Tag: futures

  • IASG May 2015 Performance Results

    | | CTA Spotlight

    We have now reached the end of June 2015 and have compiled nearly 100% of the manager data for May 2014.  With five months of performance on record, the IASG CTA Index has turned negative YTD (Past Performance not indicative of future results).  We anticipate this trend to hold for the remainder of the month as investors focus now on the remainder of this year. Here is a snapshot of the database as of 6/29/2015.  The IASG CTA Index which comprises the managers with a minimum track record of 3 years performance and that performance must be client based.  This helps to … Read more IASG May 2015 Performance Results
  • What are Carrying Charges and how do they influence hedging decisions?

    | | Education

    In order to fully get the “error” in selling grain at harvest and then buying calls to replace that grain, so as to still participate in possible higher prices you need to understand how carrying charges work in the grain markets. The definition of “carrying charges” is: an expense or effective cost arising from unproductive assets such as stored goods or unproductive assets; includes interest, insurance and storage costs. Basis is the price difference between cash and the underlying futures contract (at a specific time), and to take it a step further you need to take a serious look at … Read more What are Carrying Charges and how do they influence hedging decisions?
  • Advantages & Disadvantages of Call Options for Hedgers & Speculators

    | | Commodities, Education

    Buying (Long) a Call Option: A basic option strategy to be familiar with and learn the advantages and disadvantages of is buying a Call Option (Long Call).  Buying a call option is the opposite of buying a put option, in that a buying a call gives you the right, but not the obligation to buy the underlying futures contract at a specific strike price.  When you buy or go long a call your outlook is “bullish” the market and you expect a rise in the underlying asset price. Steps to Trading A Long  Call Buy or go Long the Call … Read more Advantages & Disadvantages of Call Options for Hedgers & Speculators
  • How a Commodity Trading Advisor may use Expectancy & R Multiples

    | | Education

    When you trade the markets, you really don’t know the exact probability of winning or losing on a given trade. Additionally you won’t know exactly how much you will profit or lose.  What a CTA does is extensive historical testing on his / her concepts, and trading strategies to get an idea of what to expect.  They will also pull huge data samples of market prices from either a data vendor or from real-time trades, in order to get a clearer picture, and to really try and nail down the “expectancy” of their particular methodology and trading system.  After investigating trade-by-trade … Read more How a Commodity Trading Advisor may use Expectancy & R Multiples
  • Do You Know How To Survive A “Locked Limit” Market?

    | | Education

    A futures or commodity market is “locked-limit” when trading is suspended due to prices moving the exchange-stipulated daily limit, this can happen for one day (it can even lock-limit and then trade off), or if given a news event monumental in nature, the market may stay “locked” for as many days needed for market participants to come to an equilibrium.  If you trade futures and commodities and you have experienced a locked limit market it can be either one of the best days of your life (if you’re on the right side), or a complete disaster (E.g.: Sept. 11th or the … Read more Do You Know How To Survive A “Locked Limit” Market?