123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Trading In Derivatives With A Trusted Brokerage

Profile Picture
By Author: Mimi Scott
Total Articles: 1
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

There are many people who are interested in trading in derivatives. The possibility of earning huge profits is enticing enough for them to take a risk on these financial instruments. But they are also on the lookout for a good intermediary who can help them execute the contracts in a professional and safe manner.

There are many people who are interested in trading in derivatives. The possibility of earning huge profits is enticing enough for them to take a risk on these financial instruments. But they are also on the lookout for a good intermediary who can help them execute the contracts in a professional and safe manner. That is why they approach some of the leading brokerages in the country to help them in their endeavor. It is a standard requirement for a brokerage to be registered with the financial service regulators in that particular country. Clients make it a point to check the license of the brokerage before starting their trading activities with them.

When it comes to commodity derivative contracts, investors have a wide variety of options to choose from. While their prices are quite volatile, it can ...
... also lead to large profits. However, only investors who are prepared to handle the burden of high risk deal in commodity derivatives. Some of the commodities on which contracts are written are wheat, corn, soybeans, maize and sunflower seeds. These normally fall under the category of soft commodities. Commodities like gold, silver, platinum and crude oil fall under the category of hard commodities.

Most retail investors at some point or the other either indulge in or think about indulging in equity derivatives. These are the contracts whose underlying assets are the equity stocks of various companies. Investors also have the opportunity to deal in more complex derivatives like index futures and contract for difference. The currency market always attracts many investors who wish to speculate on the rise and fall of international currency rates. Many people in countries like South Africa choose to take a call on the Rand Index. There are also contracts written on currency futures, currency options and dividend futures. Currency movement is known to be quite volatile similar to commodity price movements. International political announcements, a country’s trade deficit, its balance of payments and sudden political shocks need to be monitored closely when one has invested in such contracts.

Hedging is an investment position that is taken with the intention of offsetting a potential loss faced by another investment. However, smart hedge fund managers have also been known to leverage their positions wisely allowing them to make healthy profits. This requires constant monitoring of the financial markets and in-depth analysis of daily news events. This is not possible for many investors, who might have more pressing engagements on hand in their daily lives. That is why they give this task to professional fund managers whose sole job description is to help them earn higher returns on their wealth. Many reputed brokerages have such professionals on their payroll. Some brokerages have also entered into partnership agreements with overseas trading firms. This enables them to offer their clients the opportunities of trading in international markets. The clients are given the benefits of daily market reports as well as tips that could help them enter profitable positions and exit unprofitable ones.
Resource: http://bvg.net/index.php/en/services/hedge-funds

Total Views: 193Word Count: 553See All articles From Author

Add Comment

Investing / Finance Articles

1. India Vix: The Fear Gauge That Traders Rely On
Author: Chandan Sharma

2. Mortgage Loans In Hyderabad: Beyond Homes, Building Long-term Assets
Author: anilsinhaanni

3. A Complete Guide To Commercial Funding: Types, Pros & Cons
Author: Express Loan Services

4. How Commercial Property Loan Options Are Opening New Doors For You
Author: Truhome Finance

5. Stock Market Mentor
Author: Stock Market Mentor

6. Msme Statistics And Economic Impact In The Philippines
Author: MSME

7. How To Find The Best Equity Release Interest Rates: A Comprehensive Guide
Author: Financeadvisors

8. How Housing Finance Solutions Are Becoming Simpler Day By Day
Author: Truhome Finance

9. Bridging Loans Finance Lenders: The Bottom Line
Author: Bull Venture Capital

10. Why Low Interest Personal Loans In Hyderabad Are Perfect For Young Earners
Author: anilsinhaanni

11. Professional Ipo Advisory Services In India – Guiding Businesses From Private To Public
Author: Indiaipo.in

12. Comparing Different Online Pay Methods: Upi, Wallets, And Cards
Author: Saloni Mehta

13. 7 Common Myths About Term Insurance That Need Debunking
Author: Saloni Mehta

14. How Perth Settlement Services Support First-home Buyers And Investors
Author: Amelia Brown

15. Key Factors To Consider Before Choosing A Financial Advisor
Author: sonihegde

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: