Monthly Archives: June 2017

Common Terminology in Futures and Commodity Trading

Commodity Markets

A commodity market is a market where generic movable products are bought and sold with contracts. Examples of commodities are: corn, wheat, coffee, pork bellies, cocoa, soya beans, oats, live cattle, crude oil, natural gas, gold, silver and so on.

Contract

Buying and selling of commodities is done with contracts. These contracts state exact rules, including descriptions, quantities, unit price, and delivery times.

Trading

Trading means buying and selling contracts.

Futures trading vs Commodity trading

Commodity trading and futures trading is the same thing. When you are trading in commodities you are trading in futures.

The Commodity Exchange

Commodity exchange is a central place where the buying and selling commodities take place. The biggest commodity exchange in the world is he Chicago Board of Trade (CBOT). There are also quite few around the world.

Mini-Contracts

Trading mini-contracts is an alternative to trading standard contracts and is smaller in quantity, ranging between one-fifth and one-half the quantity of a standard contract. Mini-contracts are traded in Chicago on the MidAmerican Commodity Exchange (MidAm).

Standard Contracts

Standard sizes of futures contracts are most of them related to the specific product. Example:

– a contract of corn has 5,000 bushels

– a contract of gold has 1,000 ounces

– a contract of lumber has 160,000 board feet

Contango

Contango describe the carrying costs inherent in different price months for the same commodity. For example a commodity to be delivered in eight months has more overhead costs (due to storage price) compared with a commodity be delivered in two months.

Trading Months

Every commodity has specific trading months and is not all the same. For example: Crude oil has trading every calendar month. Soya beans have in January and every second month.

Spot Market

It is also known as the cash market in futures which means delivered and paid for “on the spot” or immediately.

The spot month is the present month.

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Investment Management Training

In the early period of development of finance as a profession, i.e., until the early 1950s, investment management was primarily concerned with the procurement of funds. The subject matter was mainly confined to financial problems arising during episodic events like incorporation, merger, consolidation and reorganization. Thus, the traditional role of the investment manager was to raise externally the funds required by joint stock companies. The internal administration of finance was either ignored or dealt with by the promoter entrepreneur himself.

With the passage of time, the role of investment manager has undergone drastic changes. Presently, the investment manager is in charge of determining the total amount of capital required for both the short-term (working capital) and long-term (fixed capital). This is done by proper forecasting and planning of finance. Secondly, their job profile includes investing the funds in assets and projects, with the aim of making profits. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

Now the investment manager is concerned with the management of assets, raising and allocation of capital, and valuation of the firm. Besides, he has to ensure the supply of funds to all parts of the organization, evaluate the financial performance, negotiate with bankers, financial institutions and other suppliers of credit, and keep track of stock exchange quotations and the behavior of stock price.

To play his role well the investment manager has different tools, such as cost of capital, leverage, capital budgeting, working capital management techniques and fund flow analysis/cash flow analysis. Cost of capital helps in deciding the appropriate source of finance. Normally the sources with minimum costs are selected, so that the weighted average cost of capital can be kept to a minimum. Capital budgeting helps in deciding the proper investment mix; the available resources should be used in the most profitable way. For this purpose, suitable projects should be selected from alternative courses by using capital budgeting techniques.

Commercial Construction Basics

Have you ever longed for turning into a top level director for a business development organization? On the off chance that your answer is yes, that is okay. In any case, we unequivocally ask you to begin toward the start of your conceivable new vocation. Before you turn into a pioneer you should be a development specialist; then continuously win your way to the top. The main way you will succeed in doing that is whether you take in the rudiments of business development along the way. The reason for this article is to get you on your approach to doing that. Thusly we have some accommodating tips for you. Keep perusing with a specific end goal to see what they are.

