I Want Dollars Online

How far have you gone?

2011-02-06T03:55:00.001+01:00

Hey how far have you gone in making your dollars online? let me get your feedbacks...

Which comes first - the Chicken or the Egg? (Part 2)

2008-06-05T02:41:00.001+01:00

Waiting for OutXchanges

So really, you can wait for your OutXchanges to happen FIRST, and then do what you would do anyway: InX to your IB to at least cover OA/DXD fees from there if not also buy Digots, or reduce CL, or set up for adsXposed, etc.

But it will cost you a lot more to wait to add funds. You could have been earning in the meantime by InXchanging now. You will get your OutXchanges later anyway, and at least your InX’d funds would have been earning in the meantime. If you just wait for OutXchanges FIRST, then you can have a long, long wait.

Because everyone is generally thinking what you are thinking.

That whole philosophy to how the system operates is FINALLY changing, by the way.

DXInOne is starting to ensure that everyone InX’s on a schedule if they wish to both gain AND to keep their gains as they go.

What does that do?

It sets up what has to happen anyway in order to get the system fluid again: ‘to control volatility at the OUTPUT end of the system, FIRST, volatility must be controlled at the INPUT end.’ That is, we can fix OutX delays by FIRST fixing InXchanging delays.

It cannot work the other way around. Enough has to be InX’d before OutX’s can fly through. Marketing cannot do that if the system is not already fluid enough to ‘sell’ to the public.

So: to answer the ‘which comes first issue’ … you cannot just choose to wait for your own OutXchanges to happen BEFORE you choose to InXchange, because what you are really doing is to say that you will not put in (up to all) of the money you get back UNTIL others ADD MONEY OF THEIR OWN TO THE SYSTEM.

And they will not really do that until…?

Until the system is already fluid.

That means ‘us.’ We are the ones who have to first control the fluidity before the system can become marketable. DXInOne just implemented standards to ensure this happens.

What does this mean?

The system WILL be made fluid again, BECAUSE we have to InXchange on a set schedule – on the clock – no matter what. Whether there is rain, sleet, hail, snow, tempests, earthquakes, hurricanes, tornadoes, or outright shine:

We have to InXchange on a schedule. Monthly. That means that DXInOne can COUNT on a ‘monthly income’ in order to determine what can be processed, or accomplished each month.

There is not a system alive that can avoid volatility on an ongoing basis without having a consistent income.

DXInOne is finally ENSURING the income, and this finally ENSURES that OutXchanges get processed for all involved.

Those who don’t do their share to be part of the solution (InX’ing to IB to cover discounted OA/DXD fees) are also NO LONGER going to be part of the ‘imbalance’ problem (accruing DXG that they can list for OutXchanges for any size of money they have built up over the years).

That is: ONLY the active Members get to earn DXG into circulation. Therefore, ALL of the DXG created into circulation is proportionately backed by hard reserves. Therefore, the system will be fluid enough for marketing to be able to TOP OFF THE DIFFERENCE.

The next question on the agenda, therefore, is this:

“What is the purpose of cycling funds throughout the system?”

Which comes first - the Chicken or the Egg? (Part 1)

2008-06-05T02:38:00.000+01:00

Which comes first?

by David Bennett, DXPowerTeam

The title of this entry: ‘which comes first…’ is really meant to mean this:

Does marketing precede system fluidity, or does system fluidity precede marketing?

We will address it in another form – something you often hear, read, or perhaps even feel yourself:

“I will think about adding more money when some of my OutXchanges are processed.”

As we learned in the last entry, this is an incorrect way of thinking through what is happening. We could rephrase the question to something more appropriate:

“When the reserves added by marketing’s efforts to bring more revenues becomes enough for at least one of my OutXchanges to be processed, then I will receive money. I might add more funds.”

The idea here is to realize that what is REALLY being said is along these lines:

“When others market, so new money (reserves) comes in, then as enough new reserves are added, my own OutXchanges will be processed in turn. I will then receive at least one OutXchange out of those fresh reserves. When I do receive that OutXchange (or more than one), then the reserves will be depleted until/unless I decide to add some more money to replace, in part or full, that amount of depleted reserves.”

If we view the statement in that way, then we see two issues emerge quickly.

The two main issues

a) If you are allowed to consider keeping out (or returning) reserves used to process your own OutXchanges, then others are allowed to consider this as well (and they will). This is fine, of course, but the system has to control some of that volatility. They need to do that by ensuring that OA/DXD fees are paid from IB at least most of the time, by absolutely everyone who is able to list OutXchanges. The system is not based on ‘cycling’ same funds, though that is possible whenever marketing is moving along well enough (there is far more e-currency/currency reserves than DXG available, system-wide).

b) More importantly, we are back to the ‘which comes first’ argument.

It is easy to imagine that marketing is moving along, drawing fresh subscribers to the system who are eager to get going and build up their holdings, etc. But CAN marketing do that well when the system is NOT already fluid…?

No; not really. Marketing is slowed to a crawl when the system is slow. Marketing finds it very, very hard to draw new subscribers during slow periods; perhaps only 5% of the usual number of new subscribers is reachable. At that rate, according to the 2005 standards, it would take about 20 months to accomplish what normally can be done within any single month during regular operational speeds.

So, when thinking about that… it means that you are waiting up to 20 months or so to be able to receive OutXchanges, before you decide to add fresh funds (and really, you are not considering adding fresh funds at all if your OutXchanges are being processed before you return some amount out of that total back into the system, such as only 50% or 25%, etc).

In that context, the issue is rather interesting.

Interesting Issue

It becomes more of a question along these lines:

If we assume that you are not ‘afraid’ of the system generally, because you know enough to realize what makes it slow and quicken, then you must realize that what you choose to InXchange and what you are waiting for to be OutXchanged are entirely unrelated.

All too often, folks feel that the money they receive from OutXchanges is actually some of their own money, BACK. It looks that way: if I had $1000 in E-Gold, and InX’d it, and then later received an OutXchange for $500, then I could well think absent-mindedly that I am staring at $500 of my OWN money, back in my E-Gold account.

And therefore, I am just waiting for the ‘other of my own $500 originally-transmitted dollars from E-Gold’ to be ‘returned’ back into my account.

… Remember: the money you receive from OutXchanges is probably NEVER, EVER the same exact dollars you yourself put into the system. This was generally never the case, and never will be.

