Futures Trading Is Like Running a Small Business

Article Abstract:

Several comparisons can be drawn between running a small business and handling a futures portfolio. The product of the futures investor is the futures trade itself. The cost of production is the brokerage commission paid. The production pace is monitored in three ways: expected return is a function of risk, risk is a function of the length of the contract, and commission costs are a function of trading place. Money management is important in running a successful portfolio. Only a small percentage of total equity should be risked on a trade.

Investments

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Exporting and hedging decisions with a forward currency market: the multiperiod case

Article Abstract:

Export trading companies use forward currency markets as a risk management tool to stabilize exchange rates. Forward currency markets, which can change the conditional expectations of future spot exchange rates, may not promote a rise in export volume and influence forward currency hedging plans. The presence and magnitude of optimal hedging decision elements such as speculative hedging and pure speculation depends on the occurrence of biases in forward markets.

Foreign Trade Companies NEC, Other Miscellaneous Nondurable Goods Wholesalers, WHOLESALE TRADE--DURABLE GOODS, Analysis, Management, Hedging (Finance), Trading companies, Export trading companies, Money market, Money markets, Foreign exchange futures

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