#cme globex

[nklhuynghiem63]

Weather Future: What it Means, How it Works

What Is Weather Future?

I apologize for any confusion earlier. As of my last update in September 2021, there isn't a specific concept or technology widely known as "Weather Future." It's possible that the term has gained prominence after that time, or it might be a specialized term used in a specific context or industry.

If "Weather Future" refers to a specific concept, technology, or service that has emerged after my last update, I recommend checking the latest sources, news, or official websites related to meteorology, climate science, or weather forecasting for the most recent and accurate information about this term.

Understanding Weather Futures

As of my last update in September 2021, the term "Weather Futures" typically refers to financial instruments or contracts that allow businesses and organizations to hedge against weather-related risks. These instruments are used in weather risk management, a field where companies can protect themselves financially from the impact of adverse weather conditions on their operations.

Here's a basic understanding of Weather Futures:

1. Definition:

Weather Futures are financial contracts where parties agree to exchange payments based on specific weather conditions or indices. These conditions could include temperature, rainfall, snowfall, or other meteorological variables.

2. Purpose:

Companies in industries heavily influenced by weather, such as agriculture, energy, retail, and insurance, use weather futures to manage risks associated with weather variability. For example, an energy company might use weather futures to hedge against decreased demand for heating during a warm winter.

3. How It Works:

Contract Specification: Weather futures contracts specify the weather parameter, location, time period, and the financial terms of the agreement.

Index Values: Weather data from specific weather stations or meteorological agencies are used to determine the index values. These values are then compared to the terms specified in the contract.

Settlement: Based on the comparison between the actual weather data and the contract terms, payments are settled. If the weather conditions specified in the contract are met or exceeded, one party pays the other. If not, no payment is made.

4. Benefits:

Risk Management: Weather futures allow businesses to mitigate financial losses caused by adverse weather conditions.

Stability: By using weather futures, businesses can stabilize their revenues and budgets, even in the face of unpredictable weather patterns.

Customization: Contracts can be customized to suit the specific needs of different industries and businesses.

5. Challenges:

Data Accuracy: The accuracy of weather data is crucial for the effectiveness of weather futures. Discrepancies in data could lead to disputes.

Complexity: Understanding and effectively using weather futures require a good understanding of both the industry-specific risks and the financial intricacies of these contracts.

Please note that the field of finance, including weather futures, is subject to change and innovation. For the most recent and specific information about weather futures and their applications, it's advisable to consult financial experts, industry publications, or regulatory authorities.

Weather Futures and CME

The Chicago Mercantile Exchange (CME) offers a variety of weather futures and options contracts, allowing businesses to manage their weather-related risks. These financial instruments are designed to help companies protect themselves against losses caused by adverse weather conditions, such as temperature extremes, hurricanes, or droughts. Here's a more detailed explanation of Weather Futures and how they relate to CME:

1. Weather Futures at CME:

CME Group, one of the world's leading derivatives exchanges, offers weather futures and options contracts that are based on various weather indices. These contracts are traded on the CME Globex electronic trading platform and are cleared through CME Clearing.

2. Types of Weather Contracts:

CME provides weather derivatives based on different weather variables, including temperature, precipitation, snowfall, and hurricane events. Here are a few key types of weather contracts:

Heating Degree Day (HDD) Futures: These contracts are based on the difference between the average temperature and a specific base temperature (commonly 65 degrees Fahrenheit) over a specific period. They are often used by energy companies to hedge against warm winter weather, which reduces demand for heating.

Cooling Degree Day (CDD) Futures: Similar to HDD futures, CDD futures are used by businesses to hedge against revenue losses during hot weather when air conditioning usage increases.

Total Precipitation Futures: These contracts are based on the total amount of precipitation (rainfall) within a specific period and location.

Hurricane Index Futures: These contracts allow market participants to hedge against the financial impact of hurricanes, including potential damage and business interruptions.

3. Benefits of Weather Futures:

Risk Management: Businesses in sectors like energy, agriculture, retail, and insurance use weather futures to manage weather-related risks and stabilize their revenues.

Customization: CME offers a range of contracts with various locations, time periods, and weather variables, allowing businesses to tailor their hedges according to their specific needs.

4. How It Works:

Contract Specifications: Contracts specify the weather variable, location, contract period, and other terms.

Index Calculation: Weather data from reputable sources are used to calculate the index values based on the specified parameters.

Settlement: At the end of the contract period, the actual weather data is compared to the contract's terms. Payments are settled based on this comparison.

5. Consult CME for Specifics:

For the most current and specific information about weather futures contracts offered by CME Group, including contract specifications, trading hours, and settlement procedures, it's advisable to visit the official CME Group website or consult with financial experts and brokers familiar with CME's offerings. CME Group provides detailed resources and support for businesses interested in weather risk management through their derivatives products.

Read more: https://computertricks.net/weather-future-what-it-means-how-it-works/

[europeanregion]

Торговля природным газом | руководство по инвестированию

Бесцветное и самое чистое ископаемое топливо используется в качестве источника энергии для отопления, приготовления пищи, электри��ества, химикатов, плантаций и многого другого. За последнее десятилетие спрос на природный газ значительно вырос, поскольку он широко доступен и является более чистым ископаемым топливом, чем любой другой источник энергии.

На природный газ сильно влияют сезонность, геополитические события, погода, спрос и предложение, хранение и глобальное производство. Многие трейдеры пользуются небольшими колебаниями цен на этом рынке, используя сочетание технического и фундаментального анализа.

В этом руководстве мы дадим вам обзор рынков природного газа, торговых стратегий и лучших брокеров, которые предлагают вам возможность инвестировать в цену природного газа.

