Understanding the Basics of Futures Options

New traders who would like to test the waters of the trading world may opt for future options instead of going right away into futures contracts. However, they have to get a clear understanding of the concepts related to it for them to get the most from their investments. A futures option is a right to buy or to sell commodities at an agreed strike price through a futures contract. Traders buy options at present as they bet on the price of future contracts to increase or decrease at a given time in the future. Those who engage in futures option mostly settle the agreements in cash. This may be an advantage to investors who do not have enough capital to pay for the value of the underlying assets such as commodities.

There are specific terms that new traders have to learn before they plunge themselves into the trading business through the futures options.

Calls

Traders may consider buying call options if they think that the price of the underlying commodities will increase. If they expect that the prices of corn futures will rise for example, then they may think of buying corn call options.

Puts

On the other hand, if traders expect the underlying commodities to decrease in price in the future, they may opt to be buying put options instead.

Premium

Traders have to pay some fee or price when they buy either a call option or a put option and this is called the premium. However, the prices may vary depending on whether the bet is more likely to happen or not in the near future. Traders will have to pay higher prices for options that they are most certain will happen at a given time frame.

Contract Months

The contract months refer to the timeframe. Call and put options do not last forever as they are bound to expire. Traders will have to decide to close their position before the date of expiration comes. Those who have longer time to hold their options generally will have to pay more for it as these options are more expensive.

Strike Price

Traders may sell the underlying contract on the commodities before it expires. Traders usually do not decide on converting their options but they just close their positions and reap their profits that they have earned.

Commodities such as gold for example may be expected to increase in a few months time. Traders may then buy a gold call option in order for them to gain profit from it when the prices rise before the expiration date

Knowing the Proven Tips and Strategies in Futures Trading

Among the most important things that any trader needs to keep in mind in order to be successful in futures trading are the proven strategies and tips. In this regard, I will discuss in this article the four (4) essential aspects related to the useful tips. Specifically, these are about the consistency, organization as well as cut research time and even exploring in becoming the expert. On the other hand, I will also briefly discuss the five (5) very common strategies like scalping, hedging, going short or long as well as the arbitrage.

On the one hand, the first very useful tip is to be consistent. Well, you actually do not have to take too much effort because consistency is actually one of the major advantages of futures trading. Secondly, the third aspect is about organization. This actually simply refers to the advantage of having a trading strategy, which provides organization to the portfolio of the trader. Hence, managing of an open position is much easier with a strategy. Thirdly, it is also very vital to have a trading strategy because it helps the trader to improve his or her efficiency when it comes to trading, which refers to the third aspect that is related to cut research time. Fourthly and lastly, having a strategy also develops a trader to become an expert in the field.

On the other hand, when it comes to the strategies, one of the most common is scalping. This simply refers to the technique when a trader profits from short-term gains. This is commonly being implemented in a matter of minutes or just few hours. Aside from that, this is being done for several times within a trading day.

Secondly, hedging is another strategy in futures trading that is worth noting or exploring. This is because it is one of the premium strategies or approaches when it comes to this field. There are many forms or methods of doing this. Among the most common are trading in pairs, having industry comparisons as well as though instrument hedges.

Thirdly, going short or long are another strategies that any trader can explore when it comes to buying or selling futures contracts. Going short, on the one hand, is about selling position in order to plainly buy them at the latter part of the trading period and hopefully for a lower price level. This will require the trader to spot the short opportunities. Going long, on the other hand, is the reverse strategy of the former one I have explained.

Fourthly and lastly, arbitrage is technically defined as a process of having two (2) different positions in futures trading, which both are expected to have or deliver gains to the trader regardless when the market goes up or down.

Analyzing the Market Through the Gann Technique

Most traders follow certain philosophies or trading principles in making trading decisions. They also employ proven methods such as the Gann Technique in analyzing the market price movements. This technique has been used since its conception by William Delbert Gann who was a stock trader during his time. He developed this technique in order to have a systematic way of analyzing the possible trading opportunities that would bring profit. The Gann Trading Technique uses angles that present the relationship between price and time. Traders make use of 45° angles that represents 50% of the price that falls between the important high and low points with time and price being considered.

