Futures (Cedar Falls, IA)

A monthly trade magazine that presents news, analysis and strategies to inform and educate traders in futures, options and derivatives markets. Provides analysis of global markets and information on price movement, volatility, and future trends. Articles

Articles from Vol. 35, No. 11, September

Ah, Competition: CBOE Takes on New York
When New York Stock Exchange (NYSE) Chairman John Thain visited the Chicago Board Options Exchanges (CBOE) last fall he expressed praise and a little envy of the CBOE's hybrid trading model. It would have been hard to predict at the time that less...
Bill Stevens: Everything's Relative
When options spread trader Bill Stevens competes in fly-fishing tournaments, he leaves nothing to chance--not even the fly lures. "I tie my own," he says. "And I tell you, when you tie your own flies and then you go and catch a fish on 'em, it's...
CBOE Takes on New York
AH, COMPETITIONWhen New York Stock Exchange (NYSE) Chairman John Thain visited the Chicago Board Options Exchanges (CBOE) last fall he expressed praise and a little envy of the CBOE's hybrid trading model. It would have been hard to predict at the time...
Comparing Option Pricing Models
The Black/Scholes option pricing model is the best-known, but it isn't always the best. Another pricing model, the LLP or log-log parabola, can give useful results too.The Black/Scholes option pricing model and the log-log parabola (LLP) system are two...
Comparing Option Pricing Models: The Black/Scholes Option Pricing Model Is the Best-Known, but It Isn't Always the Best. Another Pricing Model, the LLP or Log-Log Parabola, Can Give Useful Results Too
The Black/Scholes option pricing model and the log-log parabola (LLP) system are two methods that may be used to compute option price curves and to forecast option prices through the short-term. Although the formulas behind the two models are fairly...
Congressional Bill Opens Up Capacity
The Pension Protection Act of 2006, passed by both houses of Congress and awaiting a presidential signature, would increase the amount of money hedge funds can accept from employee benefit or pension plans. The bill does not increase the "25% test"...
Exit Strategy
Sharon Brown-Hruska returned for her second stint at the Commodity Futures Trading Commission (CFTC) in 2002. In her tenure she dealt with many vexing issues facing the industry, developed expertise in energy markets and international regulation and...
Finding Patterns with the Lucas Time Series
Trading is a game of probabilities. The Lucas series is another tool that, combined with traditional technical analysis and Fibonacci numbers, can put the probability of winning in your favor.Financial markets are similar to the World Series. Each game...
Finding Patterns with the Lucas Time Series: Trading Is a Game of Probabilities. the Lucas Series Is Another Tool That, Combined with Traditional Technical Analysis and Fibonacci Numbers, Can Put the Probability of Winning in Your Favor
Financial markets are similar to the World Series. Each game is filled with twists and turns with an uncertain outcome until the final pitch is thrown. Trends work the same in free markets as they do in sports contests. They change. Sometimes we can...
Gain/RFX Deal D.O.A
STICK A FORK IN IT...The deal to sell the Refco FX (RFX) customer list to Gain Capital Management is dead; and RFX customer trading accounts have been locked as of July 31. Since the Refco bankruptcy proceedings began eight months ago, RFX customers...
Getting Down to Business
Trading is similar to other businesses. While it often looks a lot easier from the opposite side of the counter, just like any commercial endeavor, there are many unexpected traps that can keep you in the red.From the outside, trading may seem like the...
Getting Down to Business: Trading Is Similar to Other Businesses. While It Often Looks a Lot Easier from the Opposite Side of the Counter, Just like Any Commercial Endeavor, There Are Many Unexpected Traps That Can Keep You in the Red
From the outside, trading may seem like the perfect business: no boss, no employees, a flexible schedule and virtually unlimited income potential. As a result, many people get into trading without knowing exactly what the business entails. Many prospective...
Hedge Fund Regulation: What Now?
When the U.S. District Court of Appeals for the District of Columbia threw out the Security and Exchange Commission's hedge fund registration rule in June, it appeared to be a victory for those funds opposing the rule, but what will come next?The hedge...