In any exchange you have to gather the best possible devices of information over a drawn out stretch of time. This is the same in the business development industry. You’re comprehension of the specialized parts of it and the fantastic relationship building abilities are only two or three those instruments. One fundamental nature of a business development supervisor is that he should have the capacity to viably speak with other individuals. Notwithstanding that, he needs to have great authoritative abilities with the goal that he can precisely arrange the distinctive parts of the present undertaking. Obviously those things run as an inseparable unit with the specialized critical thinking capacities. These devices are more than prone to be just the tip of the icy mass.

So what are some other essential qualities for a business development specialist or particularly a supervisor? We ask you to as of now have an adoration for building things. That may sound rather trite yet it is a truth and a critical piece of business development essentials. Is it accurate to say that you are a man who has dependably delighted in working with his hands? Assuming this is the case, this industry might be ideal for you after all since you will most without a doubt build up an affection for building things like development activities.

Do you get delight from watching other individuals procure and use your organization’s done ventures? This is not so much an apparatus that you can learn; however rather is a genuine energy within you. Perhaps you want to experience youngsters who have moved on from a school that you fabricated. You don’t as a matter of course need to have been conceived with this enthusiasm; in any case you should’ve obtained it sooner or later amid your life. All things considered; this is the continuous objective of any business development organization – to complete their structures and in an auspicious manner.

The other essential standards of the development business are things that you will learn after some time. These are things, for example, any subtle strategies or the task agendas of the Superintendent. One pivotal thing you have to learn is the greater part of the security rules and systems. You should realize what supplies to request and how to legitimately continue with your undertakings consistently; at the same time keeping wellbeing at the front line of everything. On the off chance that these points of interest sound unremarkable and exhausting to you then the business development industry is not the right one for you.

Commercial Construction Company – Large Projects

A business development organization is one that spends significant time in non-private structures, for example, shops, open zones, and office structures. They are normally appointed to construct fundamentally bigger tasks than private organizations, and along these lines have instruments and materials that permit them to scale structures to a moderately bigger size. They can be authorized by either a representing body or by a private speculator, and can manufacture anything from a solitary store to a high rise. In this article, we’ll investigate a portion of the ways business development is oftentimes spoken to in regular life.

Probably the most well known things a non-private development organization will be requested that construct are free shops. This can incorporate establishments like fast food eateries or exclusive retail shops. Numerous individuals hoping to begin their own particular business will employ a non-private development organization to manufacture the store itself for them, and will for the most part plan the design of the shop with an on staff engineer. There are various distinctive staff individuals that can make the way toward laying out the development of a private business a considerable measure simpler, because of their level of ability.

A non-private development organization may likewise be utilized by an administration office to develop either an open place, for example, park or exhibition hall, or an administration building like a courthouse. The development of open regions is for the most part a vast accomplishment, and business development organizations will regularly utilize an assortment of procedures on a solitary task. For instance, an exhibition hall will normally require an engineer for the building itself, a greens keeper for the development of greenhouses, and a security master for approaches to ensure profitable pieces in the historical center. They may likewise utilize somebody to make the inside look decent, and different sorts of glassworkers and artisans for novel design highlights.

Non-private development organizations can much of the time be seen performing different sorts of development, on for all intents and purposes any kind of building. Truth be told, the main kind of building they aren’t in charge of is lodging, and a hefty portion of the development ventures they have are essentially bigger. In the event that you are hoping to begin your own particular business or need to get required out in the open works, odds are you will manage a business development organization sooner or later, regardless of the fact that it’s equitable to touch up the inside of a current building. Utilizing a development organization’s aptitudes can make huge ventures a snap to finish.

First Steps in Understanding Volume Analysis and How It Leads Price

Fundamentally, volume is an estimation device that mirrors the general movement in an instrument in light of the quantity of purchasers and venders in the business sector. As it were, volume demonstrates the energy of purchasers or dealers amid a predefined period, and additionally the liquidity of the instrument. Despite the fact that volume might be shown distinctively on diagrams, it is commonly shown as a solitary, non-directional, histogram which speaks to the aggregate number of purchasers and merchants for a given period. Non-directional implies that as cost is making higher highs or lower lows, the volume bars will regularly be making new highs.