The Gann Technique when applied to trading works on different frameworks. The first of these refers to the psychological framework. Traders have to master all of the concepts and the strategies that pertain to this technique. They have to be able to determine their average limits when it comes to their trading activities every day. Those who are in the trading business also have to know when to apply the Gann Trading Technique in various types of situations. There are strategies that need to be employed in a Bull market or in a Bear market.

The Bull and the Bear markets refer to the upward and downward movements of the prices. The Gann Technique would help the traders to predict where reversals from these different markets would likely to occur. They may not exactly tell when but traders will have the opportunity to earn profit if they know when it could possibly happen. Those who are using the Gann Trading Technique may trade according to the market trends. However, they have to determine that there is consistency in the uptrend or the downtrend when they trade. If there are conflicting tops and bottoms, they may have to wait a little until they are able to identify a firm trend in the market.

Traders who employ the Gann Technique are advised to keep an eye on their price charts especially at the points where they expect it to bounce back. This technique works on finding the support as well as the resistance levels that may come at 25%, at 50% and at 75%. They also have to take note of time as trends come back after some time. It is then important for traders to remember when big changes have occurred in the market because there is a higher chance that the same scenario may occur again.

Beaten Bean Bulls

The month of May has not been kind to the soybean market. In fact, I'd say it's bearing the brunt of a perfect storm of bad news. Old crop, July soybeans are down more than 10% for the month while this year's crop is fairing only slightly better. This beat down has come from all angles, including weather, speculative traders and the global economy. However, once the dust settles, this may prove to be the best buy of the summer.

The U.S. agricultural markets are all well ahead of schedule thanks to the exceptionally warm spring. The most recent crop reports show that soybeans are 76% planted. This record high is 34% above the five-year average for this time of year and 31% ahead of last year's pace. These figures account for the 95% of U.S. acreage. This amazing crop progress has taken the starch out of the spring planting fear premium we normally see.

The crop progress reports signaled a cautionary note to the upward trend that began in earnest this past February. The early rally was fueled by the tightening global supply and exports to China far ahead of schedule. Small speculators and managed funds jumped on this rally in record numbers. I posted the overbought nature of the bean market when they set their first long position record in the March 20th Commitment of Traders report at 385,619 contracts. This compares to a net position of just 18,082 at the end of January. I think it's safe to assume that last week's record position of 480,586 will set the high water mark as many of these traders have been forced out of the market during the course of its 10% decline.

The final straw that's broken the soybean bull market's back has been the increasing concerns of a fractious European Union and its effect on the U.S. Dollar as a safe haven currency. The month of May has seen currency fly out of the European Union pushing the Euro to its lowest levels since September of 2010. Considering that the European Union is now China's largest trading partner, it's no wonder that China's economy has also shown unexpected weakness. The last link is that China is our number one soybean export market. Therefore, it is expected that China's purchases may slow, as U.S. beans become more expensive on the global market.

Now that we've identified the causes of the decline, let's focus on where the bean market is headed. The early plantings were no free lunch. The early spring and the continuation of the same weather patterns are now raising concerns. The lack of rain is causing a crust to form in the fields and hinder the germination process. Furthermore, farmers who intended on growing early wheat and late soybeans (double cropping), need more moisture in the soil to get their late beans in the ground. Estimates vary as to how much double crop beans will add to total U.S. output but there is certainty that the weather is the key for next couple of weeks.

Finally, now that the froth is off the top we can return our focus to the supply and demand factors that called so many speculative dollars to the market in the first place. Soybeans and more specifically, high protein soybean meal are near record low supply levels. The decline in South American production has amplified the emphasis on this summer's U.S. crop. Bellies must be filled regardless of the economic uncertainties. Global demand for food will be the last of the cutbacks made. Therefore, this decline is fortuitous for patient traders. There is strong technical support for this year's crop near current prices of $12.50 per bushel. There is the possibility that a complete, "risk off" event could push the market to $12.25 or lower. Either way, the supply and demand numbers certainly suggest a test of the all time highs above $16 per bushel is well within the realm of reality.

