Archive

Archive for November, 2009

Gold and Oil Commodities Trading

November 30th, 2009 No comments

The recent weakness of the US Dollar has certainly helped bolster the commodities futures markets. With most commodities, like Gold and Crude Oil, priced in dollars, any dollar weakness can help boost the commodity prices. Gold has shot up to $1,100 level. Whilst the price may have gone a bit too far, too quickly, the trend is firmly in favour of the bulls. Of course, if there is any currency strength it could quickly return the $900 level.Oil, is a different kettle of fish. When the price hovers around the $70-$80 level then it is firmly at the price level that OPEC is looking to achieve.There is some pressure though on the oil market to continue higher. Forecast price upgrades have been released by both the US Energy Department and Credit Suisse. Both forecasts point to higher prices through 2010, citing the main drivers as rising demand and falling inventories.However, it is not a clear one-way bet. If the US Dollar finds some strength then that could weaken the oil price.What should an investor do? First they should note that all forms of speculation or investment, from trading stocks and shares to having a pension to buying a house, have a negative side. Spread betting does provide some interesting opportunities with both the oil spreads and the gold markets. Note though that if you spread bet you can lose more than you initially staked.A simple advantage of financial spread betting is the wide range of markets on offer. These include oil, gold, stocks and shares, currencies and stock markets like the FTSE 100 or Dow Jones. You can generally trade all these from the same account.Also with oil and gold looking volatile then spread bets let you trade a market in both directions. You do not have to bet on markets to increase. If you think the price of crude oil will go up you can bet on it to go up. If you think the price of gold will go down you can bet on it to go down.As mentioned, investing does have its risks but there are a few steps you can take to reduce your potential downside. You can add a Stop Loss to your trades. So if a market moves against your position then the stop loss will close your spread bet and stop you losing any more money.

Note though that spread bets carry a high level of risk so you should only speculate with funds you can afford to lose. Before trading, please ensure that spread betting matches your investment objectives, familiarise yourself with the risks involved and, if necessary, seek independent advice.

Unpredictable Economy Ahead

November 30th, 2009 No comments

A new low for the US dollar, and a mixed bag of economic news, gave investors few clues as to what the FOMC might do next with the interest rate.

Concerns that the housing market ills could spill over into the broader economy have heightened fears of recession. More hints about the economy will be revealed in the next few weeks, as 3rd quarter earning results are going to start making their way to the market.

While most traders were still enjoying the more then expected rate cut, others are thinking that it’s not enough and are expecting another cut after the next FOMC meeting.

Next week, aside from the 3rd quarter earnings, we get the GDP, and the consumer spending data. Both are market movers, especially if the data is weaker then expected.

Other data to be released next week includes inflation and construction spending.

While not as big as the other two, inflation hurts the consumers spending, as it robs their purchasing power, and construction spending is a leading indicator of company’s optimism. Companies tend to spend money on construction when they see a bright future economically.

With all the data coming out next week, it almost assures a week of volatility, with that in mind, I would like to talk about this weeks play.

When volatility spikes, no touch plays become less expensive, however that’s because they are more likely to be hit. As a result, this week, we will focus on the up or down options available at BetOnMarkets.com.

An up or down option allows the trader to specify a trigger on both sides of the market, and win if either of those levels are breached. Unlike its one touch counterpart, in this situation you don’t need to choose a direction.

This weeks play is on the SP500, with a 44 point trigger in both directions, and a 20 day term, potentially yielding 7% ROI

- THE END -

Contact Details:

Email: editor@my.regentmarkets.com

Tel: 35621316105

Address:

Regent Markets (IOM) Limited

3rd Floor, 1-5 Church Street

Douglas, Isle of Man

IM1 2AG

Betonmarkets.com is the leading fixed-odds financial betting website. The website has processed over 10 million bets since inception in 2000, and generates annual turnover in excess of US$ 100 million. Betonmarkets offers a wide range of fixed-odds financial bets on forex rates, stock indices, and international stocks.

Betonmarkets is operated by the Regent Markets Group of companies. Regent Markets is affiliated to the Regent Pacific Group, a Hong Kong-listed

investment group. Regent Markets has offices in three countries, and holds bookmakers licenses in the Isle of Man, the UK, and Malta.

Fixed-odds financial betting offers particular advantages over other forms of financial betting and investments, such as limited risk, potentially high payouts, and unique market opportunities. Particularly popular is Betonmarket’s Range Bet, which offers the opportunity to profit from a period of quiet market action.

Betonmarkets also offers the following bet types: the Bull/Bear bet, the One Touch bet, the No Touch bet, the Range and Expiry Range bets, the Double One Touch and Double No-Touch bets, and a variety of intraday bets. Contracts are available on foreign exchange rates, major stock indices, and stocks.

Fixed-odds bets are also known as binary options, binary bets, contingent claims, spot options, box options, clickoptions, and offer market participants a unique tool to profit from market movements.

