. Crude Oil Price Risk Management. Outline

3/11/2015. Crude Oil Price Risk Management. Crude Oil Price Risk Management. Crude Oil Price Risk Management. Outline 1 Phoenix Energy Marketing Consultants Inc. 2 Outline What is crude oil price risk management? Why manage crude oil price risk? How do companies manage crude oil price risk? What types of deals do companies

More information

BROKER MANAGEMENT SYSTEM (BMS) User Manual

BROKER MANAGEMENT SYSTEM (BMS) User Manual BROKER MANAGEMENT SYSTEM (BMS) User Manual Contents Introduction... 2 BMS Installation... 3 1. BMS Live Version... 3 2. BMS Demo Version... 3 BMS Activation... 3 User Authentication Process... 3 Step 1...

More information

Market Organization and Structure. Larry Harris Los Angeles, U.S.A. Contents:

Market Organization and Structure. Larry Harris Los Angeles, U.S.A. Contents: 1 Market Organization and Structure Larry Harris Los Angeles, U.S.A. Contents: LEARNING OUTCOMES... 3 1 INTRODUCTION... 3 2 THE FUNCTIONS OF THE FINANCIAL SYSTEM... 4 2.1 HELPING PEOPLE ACHIEVE THEIR PURPOSES

More information

TRADING FUTURES ON THE SAXOTRADER PLATFORM

TRADING FUTURES ON THE SAXOTRADER PLATFORM TRADING FUTURES ON THE SAXOTRADER PLATFORM Saxo Capital Markets Tel: +65 6303 7788 Web Site: www.saxomarkets.com.sg 1 TRADING FUTURES ON THE SAXOTRADER PLATFORM OPEN DEMO OPEN LIVE WORLDWIDE INVESTMENT

More information

What does the Dow Jones-UBS Commodity Index track?

What does the Dow Jones-UBS Commodity Index track? Dow Jones-UBS Commodity Index FAQ What does the Dow Jones-UBS Commodity Index track? The Dow Jones-UBS Commodity Index is an index tracking the performance of a weighted group of exchange-traded futures

More information

Hedging Milk with BFP Futures and Options

Hedging Milk with BFP Futures and Options Curriculum Guide I. Goals and Objectives A. Gain an understanding of milk price seasonality. B. earn about basis and how to track it over time. C. earn how to hedge future milk sales with BFP futures and

More information

OPEC s One-Way Option: Investors and the Price of Crude Oil. Philip K. Verleger, Jr. PKVerleger LLC

OPEC s One-Way Option: Investors and the Price of Crude Oil. Philip K. Verleger, Jr. PKVerleger LLC OPEC s One-Way Option: Investors and the Price of Crude Oil Philip K. Verleger, Jr. PKVerleger LLC Theme After ten years, commodities have finally become a suitable investment class for pension funds.

More information

BEAR: A person who believes that the price of a particular security or the market as a whole will go lower.

BEAR: A person who believes that the price of a particular security or the market as a whole will go lower. Trading Terms ARBITRAGE: The simultaneous purchase and sale of identical or equivalent financial instruments in order to benefit from a discrepancy in their price relationship. More generally, it refers

More information

E GOLD: THE NEW INCARNATION OF GOLD

E GOLD: THE NEW INCARNATION OF GOLD E GOLD: THE NEW INCARNATION OF GOLD Introduction E-GOLD is the new incarnation of gold, innovated by National Spot Exchange (NSEL), which enables investors to invest their funds into Gold in smaller denomination

More information

IndexIQ. Smart solutions for better portfolios. by MainStay Investments

IndexIQ. Smart solutions for better portfolios. by MainStay Investments IndexIQ Smart solutions for better portfolios by MainStay Investments An Innovative Marriage of ETFs and Alternative Investments In recent years, exchange-traded funds (ETFs) have steadily grown in popularity.