A Brief History of Contract for Difference (CFD)

If you want to enter the world of trading contracts for difference or CFDs, then one of the basic things that you need to learn is its history. This is because by understanding this, you will be able to appreciate how it has been developed as well as the vital points of its progression or innovations. With that, you can use those pieces of information in order for you to have better positions and overall strategies when it comes to making strategies. It is in this light that this article will be discussing its history briefly.

Originally, in 1990s, CFDs were developed in London in order to serve as a type or way to swap equity that can be traded based on margin. Its invention or creation is commonly credited to Jon Wood as well as Brian Keelan. After its inception, this kind of instrument wans then initially used by hedge funds as well as various institutional traders in order to primarily hedge their exposure to the stocks in the London Stock Exchange. It was seen as a very cost-effective way to trade because a trader will only be required a small amount of money, which is the margin, to have the trade. Aside from that, traders were also able to avoid paying for the stamp duty tax in United Kingdom since there is no physical share being traded at hands.

It was only in late 1990s when CFDs were introduced to the retail traders. This is when the innovation of the online trading platforms was introduced as well. Hence, this time and with all innovations and developments in the market, traders had easier lives in seeing live prices of stocks and markets in real tie.

By the start of the new millennium in 2000, retail traders began to realize that the real advantage and benefit of trading CFD is not because they are exempted from stamp duty taxes. Rather, its true benefit lies on the fact that they are able to leverage and trade on underlying instruments. Hence, this is the beginning of the significant growth in CFD trading. As a response of CFD providers, they have expanded the products that they are offering, which consequently included indices, global stocks as well as commodities and even bonds.

In 2001, CFD providers and traders realized that it has almost the same benefits with financial spread betting. Of course, this is except to the fact that they are treated different in terms of taxation. Hence, traders have then utilized this along with the other financial transactions or opportunities to earn profits free from taxation and in a more efficient way. Further, years after that, this has expanded in the overseas market.

Tips On Finding A Job In The Oil And Gas Industry

There are many jobs available in the oil and gas industry. These jobs were available in the recession period as well. Since these jobs are considered evergreen, several people are engaging in this industry to get an appropriate job. Most of the people do not know about how to get a job in this field. There are certain points which will surely help people get a job and reach the highest position in the oil & gas industry.

Entry level: To gain the maximum experience in this industry, you need to gain entry as a junior recruit. This is necessary for learning the basic things related to drilling, exploration and production areas. This will help you in understanding various processes involved in oil & gas industry.

Experience: Experience is considered by oil & gas companies only if it is in relevant categories. You should get more and more experience working on offshore platforms and oil rigs. This will increase your chances to qualify for a high profile and highly paid job in this industry. Junior level is the best to start to get into the corporate ladder, but with more experience, you can shift companies easily.

References: While working at the junior level, you can make good acquaintances. These acquaintances can be used later to get a high-level job. Oil & gas jobs are lucrative and thus there is a lot of competition. References can help a lot in these scenarios. Therefore, while working on junior level, make sure that you make good references to be used later on.

Latest news: To get a job, it is necessary to have knowledge about the history of the company as well as the latest updates in the industry. Knowledge can help you a lot in making an entry in this field. When you go for an interview, you can impress the interviewer by making sure to be aware of the latest news and updates in the industry. You can take the help of people who have already worked in the oil and gas industry.

The internet can also help you to get up-to-date information. It is strongly recommended to read magazines and newsletters about the oil & gas industry. This will also help you in your job once you start working with the organization.

Before applying for any job, you must get familiar with the required qualifications, experience and other related information. You can also check the salary and benefits offered with different oil & gas companies as a comparison.

Important Facts About the Oil and Gas Industry

The oil and gas industry is one of the considerably changing and most important global industries all over the world. Oil and gas both are obtained from under the surface of earth. These energy sources are considered as the most useful natural resources.

The industry has touched every sphere of human life. With the arrival of technological development and explorations, the demand of gas and oil industry is increasing at a rapid pace. Around 60 to 70 percent global economic growth depends on this industry. Oil and gas are expected to remain the leading energy resources for decades to come.

