Commodity Trading Manual

by Rose, Frank; Chicago Board of Trade

• ISBN13: 9780814404966
• ISBN10: 0814404960
• Format: Hardcover
• Copyright: 1999-09-01
• Publisher: Amacom Books

Table of Contents

SECTION I THE FUTURES MARKET UNIVERSE
Futures' Past: Development of the Marketplace	1	(14)
Old Chicago	4	(1)
Forwards to Futures	5	(2)
Financial Revolution	7	(3)
Financial Innovation	10	(2)
International and Electronic Connections	12	(1)
Further Reading	13	(2)
Why Futures? Overview of Futures Trading	15	(14)
Price Theory	16	(4)
Cash Transactions	20	(1)
Futures Contracts	21	(2)
Price Discovery	23	(1)
Hedging	23	(2)
Speculating	25	(1)
Clearing and Margining	26	(1)
Further Reading	27	(2)
Futures Exchanges: Auction in Action	29	(16)
Exchange Structure	30	(1)
Exchange Floor Operations	31	(3)
The Auction: Who and How	34	(2)
Price Discovery, Price Reporting	36	(1)
Market Data	37	(5)
Read All About It	42	(1)
Further Reading	42	(3)
Futures Commission Merchants: Putting the Customer First	45	(22)
Customer Operations	46	(4)
Margins	50	(1)
Orders	51	(2)
Order Routing	53	(3)
Other FCM Services	56	(1)
Further Reading	57	(10)
Clearing Operations: Preserving Market Integrity I	67	(10)
The Clearinghouse Guarantor	68	(2)
The Clearing Process	70	(1)
Clearing Margins	71	(2)
Guarantee Funds	73	(1)
Facilitating Delivery	73	(2)
Providing Market Information	75	(1)
Further Reading	76	(1)
Market Regulation: Preserving Market Integrity II	77	(18)
Exchange Regulation	78	(6)
Federal Regulation: The Commodity Futures Trading Commission	84	(5)
Industry Regulation: The National Futures Association	89	(3)
Further Reading	92	(3)
SECTION II MARKET FOUNDATIONS
Hedging in the Futures Markets: Managing Risk	95	(22)
Who Hedges with Futures	96	(1)
The Cash-Futures Relationship	97	(5)
Price Relationships: Grains	102	(1)
Price Relationships: Debt Instruments	102	(4)
Delivery: Cash and Futures Link	106	(2)
Basic Hedging Strategies	108	(7)
Further Reading	115	(2)
Speculating in the Futures Markets: Providing Liquidity	117	(14)
Speculative Types	119	(1)
What Speculators Must Know	120	(2)
Long Corn in 1975	122	(3)
Long Bonds in the 1987 Crash	125	(3)
Short Gold	128	(1)
Further Reading	129	(2)
Price Analysis: Fundamental and Technical Approaches	131	(28)
The Fundamental Approach	132	(8)
The Technical Approach	140	(17)
A Cautionary Note	157	(1)
Further Reading	157	(2)
Spreading: From Butterflies to the Crush	159	(18)
Ag Market Spreads	162	(7)
Financial Market Spreads	169	(6)
Further Reading	175	(2)
Options on Futures: More Trading Dimensions	177	(20)
Option Basics	178	(2)
Option Pricing	180	(3)
Option Strategies	183	(9)
Further Reading	192	(5)
SECTION III UNDERLYING MARKETS
Agricultural Markets: Grains, Oilseeds, Livestock	197	(30)
Grains	198	(12)
Oilseeds	210	(8)
Livestock	218	(7)
Further Reading	225	(2)
Financial Markets: Debt Instruments, Stock Indexes, Currencies	227	(42)
Financial Markets Overview	228	(4)
Debt Instruments	232	(21)
Equity Securities	253	(8)
Foreign Exchange	261	(5)
Further Reading	266	(3)
Metals Markets: Gold, Silver, Copper, Platinum	269	(16)
Gold	270	(5)
Silver	275	(3)
Copper	278	(3)
The Platinum Group	281	(2)
Further Reading	283	(2)
Forest, Fiber, and Food Markets: Lumber, Cotton, Orange Juice, Sugar, Cocoa, Coffee	285	(16)
Lumber	286	(1)
Cotton	287	(3)
Orange Juice	290	(3)
Sugar	293	(2)
Cocoa	295	(3)
Coffee	298	(2)
Further Reading	300	(1)
Energy Markets: Crude Oil, Heating Oil, Gasoline, Natural Gas, Electricity	301	(20)
Crude Oil	303	(6)
Gasoline	309	(2)
Heating Oil	311	(2)
Natural Gas	313	(2)
Electricity	315	(2)
Further Reading	317	(4)
SECTION IV THE FUTURE OF FUTURES
Competition, Complementarity, Convergence: OTC, International, and Electronic Markets	321	(16)
OTC Markets	323	(7)
International Growth	330	(3)
Electronic Exchanges	333	(4)
APPENDIX	337	(58)
Directory of Futures Exchanges	337	(6)
Synopsis of U.S. Futures Exchanges	343	(11)
Top-Traded Contracts	354	(7)
Contract Specifications	361	(13)
Glossary	374	(21)
Index	395