Considering the significant amount of leverage with futures trading, a small move in the price of a commodity could result in large gains or losses compared to the initial margin. Speculating on futures is an advanced trading strategy and not fit for therisk toleranceof most investors. Risks of...
Basis trading is common among agricultural futures because of the nature of these commodities. However, it is not limited to grain contracts. Though grain is a tangible commodity, and the grain market has a number of unique qualities, basis trading is done for precious metals, interest rate pro...
The Fantasy Futures trading simulation I did was basically prop trading. I was given prices of bond futures in three currencies that i could go long or go short. I was trading versus the computer or “simulation market” and didn’t trade with any real or pretend clients. Banks used to ...
DataFrame(data=[candle_data], columns=columns, index=[candle_data[0] + interval_delta]) class CandleListener: # Mapping of trade types to ws functions TRADE_TYPE_MAP = { 'usdt_futures': get_usdt_futures_multi_candlesticks_socket, 'coin_futures': get_coin_futures_multi_candlesticks_socket,...
One of the original drivers for the growth of DMA was the growth of algorithmic trading. DMA is available for listed futures and options as well as securities.Andrew BradfordJohn Wiley & Sons, Ltd
In futures trading, marking to market (MTM) is the daily valuation of open futures contracts to reflect their current market value. This process ensures that traders maintain sufficient margin to cover potential losses. 4. Are all assets marked to market? No, not all assets are marked to mark...
The authors of the article emphasize that the monetary system is needed in order to regulate foreign exchange relations. The authors did not choose the EUR/USD pair by chance – it is the most traded currency pair in the Forex market (about 29% of the total daily trading volume). Such ...
The trader gets the information about the VM in the form of a “Margin Call.” If a trader has sufficient cash in their futures trading account, then the amount of variation margin is deposited automatically. If the trader is unable to pay the margin money, the broker can sell the securit...
When it comes to financial analysis, having a solid understanding of various mathematical tools and techniques can make all the difference. One such tool that is commonly used in finance is cross-correlation. In this blog post, we will dive into the definition of cross-correlation, discover how...
The information provided by mark to market accounting can be very valuable to investors and other stakeholders, but it should be taken within the context of the overall market and the company’s plans for those assets. The Motley Fool has adisclosure policy. ...