Month: July 2018

Carry Forward Your Short Trades When You Trade In Futures

Carry Forward Your Short Trades When You Trade In Futures

But what if you think that the stock prices are indeed going to decline and you want to make use of it. What if you want to short the asset and wait for a longer time to reap the benefits of a short trade?

Short equities but in the futures market

There is no restriction when you short equity futures though. Learn more about it here. Unlike shorting the spot market equities which cannot be carry forwarded overnight, when you short the equity futures you can keep the trade for a number of days. But ensure that the position is squared off before expiry.

This is why shorting is so popular in the futures market. Futures are basically a derivative which is impacted by the value of the underlying asset. So if the value of the stock that you want to short goes down its futures price will also go down. Thus if you are bearish on particular share and think that its price will go down then you need to short the stock futures to be able to carry forward the position overnight.

Shorting in the futures market

In the futures market, you need to deposit a token amount called the margin when you buy a futures contract. When you short trade on the futures contact too you will have to deposit some margin money. The margin amount in both cases is usually the same.

It is important to know that shorting is one of the ways to make money in the market. If you just stick to taking long positions then you are missing out on some great shorting opportunities. Also, fear causes the market to move down faster and thus shorting is also considered to be more profitable than taking long trades.

When you short, you sell the stock first and then buy it later. You are profitable only when the selling price is more than the buy price. If the price goes above the price at which you shorted then you end up in a loss. The stop-loss has to be kept above the selling price.

Most exchanges let you short only intraday, which means that you need to square off any short positions before the trading day ends. You can not carry the short positions overnight if you are trading in the spot market. To make up for this traders use the futures market that lets them short and also lets them carry forwards the trade overnight.

The trader will have to deposit some margin money when they place trades on a futures contract. This could be a short or along trade. The computation in the futures market is a mark to market computation.

 

Tether Your Investments To The Tether Coin

Tether Your Investments To The Tether Coin

The world of cryptocurrencies is filled with many opportunities and the Tether coin is just one among the many. Moreover, Tether tokens have been receiving positive review since its launch. Here is a sneak peek into what the Tether coins have to offer to its crypto investors.

Tether Facts

  • It was earlier known as the Real coin.
  • Tether is the fifteenth biggest digital currency in the world.
  • It is issued in limited numbers by the Tether Limited.
  • The market capitalization of the Tether tokens is estimated to be approximately $2 billion, as of 2018.

Advantages of holding Tether

  • It is as stable and as volatile as the US dollar. Hence, the risk associated with Tether investments are also less.
  • Transactions made using Tether are less expensive in terms of transaction costs and fees.
  • The tether can be used to purchase other cryptocurrencies including Ethereum and Litecoin.
  • Amongst all digital currencies, Tether is believed to rank the third most position in terms of trading in the stock market.
  • Further, Tether also employs the Blockchain technology making it secure, when compared to other open Blockchain developed technologies.
  • In addition, Tether is backed to at least one traditional currency, thus making it a safe haven for investors.
  • Tether is also highly integrated, allowing you to trade on almost any exchange platform.
  • Tether investments are not only safe but also transparent, as daily and regular audits ensure that no unfair dealings occur.

Some Concerns

  • Tether has been facing the heat of some negative news from the US CFTC (Commodity Futures Trading Commission). However, these have not known to hamper the market sentiments of Tether.
  • News of coin manipulation has also been doing the rounds but as long decentralization is the norm, manipulation should be controlled.
  • Moreover, there is a potential damage that is looming not just around Tether but over other cryptocurrencies as well.
  • Further, there have been concerns regarding the reserves of Tether, which could affect its market price. Nevertheless, this problem can be overcome if the company offers more transparency.

The future of Tether

Today, cryptocurrencies are becoming a part of our everyday lives and Tether is something that is worth looking at. It is gaining traction from all over the world mainly because it does not worry its investors in terms of volatility, regulation, and security.

 

Growing Your Business:

Growing Your Business:

There is a lot of competition in the business, as there are lot many people competing in the industries, credits to the exposure that people have today. Many dreams about registering for business and see a huge flow happening on the business side, but the truth is you can’t float on top just like it.

But it takes a lot of effort to reach on the top in the business field. Hard-work, efforts, determination, and dedication is needed along with some smart work. here are few tips that will help you in staying in the line.

If you are into business, with the main aim of making money, then you can plan your savings with the cryptocurrencies that are skyrocketing. They will see a huge rise further in the coming years. The robots are high in algorithms that will give you signals when the markets are favorable and will help you in reaping high returns in a short while. Here is the review of the best robot, that charges very low on overheads and gives you returns high.