Average volume pointers speak to the general number of purchasers or merchants for each predetermined bar. A dealer may take a gander at this kind of volume representation to assess the liquidity of the instrument. This lets him know or her whether there is adequate action to empower one to enter or leave a position effortlessly.

Volume can likewise be shown as Volume Up (purchasers) or Volume Down (merchants). This sort of volume bar demonstrates the volume showed as two separate pointers, Volume Up (green histogram bars) and Volume Down (red histogram bars). By showing volume in this way, a merchant can contrast the purchasing volume with the offering volume for a predefined period.

By looking at the two volume shows, a broker can survey whether there is more energy appeared by the purchasers or by the merchants amid a predefined period. In an uptrend, purchasers ought to have more eagerness than dealers. At the point when a business sector achieves a top, purchasers will lose excitement and venders will assume control. In a downtrend, venders ought to have more energy than purchasers. At the base, venders will lose energy and purchasers will assume control.

The greatest issue for new dealers, when contemplating volume, is recognizing these particular examples – or volume dissimilarity as it is alluded to. The initial step is straightforward – understanding volume dissimilarity.

Volume uniqueness is when cost goes in one bearing and volume goes the other way. For instance, a couple sorts of volume dissimilarity that are uncovered when utilizing a non-directional volume marker (all volume histogram bars are plotted over a zero line):

Cost is making a higher highs

Volume is making lower highs

Cost is making approach highs

Volume is making higher highs

Cost is making lower lows

Volume is making higher lows

Cost is making level with lows

Volume is making higher lows

At the point when volume dissimilarity is recognized, then the merchant can expect a prompt fleeting inversion. For instance, when volume uniqueness happens on the highs, the dealer would envision an inversion to test for merchants. With the goal cost should invert and make a downtrend, venders must show interest. On the off chance that no interest is appeared, then cost will proceed on its unique way.

Similarly as with most other exchanging markers, volume can be as mind boggling or as basic as a merchant makes it. Today, there are numerous sorts of volume markers accessible. Some depend on midpoints of genuine exchanges of purchasers versus venders over a predefined period. Others depend on request stream, an estimation of purchasers versus merchants from real request stream. Some are more confounded than others and there is nobody volume pointer that is enchanted. The viability of a volume pointer is more needy upon how well the merchant can comprehend and translate the volume at any given period than on the marker itself.

What is a TMS? (Transportation Management System)

Transportation Management System (TMS) – What is it?

A Transportation Management System is software that helps businesses manage the execution of its logistics supply chain, in particular coordinating and optimizing the movement of products and materials.

The general functions and benefits of a TMS include the following:

Shipment Load Planning and Shipment Routing Optimization – This functionality helps in areas such as determining the most cost effective mode to ship an order (truckload, ltl, air freight, intermodal, etc.), or the optimal way to combine multiple orders together into larger shipments. Carrier rate agreements and contracts are often housed within this area as well.

Routing Guide – Helping to ensuring vendor compliance to inbound routing guides is crucial to cost management. Centralizing the routing instructions for a company with multiple shipping locations can improve compliance.

Execution Management and Carrier Communication – This includes tools for assisting with carrier selection, calculating shipments costs (including line-haul, fuel surcharges, and accessorial charges), tendering loads and facilitating carrier communication (bills of lading and proof of delivery).

Visibility/ Shipment Tracking – Providing delivery status updates and alerts, this tool allows proactive program management and notice of potential delivery problems in advance.

Freight Bill Audit & Payment – Automating the freight audit and payment process, saving time and improving accuracy, or ending reliance on an outside third party. It is estimated that performing regular freight invoice audits can save 4-5% in transportation costs per year.

Other functions:

Business Intelligence/ Reporting

Claims Management

Returns Management

Appointment Scheduling

TMS systems are can be deployed on client’s systems or on-demand SaaS (Software as a Service).