Как я могу инвестировать в природный газ?

Трейдеры могут торговать природным газом несколькими способами:

Фьючерсы на природный газ

Чикагская товарная биржа (CME) предлагает фьючерсные контракты на природный газ. Контракт основан на поставке в Генри Хаб в Луизиане, месте, где сходятся несколько межгосударственных и внутристатических трубопроводов. Контракт рассчитан на 10 000 миллионов британских тепловых единиц (мм БТЕ) природного газа.

Контракт торгуется по всему миру на электронной торговой платформе CME Globex и имеет различные месяцы истечения срока действия.

Фьючерсы — это производные инструменты, с помощью которых трейдеры делают ставки с кредитным плечом на цены товаров. Если цены падают, трейдеры должны внести дополнительную маржу, чтобы сохранить свои позиции. По истечении срока контракты физически рассчитываются поставкой природного газа.

Торговля фьючерсными контрактами требует высокого уровня сложности, поскольку на цены влияют такие факторы, как затраты на хранение и процентные ставки.

Фьючерсы на природный газ

CME предлагает опционный контракт на фьючерсы на природный газ.

Опционы также являются производным инструментом, использующим кредитное плечо для торговли сырьевыми товарами. Как и фьючерсные контракты, опционы имеют срок действия. Однако опционы также имеют цену исполнения, то есть цену, выше которой опцион оказывается в деньгах.

Покупатели опционов платят цену, называемую премией, за покупку контрактов. Опционная ставка имеет успех только в том случае, если цена фьючерса на природный газ превышает цену исполнения более чем на премию, уплаченную за контракт. Таким образом, трейдеры опционов должны быть правы в отношении величины и времени изменения фьючерсов на природный газ, чтобы получать прибыль от своих сделок.

ETF природного газа

[hanghoaphaisinhnet]

Hợp đồng tương lai vàng - Giá vàng thế giới hôm nay

Giá vàng thế giới hôm nay

Giao dịch hợp đồng tương lai vàng là gì

Hợp đồng tương lai vàng là một thỏa thuận mua/bán và giao tài sản vàng, tại một thời điểm cụ thể trong tương lai với mức giá đã thỏa thuận trước. Hợp đồng tương lai vàng có tính ràng buộc về mặt pháp lý, cả bên mua và bên bán đều phải tuân thủ các thỏa thuận đã ký trước đó. Giống như các loại hợp đồng phái sinh khác, giao dịch vàng cho phép các nhà đầu tư tự do mua hoặc bán khống mà không cần phải nắm giữ tài sản cơ bản như một loại hàng hóa vật chất. Điều này làm cho giao dịch hợp đồng tương lai  trở nên đơn giản, dễ dàng và tiết kiệm chi phí vận chuyển và lưu trữ, trở thành sản phẩm hấp dẫn  nhà đầu tư

Chi tiết hợp đồng vàng

Hợp đồng tương lai vàng sẽ có những thông số tiêu chuẩn do sàn giao dịch COMEX đưa ra. Chi tiết đặc tả hợp đồng tương lai vàng như sau Chi tiết hợp đồng tương lai vàng COMEX Ký hiệu sản phẩm GC Sàn giao dịch COMEX Kích thước hợp đồng 100 troy ounces Bước giá $ 0,10 / troy ounce hay 100 $/ hợp đồng Báo giá USD trên mỗi troy ounce Giờ giao dịch CME Globex: Chủ Nhật – Thứ Sáu: 6 PM – 5 PM (ngày hôm sau) CME ClearPort: Chủ Nhật – Thứ Sáu: 6 PM – 5 PM (ngày hôm sau) Những Ưu điểm khi giao dịch hợp đồng vàng tương lai Tính thanh khoản cao Lợi thế đòn bẩy: Dễ dàng cập nhật các thay đổi về giá:. Được phép bán khống Rủi ro khi giao dịch hợp đồng tương lai vàng  Biến động lớn Chưa được cấp phép giao dịch vàng tại Việt Nam:  Đòn bẩy cao tiềm ẩn nhiều rủi ro:

Không nên đầu tư hợp đồng tương lai vàng tại Việt Nam

Vàng thường được coi là nơi trú ẩn an toàn một hàng rào trong thời kỳ bất ổn tài chính hoặc chính trị, vì dù thị trường có biến động lớn đến đâu thì vàng vẫn còn nguyên giá trị của nó. Vàng được sử dụng như một công cụ đa dạng hóa danh mục đầu tư. 3 lý do mà nhà đầu tư chọn vàng để giao dịch: Bù đắp sự biến động của thị trường Phòng ngừa lạm phát Chống lại sự mất giá của đồng đô la Tuy nhiên, đối với một số tài sản thì vàng không phải là nơi trú ẩn tốt. Vì chính xác hơn nó là sự bảo vệ chống lại những rủi ro hệ thống tiền tệ hiện tại dựa trên đồng USD.  Tại thị trường Việt Nam, giao dịch vàng ngoài nhà nước quy định theo Nghị định 24/2012/NĐ-CP đều được xem là hành vi vi phạm pháp luật Đầu tư trú ẩn an toàn - Bạc và bạch kim Trái ngược với vàng không hợp pháp thì đầu tư bạc và bạch kim được nhà nước Việt Nam cấp phép giao dịch và niêm yết trên Sở Giao Dịch Hàng Hóa Việt Nam. Giao dịch các hợp đồng tương lai bạc được liên thông với Sở giao dịch COMEX. Trong khi đó, bạch kim là sản phẩm được giao dịch tại Sở NYMEX. Bạc và bạch kim cũng có những ưu điểm: Tính thanh khoản cao Lợi thế đòn bẩy Dễ dàng cập nhật các thay đổi về giá Được phép bán khống Tính minh bạch và pháp lý rõ ràng  Xem thêm: - Đầu tư tài chính là gì - Hàng hoá phái sinh - Phái sinh là gì - Đầu tư hàng hoá phái sinh Read the full article

[studiobitcoin]

CME Group dará início a sua oferta de futuros Bitcoin em poucas horas

Após várias semanas de alta expectativa, o dia finalmente chegou quando os esperados futuros de Bitcoin estarão finalmente disponíveis nas plataformas CME Globex e CME ClearPort, pertencentes ao CME Group.