Firstly, be organized:

Organised discipline will help you achieve tasks in time. They are the habits of highly successful people and can have a positive impact on your routine and work. create a to-do list each day, and stick to it, religiously.

Have records of everything:

When in business, you need to be ahead in all your planning’s. You need to have a record for everything. Be it finances, or any other details, like the suppliers, computer essentials dealer or anything big or small, have a record for any task executed pertaining to business.

Do a detailed analysis of your competitors:

Yes, you need to do a detailed analysis of your competitors. Don’t be afraid of them, instead read them carefully and analyze you strengthens and weakness and take a route that is slightly different from all those competitors. Have a strategy that will make you stand out in the crowd.

Be innovative:

Doing things, a little creatively and differently will surely pay you in the long run. Keep your learning skills always open, nobody is a perfect businessman or woman, you need to constantly update yourself.

The focus is essential:

Don’t fret or frown when the things are not going your way! It happens. It takes a lot of time to see your business reaping your profits or benefits in the business that you choose.

 

Can E-Commerce Stores accept Crypto currency?

                                 Can E-Commerce Stores accept Crypto currency?

As we head into a competitive digital economy, only buying the cryptocurrency and saving it up in the digital locker could not be the purpose initially, however today they are an accepted medium of exchange in various transactional purposes. Even though they are still viewed as a speculative investment, using the crypto coins as a payment option is a worthwhile option given by e-commerce stores. As the numbers grow stronger to accept any coin currency for online e-commerce related transactions, the ease of shopping is definitely pulling in more shoppers on the digital route to shop their essentials.

The resources required by the e-commerce industry to add this form of payment options would require them to

  • integrate one form the many cryptocurrency providers with the online store, though this option is slightly expensive than the other methods,
  • there is a lot of work to do, for the integration by the coin currency provider as they have to set up the payment processor, process the payments and then convert them to fiat currency
  • the high-end processors use the UI Components among the other integrated branded parts and use the robust suite of API for calls
  • before choosing the payment processor, reading the review is advisable as most of the some of the skill levels required vary according to the payment gateway requirements
  • building own processor will be a time-consuming activity, hence taking up the most of time, probably customize once after a good business cycle is set, and there is a better understanding of the numbers that will be coming in and convert to sales targets
  • some of the coin currency processors charge 1% of the transaction fees, that is again paid back, like a normal cash back

Integrating the cryptocurrency payments may take some time, however, the additional work is worth the time and money invested, with pay buttons on the web page, paying up in coin currency is simple, like trading in the QProfit System software. The sooner it comes into the mainstream payment options by banks and other agencies of the public, there will over massed by the demand for crypto coins and this supply side will have to be maintained steadily.

Manually setting up e-wallets to pay through for an online transaction is received by the payment gateway and receiving the payments directly without the third party service provider in the middle.

 

Diversification And Hedging

Diversification And Hedging

The stock price could decline because of decline in revenue, the decline in profits margins, the high cost of financing, high leverage or misconduct of the management. All this could cause the stock prices to decline. Learn more about it here.

You can diversify this unsystematic risk by not investing a lot of your money into one single company. You could diversify your money by investing in many companies at a time. So in case one of the companies to perform well and fall in price then the other companies will not be affected, even if the stocks are of the same sector. The higher is the number of stock varieties in your portfolio the higher is the diversification for unsystematic risks.

You should consider having at least 21 stocks in the portfolio to get the required amount of diversification. If you have more than this then it may not necessarily be beneficial for you.

Systematic risks

Even after you diversify your portfolio the systematic risk will affect the stocks in the market and even if you diversify your portfolio you cannot do much about protecting your portfolio from the systematic risks. Whatever you do the stock prices will fall in value.

Systematic risks are a part of the system and you cannot diversify it. But you can hedge it. So it is important to understand that by hedging we do not mean diversification.

How to hedge a single stock

Suppose you just have a single stock in your portfolio. Then how do you hedge that? You buy a single stock and this means that your directional analysis on this stock is long. You now realize that the quarterly results will come out and you think that it could very well happen that the stock prices could fall down. To prevent the loss that you foresee you decide to hedge your position.

When you plan to hedge the long position you buy a counter position in the same stock. So you enter into a short future position of the same stock for the same lot size.

So, basically, what are you doing here? You buy the stocks on the spot market and at the same time short in the future market. The number of stocks in the spot market should equal to the lot size of the futures market

This is the way you hedge your position in the spot equity market.

 

Hedging Is An Important Part Of Futures Trading

Hedging Is An Important Part Of Futures Trading

Hedging is used when the market conditions are very adverse and it helps you to protect your trade positions from being in a loss. So when you trade it is important to understand what hedging is all about.