So, what ARE the dollars you receive…?

Other peoples’ dollars, which they themselves added to the system.

That assumes that folks are adding money to the system.

And folks generally don’t add money to the system when the system is slow. And marketing basically cannot do anything about that, either.

We have enough DXInOne Marketers already, right? (Part 1)

2008-06-05T02:32:00.000+01:00

Enough or Too Many?

by David Bennett, DXPowerTeam

In 2005, we saw marketers appear like popcorn. Everywhere you looked, someone had a product over DXInOne. Everyone seemed to suddenly know the system, and they are more than ready to explain it to you: for a price, or for free, through audio/video-based training, through Adobe documents, through support forums… You name it. Training everywhere.

Doesn’t make much sense

If there are so many training systems out there, then why aren’t enough reserves appearing to keep things smooth? Surely there should be a constant enough feed of fresh funds. There must be something else happening, right?

You are right. There is more to it than just the basic act of shepherding folks through the system. If it WAS that simple, then there wouldn’t be any problems with system volatility. Everything would be flowing along just fine.

All right. Sit back and mull that one over… and it shouldn’t take you long to peg on it:

Maybe it’s about just WHAT exactly the marketing sites are training over.

It’s what the marketing sites ARE training, on the whole. They are teaching their adherents, mainly, that this is a ‘cash production’ system. Namely, that everyone is supposed to be able to just add a few bucks, and forever make relatively consistent withdrawals.

They aren’t just saying ‘sometimes it works that way, (if) or (when) etc.’ And ‘sometimes it works another way, (if) or (when) etc.’

They are just plain telling you that you can add a few dollars and keep pulling out more and more as you go. At all times, mainly. No matter what is happening with system reserves.

Think of the biggest training systems during 2005, and think about what their training has been like. We dont mean their marketing pages – sure, everyone tends to market for best image. As far as that goes, marketing is marketing.

But marketing HAS TO BE counter-balanced by quality training. You have to be ready to be flexible in this system; to understand that the system is dynamic, and doesn’t just operate one way only.

In short, when is it possible to withdraw more than you put in? When the system is being marketed hard enough to drive more total e-currency/currency through the system than DXG in circulation. During THOSE times, we’re seeing ‘excess reserves’, which over 2005 were drained. Again, this issue existed also by the end of 2003, when we had to correct for that imbalance as well.

How it worked in 2005

During 2005, this is inevitably how it worked:

Many new members got in. And many older (senior) members already had cash in the system. Since everyone could buy digots using ‘old DXG’ directly to create ‘new DXG’, they surely did!

And what did they do with the cash they got from OutXchanges…?

You guessed it; they basically pocketed that cash.

They withdrew real money (reserves) consistently, while simultaneously creating more DXG by using their ‘old’ DXG.

In effect, many who had little funds to work with put funds through the system, and the system allowed those who were already vested to higher levels to extract that money.

I still remember Sharon Toberer excitedly talking about purchasing her husband a $10,000 electric car for his birthday, from DXG profits, because she thought ‘it was cute.’

Where do you think she got the $10,000 …? She had put some money (about $4000) in the system already. She was vested. When someone InXchanged $10,000 and it arrived in her account (this is just an example of the sort of usual thing that happened), she chose to cash that money out, and go on vacation, or make a purchase for the fun of it, or pay bills, etc. In this case, she bought an electric car (if I am remembering it correctly).

Is DXSynergy the next Google, EBay or PayPal?

2008-06-05T02:28:00.001+01:00

Will DXSynergy rival these?

Ever wonder who the next Google, eBay or PayPal is going to be? Want to "get in on the ground floor" like the early employees of these companies who got cheap stock options and were able to cash them in later for big payoffs? This article will guide you toward just such an opportunity -- one that anyone can take advantage of with a modest investment of time and money.

Google. eBay. PayPal. These are currently the biggest names on the Internet (not counting MicroSoft). But rewind just 7-10 years back to the late 1990's. Who were the biggest names on the Internet then? Yahoo. AltaVista. Netscape. And America Online (AOL).

Do you see where I'm going with this?

Things change. Markets change. Original ideas rise to the fore, and better mousetraps do get invented every once in awhile. From time to time, an original idea will succeed in its original form until someone buys it up and runs it into the ground. Or, perhaps, a competitor copycats the idea and doesn't necessarily build it better, but rather has a better marketing department and/or more money behind them (Microsoft vs. Apple).

Sometimes, a startup (PayPal) will be wildly successful and then be bought out and be even more successful with the backing of the new buyer (eBay). And sometimes, competition ends up being healthy, with multiple vendors offering similar products and services. The main point is this: competitive forces are constantly driving and changing the marketplace.

One thing that Google, eBay and PayPal have all proven in recent years is that "better mousetraps" can benefit from meteoric rises to the top of the charts/markets/collective-consciousness. If you think about it, it really was not all that long ago that none of these companies even existed. But yet today, nearly every Internet user on this planet knows who these 3 companies are AND HOW TO GET TO THEIR WEBSITES - and that literally means BILLIONS of people.

So what does this have to do with DXSynergy?

Here's what I know: DXSynergy has been working for more than 5 years to create similar services to each of these three giants. I could also throw in names such as Travelocity, TimeShares.com, and CraigsList as "names" that correlate to service-lines that DXSynergy is working on and/or already has in place.

adsXposed is a lot like Google's AdSense and AdWords programs. With Google, publishers use AdSense to add advertising streams to their websites, while advertisers use AdWords to place the ads that run on that network and on Google's search network. In DXSynergy, there is also an added wrinkle which I will cover separately in it's own article -- an affiliate program that enables you to earn commissions on advertising purchases.

DXSynergy are busy behind the scenes!

DXSynergy is currently working on releasing DXSeeker, DXClassifieds, DXConcierge, DXTraveller and DXTravelAgent, just to name a few of their upcoming service lines.

DXFinder is a full-fledged search engine. Google rapidly rose to dominance by simply inventing a better search engine than anyone else had or has been able to come up with since. Will DXSeeker be a superior search engine to Google? Only time will tell, but they are serious about entering the market and it certainly should help amplify the inherent value and market- acceptance of adsXposed as well as all of the other DXServices.