Leia mais […]

[bowsetter]

CME Group Publishes Bitcoin Options Specifications

In mid-September, the foreign exchange company CME Group announced the launch of options on its bitcoin futures contracts in Q1 2020, pending regulatory review. CME Group executive Tim McCourt said there was “increasing client demand” for the firm’s bitcoin derivatives and now the company has published specifications for the options products.

Also Read: French Ministry of Education Publishes Bitcoin Resource Guide for Educators

CME Group’s Bitcoin Options

The global markets company CME Group has provided clients with the ability to hedge or trade benchmark options on futures across nearly every asset class. The firm has an average daily volume of $4.3 million this year and aims to offer options on bitcoin futures so investors can have a variety of different methods to trade the asset. When CME announced the launch of bitcoin options, McCourt detailed that the new product will provide “clients with additional flexibility to trade and hedge their bitcoin price risk.” This week, following Bakkt’s recent volume surges, CME published the preliminary contract specifications for the options. Price values will be based on the CME CF Bitcoin Reference Rate (BRR) which is determined by a variety of major crypto exchanges.

CME’s bitcoin futures volume and open interest on 10/28/19.

The contract unit will consist of one bitcoin futures contract, which is approximately five BTC quoted in USD. There’s a minimum price fluctuation and the listing cycle will mirror the firm’s bitcoin futures exposure. CME’s bitcoin options on futures will be traded between Sunday through Friday on Globex and Clearport. The company notes that the BTC options product is subject to revision and review by financial regulators. “We’re working to launch options on those futures,” McCourt said to crypto analyst Benjamin Pirus in a recent interview. “The option on the bitcoin future will give the holder of that option, either a put or a call, the right — but not necessarily the obligation, to either purchase or sell the underlying futures contracts at maturity.” McCourt further stressed:

It’s very similar to the way other options in the marketplace work. The difference here is the underlying, or the deliverable, of the options contract, is a CME Group bitcoin future.

CME Group’s bitcoin futures volume at 11 a.m. EST on 11/2/19

Is Bitcoin Being ‘Tamed’ Like a Traditional Investment?

Bakkt’s physically-delivered bitcoin futures product has been getting a lot of fanfare lately after the exchange topped a few new records and CEO Kelly Loeffler announced Bakkt will be offering options on bitcoin futures as well. Despite the all-time highs at the Bakkt warehouse, CME Group’s BTC derivatives have seen much more volume. CME’s Globex saw 7,242 bitcoin futures contracts on October 28 and 3,284 in open interest. The following days on Globex through November 1, contracts were between 2,200 and 3,687. November’s CME bitcoin futures contracts today stand at 2,641 contracts and December positions are starting to pile up as well.

The crypto derivatives markets and products have matured a great deal since they launched and it’s been a touch less than two years since CME launched its BTC-based futures. At the time, the company’s chairman emeritus Leo Melamed told Reuters in an interview that adding BTC futures was a “very important step for bitcoin’s history.” Melamed added that he believed institutional investors would be very interested in the new asset class. “We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.” Since then a slew of different companies have offered bitcoin-based derivatives products and futures are coming to other cryptocurrencies like ETH and BCH as well. Reports detail that BCH futures are expected to debut on a CFTC-regulated exchange in Q1 2020.

What do you think about CME’s bitcoin options specifications? How do you feel about the overall growth of crypto-based derivatives? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, CME Group, Bitcoin Futures Volume Globex, and Pixabay.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post CME Group Publishes Bitcoin Options Specifications appeared first on Bitcoin News.

READ MORE http://bit.ly/2Nb6NGY

[iqbrokers]

CME completes BrokerTec platform migration to Globex

The BrokerTec EU government bond and repo platform was migrated to the Globex system at CME Group earlier this month.  

[bobbynolanios88]

An Analysis Of Bitcoin Market Reaction When CME Futures Contracts Expire – Crypto.IQ

An Analysis Of Bitcoin Market Reaction When CME Futures Contracts Expire – Crypto.IQ

The Federal Reserve says the Bitcoin Futures on the Chicago Mercantile Exchange (CME) are the reason the Bitcoin bear market began. Indeed, the Dec. 17, 2017 launch date of the CME Bitcoin futures coincided with the beginning of Bitcoin’s crash from $20,000 to as low as $3,100 in December 2018.

This is perhaps due to immense short selling pressure combined with the printing of vast quantities of paper Bitcoins on CME. The Bitcoin futures on CME are operated by Globex, the same organization that suppresses global gold prices via the printing of paper gold on COMEX.

Aside from the long term damaging effects on the Bitcoin market, it seems possible that there are shorter term impacts associated with the expiration of futures contracts. The CME Bitcoin futures contracts for a particular month expire on the last Friday of the month, except if there is a holiday in the United Kingdom or United States. A full list of CME Bitcoin futures contract expiration dates can be found at this link.

