SLIDE 1
Index - Topics to cover
- What are futures contracts.
- Why do we trade futures.
- Who trades futures.
- How do we trade futures (long, short).
- Where are futures traded.
- Game platform.
501 Commodity Trading Lab Index - Topics to cover What are - - PowerPoint PPT Presentation
501 Commodity Trading Lab Index - Topics to cover What are - - PowerPoint PPT Presentation
501 Commodity Trading Lab Index - Topics to cover What are futures contracts. Why do we trade futures. Who trades futures. How do we trade futures (long, short). Where are futures traded. Game platform. What is
SLIDE 2
SLIDE 3
What is a futures commodity contract?
- A commitment to either buy or sell a determinate kind and amount of product at a particular price in a future date.
- Commitment to sell > short
- Commitment to buy > long
SLIDE 4
Why do we trade futures?
- To manage risk.
SLIDE 5
Who trades futures?
- Producers and Merchants/Processors (B2B)
- Speculators
SLIDE 6
SLIDE 7
Coffee Supply Chain
SLIDE 8
Buy Sell
SLIDE 9
Buy Sell
2-3 Months
SLIDE 10
December 2015
September 2015
SLIDE 11
$100 Price December 2015
September 2015
SLIDE 12
$100 Price December 2015
September 2015
Long Agrees to buy @100
SLIDE 13
$100 Price December 2015
September 2015
Long Agrees to buy @100
SLIDE 14
$100 Price December 2015
September 2015
Long Agrees to buy @100
SLIDE 15
$100 Price December 2015
September 2015
Long Agrees to buy @100 Short Agree to sell @ $100
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$100 Price December 2015
September 2015
Long Agrees to buy @100 Short Agree to sell @ $100
$100
- 40
$60
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$100 Price December 2015
September 2015
Long Agrees to buy @100 Short Agree to sell @ $100
SLIDE 18
$100 $90 Price December 2015
September 2015 November 29
Long Agrees to buy @100 Short Agree to sell @ $100
SLIDE 19
$100 $90 Price December 2015
September 2015 November 29
Short Agree to sell @ $100 Long Agrees to buy @100 Agreement buy-sell @ approx $90
SLIDE 20
$100 $90 Price December 2015
September 2015 November 29
Short Agree to sell @ $100 Long Agrees to buy @100 Agreement buy-sell @ approx $90 Long Agrees to buy @ 90 Short Agree to sell @ $90
SLIDE 21
Where are futures traded?
- At a market place > Exchanges > For profit companies
- Make money on fees and commissions
- Trading pits are gone, electronic trading.
○ Outcry Pit CBOT. https://www.youtube.com/watch?v=2eiWYNzF6Uc
- Many exchanges have recently merged into larger companies.
SLIDE 22
The platform
- StockTrack. http://www.stocktrak.com/
- Be sure to look at the FAQ. http://www.stocktrak.com/Public/content/support.aspx
- Futures Order Types (Stop, Limit). http://www.pricegroup.com/futuresOrderTypes.asp#limit
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Things to look at (resources)
- Exchanges websites
- Crop production reports are issued by the U.S. Department of Agriculture (USDA)
- Commodity specific associations
○ National. ■
- Ex. Green Coffee Association (USA)
○ International. ■
- Ex. International Coffee Organization
- Weather reports
- Complements and Substitutes
- Analysis web sites
○
- MarketWatch. http://www.marketwatch.com/
○
- Barchart. http://www.barchart.com/
○
- StockCharts. http://stockcharts.com/
○
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Resources within Exchanges sites
CME Group Reports, Research and Analysis, USDA Calendar http://www.cmegroup.com/trading/agricultural/ ICE ICE Report Center and Insights https://www.theice.com/marketdata/reports SICOM Singapore Commodity Exchange http://www.sgx. com/wps/portal/sgxweb/home/marketinfo/derivatives/delayed_prices/! ut/p/a1/04_Sj9CPykssy0xPLMnMz0vMAfGjzOKNHB1NPAycDSwN3DxdD TwN_T2MvNw8jNw9zYAKIpEV- Icamht4hjoFmjiFhRp6AxUQpd8AB3A0IKQ_XD8KVYmFkTvQBYZmgc6GI c7G3m6G6AqwOBFNQZgBSIG_U3BwWJhhoKsxVAEeRxbkhkYYZHqmA wBYGvuN/dl5/d5/L2dBISEvZ0FBIS9nQSEh/ Bursa Malaysia Brochures and Education http://www.bursamalaysia.com/market/derivatives/products/commodity- derivatives/crude-palm-oil-futures-fcpo BOVESPA Commodities and Futures http://www.bmfbovespa.com.br/en-us/markets/commodities-and- futures/commodities-and-futures.aspx?idioma=en-us