 

Understand what hedging is

Suppose that you have some land and that is lying vacant. You decide that you can put some flowering plants here instead of leaving it barren. You take care of the garden and this lets you enjoy the flowers that bloom in your garden. But when that happens the garden starts getting attention by cows that want to graze on that land. They are spoiling your hard work.You want to take care of it and thus erect a fence around it. This makes sure that your garden stays fresh and protected.

This is a simple example of a daily life scenario that lets you understand what hedging is all about. You pick up stocks and make our portfolio by carefully analyzing which stocks should be and which should not be a part of your portfolio. This is like your garden. But at some time after being invested you see that the economy is not doing well and the market could crash at any moment. This is like when the cows enter your garden. To prevent this you hedge your portfolio by buying futures. This helps to protect your portfolio.

This is the basic explanation of what hedging is all about. It is a way that you save your investments in the market. Thus when you hedge your portfolio you make sure that the portfolio is not affected by the adverse movements in the market.

Why should you hedge?

Why should you hedge your position in the market? I suppose you have a stock that you have purchased and you now feel that the market is not performing well and the stock price will decline. You can do one of the following about it. You could just sit back and wait for the stock to decline and then bounce back. You could either sell off the stock or then buy it back at a lower price. Or the third option is that you could hedge your position.

There are reasons why you would realize that hedging is a much safer and better option among the others. Learn more about it here. It also gives you peace of mind because you know that your investment is protected.

 

How To Diversify Your Stock Portfolio

How To Diversify Your Stock Portfolio

It is important that you spread the stocks in your portfolio and diversify it so that you are saved from the unsystematic risks. The best way to do so is to select two to three stocks from different sectors to form your portfolio. When you do this then your capital getting affected by any unsystematic risks gets reduced a lot.

Unsystematic risks are taken care of when you diversify your portfolio

Suppose you invest in company A for your full capital amount. Then this means that you are exposed to the unsystematic risks. However, you could limit the risk by buying company A with half of your capital and company B with the other half of your capital. This way you spread out your risks and in case of any unsystematic risk, the damage gets spread.

Thus if something was to happen to company A, you still have your investments in company B to give returns. Themorenumberof stocks that form your portfolio, the more is the diversification and the less is the unsystematic risk.

How many stocks should be there in your portfolio?

The next question that arises in the investor’s mind is how many stocks should ideally be in someone’s portfolio. This could be based on your individual choice because it depends on how many stocks are you actually able to manage at a single time. Around 15 is the ideal number of stocks that you should diversify into.

The unsystematic risk drastically reduces when you add more stocks to your portfolio and diversify the risks. However, it is important to take care that diversification in excess is also not good. It is important that you stay invested in not more than 15 kinds of stocks because it will not only help to spread the risk but also make it easy for you to manage your portfolio. The number of stocks does not mean that you will be able to diversify more. In fact, after a certain amount of time, the graph becomes almost flat.

Conclusion

Diversification is an important part of your investment. You should not only diversify into different asset classes but also diversify within the asset class as well. This will help you to spread your risks. Here you can learn more about it and create a structured and balanced investment portfolio.

Diversification is an important part of the investment and it is only through diversification that you can spread out your risks.

 

 

The Growth of Socially Responsible Investing

The Growth of Socially Responsible Investing

 

Mindful contributing has made considerable progress throughout the most recent couple of years. With the assistance of obviously engaged speculators, venture organizations and non-benefit directing gatherings, numerous financial specialists are discovering more dependable and better approaches to contribute and we can learn more about it.

 

A Work in Progress

As the attention on mindful contributing keeps on developing, venture pioneers and SRI non-benefit initiative gatherings are characterizing and assessing the numerous normal popular expressions speculators utilize to depict their image of capable contributing.

 

It bodes well that meanings of speculation terms encompassing capable contributing will vary.

 

Understanding Responsible Investing

Throughout the most recent times, few definitions have developed to portray the current most basic methods for contributing to mindfully.

 

SRI or Qualities Based Investing – Exclusionary

An approach to contribute that ordinarily bolsters an arrangement of religious or good feelings. Ventures related to value-based financial specialists are assessed by utilizing negative screens that are utilized to bar ventures in particular organizations and businesses from thought.

 

Speculations are at last looked over the non-prohibited group of organizations in view of an arrangement of money related criteria.

 

ESG or Ecological, Social and Governance Investing – Inclusionary

This is contributing by assessing subjective ecological, social and administration estimations and quantitative money related measures. To decide the appropriateness of a speculation for consideration in an investment, the subjective and quantitative information are taken into consideration.