This expiration date marks the benchmark used to payout profits and losses, and it is possible that futures traders manipulate the price of Bitcoin to optimize their profits. For example, when short selling, a common practice is “banging the close,” in which traders manipulate the underlying asset’s spot price to drop lower to increase profits from short selling. It is also possible for traders in long positions to manipulate the market to go higher right as the expiration happens, which could perhaps also be called “banging the close.”

In this analysis, Crypto.IQ explores the actual data to see if there is any anomalous activity around the time CME futures contracts expire.

First, the CME Bitcoin futures expiration dates are overlaid on a chart from Bitcoinwisdom.com for the entire year of 2018, and there is an additional line for the launch date on Dec. 17, 2017, which makes it extremely clear that the genesis of the CME Bitcoin futures market had a substantial impact on the Bitcoin market from the very beginning.

Without doing any deep analysis, it seems that many significant peaks and dips in the Bitcoin market coincide with the CME Bitcoin futures expiration dates. This would suggest there is plenty of banging the close occurring.

Crypto.IQ will analyze each of these CME Bitcoin future settlement dates individually to get a clearer picture.

Image courtesy Bitcoinwisdom.com.

Image courtesy Bitcoinwisdom.com.

The line at the left side of the chart shows the date that CME Bitcoin futures launched, Dec. 17, 2017. The line at the right side (not to be confused with the far right line which is the Y axis) shows the date the first Bitcoin futures contract on CME expired, Jan. 26, 2018.

This contract was an extreme win for short sellers, and despite an attempted rally around the 2018 New Year, the market had declined to $11,000 by the time the contract expired. There is no sign that there is an acute case of banging the close, but perhaps banging the close was not even needed at the expiration since the market fell so hard. It is possible that CME futures traders banged the close all month long.

The line in the above chart shows the second CME Bitcoin Futures contracts expiration on February 23. In this case, banging the close seems pretty obvious. An attempted bounce-back rally that peaked five days before the expiration was stomped out, and Bitcoin hit a local minima right around the time the contracts expired. Then the rally re-starts and continues into early March.

The February futures expiration date perhaps gives an understanding of how the CME Bitcoin futures can be very detrimental for the market long term. If traders made short sell bets on Bitcoin, but then Bitcoin begins to have a serious rally, they may coordinate to end the rally. In this case, Bitcoin rallied from $6,000 to nearly $12,000, only to crash below $10,000 when the expiration occurred.

Bitcoin then returned exactly to the peak of this rally near $12,000 once the futures contracts expiration was over. The question is, how high would Bitcoin have rallied if there were not people manipulating the spot market to better their short positions on the futures markets?

The March 29 Bitcoin futures expiration is an excellent example of banging the close. The volume speaks a thousand words, since selling rapidly accelerated and peaked right when the futures contracts for March expired. This futures contracts expiration dropped Bitcoin below $7,000, and it took at least 10 days for the Bitcoin market to recover from this bottom that was likely induced by CME futures-related manipulation. This March expiration is a good example of how a major Bitcoin price crash can be related to the monthly CME Bitcoin futures contracts expiration.

After the catastrophic Bitcoin futures contracts expiration in March, perhaps many traders thought Bitcoin had bottomed out, and a rally soon started after a 10-day recovery period. The rally continued until the April 27 futures contracts expiration, making it an excellent month for long traders. There is an obvious volume peak 2-3 days before the contract expiration, and a $1,000 price crash. It seems possible that this $1,000 price crash was short sellers banging the close to cut losses and perhaps was mitigated by people in long positions banging the close in the other direction.

The turbulence around the futures contracts expiration perhaps significantly slowed the rally. It re-started a few days after the expiration occurred but quickly lost steam and reversed. This may be another example of a bounce-back rally getting rekt by CME Bitcoin futures-related manipulation, but it is impossible to know for sure.

Between the April 27 and May 25 CME Bitcoin futures expiration dates, the bounce-back rally was entirely liquidated as short sellers took back the helm. There appears to have been some obvious banging the close activity 3-5 days before the May contracts expired, with high volumes and a $1,000 price crash. The market stopped dropping once the May contracts expired, and was steady until the middle of June.

This brings up another interesting effect of the CME Bitcoin futures. If a crash occurs around the time of contract expiration, then the market usually has some time to ‘relax’ after the expiration. This makes it more clear that banging the close is a serious issue.

The price of Bitcoin once again crawled lower as the June 29 CME Bitcoin futures contract expiration approached and reached a minimum below $6,000 within about a day of the expiration. After the expiration was complete, the market “relaxed” and rallied off lows. The June expiration once again has the tell-tale signs of banging the close.

Short selling and banging the close lower is not the only option, and perhaps not a good option once Bitcoin has fallen too much. Prior to the July 27 expiration, the market had been rallying, and the rally peaked over $8,000 around the time the expiration occurred. Then the market began declining within days after the July contract expired. This could be a good example of CME futures traders going long, and perhaps helping Bitcoin’s price to go higher. Once they got their long profits, then they may have collectively decided it was time to squeeze money out of short selling again. The timing of the peak of this rally seems too exact to be a coincidence.

After the July expiration, the market crashed below $6,000 and then began to steadily rise, probably from an overall consensus that the Bitcoin price was near its support level, and it was a good time to buy. There is no sign of banging the close to stop the slight rally when the Aug. 31 expiration occurred. It is important to note that short sellers would have still had nice profits since overall Bitcoin declined $1,000 during August.

A few days after the August contracts expired Bitcoin crashed hard, just like what happened days after the July contracts expired. This brings up the possibility that CME futures traders are doing far more than banging the close. They may be preemptively banging the market right after they buy their monthly contracts, which would cause market panic, widespread selling, and far lower prices than they could achieve from their own manipulation.