DXAuctions is also forthcoming. This will compete directly with eBay. This would seem to be an even more daunting task than competing with Google, but wait: eBay has owned PayPal for several years now, and they have still yet to "get on the ball" and implement something that DXAuctions will have in place from Day One - actually it's already "in place" within the DXSystem and has been for several years -- built-in escrow payment capabilities. DXDirects will help eliminate a lot of the fraud that pervades so many innocent people's eBay shopping experiences.

DXSynergy is in a league of its own!

And as a "payment processor", DXSynergy is going to be playing in a league in which it has no peers. DXAccounts are so much more secure than PayPal accounts. PayPal transactions are subject to charge-backs and highly susceptible to fraud. DXSynergy requires users to provide extensive identification and place of residence/business documentation in order to earn a high rating and have access to all the features of the DXSystem. At PayPal, a fraudster can sign up for an account and within 5 minutes be using a stolen credit card to commit fraudulent transactions. That just does not and will not happen with DXSynergy because they have specifically taken the time to "get it right". They've been in development for 5+ years. These are not just some ideas that have been thrown against the wall to see what sticks. They have studied the competition and evolved their offerings into "better mousetraps".

by Kevin Fadden

Securing your Computer for DXInOne

2008-05-23T17:06:00.000+01:00

With being involved with DXInOne or any online business there is one crucial issue that must not be ignored.

That issue is SECURITY.

I just received an email from somebody who lost $100 from their e-gold account due to what is called a "key-logger" virus. Usually these viruses run in the background waiting for you to enter your username and password and then send the information to the author of the virus.

In the case of the person who sent me the email the virus actually ran a hidden window in the background and transferred the funds out of his account while he was still logged in.

I then received an email from Brian Fackrell informing me of a malicious trojan virus that has been spreading throughout the holiday. I will paste his exact email in this article in the next section.

I want to emphasize that when you work online security should be the first thing that you consider. If you are running your DXBusiness (or any online business) and you do not have an up to date virus scanner installed and running, you are at HIGH RISK.

It is very easy for these viruses to get installed on your computer either from emails or just from visiting a website (yes, they can now plant viruses on your computer just from visiting a website now).

Here are a few tips and tricks to lower your chances of security risks:

1. Make sure you are running an up to date virus scanner on a regular basis.

There are several good choices for this such as Norton Antivirus. If you don't have an anti-virus program because of cost reasons, then visit www.free-av.com for a free anti-virus program.

Make sure that you run regular system scans (at least once a week) and that you update your scanner as often as possible.

2. ALWAYS use the Virtual Keyboard.

I know it's tedious and a pain to use, but DXInOne did not put the Virtual Keyboard in place just to be different - it is there to protect your account.

You should always use the Virtual Keyboard EVERY time you log in to your account.

3. Use Firefox to browse the Internet.

If you are using Internet Explorer then you are more open to risk than those that use Firefox. This is mostly because Internet Explorer is a lot more popular which means that most virus writers will concentrate on it to get maximum exposure for their virus.

Click on the following image to go to Mozilla and download Firefox for free.

4. Make sure that your operating system (e.g. Windows XP) is kept up to date.

If you are running an older version of Windows (especially Windows 95 or Windows 98) then you are at high risk. You need to upgrade to Windows XP as soon as possible. While this might be an expensive upgrade, the money that it could potentially save you will make up for any cost.

Make sure that your operating system always has the latest service pack and security updates. If you are running Windows XP then turn on the "Check for automatic updates" - even if you are on dial-up. You need to know when the security updates are released so that you can get them installed as soon as possible.

5. NEVER open suspicious attachments in your emails.

No matter who the email is from, NEVER open an attachment unless you are expecting one to be there. Even if the email is from your friend it could be a virus. Some viruses will send themselves through the email accounts on the computer where they are infected, so it will look like your friend or family sent you the email.

My rule of thumb is to never open the attachment unless the person that sent me the email tells me exactly what the attachment is (or I am expecting it).

Also, turn off any "auto-views" for your email program (such as Outlook Express or Microsoft Outlook) as even the images in emails can place viruses on your computer. Only open emails from trusted sources.

6. If you use MSN or any other instant messaging service, be wary of files being sent!

With the popularity of MSN and other instant messaging services viruses are now being programmed that will send a "message" to an unsuspecting user. These messages could simply be "Check out this website - http://..." or they could be "Here is a file" and then a file is sent, waiting for you to accept it and download it.

If ever somebody just suddenly messages you anything suspicious reply to what they have said and ask "Hey, did you send me this?" If you don't get a response then DO NOT OPEN THE WEBSITE OR THE FILE as it is probably a virus.

7. And the list goes on...

Basically be aware of what is going on virus-wise. Know the latest email scams and security problems. If you keep relatively up to date with everything that I have stated then you will significantly reduce your risk online

by Matthew Glanfield

What DXSynergy Taxes?

2008-05-23T17:03:00.001+01:00

The old cliche is that there are only two constants in life: Death and Taxes. While this may be an over-generalization, it is definitely time for us all to start thinking about the second constant - taxes.

Over the past year I have had many people ask my advice on how taxes are to be reported with DXSynergy. Not being an accountant I have often turned away these questions with a simple "You need to talk to your accountant." I even did the same thing.

The problem is that most accountants will be unfamiliar with the way that DXSynergy works, and trying to explain it to them is, well, you know, difficult.

This is why I was happy to hear of one of my DXTrainers deciding to write an e-book on taxes when dealing with DXSynergy.

Bob Davidson has just finished a brilliant e-book on how you can save money on taxes. He goes down to every detail, including how to report DXDebit, Credit Line, your console activity (or inactivity), and more. He even shows you ways that you can save money on your taxes.

This e-book won't be available until 1st February, but I convinced Bob to write a free report that includes a few tax-saving tips. You can go to DXTaxes.com to download this free report.

Even if you don't want to buy the e-book I highly recommend that you download this free report. It will open your eyes to a few concepts that you might never have thought of before.

by Matthew Glanfield

Should I Purchase Digots even if I am above the 50% ratio?

2008-05-23T17:02:00.000+01:00

Anyone who has been involved with DXSynergy for any length of time knows we are constantly tested on our ability to adapt to changes. Some of these changes are more difficult to understand than others. One of the hardest things we face is developing a new strategy at any given time. But, if we look at it one part at a time, it's really not that bad. With that said, I want to go over one of the more popular questions regarding digot purchasing, as mentioned in the title.