The industry uses the following processes:

· Exploration process is involved in the formation of oil and gas

· Entire production and development of crude oil or natural gas

· Transportation

· Retailing and end users

Every industry has its unique challenges, terminology and methodologies. This industry includes both offshore and onshore energy sectors located in various parts of the globe.

Oil and gas industry typical applications

· Distribution of the fuel

· Wellhead control on Sub-sea

· Research on renewable resource

· Proper management of asset

· Conversion of Advanced protocol

· Downhole submersible pump monitoring and pressure temperature gauges

· Flow metering on Multi-phase (gas, oil, sand, water)

The oil and gas industry establishes the course to explore the oil well at the right locations and dig out gas and oil effectively. These sources are found deep inside the earth and proper procedure must be carried out at the specific location. The entire process involves a lot of money which is the major reason for the price hike in this industry. The prices of the oil and gas can be controlled somewhat by lowering production cost.

There are some major companies which are dealing in this industry such as Shell, BP, ConocoPhillips, Chevron, Total S A and ExxonMobil. Russia, USA, Iran, China, Russia are the major producers of oil all over the world.

There are several numbers of companies which are spending billions of dollars to maintain and increase the production and development of oil & gas. Maintaining the exploration process in an apt manner is very important for the growth of oil & gas industry.

These days, this industry is setting up some new policies and technologies to meet the upcoming demands and deal with the environmental issues. Production and exploration companies especially focus on finding hydrocarbon reservoirs, gas wells and drilling oil and selling and producing these materials. This entire process comes under the category of upstream gas and oil activity.

Investing in Futures Options

Making investments of any type is complicated and at times confusing especially to people who are still new in the business. Those who are dealing with futures options only have a small portion of actual investments which are reflected in their portfolios. This type trading however, gives traders more flexibility as well as versatility. They are also able to reduce high risk by choosing the most profitable assets that will be included in their portfolios. However, new traders have to do more research in order for them to study commodities that they intend make investments in.

People who are investing in futures options have to learn everything that they can especially on the underlying commodities that are represented only by a specified amount and quantity which is far too less than the actual volume that they are buying or selling at a future date. Traders may choose from a variety of commodities like corn, coffee, cotton, lumber or cattle. They may also deal with precious metals that include not only gold and silver but also platinum, copper and other materials. Although this is still a part of the trading business, people who invest may earn or may lose in a very short period of time unlike those who are into stocks or bonds investments.

People are actually making agreements on the delivery of the commodities at a predetermined time in the future and on a specific price that has been set. However, these agreements can be very risky especially as prices in the market may fluctuate at any time. Traders may have the opportunity to buy or to sell the underlying commodities before the specified date in order to protect them from the risk of losing a lot when market trends turn against their investments. People who are interested in investing may consider futures options especially if they do not have the entire amount to really buy the commodities in its actual volume.

Individuals can trade through a determined fraction of the total cost of the investment. Traders then are given a deadline when they can make the purchase. They may then gain if the price will go up while they are waiting for the set date of the actual purchase. In case that they price will go down on the other hand, the traders will not be obliged to make the purchase but they will lose in terms of the fees that they have paid for the futures option contract that they have made. Traders have to be careful in making agreements as these are considered as binding contracts that need to be carried out.

Using Stop Orders in Share Dealing

Stop orders are among the most basic things that any trader needs to understand when entering the world of share dealing. This is because with the fluctuating nature of the shares or stocks markets, it would be very unpredictable for a trader. It is also the common tendency of many traders to overtrade because of their want to earn more profits. However, without due diligence and appropriate analysis of the trader, it may only result to a nightmare instead.

In order to protect the profits of a trader from fading as much as possible, one way that this can be done is by using the stop orders. This is actually a method in order to have a cap on the liability of the trader as far as possible. With this option, the trader will be able to have a maximum and full control over his or her trading account.

If you are quite new in this field, there are several things that you need to understand about these stop orders. Specifically, these are about the three (3) most important aspects, which include the general description of this kind of order as well as protecting the gains of the trade and, finally, limiting losses. These will be explained in the following sections hereunder.

