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Normal Backwardation
Normal backwardation, also sometimes called backwardation, is the market condition where the price of a commodity's forward or futures contract is trading below the ''expected'' spot price at contract maturity. The resulting futures or forward curve would ''typically'' be downward sloping (i.e. "inverted"), since contracts for further dates would typically trade at even lower prices. In practice, the expected future spot price is unknown, and the term "backwardation" may refer to "positive basis", which occurs when the current spot price exceeds the price of the future. The opposite market condition to normal backwardation is known as contango. Contango refers to "negative basis" where the future price is trading above the expected spot price. Note: In industry parlance backwardation may refer to the situation that futures prices are below the ''current'' spot price. Backwardation occurs when the difference between the forward price and the spot price is less than the cos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Commodity Market
A commodity market is a market that trades in the primary economic sector rather than manufactured products. The primary sector includes agricultural products, energy products, and metals. Soft commodities may be perishable and harvested, while hard commodities are usually mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodities market for centuries for price risk management. A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with central counterparty clearing, which provide clearing and settlement services on a futures exchange, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
London Metal Exchange
The London Metal Exchange (LME) is a futures and forwards exchange in London, United Kingdom with the world's largest market in standardised forward contracts, futures contracts and options on base metals. The exchange also offers contracts on ferrous metals and precious metals. The company also allows for cash trading. It offers hedging, worldwide reference pricing, and the option of physical delivery to settle contracts. Overview Ring trading Trading times are 11:40 to 17:00. The LME is the last exchange in Europe where open-outcry trading takes place.BBC Radio 4 '' Today'', broadcast 25 October 2011. The ring was temporarily closed in March 2020 due to the COVID-19 pandemic. In January 2021, LME proposed closing the ring, Europe's last open-outcry trading floor, and moving permanently to an electronic system. However, the ring reopened in September of the same year after resistance from members. In addition to the 9 companies that have exclusive rights to trade in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
1911 Encyclopædia Britannica
Events January * January 1 – A decade after federation, the Northern Territory and the Australian Capital Territory are added to the Commonwealth of Australia. * January 3 ** 1911 Kebin earthquake: An earthquake of 7.7 Moment magnitude scale, moment magnitude strikes near Almaty in Russian Turkestan, killing 450 or more people. ** Siege of Sidney Street in London: Two Latvian people, Latvian anarchists die, after a seven-hour siege against a combined police and military force. Home Secretary Winston Churchill arrives to oversee events. * January 4 – Comparison of the Amundsen and Scott expeditions, Amundsen and Scott expeditions: Robert Falcon Scott's British Terra Nova Expedition, ''Terra Nova'' Expedition to the South Pole arrives in the Antarctic and establishes a base camp at Cape Evans on Ross Island. * January 5 – Egypt's Zamalek SC is founded as a general sports and Association football club by Belgian lawyer George Merzbach as Q ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Encyclopædia Britannica
The is a general knowledge, general-knowledge English-language encyclopaedia. It has been published by Encyclopædia Britannica, Inc. since 1768, although the company has changed ownership seven times. The 2010 version of the 15th edition, which spans 32 volumes and 32,640 pages, was the last printed edition. Since 2016, it has been published exclusively as an online encyclopedia, online encyclopaedia. Printed for 244 years, the ''Britannica'' was the longest-running in-print encyclopaedia in the English language. It was first published between 1768 and 1771 in Edinburgh, Scotland, in three volumes. The encyclopaedia grew in size; the second edition was 10 volumes, and by its fourth edition (1801–1810), it had expanded to 20 volumes. Its rising stature as a scholarly work helped recruit eminent contributors, and the 9th (1875–1889) and Encyclopædia Britannica Eleventh Edition, 11th editions (1911) are landmark encyclopaedias for scholarship and literary ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Contract For Difference
In finance, a contract for difference (CFD) is a financial agreement between two parties, commonly referred to as the "buyer" and the "seller." The contract stipulates that the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. If the asset's price increases from the opening to the closing of the contract, the seller compensates the buyer for the increase, which constitutes the buyer's profit. Conversely, if the asset's price decreases, the buyer compensates the seller, resulting in a profit for the seller. History Invention Developed in Britain in 1974 as a way to leverage gold, modern CFDs have been trading widely since the early 1990s. CFDs were originally developed as a type of equity swap that was traded on margin. The invention of the CFD is widely credited to Brian Keelan and Jon Wood, both of UBS Warburg, during their Trafalgar House deal in the early 1990s. Asset management and syntheti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Option (finance)