After the hard crash right after the August expiration, the Bitcoin market went sideways. There is signs of banging the close around the September 28 expiration since volume increased and price dipped right as the expiration occurred. Overall, September was another good month for CME short sellers.

The trend in October was very flat, and when the expiration happened on Oct. 26, there wasn’t much action. There was almost no change in price during October, and this may have created an environment where an equal amount of longs and shorts were present, and much fewer positions overall. Perhaps when the market does not move much in either direction banging the close does not happen.

November will go down as one of the worst months in 2018 for Bitcoin and the crypto market, however. The Bitcoin Cash fork around Nov. 14 coincided with a crash below Bitcoin’s $5,800 support level. The SEC issued devastating enforcement actions against Paragon (PRG) and Airfox (AIR) and said that would be the protocol for ICO enforcement going forward. Further, Bakkt delayed the launch of physical Bitcoin futures, which is something many investors were looking forward to.

One thing ignored by most people’s market analysis of this crash is that the CME futures traders probably placed large short sell positions and perhaps manipulated the market to crash harder than it should have. The market stopped crashing 4 days before futures contracts expired on Nov. 30, and there appears to be a nice $400 price dip right before the November contracts expired.

Zooming in on the Nov. 30 contracts expiration makes it obvious that the close was banged to lock in maximum short selling profits for November.

The December 2018 CME futures contracts expire on Dec. 28, and in 2019, the schedule is Jan. 25, Feb. 22, March 29, and June 28. It seems these dates will be important for Bitcoin traders, since as the above analysis shows, the spot market often crashes right when expiration happens on down months, and during up months the rally usually peaks right around the expiration date. Only if the market is totally stable all month, like it was in October 2018, the expiration date does not have much significance.

There is plenty of evidence, based on these charts, that CME Bitcoin futures traders are participating in banging the close to increase their profits. There is also a disturbing trend of the Bitcoin market crashing days after contracts expire. This is perhaps traders who take up short positions for the new month launching their ammunition early to cause a major crash, which is perhaps more profitable for them than the small movements they can cause when banging the close. Multiple bounce-back rallies in 2018 died days after contracts expired, which is likely simultaneous with CME futures traders taking up their short positions.

Another worrisome factor is that any actual bad news, like the Bitcoin Cash fork and SEC enforcement, may be blood in the water for CME futures traders. The November crash ended right before the contracts for November expired, making it seem like the CME futures traders launched their ammunition to crash the market when the market was already crashing due to bad news, greatly amplifying the overall crash.

Perhaps the Commodity Futures Trading Commission (CFTC) should consider that the relatively small size of Bitcoin, which has less than a $100 billion market cap, is inappropriate for Globex futures since it is too easy to manipulate.

Original Source http://bit.ly/2ELqVM9

[thewul]

The choice of a technological solution provider can make or break a business case, in this instance we are looking at IBM to build IBM Globex not from scratch but based on the existing CME Globex trading system and improving on it, that also includes the datacenter infrastructure, and possibly tasking IBM to build satellites for IBM Globex as in a sole provider solution

For accredited corporations, traders and trading institutions and brokers, and giving thanks to the Chicago Mercantile Exchange who launched the Globex trading system back in 1992 is important

Well maybe they had no idea Globex could become what we have designed within this case study, but it’s often like that we do things and they acquire a much greater scope because they are useful, and CME Globex is useful not only for CME but for the whole globalized economy

Also GBX is a monitored platform, so there should be quite a large staff that oversees the transactions carried on its trading system, 24/7 and around the year because the globalized economy never really stops and GBX is meant to reflect that as well

Satellite fleet wise it is expending, and after 2 satellites a main and a back up for GXA we are looking now at 12 satellites in total, of which 2 for GBX proper

[thetradingmasterclass]

Advantages of the free mini S&P Algo trading strategy

The Free mini S&P Algo trading strategy has something for everyone. The popularity of the free mini S&P Algo trading has exploded over the last decade, owing to unrivaled flexibility, a varied selection of trading alternatives, and reduced risk exposure. Let's take a look at three important benefits that make free mini S&P futures excellent products for both experienced and inexperienced traders.

1. Reduction of size:

A product's size in the futures markets is defined as the amount of an underlying asset assigned to a certain contract. It is a significant predictor of financial leverage and anticipated capital vulnerability. Simply, the larger the contract, the more the leverage exerted. Futures contracts are available in a variety of sizes, including full, mini, E-mini, micro, and micro E-mini. Each group has a particular amount of the underlying asset and a distinct degree of leverage.

The main advantage of the free mini S&P Algo trading strategy is that it is a low-risk way to participate in the world's most popular asset classes.

2. Varieties of Trading Options:

The huge collection of individual contracts easily available for sale is one of the CME's free minis' selling points. From the industry-standard free mini S&P 500 futures to niche products like free mini Financial Select Sector futures, there is almost certainly a contract that is appropriate for your trading approach.

Keep in mind that liquidity and volatility will vary depending on the product. Before getting in with both feet, make sure to analyze each listing's current depth-of-market and past price action for suitability. There is no shortage of strategic value available to Free mini S&P Algo trading participants, ranging from day trading the main U.S. equities indices to swing trading international currencies. The combination of market access and lower capital requirements increases the flexibility of the free mini S&P Algo trading strategy significantly. Here's a quick rundown of the two characteristics that make Free mini S&P Algo trading strategy excellent for practically any market:

·    Margin reductions: Free mini products have significantly lower day trade and maintenance margins than their full-size counterparts. free mini S&P 500 futures, for example, can be traded with $500 intraday margins and $6,300 overnight margins. These amounts are insignificant when compared to the full-size S&P 500 contract, where both intraday and overnight margin needs to surpass $30,000 per lot.