 

This capable speculation method enables financial specialists to incorporate the best organizations from a venture area, (for example, the energy segment) which may some way or another have been barred from venture thought. Organizations that utilize only reused materials to manufacture or those that create a low carbon impression might be included as an ESG venture topic.

 

Organizations, at last, decided for speculation mirror those organizations whose money related and social effects can be estimated and regularly incorporate the best organizations crosswise over numerous monetary parts.

 

Focused Social Investing

Regularly engaged in their own particular networks or even at the yearly investor gatherings of freely held organizations, impact financial specialists are hoping to have quantifiable social effects with their venture cash. Putting resources into green securities, altering corporate natural, social and administration approaches, and giving reasonable lodging at a network level is every great case of impact contributing.

 

Significance to Today’s Investors

Regardless of what it’s named, putting resources into a method that highlights social, ecological, administration and additionally moral reason keeps on overwhelming countries. Capable contributing has really ascended to the peak when singular financial specialists pick their venture investments.

Do you know how to choose the best home insurance?

Do you know how to choose the best home insurance?

Owning a home is a dream that comes true for few fortunate individuals. It is by far their biggest asset and must be insured promptly. You must be smart and look for a home insurance that is not just affordable but also covers damages from a wide range of threats like fire, theft, storm and other natural disasters. Your insurance premium must also be comfortable and not a strain on your already overstretched budget.

Where should you look for home insurance?

People usually choose home insurance based on the personal referrals from friends and family. Experience is the key to selecting a good reputable company that pays its claims in a timely and systematic manner. Individuals also do research on the internet and browse through company websites and customer testimonials to narrow down on a suitable insurance company. Whichever method you choose to select a home insurance company before you finalize you must compare the policies and choose one that is most beneficial for you.

 

What are the parameters of good home insurance

A home insurance quote will include a list of all the items and goods that they will cover in their policy. Usually, outbuilding and decks are not included in the standard policy but you can insure them at additional costs. So, when you compare policies you must identify the areas that are covered and left out by individual policies and take one that is most advantageous for you. Besides that, look for:

  • The reputation of the company: It is always safe to go with long-standing companies that have built their reputation over decades because of their service, coverage, and claim handling abilities.
  • Customer service: There is a lot of legal jargon in all insurance policies that most house owners fail to understand. It is therefore essential that the company you choose has a solid customer service that supports you and has answers to all your queries and doubts.
  • Disbursal of claims: This is by far the most important feature of any home insurance policy. It is essential that your insurance company responds to your loss or damage to your house and releases funds quickly.
  • What is the deductible amount: You must ascertain the deductible limit before entering into any agreement because even if high deductibles reduce the annual premium it will become a huge burden on your monthly budget. Choose a policy where you are comfortable even after the deductibles.

If you are a savvy homeowner you will realize the importance of a good home insurance policy even if it not cheap it will prevent future financial hardships. If you think your present income might fall short look at automated trading robots like the Ethereum Code which trade in cryptocurrencies. The returns apparently are decent and can supplement your income.

 

Do Not Buy Shares Of Just A Single Company

Do Not Buy Shares Of Just A Single Company

Every investment has its own share of risks. The risk in the stock market can be divided into many kinds. Systematic risks are those that are the risk which is company specific.

Suppose you decide to invest a capital in a particular company. If the company reports some negative numbers then the stock price of the company will fall. This means that had you invested all your money into this very company then your investment value also falls. Learn more about it here how to diversify your portfolio of stocks.

But what happens to this company does not affect its competitors in the market. This means that this risk is very specific to the company and it is not dependent on any other factors but what is happening within the company.

The companies that scammed

In the past, you will come across many companies that had scammed. The company could be inflating its numbers or mishandling its funds and all of a sudden the insider information got busted. What happened then? Just go through history and you will come across many such blue-chip companies that were the hot favorite and because of a scam that got highlighted, the entire company was washed out.

Had you invested in these companies then you would have ended up losing all your trading capital within a few trading sessions.

The stock price after the news falls in complete downward motion and this causes a major loss to those investors who were holding on to the particular company stocks.

However what you observe is that what is happening to the stock prices of the company that has scammed does not affect the other companies that are traded on the exchange. No other stock reacts to this news except the stock itself. Even the index does not fall as much as the share prices of the company fall.

What do you infer out of this?

The drop in the share prices of the company was because of the events that happened in the company. This has got nothing to do with the other companies that are being traded on the exchange. The price was affected by the internal information of the company and this risk of exposing your capital to a single company is known as unsystematic risk.

You can, however, protect yourself from unsystematic risk. This can be done by diversifying your portfolio and holding stocks of various companies in your portfolio.