Hedge Fund Regulation: What Now? When the U.S. District Court of Appeals for the District of Columbia Threw out the Security and Exchange Commission's Hedge Fund Registration Rule in June, It Appeared to Be a Victory for Those Funds Opposing the Rule, but What Will Come Next?
The hedge fund industry fought tooth and nail against the Securities and Exchange Commission's (SEC) plan to register hedge fund advisors. In the end they lost the fight, and since then the Managed Funds Association (MFA) has aggressively moved ahead...
Hedging the Farm, with Options
Considering the incorporation of an options strategy along with, or in lieu of, a purely futures-based strategy greatly increases the diversity of choices available to an investor. This added flexibility can enable a trader to protect against exposure...
How Low Can the U.S. Dollar Go?
The 2005 recovery in the dollar was fueled by steady predictable increases in U.S. interest rates. The dollar however, remained relatively weak and turned lower in 2006. With the Fed now pausing, a slower economy may take away the Fed's remaining bullets.Last...
How Low Can the U.S. Dollar Go? the 2005 Recovery in the Dollar Was Fueled by Steady Predictable Increases in U.S. Interest Rates. the Dollar However, Remained Relatively Weak and Turned Lower in 2006. with the Fed Now Pausing, a Slower Economy May Take Away the Fed's Remaining Bullets
Last year when Futures looked at the rebounding dollar we asked, "U.S. dollar: Real strength or on steroids?" It was an odd question because despite an impressive rally in 2005, the dollar rebounded less than 30% from the low of the bear market that...
Inside the Courtships of Euronext
TROUBLE IN PARIS?Don't be fooled by consolidation. The war between exchanges continues, and once more the battlefield could be Europe. The story of how Euronext went to market, and came home with the NYSE as a potential partner has drama and intrigue,...
Let's Make a Deal
MAN-O-MANMan Group plc announced on July 27, that it has bought a 70% stake in the United States Futures Exchange (USFE), the official name of Eurex's U.S. subsidiary Eurex US, and the name it will go by in the future. Man paid $23.2 million for the...
Man-O-Man: Let's Make a Deal
Man Group plc announced on July 27, that it has bought a 70% stake in the United States Futures Exchange (USFE), the official name of Eurex's U.S. subsidiary Eurex US, and the name it will go by in the future. Man paid $23.2 million for the stake and...
Microwave Imaging That Predicts Yields
New applications of satellite data can better predict growing conditions worldwide. This can be used to forecast crop production that leads the widely followed government reports.Imagine if you could forecast crop conditions better and faster than the...
Microwave Imaging That Predicts Yields: New Applications of Satellite Data Can Better Predict Growing Conditions Worldwide. This Can Be Used to Forecast Crop Production That Leads the Widely Followed Government Reports
Imagine if you could forecast crop conditions better and faster than the U.S. Department of Agriculture (USDA). Well, it's possible using technology known as special sensing microwave imaging (SSMI). This technology can objectively calculate changes...
Money's Sordid Tale of Dirty Floats, Debasement and Doom
Today's floating currency system is just one of many that global trade has operated under. Each previous system broke down after multi-nation wars. This series reviews previous monetary systems and examines history to shed some light on the viability...
Money's Sordid Tale of Dirty Floats, Debasement and Doom: Today's Floating Currency System Is Just One of Many That Global Trade Has Operated under. Each Previous System Broke Down after Multi-Nation Wars. This Series Reviews Previous Monetary Systems and Examines History to Shed Some Light on the Viability of the Current Fiat System
Marx extolled it as the numeraire. Keynes damned it as a barbarous relic. In the end, Nixon snuffed it. Yet for more than two millennia, gold was matchless among precious metals, valued in multiples against silver, copper or bronze. Rare, ductile and...
Multiple Day Forex Trading
The rigors of forex trading become very clear when the task is to capture pips on a day-to-day basis. Obtaining 20 pips per day may seem easy, but it is a solid accomplishment. If you can get about 20 pips a day for 20 trading days, that's about 400...
New for Traders
INDEXESRussell Investment Group has established Russell Indexes Asia Co. Ltd. to provide clients with data and customer support for Russell Indexes, including Russell U.S. Equity Indexes and the Russell/Nomura Japan Equity Indexes. www.russell.com.Dow...
