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: 126Word Count: 553See All articles From Author

Add Comment

Investing / Finance Articles

1. Setting Up Your Company In Ireland: Key Considerations For Successful Formation
Author: LSC and Partners - Corporate Tax Consultancy LSC

2. Mortgage Lenders edmonton – How Are They Going To Help You
Author: Dominion Lending Centres Ratefair

3. Why Managing An Smsf In Perth Can Maximize Your Retirement Potential?
Author: Daniel Stewart

4. The Future Of Cryptocurrencies: A Look Ahead
Author: Ethan

5. Unlocking The Power Of Biodiversity In Data Solutions & Rating Services
Author: By Inrate Team

6. The Role Of Chartered Tax Advisors: Ensuring Compliance And Maximizing Benefits
Author: Business Tax & Money House

7. Innovative Accounting Solutions For Modern Businesses
Author: Business Tax & Money House

8. Can Someone With Bad Credit Still Get A Short Term Loan Online?
Author: Jockey Ferguson is a financial adviser of Fast Pay

9. How To Manage Cash Flow For Online Retailers
Author: Thomas Edward

10. A Detailed Guide Set Up A Company In Ireland
Author: LSC and Partners - Corporate Tax Consultancy LSC

11. Rupay Credit Cards: Your Ticket To Exclusive Rewards And Benefits
Author: Priya

12. Top Upcoming Telegram Airdrops You Don’t Want To Miss!
Author: Cryptoreach

13. The Art Of Diversification - Building A Robust Portfolio For Long-term Stock Market Performance
Author: Broker Analysis

14. 10 Effective Strategies To Boost Real Estate Lead Generation In 2024
Author: Horizon Consultants

15. How To Choose The Best Financial Advisors In Indianapolis For Your Future
Author: Kurt Supe

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