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Spot Forex
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An investment which involves the
simultaneous buying of one
currency and selling of another
and executed in currency pairs. It
operates on a 24 hour basis through
an electronic network of banks,
corporations, and individuals.
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Spot Commodity
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An investment which offers traders
the opportunity to profit from the
rise and fall of commodity prices
around the world. Most popular
commodities offered with huge
supply and demand factors such as
oils, metals, soft commodities & grains.
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Spot Index
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An investment which allows you to
profit on the overall movement of the
whole stock market by buying and
selling its stock index.
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Other CFDs
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An investment which allows you to
participate and profit in the price
movement of an underlying share
of any major global stock market
without any share ownership involved.
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Fund Management and Fixed Income
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An investment managed by a
team of experienced seasoned
fund managers which gives periodic
income at regular intervals at a
reasonably predictable levels.
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| Fundamental
Effect Market Trends |
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| SPOT COMMODITY |
Grains (corn, soyabean, wheat) Supply/Demand - Beginning stocks, productions &
imports (Supply)
- Crush (domestic demands) &
Exports (Demand)
Deliverable stocks - quantity confirmed to deliver Government policy - increase/decrease acreage, price
support programs, export enhance-
ment programs etc
Weather - drought, flooding,extreem summer/
winter
Seasonality - periods of highs and lows |
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Meats (live cattle, pork bellies) Supply/Demand - accumulation or liquidation of herds Seasonality - periods of high/low demands Corn & Feed prices - high price - liquidation low price -
accumulationWeather - extreem weather cause deaths &
weight loss thus effect supplyExport & Income level The Substitution effect -substitutable commodities :beef,
pork,chicken,turkey, and fishHeadcounts & Storage Reports |
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Soft Commodities (sugar, coffee, cocoa, cotton) Supply / Demand - Export , Import, Stocks Crop yields - weather, disease, insects, political
and economic conditions in the
producing countries will affect
production ratesStocks to Usage Ratio - a measure of tightness in the
market place. |
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Metals (gold, copper, silver) Gold - central banks selling
- political instability such as war will
push gold prices higher
- good income growth increases gold
demand
- inflation Silver - co-relate to price of copper, zinc &
lead as new production of silver
comes from these 3 metals
- strong economy growth increase
silver demand (eg India, China) Copper - Economic activity increases demand
- LME & COMEX stocks
- mining strikes and production
problems
- war or increase defend spending
increases copper demand
- Inflation |
| SPOT INDEX |
-
general economic
activity
-
interest rates
-
inflationary
expectations
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political
considerations
-
investor attitudes |
| SPOT FOREX |
Trade Balance - deficit if imports greater than exports
surplus if exports is greater than
imports Wealth - a country’s reserves Internal Budget - deficit/surplus Interest Rates - hot money tends to flow to where
interest rates is high Inflation
Political Factors
Central Banks Intervention |
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