·    Extended market hours: The free minis are traded on a near-real-time basis through the CME's electronic platform, the CME Globex. Market hours vary by product, but are normally from Sunday (6 p.m. EST) to Friday (5 p.m. EST), with a daily late-afternoon halt of less than one hour.

The free mini S&P Algo trading strategy's low margins and extended business hours give participants opportunities not accessible in other markets. For example, the free mini S&P 500's $500 intraday margins and near-24-hour sessions provide large-cap equities traders with market access while Wall Street is closed. This function is strategically essential since it allows you to capitalize on opportunities that arise outside of normal NYSE business hours.

[paiddailylife]

Everyone knows that #bitcoin and #cryptocurrency prices have been on a steady decline since the last month of 2017. While digital asset spot prices have been quite volatile, bitcoin #futures products provided by two of the world’s largest derivatives exchanges, #Cboe and #CME Group, have seen a steady increase in trade volume and more #liquidity within these markets. Furthermore, Cboe is hoping to launch a bitcoin-based #exchange-traded-fund (ETF) and the US #Securities Exchange Commission will decide on the fate of this new product on August 10. While Spot Prices Decline Bitcoin-Based Futures Contracts Have Been Steadily Increasing Cryptocurrency spot prices have been in a slump over the past two quarters of 2018 but rumor on the street is institutional interest in cryptocurrency custody and regulated investment vehicles is picking up speed. Even though market sentiment has been bearish, futures contracts sold by Cboe and #CME Group have increased significantly during the second quarter of 2018. Right now, on July 12, there have been 1199 contracts filled so far and products for the month of August are adding up today as well. Cboe has been selling between 2500-18,000 bitcoin futures contractsper day. CME Group sees a spike in futures contract volumes on July 5. CME Group’s bitcoin futures volumes are usually less than Cboe’s trade volume but contracts sold on Globex have also spiked. Today CME has 2634 contracts sold for July and products for August and September are seeing a small increment of sales. CME Group’s contracts jumped to 6739 on July 5, marking a new record for CME’s bitcoin derivatives market. However, it’s still not even close to the record-setting 18,000+ contracts Cboe recorded on April 25. With the steady trend of investors getting into bitcoin-based futures products, Cboe hopes these derivatives markets will pave the way towards a bitcoin ETF. Cboe bitcoin futures touched 6,121 contracts on July 5. The Fate of the Cboe Bitcoin ETF Will be Decided August 10 — Will the Futures Markets Launch Affect the SEC’s Decision? #cryptonews #btcnews #xrp #ltc #eth #bitcoin — view on Instagram https://scontent.cdninstagram.com/vp/39c9810b420a9b8ac7871c958b82c559/5BD7D4CF/t51.2885-15/sh0.08/e35/s640x640/36561260_270436000393201_7709445689066913792_n.jpg

[studiobitcoin]

CME Group lançará contratos futuros de bitcoin em 18 de dezembro

Um regulador federal dos Estados Unidos liberou o CME Group a começar a negociar futuros de bitcoins neste mês, na primeira vez que a moeda digital será negociada em Wall Street, sujeita a supervisão federal. O CME Group, dono da Bolsa de Chicago, iniciará as negociações de bitcoins no próximo dia 18, de acordo com a companhia. A Comissão de Negociação de Futuros de Commodities deu a aprovação…

[traders-studio]

Futuros Forex de E-Micro

Futuros Forex de E-Micro

¿Qué son los futuros de Forex de E-Micro? E-Micro Forex Futures es un tipo de contrato de futuros de divisas que se negocia en CME Globex, una plataforma de negociación internacional que se especializa en contratos de futuros y opciones. Forex E-Micro Futures es único en el sentido de que son una décima parte del tamaño de contrato normal de los futuros de forex. Conclusiones clave E-Micro…

[forextraderpost]

Copper Trading: Copper Trading Tips and Strategies

Copper Trading: Copper Trading Tips and Strategies

Copper is a highly tradeable commodity.

Copper is priced in US Dollars; so the price of the dollar affects the price of copper.

Copper is gaining more traction as an investment option along with various other alternatives.

As looked at in our primer for copper, copper prices tend to do well when emerging markets are growing as demand derives from building and construction.

Trading strategies for copper can include both technical and fundamental analysis.

Copper is a global commodity that has several key uses throughout industry and is highly correlated to economic growth. Copper trading is often used by hedgers and speculators as protection or exploitation of future price movements. Both individuals and institutions are able to gain exposure to copper and copper trading, making this metal popular choice within the commodity trading spectrum.

Why Trade Copper and How Does Copper Trading Work?

One advantage of copper trading is accessibility. Copper is traded through a variety of avenues like futures, options, equities and CFDs. You can also gain exposure to copper via copper ETFs (exchange traded funds) like CPER (United States Copper Index Fund) or JJCB (iPath Series B Bloomberg Copper Subindex Total Return ETN).

Copper is a soft malleable metal with properties like gold and silver. It derives most of its demand from building construction, transportation equipment and electronic products. It is a strong conductor of electricity and heat, and therefore has a wide range of industrial uses which also leads it to trade in high volumes – a good thing for traders because it can lead to reduced spreads and potentially cleaner chart patterns.

Movements in the price of copper are heavily dependent on demand from emerging market economies like China and India. During times of economic growth, these nations demand large quantities of copper, the demand of which helps to increase the metal’s price. Alternatively, during economic downturns demand for copper drops, price tends to fall as well. Traders should be aware of this dynamic when trading copper.