ProphetX 3.0
ProphetX 3.0 DTN 11400 Rupp Drive Burnsville, MN 55337 (800) 328-2278; (952) 82-4390 Fax: 952-941-7017 www.dtn.com OVERALL RATING: Good/Excellent LEVEL: Beginner to advanced. PRICE: $260 per month plus exchange fees. RECOMMENDED...
Sound Off!
MO/REAL GDPWhere can I get charting software and a data feed that will give charts with 5-day and 150-day moving averages and Bollinger bands.Derek Wildman, via e-mailNigel Bahadur, head of research and development at LBRGroup, responds: Just about any...
Stick a Fork in It ... Gain/RFX Deal D.O.A
The deal to sell the Refco FX (RFX) customer list to Gain Capital Management is dead; and RFX customer trading accounts have been locked as of July 31. Since the Refco bankruptcy proceedings began eight months ago, RFX customers have not been able...
Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment
Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment By Boris Schlossberg John Wiley & Sons Inc. 212 pages, $60 In the last two years there has been a proliferation of seminars,...
The Coming Collapse of the Dollar and How to Profit from It
The Coming Collapse of the Dollar and How to Profit From It By James Turk and John Rubino Bantam Dell Pub Group 256 pages, $24.95REVIEWED BY ART COLLINSSomewhere in the life of any great society, a financial reckoning becomes inevitable. The reason:...
The Real Price of Discount Trading
Keeping your trading costs consistently low is a challenge, especially with the bewildering number and wide range of fees, charges and commission rates being marketed. Here we will try to help you be a better shopper.All it takes is a quick flip to the...
The Real Price of Discount Trading: Keeping Your Trading Costs Consistently Low Is a Challenge, Especially with the Bewildering Number and Wide Range of Fees, Charges and Commission Rates Being Marketed. Here We Will Try to Help You Be a Better Shopper
All it takes is a quick flip to the back of this magazine to confirm that the cost of trading is plummeting. Consolidation in the brokerage industry and the rise of internet trading has created an environment of intense competition, pushing trading...
Trouble in Paris? Inside the Courtships of Euronext
Don't be fooled by consolidation. The war between exchanges continues, and once more the battlefield could be Europe. The story of how Euronext went to market, and came home with the NYSE as a potential partner has drama and intrigue, and seemingly,...
Virtual Landscape
When the Chicago Board Options Exchange announced in late July that it was holding a press conference the next day, we were very curious because this definitely was something out of the ordinary. And its announcement proved equally interesting: CBOE,...
When Opportunity Presents Itself
Divergence between a country's stock market and its underlying currency on a yearly time scale creates an ideal arbitrage trade with a buy-and-hold approach.The days of double-digit stock returns for small investors with a buy-and-hold mentality are...
When Opportunity Presents Itself: Divergence between a Country's Stock Market and Its Underlying Currency on a Yearly Time Scale Creates an Ideal Arbitrage Trade with a Buy-and-Hold Approach
The days of double-digit stock returns for small investors with a buy-and-hold mentality are gone. So these days traders need to find alternative methods to beef up returns. The problem is traders still want to pick stocks and don't consider looking...
Where Is an Exchange?
Regulators have responded to the globalization of trading by recognizing foreign regulators, exchanges and market participants on a case-by-case basis. The result is a global latticework of one-off bilateral regulatory arrangements with little in the...
Where Is an Exchange? Regulators Have Responded to the Globalization of Trading by Recognizing Foreign Regulators, Exchanges and Market Participants on a Case-by-Case Basis. the Result Is a Global Latticework of One-Off Bilateral Regulatory Arrangements with Little in the Way of an Official Governing Theme
It's only been six years since Ruben Lee wrote his thought-provoking treatise "What is an Exchange?" but you can't help but wonder: If he wrote it today, would the title be "Who, when and where is an exchange an exchange?" He'd have plenty of material...
Who Offers Forex Options?
Forex options trading has been around in rudimentary forms, especially among banks, for many years; but it has not been prevalent in the retail sector. As retail traders become more familiar with both forex markets and options theory, that will change....