On the one hand, a stop order in share dealing is a kind of instruction that directs to execute a sell-off at specific and predefined price point. For most traders, this is being ordered or executed in order to give them an extra hand in the trading session. The effect of this is to generally provide a broker a guide when to stop or exit a position. Hence, the primary trader no longer needs to monitor the market every single second in order to determine where the exit point is. With this kind of order, it would be automatic that when the market reaches the specific level that you have determined, then such order will be executed.

On the other hand, one of the major reasons why this is being ordered is in order to protect the gains or profits of a trader. For instance, when the position is in a situation wherein the value of the shares is already increasing resulting to a yield in profits or gains, then the normal thing that a trader would do is to want for more. However, doing such this would be too greedy. It may even result to more losses than gains. Hence, it is the best thing to know where to stop in order to protect what you have.

Moreover, stop orders are also being used in order to limit or isolate losses. This refers to the lowest level that a trader can take to lose his or her position. Hence, when that point has been reached, then that signals to exit the market.

Standardization, Liquidity and Futures Trading

If you are going to ask me as well as the other investors, among the most important advantages of engaging in trading futures are the aspects of standardization as well as liquidity. One of the reasons behind this is that these factors allow the futures contracts to be trader by both speculators as well as the end users freely. Aside from this, these aspects also provide for the healthy as well as more buoyant character of market for futures trading across the different types of assets that can be trader. In other words, both the aspects of standardization and liquidity make the futures market more fluid.

With the foregoing, it is very important to know the relevance of both the standardization and liquidity in futures trading. These will be explained in the sections hereunder.

On the one hand, standardization refers to the process wherein the futures contracts are in a standard form without room for any individual negotiation for the terms. This is a very important feature for futures trading as well as other tradable instruments because these make the transaction clearly defined. In other words, since the futures contract is clearly defined, this means that the package can be shifted from a trader to the other without the necessity for due diligence anymore. Consequently, only the subjects like the type of assets, quantity as well as specific date of delivery are subject or reconsiderations.

On the other hand, the other feature that is very important in futures trading is the concept of liquidity. In a general point of view, this refers to the ease on which the specific instrument can be bought or sold in the market. Aside from that, this can also be referred as the ease on which the said asset can be converted into cash.

For example, having cash in your bank account is as good as having a very liquid asset. This is because you can simply go to an ATM booth that is online all over the world, insert your card and then withdraw the money you need. In the said example, the processes that the owner needs to undergo between actually holding the asset and then holding the cash are minimal. In that instance, the asset is indeed very liquid since it can be readily changed into cash.

In contrary, if you will compare the above example with possessing a car, you cannot use such asset to instantly buy things. There are several processes to make it more liquid and be convertible into cash. Nevertheless, it can still be sold and then converted into cash eventually. For instance, you even have to look for a buyer like a bank or even an individual. It will even require you to post an advertisement for the potential buyer to see that you are selling your car.

Rare Earth Silver

The last years of mining silver could well be compared to studies that indicate the world is approaching the last years of pumping oil.

While the earth's stores of silver may not actually run out anytime soon, increasing demand and increasingly difficult mining opportunities for silver tends to put upward pressure on the cost of extracting what silver is left from the planet.

Those mining costs are also getting more and more complex as new processes and resource scouting techniques are required.

Energy prices ultimately will go up. If not because of dwindling supply, then they will very likely rise due to inflation. The same is true of precious metal prices.

The Silver Mining Industry

The silver mining industry, much like the agricultural industry, is aging. It will take a substantial capital investment to train new people and bring in new innovation to meet growing industrial and investor demand for silver.

Furthermore, silver mining is machine and labor intensive. This makes it more difficult to factor in abstract costs and risks like political or regulatory challenges, or the constant threat of nationalization of personal silver stashes.

It will take years to re-develop the silver industry and build the infrastructure needed to meet the coming demand for the metal. As capital and controls over its flow increase, it will cost more to raise the funds needed for this redevelopment process.

Furthermore, it seems that too many people are relying on scrap silver flows coming into the market to quell price rises by acting as an alternate source of supply to mining.