Many copper traders use technical and/or fundamental analysis to inform their trading strategy which helps a trader forecast whether the price of copper will rise or fall. Once a trader is confident in their forecast, he/she can buy or sell copper in an attempt to profit from price movements. In this way, a trading strategy can also help a trader to manage their risk, identify buy and sell signals in the market and set reasonable take-profit and stop-loss levels with aim of positive risk to reward ratios.

View current price movements of copper using our chart

Copper Trading Hours

Copper trades on the CME Globex and CME ClearPort:

Sunday – Friday 6:00 p.m. – 5:00 p.m. (5:00 p.m. – 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT)

What Factors Affect the Price of Copper?

US Dollar

Like many other metals, copper is inversely correlated (see chart below) to the US Dollar which means that when the US Dollar depreciates, copper prices generally rise and vice versa. It is important to note that this relationship is not one-to-one (delta 1) but does carry a high degree of correlation.

The reason why the US Dollar is an influencing factor on copper is because copper is priced in USD. For example, when the Dollar falls, a buyer will have to pay fewer of his/her domestic currency to purchase a specified amount of copper. Therefore, the commodity (copper) becomes cheaper to buy. This tends to cause an increase in demand and ultimately a rise in the price of copper.

Copper and USD chart inverse correlation representation:

Chart prepared by Warren Venketas, TradingView

Oil

The refining of copper involves melting down the metal to remove impurities. This process is extremely energy exhaustive and accounts for a large portion of overall cost. Oil prices tend follow a similar trajectory to copper (see chart below). This being said, oil prices are affected by many of the same factors as copper which could support the traditional positive relationship. Regardless of specifics it is clearly noticeable that a relationship exists between both copper and oil, which could provide valuable insight into the copper market. Renewable energy sources are growing in popularity which could interrupt the historical price dynamic between copper and oil.

Chart prepared by Warren Venketas, TradingView

Copper as a Barometer for Global Growth

Copper is often linked to industrial growth and therefore overall economic growth. Infrastructure, manufacturing and construction now play a huge role in economic expansion which heavily relies on copper. Consumption (demand) for copper tends to reflect in the price of copper as an increase in demand is generally followed by an increase in copper price and vice versa. Copper is broadly regarding as the king amongst base metals as it is the most widely used metal in growing both emerging market and established economies.

The general economics of supply and demand are observed which can be used as a rule of thumb when trading copper:

Increase in supply

Lesser demand

Decrease in supply

Higher demand

A major influence on the demand/supply of copper comes via China. China is the single biggest buyer of copper in the world. Although China has mines of its own, Chinese demand requires additional supply which is sourced from other major copper producing countries. This is why the Chinese economy is such an important factor to consider when trading copper. If China continues on its growth trajectory, one can expect sustained demand for copper (see chart below). It is important to note that China is determined on being self-sufficient in the long-term which could disrupt future supply/demand dynamics.

Copper and FTSE China A50 chart positive correlation representation:

Chart prepared by Warren Venketas, TradingView

Copper supply and production costs

Copper mining is primarily focused within South America which can have a large bearing on the price of copper. Shortage of supply, quality of copper and the variations in production costs can all have resultant impacts on price. This leads on to country specific risk which can affect supply due to political instability or work related issues.

In mid 2018, Chilean (worlds largest copper producer) copper workers declared they would strike unless their increased wage demands were met. This significantly manipulated copper prices as the threat of a supply shortage may ensue, causing a surge to multi-year highs at the time (see chart below).

Copper price reaction to Chilean copper strike:

Chart prepared by Warren Venketas, TradingView

Copper as an Investment

Copper has historically been regarded as a commodity without many investment benefits. The majority of copper trading was executed as a hedge against future price fluctuations to lock in a specific price. This has changed over the past few decades as speculative traders have increased their impact on copper prices. Large institutions and hedge funds have increased their stake in copper as an investment which is highly correlated to economic growth. For example, a fund manager bullish on economic growth may also be bullish on copper. There may be some cyclicality to this, and could be a good diversification tool away from traditional alternatives.

Trading Copper: Strategies

Copper’s versatility and dependency on various fundamental factors create a diverse combination in terms of trading strategies. Trading strategies can be purely technical, fundamental or a combination of both. Understanding how the technical and fundamental components work both individually and in unison with one another can lead to a comprehensive copper trading strategy.

Technical Strategy example:

The example below incorporates several technical analysis techniques to derive a trading decision. It is important to note that this is only one of various approaches that can be implemented into a technical strategy.

To learn more on alternative technical trading strategies, visit our DailyFX education center!

Chart prepared by Warren Venketas, IG

The weekly copper chart above uses price action, support and resistance and a technical indicator to determine a possible setup in copper. The Fibonacci retracement drawing is taken from the January 2016 low to the June 2018 high. This drawing has resulted in several support and resistance zones. It is clear that several of these zones are areas of confluence to which price adheres/respects.

The $1.93 per pound low (black) was a significant level of support as price approached in March 2020. From a technical perspective, as price moved toward the 2016 low the inclination would be to buy if price did not break through the $1.93 support zone.

The Relative Strength Index (RSI) supported this rationale with an oversold signal below the 30 level (blue). Combining these two simple techniques gave a stronger motivation for a long position. In this case, a long trade would have been successful as price reversed into the current medium-term upward trend.

Fundamental Strategy example:

Chart prepared by Warren Venketas, IG

Becoming familiar with the fundamental levers involved in copper trading will allow for appropriate trading strategies to follow. The daily chart above shows the impact of the global COVID-19 pandemic and its influence on copper.

Reverting back to the factors affecting copper, it is well-known that copper is highly correlated (positive) with economic growth. Therefore, a disruption in economic growth should in theory, disrupt supply and demand subtleties. With the global pandemic ensuing at the start of 2020, it is sensible to forecast a slump in economic growth as the virus spreads around the globe.

