British Pound is known to be a stable currency. Great Britain is a strong economy. But, Great Britain was finding it difficult to stay within the tight exchange rate band set by the European Monetary Union (EMU) in the early’90s. One person who made history with options was George Soros who is famously known as the man who broke the Bank of England.

George Soros had this intuition that the Bank of England would be forced to devalue British Pound. So he bought call options on German Marks and put options on British Pound. He made a bet of $10 Billion by leveraging all the assets in his hedge fund.

Bank of England had made a number of public statements regarding its intention of staying within the EMU. However, within a few days of the speculative attack on the British Pound, Bank of England was brought to its knees as it was …

Do you know how to read Point and figure charts? Point and figure trading in many ways is similar to the support and resistance breakout trading on bar or candlestick charts. The main difference is the look and functionality of the price charts themselves!

Bar charts and candlestick charts show the high low open and close price for a given period. Point and figure charts represent price in a radically different manner from the more familiar bar and candlestick charts. Many forex charting platforms provide the option of point and figure charts.

Point and figure charts do not show any timeframe. This may confuse you in the beginning. Point and figure charts are a pure price action play because these charts generally exclude all other elements like time, volume and open/close other than price. Point and figure trading is based exclusively on price action.

Point and figure charts represent clear evidence of such …

by William Davies

Global commodity trading now takes place on a growing platform of modern, transparent commodity exchanges across all time zones. Using agreed frameworks of rules and regulations and standard contract designs we now see a wide range of commodities traded between end users and primary producers. The result is that it is now much easier to buy and sell across the range of basic commodities from orange juice to gold bullion, from crude oil to coffee beans.

While some of the major commodities like coffee and crude oil have been traded for a number of years, we are now seeing in modern commodity markets the strong innovation theme leading to new futures contracts being traded. One area where new product development has made a notable change is in the trading of carbon emission permits. Given the growing global concern about the serious long term impact to the environment …

by Alejandro garcia

For the majority of his career, Jim Rogers has had both long and short positions. As of this interview, this is one of the few times Jim Rogers does not have a short position. Among the reasons for Jim not having any shorts is a possible currency crisis and thus should avoid shorting the market. Rogers typically holds both long and short positions, but his perception of global currencies’ instability has led him to pull out all his shorts, he said. The last time he can remember doing so was before the market fiasco in 1987. Among other things Jim Rogers continues to be “wildly” bullish on China, “wildly” bullish on commodities. Specifically, Jim likes Silver over Gold, Natural Gas and Cotton.

The latest CNBC interview comes a day after Jim was interviewed by the Economic Times, in which he states how the type of Chinese companies …

by Peter Howard

There are many global macro investing strategies that make use of the yield curve. While primarily used to trade bonds, there are also several good uses for trading stocks and currencies as well. In fact as powerful as the yield curve is, there is likely a few yield curve strategies for every asset class out there.

The Treasury yield curve is the curve you get when you plot out the yields for different maturities. For instance if the 90-day T-Bill is at .2 percent and the 10-year T-Note is yielding 3.5 percent you have an up sloping yield curve as the long dated Treasuries are paying a higher yield then the short dated Treasuries. Usually you would also plot out the two year, five year, and thirty year along with the ninety day and ten year. This will give you a better …

by Derek Powell

The import export market is a busy place, where a multitude of small companies buy and sell an array of products. Many manufacturers sell products in this market, which is also ideal for investing in commodities, including agricultural products, gold and oil.

There are many diverse products available on the import export markets, including apparel, bed and bath items, stationery products, chemicals, hardware, food products, agricultural items, cell phones, plasma TVs, marine equipment, scrap metal — and the list goes on and on. Services are also sold, including printing, telecommunications methods, consulting.

In many cases, the import export market is used for B2B opportunities. Business partnerships are made daily, with sellers and buyers posting their products and making direct contact with interested parties around the world. Its an easy and cost effective way to do business on a global scale. The market is so diverse, you are certain …

by Derek Powell

With the strong performance of gold lately, many are looking into online gold trading. Thats because gold is highly traded around the world, with demand increasing daily. Using the Internet to trade for gold provides investors with a globally efficient, economical and convenient way to track prices around the clock and buy and sell accordingly.

There are several venues for online gold trading. It can be traded on the stock market, on the spot market, on the commodity market, or on the import export market. All of these avenues are profitable ways to diversify your current investment portfolio in order to spread out its risk across different markets.

With online gold trading, you can buy and sell gold in various forms, such as coins, certificates, small bars, egold units, gold futures, exchange traded gold funds and gold mining stocks. The decision on which investment method is best for …

by Derek Powell

The market in bullion is very competitive, as bullion prices represent real-time worth. The prices are set on gold and silver coin, bar or ingot and these precious metals are sold in bulk form. As bullion is traded globally, the market never closes and is therefore very competitive.

Compared with other stocks, bullion prices typically hold their value and are considered the best liquid asset over other investments. When the stock market is volatile, many turn to investing in gold, silver and other precious metals because they offer a tangible investment opportunity. Bullion is considered the worlds most liquid investment with active trading worldwide.

Bullion prices are always high, as they represent a great investment and are really affected by a downward economy. Novice buyers like to start out in silver and gold as these are relatively easy to trade. These precious metals represent a tangible asset and …

by Derek Powell

D2 Spot is a type of fuel and certain trading market. This can be translated as buying or selling diesel fuel for immediate delivery. As much of the petroleum products in use come from around the world, the Internet is commonly used for trading most of the spot market commodities.

D2 Spot needs to meet certain standards before it can be sold on the physical or cash market. as trading involves international countries with different currencies, an investor must manage the currency exchanges. This type of crude oil has its origins mainly in Russia, but is also produced in Saudi Arabia. Investors may enter and exit a foreign market as they wish, as this global market is very liquid.

With a D2 Spot real time transaction, you can expect to pay for the type of fuel in cash at the current market price, rather than the price at …

The case for my long side trade in commodities stems from my belief that trends re-exert their forces at some point. This article was originally posted on April 26 of this year, but is particularly applicable in the current environment.

This observation has nothing to do with economic models or secret formulas. It is entirely irrelevant if we are eventually correct, if we lose most of our capital before the move. I find most traders take position sizes that cloud their decision making. I am confident of my risk control at all times, in any environment, even if I’m wrong. It is not whether the trade worked out or not, but how much we lost vs. how much we gain when we’re correct, that determines our level of success.

I continue to wait for entry signals to short stocks, …