Right now, we need to be focusing on getting our DXDU (DXDebit Used) to 50% or less. There are some great articles out there that can help you do this, with or without using the reduction tool. In this article I just want to focus on how digot purchasing can and will affect your TDV (Total Digot Value) and DXDU%, so let's get to it.

The answer to the title question is yes and no. Everyday you are given a certain amount of EOS (End Of Session) credits which immediately go to your Reserve. Any money in your Reserve would serve you well if you purchased digots. This would cause your TDV to rise and it would improve your DXDU% immediately. Also, at EOS you will have an increase in your DXDA (DXDebit Available).

So yes, feel free to spend your EOS credits (or anything in your Reserve) on digots! But you may also wonder, how often. In general, everyday would be fine. In fact, this is a good idea so that this money can be working for you, rather than just sitting there. There are though, 2 exceptions to this I would like to mention.

One, do not buy digots on a day that premiums are high. By high, I mean above 10%. It will serve you well to wait a couple or even a few days to get a better deal. Two, if you are planning to use the reduction tool, you may want to consider saving up your EOS credits until after you use this tool. You will then have an immediate increase in your TDV once you spend them. If you spend your EOS credits just before using the reduction tool, you will lose some of its value as your TDV is lowered.

Clearly, it is in your best interest to spend your EOS Credits on digots regardless of what DXDU% you are at. But, what about spending your DXDA on digots? Technically, we can no longer do this since we cannot transfer DXDA to Reserve anymore. However, we could get around this by performing an OutXchange/InXchange. Is this to our benefit? Not really. The moment you do an OutXchange your DXDU% will rise (possibly dramatically) and although if you bring it back in to purchase digots would lower it some, it will not be enough to get you back were you were.

It is these types of actions that will raise your DXDU% continually, causing your OA fees to increase and gains to decrease, which affects the entire system and everyone in it. We now know this information as fact, because we all are experiencing this in some way as it affects us all. But, if we all do our part now, we will all benefit in a long, profitable future with DXSynergy.

by Chad Curl

Calculating Your DX Profits

2007-12-06T03:03:00.000+01:00

G2 Session 375

In order for results to be meaningful, everyone must calculate their gain the same way.

How to calculate your session gain for this poll -

Log in to DXIO
Using the MNM, select Personal >> Portfolios >> Detail By Session
Step 1: Select the portfolio you wish to vote on (sorry there is no way to cast multiple votes)
Step 2: Select the session as indicated in the title of this thread
Step 3: Ensure that 'Display Historical Totals' is set to Yes (the others can be Yes or No)
Click [View Records] and you will see a screen similar to the following -

With the values displayed in the green and yellow areas indicated, calculate as follows -
yellow \ green * 100 ... yellow divided by green multiplied by 100
eg: 28.7452 / 12,382.7156 * 100 = .2321 or .23%

NB: For multiple portfolios, add all green TDV's and yellow EOS Price Increase's

Dx In One 101: The Two Ways You Make Money In The DxInOne "Portfolio" System

2007-08-14T21:02:00.000+01:00

There are two ways DxinOne provides portfolio growth that is far superior to traditional investment programs. They are as follows:
1- By providing the ability to make multiple 'virtual' deposits based on an ongoing "Line of Credit" Note Oct 14 - after reading this section, I would advise you to go to Click Here to go a further discussion on this matter.
2- By providing daily [vs. yearly] compounding growth on your balance.
Let's start with the second item.
Imagine you are one of those people who actually saves money. How is this most commonly accomplished? What you do, usually, is take some of your hard earned money to your local bank and deposit it in a retirement or savings account. There your deposit collects interest, usually based in yearly gains, like 3% or 4% interest a year [and this is high-end these days, in mid 2005].
Maybe you make one deposit to your savings plan a year. Maybe one deposit a month (for 12 a year) or if you're really good, you might make a deposit to your savings every paycheque, like every two weeks. In the first case you make one deposit a year, in the second case you make twelve, and the third case, you make about twenty-five over the course of the year.
But what if you could make about DxInOne0 deposits a year? This is exactly what DxInOne allows for - potentially - and they literally give you the other 329. In the DxInOne system, if you make a deposit, of say fifty dollars, you are entitled to make other deposits on the following days based on a percentage of your original fifty dollar deposit.
You may think of those later deposits as "Lines of Credit" that are made available to you daily [- and they are Lines of Credit that you don't have to pay back!] Because of this, I was able to deposit another thirty-seven dollars into my account on Day 2, another twenty-seven on Day 3, and twenty-one on Day 4. When combined with my original deposit of $50, what this means is that by the end of Day 4, my balance had risen to $135! By the fourth day in Dx my return has already risen to $135, for a growth factor of not 4%,but 170%... By Day 24 it was up to $360.
Keep in mind that in our traditional scenario, the $50 deposited would rise to only $52 after one year at 4% return by year's end, which is probably more than you could get anywhere in Summer 2005. So, this is the first thing that makes the DxInOne portfolio opportunity truly extraordinary, a single deposit leads to many, many others.
In DxInOne jargon, your deposit total is known as your TDV, which means total digot value. Digots are DxInOne's unit of currency by the way, more on that later. Think of your DxInOne TDV as 'virtual equity'.
Because you can make so many deposits, your balance can quickly boom to astronomical levels that pay huge sums of real money daily.
Now, Let's look at the other way you make money with DxInOne. This is the first item listed above.
Remember that at our bank our single $50 grew to $52 at years end by gaining 4%?
With Dx, your overnight growth historically averages 0.3% - that's daily.
With 4% per year, you get one instance of compounding a year.
With Dx, you get 365 instances of compounding at 0.3%.
The growth curve here is staggering.
If our $50 deposit grows by 0.3 a day, a year later it is worth $149, not $54 dollars. It would take several decades for a traditional account paying 4% to build to $149.
From this we can see that even this second way of making money with DxInOne is vastly superior to what the traditional consumer market is offering.
THE REALITY WITH DXINONE IN LATE 2005
When I first signed on to DxInOne, everybody was not only earning these overnight gains, but they were also placing 'virtual deposits' to the maximum possible extent allowed for by the DxInOne system. Then in July 2005 DxInOne abruptly imposed restrictions on people's ability to do this (in order to prevent hyper-inflation).
This turned out to be the first of several changes intended to curb portfolio growth. The effect this has had is that now people are making far less of these 'virtual deposits' than they did before.
The reason why people are curtailing their portfolio growth is because each month a portfolio owner is required to pay fees that are a direct measure of their TDV or portfolio balance. In theory, these fees can generally be paid from within a portfolio balance's monthly growth. (That is, if your balance grows by $1,000 in a given month, your fees will be less than this, leaving you with a net profit.)
In order to pay your fees from within your account's growth, you now must move the required funds out of the system and then back in by the end of the month, when the fees are due. This, unfortunately, is not so easily accomplished at this time.
The current problem boils down to liquidity, which refers to a system's ability to provide cash as soon as you want it. (ATM's have better liquidity than banks because you can walk right up and get your cash any day of the week. Banks are closed on weekends, meaning it is impossible to get your cash out of the system on those days.)
These days it is taking several weeks to a month or two to pull your money out of DxInOne, whereas in normal times it generally takes anywhere from a few hours to a few days. Therefore, if you can't cycle your DxInOne "fee money" out and back into the system before fees are due, you need to pay the fees out of pocket. Predictably, it doesn't take any time to move 'new' money into DxInOne.
So, managing portfolio growth becomes a function of self-regulation. While overnight growth is virtually guaranteed with DxInOne, it is up to the client to make sure that one takes care to not overextend when it comes to making those 'virtual' deposits.
Next Chapter: Moving your money through the Dx System