As expected, a decline in economic growth was realized with copper following suit. From January 2020 to mid March 2020, copper prices fell roughly 30% due to the COVID-19 pandemic. This is one such scenario whereby understanding the dynamics of fundamentals in copper trading can result in prudent decision-making.

Fundamental and Technical Strategy example:

Utilizing both fundamental and technical analysis in a trading strategy requires more time but this extra effort may produce a superior model as it will include more input data. At the beginning of 2019 copper prices were trading at a one and a half year low due to trade tensions between the US and China along with a decrease in import volume by the Chinese. However, as trade tensions fizzled out with support from a weaker US Dollar copper prices appreciated over the next few months.

Chart prepared by Warren Venketas, IG

Managing these complexities from a trading perspective may start with a basic technical set up beginning with a simple Fibonacci retracement. The Fibonacci drawing above was taken from the January 2016 low to the June 2018 high as used in the prior technical example. Using the Fibonacci alone reveals that the 50% $2.62 per pound zone is a key area of support at the start of January. At this point, there is no directional bias as fluctuates around this support zone.

This is where fundamental factors play an integral role in trading copper. Market participants who follow macroeconomic events such as the US-China trade talks would be aware of decreased volatility and intensity around the topic as it slowly dissolved. With this knowledge supplemented by a dwindling USD, the likelihood of copper prices rising in the near term would gain more traction. With prices respective of the 50% $2.62 per pound Fibonacci level, and the bullish macroeconomic environment, a copper trader may look to enter into a long position from this support zone in anticipation of an upward price move.

Stop losses could have been placed at the recent swing low around the $2.54 – $2.56 support zone (black) for more risk seeking traders or the 50% $2.62 level for more risk averse traders. Risk management is key to any strategy and should be practiced consistently and appropriately to ensure sensible trading.

The next level of resistance would have been the 38.2% $2.79 per pound Fibonacci level whereby traders may look to exit long positions and look for possible reversals or an extension of the already strong bullish move. In this case, the Moving Average (MA) indicator was useful as the 50-day MA (red) crossed above the 100-day MA (black) which is suggestive of a bullish price movement. This crossover appeared in mid January 2019 and with sustained supportive macroeconomic conditions, copper prices extended further. Additional data inputs such as the bullish MA crossover can give traders the information required to select a focused trade.

How to Trade Copper: Summary

Copper has progressed into a well diversified metal and can now been seen as an investment possibility. Perceptive interpretation of copper technicals and fundamentals can place market participants in favorable positions to exploit price movement. These wide ranging influences on copper can prove difficult to navigate through but greater exposure and awareness should allow for more clarity.

Looking to trade in a simulated environment to better learn strategies, tactics and approach? Click here to request a free demo with IG group.

Resources to Help you Trade Copper

Beginner and advanced traders alike can benefit from the many resources DailyFX provides to inform trading strategies and improve confidence when trading commodities, such as Copper:

Stay up to date with live Copper prices using our live chart and latest news.

Bookmark our Economic Calendar to stay informed of upcoming events which could influence Natural Gas prices.

Read our Traits of Successful Traders guide to find out why some traders are more successful than others.

Tune in to our Live Webinars for live access to our DailyFX experts discussing trading strategies, tips, news and forecasts.

Learn more about technical analysis with our 4 Effective Trading Indicators Every Trader Should Know.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

The post Copper Trading: Copper Trading Tips and Strategies appeared first on Forex Trader Post.

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[henrygrayson23]

CME Launches Ethereum Futures

CME Group, the world’s leading and most diverse derivatives marketplace, today launched Ethereum futures, further expanding its crypto derivatives offerings in this emerging asset class.

“As institutional demand for transparent, exchange-listed crypto derivatives continues to increase, we are pleased to launch our new Ether futures contract,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The addition of Ether, along with our liquid Bitcoin futures and options, will create new opportunities for a broad array of clients, whether they are looking to hedge ether positions in the spot market or gain exposure to this cryptocurrency on a regulated derivatives marketplace.”

“Just like in other capital markets, derivatives have become the avenue of choice for institutions to access cryptocurrencies,” said Sui Chung, CEO of CF Benchmarks. “Our status as a U.K. FCA regulated benchmark provider, whose compliance is regularly audited by Deloitte, gives institutions further confidence to enter the cryptocurrency space via the CME Ether futures contact based on our CME CF Ether-Dollar Reference Rate. For the first time, investors can gain exposure to the second-largest cryptocurrency by market cap via a U.S.-regulated futures contract. Just as Bitcoin futures paved the way for institutions to enter the crypto market in 2017, so CME Ether futures will allow CME Group clients to gain even greater exposure to the asset class.”

“CME Group has been an integral participant in the continued institutionalization of this asset class, and the launch of Ether futures is yet another milestone,” said Michael Moro, CEO of Genesis Global Trading Inc. “Genesis is excited to continue to work closely with CME in this effort.” 

“The launch of CME Ether futures is an exciting addition to the digital assets ecosystem as it evidences the ongoing maturation of the asset class as a whole,” said Michael Sonnenshein, CEO of Grayscale Investments. “At Grayscale Investments, we’ve seen enormous growth in investor interest for Ethereum and we’re excited to see the growing list of financial product offerings expanding access to digital currencies.”

CME Ether futures are cash-settled, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. Ether futures are listed on and subject to the rules of CME.

As the world’s leading and most diverse derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

Via https://top5cryptos.com/2021/02/08/cme-launches-ethereum-futures/

source https://top5cryptos.weebly.com/blog/cme-launches-ethereum-futures