Silver is Being Kept Deliberately Undervalued

Silver miners are still languishing and beholden to the bullion banks, who keep putting their intrinsically valuable product on sale at deeply discounted prices by manipulating derivatives markets.

It has been a tough road, with the years of suppressive price management and the growing "financialization" of the global economy creating underlying pressure for a substantial rise in silver's price.

Silver has also been kept tethered to its "mined-as-a-by-product" status. This has made silver an even more obscure and off the radar investment. Most market analysts just do not understand the silver market, and are probably looking for momentum anyway.

Breaking Silver's Shackles

Basically, the physical silver market has not yet broken through the shackles that the questionable use of derivatives has placed on it.

When the breakout eventually occurs, the price of silver can only go much higher to better reflect its genuine value and supply limitations relative to intrinsically worthless fiat currency, which is currently being printed and electronically generated in vast quantities by central banks around the world.

Many people are curious about how to protect their money, but often overlook the many benefits of silver coins. Take a look at our Free Guide to get started today.

Advantages of Online Commodities Trading

The advent of technology has also changed the way trading has been conducted. Aside from the traditional trading floor that that is used in authorized exchanges of goods or commodities, traders may also work through online commodities trading. Traders may think of the latter type of trading for various reasons and considerations.

Traders may find it more convenient to do their transactions online even while they sit at home. They may be guided by brokers who have some in depth knowledge and considerable experiences when it comes to trading through the internet. Traders may also experience ease in performing their trading activities because they can make use of software programs that provide the essential information that they need in analyzing the commodities market and in making trade decisions.

Online traders have access to their accounts and to important tools such as charts that they need, quotes that they can study as well as details and news about the commodities that they are trading. They also have the advantage of having more chances at gaining profit even with a limited capital to start with. Online commodities trading will be good for those who are new to the trading business. The commissions are lower and traders are able to execute their transactions very quickly. They are also able to get results in a very short time.

Online traders have the advantage of working independently. Although there are suggested strategies to use, they can modify or combine it with other techniques that will help them in predicting future trends in the commodities market. This type of one-stop shop trading business allows newcomers to learn the ropes without having to take too much risk in the process.

Online traders can also benefit from the various types of accounts that are available. They may choose accounts depending on their level. Beginners as well as expert traders may find the best types of accounts that they are mostly comfortable dealing with depending on the capital that they have put up to start their trading experiences. There are also brokers that allow newcomers to start with mini accounts in order for them to get a feel of the trading process or to familiarize them with the trading system that is being implemented.

Traders especially those who are new to commodities trading may do some research about the products that they would like to deal with as there are software programs that are designed for specific commodities in the market. For those who are new to the trading industry and those who would like to try their hands on it, they may opt for online commodities trading first.

Future Market - "Think Big and Make Big Profit"

Future market is a central financial exchange where people can trade standardized future contracts that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures contracts on commodities and financial futures are negotiated.

DESCRIPTION:

A futures contract is an agreement to buy or sell in the future a specific quantity of a commodity at a specific price. Most futures contracts contemplate actual delivery of the commodity can take place to fulfill the contract. However, some futures contracts require cash settlement in lieu of delivery, and most contracts are liquidated before the delivery date.

An option on a commodity futures contract gives the buyer an option the right to convert the option into a future, which uses future and option market commodities they trade. These users, most of whom are called "hedgers," want the value of their assets to increase and want to limit, if possible, any loss in value. Hedgers may use the commodity markets to take a position that will reduce the risk of financial loss in their assets due to a change in price.

Other participants are "speculators" who hope to profit from changes in the price of the futures or option contract. Some commodities include agricultural products, such as corn, soybean, barley, orange juice, cattle, pork bellies, coffee, cotton and lumber, and metals such as gold, platinum, silver and copper. There are a fixed number of financial futures that are included in negotiations in contracts with US Treasury notes and bonds. Negotiating in the futures market can be as exciting for an adult as riding on a roller coaster could be to a kid. There are overnight profits and losses that are of greater magnitude than those given in other financial investments such as stocks and bonds.