The author (who when online prefers going by the handle Mr. E) has just put out a site called "Surf At My Dot Com - http://www.surfatmy.com -" which he hopes will evolve to include a listing of "unique and/or very cool" sites found on the Net.
Thus far Mr E has found three places that meet his stringent qualifications, all in the realm of online money making.
This is no coincidence.
While Mr E is most enthusiastic about what he's found so far, he feels (at the moment anyway) that this is neither the time nor place for flagrant self promotion. To that end he wishes to refer you to http://www.surfatmy.com.
However Mr. E does want it to be known that he's much more than a materialist.
To this end he would welcome any and all suggestions about sites of quality pertaining to areas other than money - and the usual exclusions do apply.
Article Source: http://EzineArticles.com/?expert=Mark_Grant

Developing your own strategy for a successful online currency trading

2007-08-04T20:10:00.000+01:00

Developing your own strategy for a successful online currency trading is as important as your investment decisions. Online currency trading without a strategy is to rely entirely on chances for your success or failure. Making the right trading decisions and developing a sound and effective trading strategy is therefore the most important foundation of forex trading.

For developing an online forex trading strategy, you should have a working knowledge of forex, how the market works, different methods of technical analysis, and knowledge of some of the popular technical studies. A successful trading involves strict guidelines for return on investment as well as an optimized risk management. With the rise of the internet, forex trading is almost instantly. Your online currency trading strategy therefore should be full proof to handle instantaneous decisions.

It is advisable to form the online trading strategy based on some technical analysis, such as, Simple Moving Average (SMA). With huge online and conventional resources, with some research you can understand the theory of many such technical analyses. For example, you can formulate a set of discipline like: if the price of the currency crosses above a 12-period SMA, you will treat it as a signal to buy at the market; when the currency price crosses below the 12-period SMA, you will ‘stop and reverse’. So you will always have either a long or short position after the first signal.

Many seasoned traders combine more than one strategy for their online forex trading. For example, they use SMA and apply other indicators to support their assumptions. These indicators work as a filter for them. You may formulate your online forex trading strategy based on technical analysis to find out support and resistance levels of the market. The market tends to trade above the support levels and below the resistance levels. If you find that a support or resistance level is broken, the market will then follow through in that direction. Therefore, if your online forex trading strategy helps you in finding out these breaks you can invest in the direction of the market.

The best way to be a successful forex trader is to study and get experience. There are many web sites with free articles, seminars, forums, which can help you in developing your own forex trading strategy. Simple logic and rational thought process will strengthen your strategy and earn huge profit from the trading. Few tips for preparing your strategy will be:

· Always trade with the trend.· Never risk all your trading capital in a single trade.· Follow strict discipline to limit your loss.· Whenever you are in doubt, get out of the trade.

In this highly volatile and liquidated forex trading market, a strong strategy, which is free from any emotions, will ensure high profits for you.

To learn more about developing your own Forex strategy please visit Online Currency Trading Strategy
Article Source: http://EzineArticles.com/?expert=Paul_Bryan

Commodity Markets Review

2007-07-13T22:52:00.000+01:00

Commodity Markets Review

The problem with having any kind ofpositive view on bond prices and the dollar is that the sum of copper and crude oil has just completed what looked like a crash top/consolidation and is now driving higher. When this happens prices tend to continue to rise for some time and given the inverse relationship between copper and crude oil compared to the TBonds and the DXY... prudence would suggest that bonds and the dollar are going lower. This is why we stressed the 105 level as support for the TBonds on. That and the fact that the U.S. employment data is due out today.

The chart below compares the Chinese equity market (Shanghai Comp.) and Wal Mart (WMT). WMT tends to trend inversely to both the Chinese equity market AND gasoline futures prices (which is why we showed the potential divergence between these two markets on page).

The point here is that WMT isn’t showing any strength as of yet and gasoline futures are still grinding higher. The Chinese equity market looks somewhat suspect but it hard to find conviction without confirmation from the other markets.

Below we show Canada’s West Fraser Timber (WFT on Toronto) and U.S. 3-month TBill yields.

The simple point is that lumber prices tend to rise after the funds rate begins to decline so the share price of WFT tends to be at a low around the end of a Fed rate hike cycle. Similar to the gold/copper ratio on page 1 the market is gradually removing the ‘hope’ that short-term yields will decline as WFT moves lower after rallying late last year.

Short-Term Views

The chart shows in the most basic way possible why we continue to believe that commodity prices are in a down trend. We have argued in the past that the home builders were leading commodity prices and as best as we can tell the home builders are still making new lows. We would expect some sort of bottom for the home builders around the time that stocks like CAT move back below their 200-day e.m.a. lines.

One of our basic views is that on the continuous chart the peak for corn futures prices is made in June or July and if this top is broken after the end of August... one has to get long and stay long corn futures into the middle of the next year. With this in mind we show corn futures and the S&P 500 Index futures below.

