Secrets of the trading ring
Article Abstract:
Commodity investors have to accept relatively high risk levels and take a shorter term view of their investments than do investors in stocks. Futures markets were initially developed in Chicago which is still a key commodity trading center, especially for agricultural commodities. Margin trading involves an outlay that is a small proportion of the value of a contract which means that profits can be large but this also applies to losses. Exchanges can provide lists of members able to trade on behalf of investors.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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In defence of speculators
Article Abstract:
Floating exchange rates can allow economies to adjust, so the drop in Asian currency values of 1997 has had a beneficial effect. Transaction taxes could be imposed on currency trading to deter speculation, but this may not be effective if speculation is aggressive. There could also be problems if all speculation were eliminated, because speculation can help reduce volatility. This is because speculators may sell currencies when they are high in value and buy them when they have a low value.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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