Consequently, investing in futures markets is within the riskiest investments.

BENEFIT OF FUTURE MARKET:

• Gain your investment.

• Go short in the market.

• Make an investment that tracks the entire market through one single transaction

• Speculate in movements in market prices or hedge against price exposure in a simple and expedient way

• As far as the futures market in farm produce is concerned, the farmer has a guarantee for payment and quality risk is avoided. It promotes storage and warehousing facilities and logistics facilities. It also increases the bargaining power of the farmers and enables decision on crop sowing and time of sale.

• Commission charges are small compared to other investments.

• All in all, futures are the perfect traders market.

HOW YOU INVEST IN FUTURE MARKET?

• First of all if you want to invest in future market, in my right opinion you should take advice from a good financial adviser company. Which is really can give you more profit in your invest. Financial adviser act as advisories for your investment, pension and financial plans. There are so many different advisers out there in the market place and each will come with their own personalities, views, opinions and experience levels. Do not be afraid to look around and do not settle until you feel comfortable with your choice of adviser.

• Here is a brief overview of what a financial adviser actually does:

• Make Planning and strategy.

• Give you right Investing options.

• Research on the financial statements.

• Clear all Question and doubt.

• Annual review

• They can recommend strategies that you can use to improve your financial situation achieve your financial goal out investment routes

• Many brokerage services, both traditional and online, offer futures and options trading services. For people just starting to trade, working with an experienced broker may help minimize some of the risk that often is associated with these two trading strategies. As you gain experience, moving to primarily online trading can help you minimize costs and speed trades.

• Before planning specific trading objectives, decide on either a bullish or bearish outlook.

• After making a general forecast, consult the price chart of the futures market you plan to trade. Look for patterns in the chart to plan entry points and price targets. This kind of research is called technical analysis.

The Precious Metal Achilles Heel

In the grand scheme of things, people have traditionally had more faith in silver as a currency than in paper fiat currencies.

Furthermore, since modern paper currencies are only backed by the creditworthiness of the authority issuing them, if that authority goes into default on its debt, the currency it issued could become virtually worthless.

Basically, in order for the fiat money system to keep going, more paper currency must be printed. Also, 'old money' like silver and gold must be kept at arm's length, both literally and figuratively, by the use of propaganda.

Ultimately, a lack of confidence will force this grand paper experiment into default as the essentially flimsy physical reality underlying fiat currencies is gradually exposed to the public currently being duped by it.

Silver Shines When Defaults Seem More Likely

A major series of defaults seems increasingly likely, especially given the LIE-bor gate scandal and the sovereign debt crisis in Europe. Countries around the world are having their debt ratings downgraded as government spending remains unrestrained by fiscal responsibility.

Another factor is the increasingly public exposure of the silver market's manipulation over the last few years. The price of silver has been kept artificially low by futures exchanges allowing short sellers to control whether or not physical delivery into a futures contract actually occurs.

Rather than actually having to deliver silver into a short futures contract, a government can simply print more money to pay for its losses should the price of silver futures rise.

Possible Default Scenarios

In the event of a substantial COMEX default, silver's price would soar mostly because of the scarcity of the metal relative to the underlying demand for it and the greater confidence that investors have in it relative to paper assets.

Furthermore, the exchange would probably set limits on position sizes and price fluctuations. Trading might also be halted or a sellers-only market established.

This sort of default scenario would seriously erode confidence in such one-sided paper futures markets as a way of setting prices for intrinsically valuable physical commodities like silver.

Price discovery for precious metals might gradually move to a more physical-based valuation system. Nevertheless, the retail sector would surge, and the demand for physical silver would likely determine its market value, at least for a while.

One could expect to see long lines with people buying and selling silver at the retail level. Governments might also place restrictions on precious metal holdings to avoid seeing their paper currencies devalue as a loss of confidence in paper assets grows.

Even if a metals futures exchange default is not the event that triggers the final stages of a loss of confidence in fiat money, the reactionary blow off as metal prices are allowed to move closer to a fair value equilibrium price will unmask the great fragility that has lurked beneath the surface of the manipulated paper silver market all these years.