More information

Introduction to Futures Markets

Introduction to Futures Markets Agricultural Commodity Marketing: Futures, Options, Insurance Introduction to Futures Markets By: Dillon M. Feuz Utah State University Funding and Support Provided by: Fact Sheets Definition of Marketing

More information

Exchange-Traded Funds

Exchange-Traded Funds Exchange-Traded Funds Exchange Traded Funds (ETF s) are becoming popular investment vehicles for many investors. Most ETF s are cost effective, broad market funds. We have put together a layman s explanation

More information

Lecture 5: Forwards, Futures, and Futures Options

Lecture 5: Forwards, Futures, and Futures Options OPTIONS and FUTURES Lecture 5: Forwards, Futures, and Futures Options Philip H. Dybvig Washington University in Saint Louis Spot (cash) market Forward contract Futures contract Options on futures Copyright

More information

Invesco Variable Insurance Fund. Invesco V.I. Balanced-Risk Allocation Fund A balanced approach

Invesco Variable Insurance Fund. Invesco V.I. Balanced-Risk Allocation Fund A balanced approach Invesco Variable Insurance Fund Invesco V.I. Balanced-Risk Allocation Fund A balanced approach Management team Invesco V.I. Balanced-Risk Allocation Fund is managed by the Invesco Global Asset Allocation

More information

* Test the various investment, portfolio, hedging, and technical trading strategies discussed in class.

* Test the various investment, portfolio, hedging, and technical trading strategies discussed in class. Investment Student: Welcome! You are about to manage an account in the most comprehensive investment simulation available. When you register you will receive a STOCK-TRAK brokerage account with an imaginary

More information

An Introduction to Single Stock Futures. Brett Duncan / Richard Hirsch: Corporate and Investment Banking Kurt Pagel: Online Share Trading

An Introduction to Single Stock Futures. Brett Duncan / Richard Hirsch: Corporate and Investment Banking Kurt Pagel: Online Share Trading An Introduction to Single Stock Futures Brett Duncan / Richard Hirsch: Corporate and Investment Banking Kurt Pagel: Online Share Trading A new age instrument that provides a link between two kinds of financial

More information

What are futures contracts?

What are futures contracts? The Futures Market Introduction and Mechanics (c) 2002-2013 Gary R. Evans. May only be used for non-profit educational purposes only without permission of the author. What are futures contracts? A futures

More information

Tradejini Financial Services Pvt Ltd., Policies & Procedures

Tradejini Financial Services Pvt Ltd., Policies & Procedures Tradejini Financial Services Pvt Ltd., Policies & Procedures TRADES: The trades of clients shall be carried out in the respective client code only. The dealers shall take utmost care while executing the

More information

Exchange-traded Funds

Exchange-traded Funds Mitch Kosev and Thomas Williams* The exchange-traded fund (ETF) industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size. The

More information

Introduction. Part IV: Option Fundamentals. Derivatives & Risk Management. The Nature of Derivatives. Definitions. Options. Main themes Options

Introduction. Part IV: Option Fundamentals. Derivatives & Risk Management. The Nature of Derivatives. Definitions. Options. Main themes Options Derivatives & Risk Management Main themes Options option pricing (microstructure & investments) hedging & real options (corporate) This & next weeks lectures Introduction Part IV: Option FundamentalsĀ»

More information

Currency Futures trade on the JSE s Currency Derivatives Trading Platform

Currency Futures trade on the JSE s Currency Derivatives Trading Platform Currency Futures trade on the JSE s Currency Derivatives Trading Platform DERIVATIVE MARKET Currency Derivatives Currency Futures www.jse.co.za Johannesburg Stock Exchange Currency Futures & Options trade

More information

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS. EXAM FM SAMPLE QUESTIONS Financial Economics

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS. EXAM FM SAMPLE QUESTIONS Financial Economics SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS Financial Economics June 2014 changes Questions 1-30 are from the prior version of this document. They have been edited to conform

More information

What are Shares? What is a Stock Exchange? Why do Companies go Public? IPO explained.

What are Shares? What is a Stock Exchange? Why do Companies go Public? IPO explained. What are Shares? Shares, as the name says, are shares in a limited company. Each shareholder is a partial owner of the company in which they have bought shares and investors can buy and sell their shares

More information

Fundamentals of Futures and Options (a summary)

Fundamentals of Futures and Options (a summary) Fundamentals of Futures and Options (a summary) Roger G. Clarke, Harindra de Silva, CFA, and Steven Thorley, CFA Published 2013 by the Research Foundation of CFA Institute Summary prepared by Roger G.

More information