In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction. Thus, they are also a form of asset (or contingent liability) and have a valuation that may depend on a complex relationship between underlying asset price, time until expiration, market volatility, the risk-free rate of interest, and the strike price of the option. Options may be traded between private parties in '' over-the-counter'' (OTC) transactions, or they may be exchange-traded in live, public markets in the form of standardized contracts. Definition and application An option is a contract that allows the holder the right to buy or sell an underlying asset or financia ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Short Selling
In finance, being short in an asset means investing in such a way that the investor will profit if the market value of the asset falls. This is the opposite of the more common Long (finance), long Position (finance), position, where the investor will profit if the market value of the asset rises. An investor that sells an asset short is, as to that asset, a short seller. There are a number of ways of achieving a short position. The most basic is physical selling short or short-selling, by which the short seller Securities lending, borrows an asset (often a security (finance), security such as a share (finance), share of stock or a bond (finance), bond) and sells it. The short seller must later buy the same amount of the asset to return it to the lender. If the market price of the asset has fallen in the meantime, the short seller will have made a profit equal to the difference in price. Conversely, if the price has risen then the short seller will bear a loss. The short seller ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
London Stock Exchange
The London Stock Exchange (LSE) is a stock exchange based in London, England. the total market value of all companies trading on the LSE stood at US$3.42 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cathedral. Since 2007, it has been part of the London Stock Exchange Group (LSEG, which the exchange also lists (ticker symbol LSEG)). Despite a post-Brexit exodus of stock listings from the LSE, it was the most valued stock exchange in Europe as of 2023. According to the 2020 Office for National Statistics report, approximately 12% of UK-resident individuals reported having investments in stocks and shares. According to a 2020 Financial Conduct Authority report, approximately 15% of British adults reported having investments in stocks and shares. History Coffee House The Royal Exchange, London, Royal Exchange had been founded by the English financier Thomas Gresham and Sir Richard Clough on the model of the The Belgian bourse of Antwerp, An ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Sumitomo Copper Affair
The Sumitomo copper affair refers to a metal trading scandal in 1996 involving Yasuo Hamanaka, the chief copper trader of the Japanese trading house Sumitomo Corporation (Sumitomo). The scandal involves unauthorized trading over a 10-year period by Hamanaka, which led Sumitomo to announce US$1.8 billion in related losses in 1996 when Hamanaka's trading was discovered, and more related losses subsequently. The scandal also involved Hamanaka's attempts to Cornering the market, corner the entire world's copper market through LME Copper futures contracts on the London Metal Exchange, London Metal Exchange (LME). The affair was a major scandal which is at times compared in magnitude to the Silver Thursday scandal, involving the Hunt family's attempt to corner the world's silver markets. It currently ranks in the List of trading losses, top 10 trading losses in financial history. Hamanaka's decade of unauthorized trading Hamanaka and his superior, Saburo Shimizu, began speculating witho ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Sumitomo Corporation
is one of the largest worldwide '' sōgō shōsha'' general trading companies, and is a diversified corporation. The company was incorporated in 1919 and is a member company of the Sumitomo Group. It is listed on three Japanese stock exchanges (Tokyo, Nagoya and Fukuoka) and is a constituent of the TOPIX and Nikkei 225 stock indices. Today, the company is one of the top three '' sōgō shōsha'' companies in the world. History The Sumitomo Group, of which Sumitomo Corporation is a key member, dates to the 17th century establishment of a book and medicine shop in Kyoto by Masatomo Sumitomo. Sumitomo's brother-in-law Riemon Soga developed a technology to extract silver from copper, and Soga's son (who married Sumitomo's daughter) Tomomochi Sumitomo expanded this smelting business to Osaka. From this start, the Sumitomo family expanded its business into copper mining (the Besshi copper mine), followed by textiles, sugar and medicine trading. The Sumitomo family was close to th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Yasuo Hamanaka
(born 1950) is a former chief copper trader at Sumitomo Corporation, one of the largest trading companies in Japan. He was known as "Mr. Copper" because of his aggressive trading style, and as "Mr. Five Percent" because that is how much of the world's yearly supply he controlled. On June 13, 1996, Sumitomo Corporation reported a loss of US$1.8 billion in unauthorized copper trading by Hamanaka on the London Metal Exchange. His culpability as to whether this responsibility was authorized is in doubt. In September 1996, Sumitomo disclosed that the company's financial losses were much higher, at $2.6 billion (285 billion yen). Hamanaka was sentenced to eight years in prison in 1998 and was released in July 2005, one year early. See also * Kweku Adoboli lost $2 billion for UBS * Jérôme Kerviel * Nick Leeson caused a loss of £827 million for Barings Bank, leading to its collapse * List of trading losses * Sumitomo copper affair References External links "How Copper Ca ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