Notice that the peak for corn and the SPX have occurred at the same time and that corn prices have turned upwards AFTER the SPX futures have gone on to make new recovery highs. In other words... when the SPX futures break solidly above 1555 recent history argues that it is time to look at long corn futures positions once again.

In yesterday’s issue we mentioned that if the SPX was going to resolve higher KO should make new highs but if this is similar to 1997 then KO would break back below 51. Given our obsessive need to time the markets we wanted to point out that about half way through a ‘top’ the SPX tends to reverse sharply higher and that this appears to have happened in late June. The point is that it could still be about two weeks before we have to really worry about a significant break lower in the SPX.

Kevin Klombies is a prolific writer and market analyst. He graduated in 1980 from the University of Saskatchewan with a Bachelor of Commerce degree (Honours) in Finance/Economics. Click here for full bio >>

Weekly Currency Wrap-up

2007-07-13T22:50:00.000+01:00

Weekly Currency Wrap-up

Economic trends in the United States and Eurozone remained a very important influence on the foreign exchange market over the week as bond yields continued to fluctuate.

The U.S. Dollar Index stumbled back to its late April lows early in the week on concerns about the economic outlook but with no major surprises in the U.S. employment report Friday seems to have righted itself to form a double bottom on the daily and weekly charts. It will take a rally above the 83.00 area to confirm the bottom, however.

The U.S. ISM index for the manufacturing sector increased again to 56.0 for June from 55.0 the previous month with orders and production indices remaining firm. The services sector index was also robust with an increase to 60.7 in June, the highest level since April 2006.

The ADP employment report recorded an increase of 150,000 for June, which increased optimism over a solid payroll report. That report did show a 132,000 increase in employment for the month while the May increase was revised up to 190,000 from 157,000. Unemployment held at 4.5% while there was a 0.3% increase in hourly earnings. Of course, there are still concerns surrounding the housing sector as pending home sales weakened, and this curbed optimism over U.S. growth trends.

U.S. 10-year Treasury bond yields fell to the 5.00% level before a recovery back to near 5.20% on Friday as expectations over a cut in interest rates faded again after the generally stronger than expected growth data.

The European Central Bank (ECB) left interest rates on hold at 4.00% following the latest council meeting. In the press conference following the decision, President Trichet stated that the bank would closely monitor inflationary pressure. The comments suggested that the bank will look to increase interest rates in September or October at the latest, especially with Trichet stating that he was not looking to alter market expectations.

The Eurozone retail sales data was weaker than expected with a 0.5% monthly decline for May, cutting annual growth to 0.4%, while German industrial orders were strong for the month.

There was evidence of some stress between the ECB and French President over the issue of exchange rate management with the ECB rejecting calls for a more interventionist policy.

The U.S. dollar was subjected to downward pressure at the end of last week. As confidence deteriorated, the trend continued this week with the U.S. currency weakening to lows beyond 1.3650 against the euro before a tentative recovery to 1.3580 on Friday.

The Bank of England increased interest rates to 5.75% from 5.50% following the latest Monetary Policy Committee (MPC) meeting with rates at the highest level in six years. In the statement following the decision, the bank stated that the medium-term inflation risks were still to the upside, even though the headline inflation rate should move back to the 2.0% level this year. The MPC judged that there was little spare capacity in the economy while money supply and credit growth remained elevated.

The CIPS survey evidence remained firm with an increase in the services index, although there was a small monthly decline in the manufacturing index. There was a solid increase in industrial production.

Sterling pushed to highs around 2.02 against the dollar before a retreat to below 2.01 while Sterling weakened against the euro.

Source: VantagePoint Intermarket Analysis Software

The Canadian currency continued to draw support from high energy prices with crude oil consistently trading above $70 per barrel during the week.

There was a strong recovery in Canadian building permits for the month, and employment data also recorded an increase of more than 37,000 jobs for June with the unemployment rate holding steady at 6.1%. The data reinforced market expectations that the Bank of Canada would increase interest rates in July.

The Canadian dollar was able to resist significant losses against the U.S. currency during the week but hit resistance close to 1.0520.

Carry trades regained influence over the second half of the week. A subdued inflation figure from Switzerland dampened expectations of a more aggressive National Bank stance on interest rates, and the franc was unable to strengthen through the 1.21 level. The yen also came under pressure with lows beyond 123.0 against the dollar and 167.50 against the Euro.

Source: VantagePoint Intermarket Analysis Software

Formerly editor-in-chief of Futures Magazine, Darrell Jobman has been writing about financial markets for more than 35 years and has become an acknowledged authority on derivative markets, technical analysis and various trading techniques.
Click here for full bio >>

How To Place Orders Effectively With A broker

2007-07-13T22:47:00.000+01:00

How to Place Orders

No matter how much analysis you do or how sophisticated your software is, virtually nothing in trading is more critical than entering your orders properly. It is hard enough to determine the trades you want to take. Communicating your trading decision to the market can be another challenge if you are a trading newcomer – unless you work with a broker or experienced trader who can explain the terminology, the strategies and the nuances of the various orders.

Remember, it’s your money the broker is holding so you should be very careful about telling the market what you want to do with your money.

Before discussing the various types of orders, here are a couple of important points:

Not all orders are accepted at all exchanges or by all brokerage firm trading platforms. Check with your broker to be sure which orders you can use for the markets you trade.
Entering a trade is not the end of the order process. Be sure that you get a confirmation that your order has been executed and the price at which the order was filled. That fill shows where you stand in the market and may be the key to followup orders such as stops.
Never assume that a broker or a computer knows what your position is or what you are trying to accomplish. If you say or click “sell” instead of “buy,” your order is likely to get executed, and you may wind up doubling the size of a short position when you thought you were closing out the short position.
Keep your own order log, especially open orders because they may lie in some forgotten queue long after the market has moved away from the area where they were placed and give you a big surprise if they are filled.

Types of Orders

Below are some of the most common types of orders and where you might use them, either to enter or exit a position. To understand the consequences of an order more fully, you may want to work with a broker, at least initially, until placing orders becomes second nature to you.

Market Order
A market order is the most common type of order and should be used whenever you want your order to be executed immediately. You do not have to indicate a specific price because the order will be executed as soon as possible at whatever the next available market price is. Once this order is placed, it cannot be canceled because it is filled immediately.