Silver Will Remain a Store of Value

Insufficient supplies of physical silver could mean that the metal may not "flow" enough to become a de-facto currency in a default scenario.

Basically, using physical silver as a currency has some drawbacks, which include:

• An insufficient supply of above ground physical metal to cover massive currency circulation requirements
• As demand grows, the price of silver as a commodity goes higher
• It is consumed as an industrial and jewelers' metal
• Its market suffers from a lack of physical sellers
• Low mobility relative to paper and electronic currency
• Safe storage challenges

Nevertheless, silver does not need to circulate as currency within a country to be considered a form of money or to act as a store of value.

The fact remains that silver will continue to be a valuable, mobile, liquid, tradable and recognizable asset that is in short supply relative to its true underlying demand.

Agriculture's Profit Potential Is Growing Like a Weed

If you're on the hunt for massive gains, consider the fact that agricultural commodity prices have been falling. Falling prices offer buying opportunities! That's the reason why profit potential is growing.

As the global economic slowdown has churned along, economic progress has ceased. The commodity prices reflect the fact that we are bouncing along the bottom of a recessionary cycle.

Demand for most commodities has diminished. Commodity demand will, however, recover when the global economy begins to recover.

Whenever it does recover, agricultural commodity prices will skyrocket.

Many commodity traders are recognizing the opportunity and are now re-entering the market.

Few commodity traders enjoy the fame and respect that has been bestowed upon Jim Rogers. He co-founded the Quantum Fund with George Soros and retired in 1980 at the age of 37 having seen 4,200% growth in only 10 years.

In 1999, Rogers recognized and announced the now-famous "Super-cycle commodity bull market." He speculated on the precious metals when gold was trading near $260 per ounce and silver was trading near $4 per ounce.

With gold now trading over $1,500 per ounce and silver over $25 per ounce, most folks agree that he was right!

Significantly, Rogers believes that this Super-cycle will continue until 2020 to 2025 and that agriculture has lagged behind the other commodities.

He is now focused upon the agricultural commodities and predicts that he will make more from agriculture than he has from anything else in the past.

Coming from this particular billionaire, that's a big endorsement.

Investment and speculation capital tends to flow into sectors that offer the greatest potential rewards. Among commodities, the greatest potential rewards seem to be growing in the agricultural commodities sector.

Again, at some point, the global economy will recover and agricultural commodity prices will skyrocket from their present levels.

By speculating on agricultural commodities while prices are low, you will realize massive gains when the recovery materializes.

Most folks missed out on the major moves made by the precious metals and energy commodities over the last decade. That's because most folks ran away from the falling metals and energy prices of those days.

Falling prices, however, typically indicate buying opportunities for successful traders.

Of course, we should not be stopped by rising prices if proper research and analysis indicate that prices will go even higher. For example, I distinctly recall being told that I was crazy to buy gold when it reached $800 per ounce because it was at "all-time highs."

In this case, however, it is unlikely that you will find anyone claiming that commodity prices are near their highs. Most traders will admit that prices could indeed drift lower. If we are not at the bottom, however, most would agree that it is near.

So, how can you participate? There are a number of Exchange Traded Funds (ETFs) that enable the average stock trader to participate in agricultural commodities without purchasing options or futures contracts.

The present state of the global economy indicates that we are seeing extraordinary buying opportunities RIGHT NOW in the agricultural commodities sector.

Consider the global demand for food. It may increase and decrease slightly as people adjust their budgets to economic downturns from time to time, as we are seeing presently. Overall food demand, however, does continue to grow as the population grows.

The world's population has more than doubled from 3 billion in 1960 to now. It is near, if not over, 7 billion people today. The United Nations estimates that the global population will exceed 9 billion mouths to feed, less than 40 years from now.

While the population has been growing, the arable land available for farming has been declining as more former farmland has been developed to meet the residential and commercial real estate needs of a growing population.

Rising food demand and declining availability of farmland equals higher food prices.

Granted, all commodities will see substantial price increases when the global economy begins to recover. Agricultural commodities, however, should see the greatest gains due to the fact that they are so far behind the metals and energy commodities.