BetOnMarkets Bet Types:

One Touch Bet: You would buy a one-touch bet if you believe the market will touch a given point at least once before the bet expires. In other words, a one-touch pays out, if at any time prior to expiration, the market touches or trades through the specified barrier. Example: [Pays 100 if the FTSE touches X between today and date T]

No Touch Bet: A no-touch bet is the opposite of the one-touch bet. You would buy a no-touch bet if you think the market will never reach a certain level within a specified range of time. Example: [Pays 100 if the FTSE does not touch X between today and date T]

Bull Bet: You would buy a bull bet if you believe the underlying security/index/currency pair will be higher than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes higher than X on date T]

Bear Bet: You would buy a bear bet if you believe the underlying security/index/currency pair will be lower than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes lower than X on date T]

Expiry Range Bet: You believe that the market will be between two distinct levels (high and low) on the expiry date. Example: [Pays 100 if the FTSE

closes between X and Y on date T]

Barrier Range Bet: You believe that the market will never touch two pre-determined barrier levels (high and low) before or on the date the bet

expires. In other words, when you buy a barrier range you will win only if the market never touches the two barrier levels you have chosen. Example: [Pays 100 if the FTSE never touches X and Y between today and date T]

Double Touch Bet: You believe that the market will touch two pre-determined barrier levels (high and low) before or on the date the bet expires. In other words, when you buy a barrier range you will win only if the market touches both of the two barrier levels you have chosen. Example: [Pays 100 if the FTSE touches both X and Y between today and date T]

Up or Down Bet: You win if the market touches either of two pre-determined barriers before or on the date the bet expires. Example: [Pays 100 if the FTSE touches either X or Y between today and date T]

Double Up Bet: A Double Up bet pays two times the premium if the market rises above a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes above X between now and the close of trading today]

Double Down Bet: A Double Down Bet pays two times the premium if the market drops below a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes below X between now and the close of trading today]

Intraday Double Up Bet: Buy this bet to play a market rise between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE rises between the starting time hour and the expiry hour]

Intraday Double Down Bet: Buy this bet to play a market drop between two given hourly market times today. You will have the possibility to set the

starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100

if the FTSE declines between the starting time hour and the expiry hour]

Run Bets: These fun bets are over in the space of less than a minute; so you can make money in seconds. Here, you have to guess the last decimal digit of say, the USD/JPY (predict 3rd decimal place) after 5 ticks.

Financial Trading Tips

November 30th, 2009 No comments

With the world in recovery mode, many people are still questioning how the markets got so out of control. They are also questioning something a little closer to home; their own finances.Some people will be looking for more tax efficient investments. Others will want to diversify their existing portfolios as well as look at new investment opportunities.I don’t think that there are many of us who wouldn’t benefit from putting more thought and effort into these key areas.The one thing you can see in the newspapers and financial websites is that more and more people are turning away from just having a pension and a few stocks and shares.Spread betting, or spread trading, offers some interesting features and is worth considering.There are downsides to all forms of investing and with spread bets you need to be especially careful because you can lose more than your original stake.If there is a risk then why should you consider spread betting?Whether you have an existing investment plan or not, it always worth considering any avenue that offers quick, simple access to the markets and a range of tax-free* advantages. Spread betting is one such avenue.There are several benefits. Spread Betting is Tax Free (no capital gains tax, stamp duty, income tax). Also there is no capital gains tax, no stamp duty or and income tax on spread bets*.The simple breadth of markets makes spread betting an investment option. Spread betting companies tend to offer thousands of markets from UK and US Equities to spread betting on Gold, Oil, Coffee and Dollar / Yen rates.So whilst there are positives, it is important to understand the negatives. Spread bets carry a high level of risk so you should only speculate with funds you can afford to lose. Before trading, please ensure that spread betting matches your investment objectives, familiarise yourself with the risks involved and, if necessary, seek independent advice.Are there other aspects that need to be considered? I have seen many trading tips over the years, some more useful than others. Here are three of the more common ideas.Tip 1) Plan each trade. Ensure you are trading the markets you know. Understand at what point you want to close your trade if it goes wrong. Make sure you know the profit level you are looking for and close your trade when it hits that level. This will help you close your bet and also help you control any greed factors.Tip 2) You should stick to the markets you know. If you know little about the US Stock Market but have a good understanding of the UK Stock Market then you are probably better off trading the FTSE 100 Index and leaving the Dow Jones. It is surprising how many investors ignore this rule and want to ‘have a go’ at another market.Tip 3) Greed can be your worst enemy when trading. It can be tempting to trade lots of positions in lots of different markets. Personally, I tend to trade 0–5 markets at any one time. I have no idea how anyone can fully research and make informed decisions on 20 open trades, especially if they start moving against you.So where to spread bet? Make sure the spread betting company you trade with is Authorised and Regulated by the Financial Services Authority, this generally ensures a certain level of quality. It also offers a degree of customer protection.* According to current UK tax law, if you pay tax in another jurisdiction this may vary.