Keep in mind that the next available price may be far removed from the price at the time you placed your order in wild market conditions. This is known as “slippage” and can be one of the most costly aspects of trading, especially in “thin” markets that may have large price jumps. Do not use “at the market” orders in thin markets or in volatile conditions unless it is imperative that you get into or out of a position at whatever price you can get. Although those situations do exist sometimes, the market may take advantage of you if you resort to the market order.

Market on Close (MOC), Market on Open (MOO)
Some traders call this order “murder on close” or “murder on open” because those typically are the periods of the regular floor trading session when the markets are most active and the odds are higher for the execution price to be away from the posted current price. These are just market orders that must be filled within the price range during the official designated closing or opening time periods. The MOC order may be very useful to close out a day-trading position that you do not want to hold overnight, but keep in mind that it does have its risks.

Limit
A limit order specifies a price limit at which the order must be executed – you get the price you want or better or you don’t get a position. A limit order lets you know the worst price at which your order will be executed. However, you cannot be certain that a limit order will be filled because the market may not trade at your price, or there may be only a few trades at the limit price level you specified and yours is not one of the orders filled. With a limit order, the tradeoff for being sure about the worst price you can get is that you may not get a position at all.

A buy limit order is placed at a price lower than the current market price. A sell limit order is placed at a price higher than the current market price. Some traders add “or better” to a limit order to reinforce their intent, but that is implied in a limit order and is not necessary.

Market If Touched (MIT)
A market-if-touched order combines some features of both the market order and the limit order. Like the limit order, a MIT order may be executed only if the market reaches a particular price. Unlike a limit order, when that price is reached, the MIT order becomes a market order, executed at the next possible price available. That means a MIT order could be executed at the MIT price, at a lower price or at a higher price.

An MIT buy order becomes a market order if and when the market trades at or below the order price. The MIT order does not guarantee that you will buy at the limit price or lower. On the other hand, if the market bounces back above the MIT price, it does get you into a long position whereas a limit order would not.

An MIT sell order becomes a market order if and when the market trades at or above the order price. The MIT order does not guarantee that you will sell at the limit price or higher. If the market falls back below the MIT price, it does get you into a short position whereas a limit order would not.

The advantage of the MIT order is that you know your order will be filled if the MIT price is hit. The disadvantage is that you do not know the worst price at which the MIT order might be executed because it is subject to the same market gyrations as the market order once the MIT price has been reached.

Stop
A “stop” is another common order because traders are always being admonished to trade with stops to protect their accounts. The stop is often used as a protective order, but it is also a good way to get into a new position. A stop order is essentially a market order but only if and when the market reaches a specific price. The specified price acts as the trigger that converts the stop order to a market order. Until and unless that trigger is pulled, your market order stays on the shelf waiting to be activated.

A buy stop order is placed at a price higher than the current market price. It will become a market order to buy only when the market moves up to that price. Like any market order, the trade may be executed at the stop order price, at a lower price or at a higher price, depending on the next best possible price available.

A sell stop order is placed at a price lower than the current market price. It will become a market order to sell only when the market moves down to that price. Like any market order, the trade may be executed at the stop order price, at a lower price or at a higher price, depending on the next best possible price available.

Source: VantagePoint Intermarket Analysis Software

The chart above will help to illustrate the difference between a limit and a stop order, the most common orders after the market order. You could have taken a long position one of two ways:

A buy stop order at the blue line would have become a market order once your stop price was hit. Note that there was some slippage as the market gapped above your stop order, but it did get you into position for the uptrend.
A buy limit order at the red line would have gotten you into a long position at that price or lower. If you did not expect prices to dip too far below the earlier lows indicated by the red line support, a buy limit order placed at that level was a good choice. If prices had barely touched the red line, however, the danger is that your limit order might not have been filled at all, and you might have missed the start of the uptrend.

On the other hand, a sell limit order at the blue line would have gotten you into a short position at that price or higher – in this case, much to your chagrin if that is the type of order you chose. A sell stop order at the red line would have become a market order when that price was hit, and you would have been short at the next possible price, which might have been at, above or below the red line stop price – again, not a good thing in this case as the market turned around right after you got into a short position and moved sharply higher. Of course, you probably would have adjusted your orders to offset that position before losses mounted too high.

Stop Close Only
Like a market on close order, this variation of a stop order limits the time of execution to the closing trading range. If the stop is hit prior to that that time, the order is not executed. If the market is trading higher than the buy stop price or lower than the sell stop price during the closing range, the order becomes a market order and is filled at the best possible price.

Stop Limit Order
If the stop order sometimes serves as a protective order, then the stop limit order acts as sort of a protective order for the stop. Because stop orders become market orders when the specified stop price is hit, the order can be filled at almost any price. When a surprise news event hits the market, for example, prices can make a huge jump. Or when the market approaches a critical chart point that suggests a breakout, numerous stop orders may be sitting above or below that point and may create temporary erratic price movements if the stop is hit.

You may be one of those with a sitting order waiting for the breakout, too, but you are not willing to pay any price to get onboard. A stop limit order acts like a stop order in every way except for one provision: You will not accept a price that is worse than the limit stated. Like any limit order, the risk is that you never get onboard a runaway market that never looks back.

Cancel, Cancel Former Order, Cancel/Replace
All of these orders cancel previous orders, provided, of course, that you enter them before the original order has been executed. Several notes about cancel orders:

You cannot cancel a market order; it should already have been executed.
Many electronic markets do not allow “good ‘til cancel” orders. You have to enter a new order such as a stop every day.
In some markets any “open” or “good ’til cancel” order remains active until it is filled, you cancel it, or the contract expires; it does not go away because you may have forgotten about it or because you may have thought you were offsetting it with a different order later.
If there is any question as to whether an order has been canceled, contact your broker immediately; if a cancel order is too late, you may wind up with two positions instead of one or you may be holding a position you never expected.

One Cancels Other (OCO)
A one-order-cancels-the-other-order is a two-sided order that is sometimes used to bracket a price range when you are unsure about the price direction and want to go with the breakout either way. You could place two separate orders in this situation, but the problem is that both might be filled in a swinging market. You could be locked into a quick loss or wind up with a larger position than you wanted or just become totally confused.

