Information about Seasonal Traders
Seasonal spread traders are spread traders that take advantage of seasonal patterns by holding long and short positions in futures contracts simultaneously in the same or a related commodity markets. The spread is the difference between the simultaneous values of these futures contracts.
Traders may use a combination of fundamental analysis, technical, and historical factors in their analysis. Speculators hope to profit from the relative changes in price between the initial and offsetting positions. Contracts may be spread against different months or different markets. Traders are concerned with whether the changes in the difference between the sides of the spread are moving in their favor or not. Position traders may hold trades longer and with less risk using spreads.
Lower good faith margin deposits required by commodity exchanges to trade spreads means more opportunities to average up and diversify positions. Spreads may behave smoother than the underlying futures contracts.
Traders may use a combination of fundamental analysis, technical, and historical factors in their analysis. Speculators hope to profit from the relative changes in price between the initial and offsetting positions. Contracts may be spread against different months or different markets. Traders are concerned with whether the changes in the difference between the sides of the spread are moving in their favor or not. Position traders may hold trades longer and with less risk using spreads.
Lower good faith margin deposits required by commodity exchanges to trade spreads means more opportunities to average up and diversify positions. Spreads may behave smoother than the underlying futures contracts.
See also
External links
- Reminiscences of a Stock Operator by Edwin Lefèvre (best-selling biography of Jesse Livermore) multiple reissues, last in 2004 (ISBN 0-471-67876-7)
Seasonality of food refers to the times of year when a given type food is at its peak, either in terms of harvest or its flavour. This is usually the time when the item is the cheapest and the freshest on the market.
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In finance, a long position in a security, such as a stock or a bond, or equivalently to be long a security, means the holder of the position owns the security and will profit if the price of the security goes up.
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In finance, short selling or "shorting" is a way to profit from the decline in price of a security, such as a stock or a bond. In contrast, investors who "go long" with an investment hope the price will rise.
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In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The future date is called the delivery date or final settlement date.
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Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
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Fundamental analysis of a business involves analyzing its income statement, financial statements and health, its management and competitive advantages, and its competitors and markets.
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Participants: Market maker
Exchanges: Stock exchange | List of stock exchanges | New York Stock Exchange | NASDAQ
colspan="4" align="left"| Toronto Stock Exchange | London Stock Exchange | Euronext | Frankfurt Stock Exchange
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Exchanges: Stock exchange | List of stock exchanges | New York Stock Exchange | NASDAQ
colspan="4" align="left"| Toronto Stock Exchange | London Stock Exchange | Euronext | Frankfurt Stock Exchange
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Speculation, in the narrow sense of financial speculation, involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives, or any valuable financial instrument to profit from fluctuations in its
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In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The future date is called the delivery date or final settlement date.
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For the Parker Brothers board game, see risk (game)
Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event.
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Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event.
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In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The future date is called the delivery date or final settlement date.
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Speculation, in the narrow sense of financial speculation, involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives, or any valuable financial instrument to profit from fluctuations in its
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Jesse Lauriston Livermore (July 26 1877 - November 28 1940), also known as Boy Plunger,[1] was a notable early 20th century stock trader. He was famed for making and losing several multi-million dollar fortunes and short selling during the stock market crashes in 1907
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Return on margin (ROM) is often used to judge financial performance because it represents the net gain or net loss compared to the exchange's perceived risk as reflected in required margin to trade financial instruments.
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Reminiscences of a Stock Operator is a 1923 book written by Edwin Lefèvre which tells a fictionalized version of the early years of the life story of Jesse Livermore; the Wall Street Journal describes the book as a "classic".
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Edwin Lefèvre (1871–1943) was an American journalist, writer, and statesman most noted for his writings on Wall Street business.
An independently wealthy investor, while living in Hartsdale, New York a collection of Edwin Lefèvre's short stories were published in 1901
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An independently wealthy investor, while living in Hartsdale, New York a collection of Edwin Lefèvre's short stories were published in 1901
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