For example, you may have decided that you want to be short a market so you enter an OCO order – one limit order above the current price to sell in case prices go up and one stop order below the current price to sell in case prices slide through some point. You only want one position, but you want to be prepared for either eventuality. Your OCO order tells the broker to fill one order, not both of them, to get you short whichever way prices move.

Commodity Futures Glossary

2007-07-13T22:33:00.000+01:00

Abandon - The act of an option holder in electing not to exercise or offset an option.

Accommodation Trading - Noncompetitive trading entered into by a trader, usually to assist another with illegal trades.

Actuals - The physical or cash commodity, as distinguished from commodity futures contracts. Also see Cash and Spot Commodity.

Aggregation -The principle under which all futures positions owned or controlled by one trader (or group of traders acting in concert) are combined to determine reporting status and speculative limit compliance.

Allowances - The discounts (premiums) allowed for grades or locations of a commodity lower (higher) than the par (or basis) grade or location specified in the futures contract. See Differentials.

Approved Delivery Facility - Any bank, stockyard, mill, store, house, plant, elevator or other depository that is authorized by an exchange for the delivery of commodities tendered on futures contracts.

Arbitrage - Simultaneous purchase of cash commodities or futures in one market against the sale of cash commodities or futures in the same or a different market to profit from a discrepancy in prices. Also includes some aspects of hedging. See Spread, Switch.

Asian Option - An option whose payoff depends on the average price of the underlying asset during some portion of the life of the option.

Assignable Contract -One which allows the holder to convey his rights to a third party. Exchange-traded contracts are not assignable.

Associated Person - A person associated with any futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator or leverage transaction merchant as a partner, officer, employee, consultant, or agent. Also, any person occupying a similar status or performing similar functions, in any capacity that involves; (a) the solicitation or acceptance of customers' orders, discretionary accounts, or participation in a commodity pool (other than in a clerical capacity); or (b) the supervision of any person or persons so engaged.

At-the-Market - An order to buy or sell a futures contract at whatever price is obtainable when the order reaches the trading floor. Also called a Market Order.

At-the-Money - When an option's exercise price is the same as the current trading price of the underlying commodity, the option is at-the-money.

Audit Trail - The record of trading information identifying for example, the brokers participating in each transaction, the firms clearing the trade, the terms and time of the trade, and, ultimately and when applicable, the customers involved.

Backpricing - Fixing the price of a commodity for which the commitment to purchase has been made in advance. The buyer can fix the price relative to any monthly or periodic delivery using the futures markets.

Backwardation - Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for February is $160.00 per ounce and that for June is $155.00 per ounce, the backwardation for four months against January is $5.00 per ounce. (Backwardation is the opposite of contango). See Inverted Market.

Banker's Acceptance - A draft, or bill of exchange, accepted by a bank where the accepting institution guarantees payment. Used extensively in foreign trade transactions.

Basis - The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity. Basis is usually computed in relation to the futures contract next to expire and may reflect different time periods, product forms, qualifies, or locations.

Basis Grade - The grade of a commodity used as the standard, or par grade of a futures contract.

Basis Point - The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.

Basis Quote - Offer or sale of a cash commodity in terms of the difference above or below a futures price (e.g., 10 cents over December corn).

Basis Risk - The risk associated with an unexpected widening or narrowing of basis between the time a hedging position is established and the time that it is lifted.

Bear - One who expects a decline in prices. The opposite of "bull." A news item is considered bearish if it is expected to bring lower prices.

Bear Market - A market in which prices are declining.

Bear Spread - The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a decline in prices but at the same time limiting the potential loss if this expectation is wrong. In the agricultural products, this is accomplished by selling a nearby delivery and buying a deferred delivery.

Bear Vertical Spread - A strategy employed when an investor expects a decline in a commodity price but at the same time seeks to limit the potential loss if this expectation is wrong. This Spread requires the simultaneous purchase and sale of options of the same class and expiration date but different strike prices. For example, if call options are spread, the purchased option must have a higher exercise price than the sold option.

Beta (Beta Coefficient) - A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market.

Bid - An offer to buy a specific quantity of a commodity at a stated price.

Blackboard Trading - The practice of selling commodities from a blackboard on a wall of a commodity exchange.

Black-Scholes Model - An option pricing formula initially derived by F. Black and M. Scholes for securities options and later refined by Black for options on futures.

Board Broker System - A system of trading in which an individual member of an exchange (or a nominee of the member) is designated as a Board Broker for a particular commodity with the responsibility of executing orders left with him by other members on the floor, providing price quotations, and maintaining orderliness in the trading crowd. A Board Broker may not trade for his own account or the account of an affiliated organization. Also see Free Crowd System and Specialist System.

Board Order - See Market-if -Touched Order.

Board of Trade - Any exchange or association, whether incorporated or unincorporated, 6f persons who are engaged in the business of buying or selling any commodity or receiving the same for sale on consignment

Boiler Room - An enterprise which often is operated out of inexpensive, low-rent quarters (hence the term "boiler room") that uses high-pressure sales tactics (generally over the telephone) and possibly false or misleading information to solicit generally unsophisticated investors.

Booking the Basis - A forward pricing sales arrangement in which the cash price is determined either by the buyer or seller within a specified time. At that time, the previously agreed basis is applied to the then-current futures quotation.

Book Transfer - A series of accounting or bookkeeping entries used to settle a series of cash market transactions.

Box Transaction - An option position in which the holder has established a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are in the same contract month in the same commodity.

Break - A rapid and sharp price decline.

Broker - A person paid a fee or commission for executing buy or sell orders of a customer. In commodity futures trading, the term may refer to: (1) Floor Broker –a person who actually executes orders on the trading floor of an exchange; (2) Account Executive, Associated Person, Registered Commodity Representative or Customer's Man - the person who deals with customers in the offices of futures commission merchants; and (3) the Futures Commission Merchant.

Broker Association - Two or more exchange members who (1) share responsibility for executing customer orders, (2) have access to each other's unfilled customer orders as a result of common employment or other types of relationships, or (3) share profits or losses associated with their brokerage or trading activity.

Bucketing -Directly or indirectly taking the opposite side of a customer's order into the broker's own account or into an account in which the broker has an interest without open and competitive execution of the order on an exchange.

Bucket Shop - A brokerage enterprise which "hooks" (i.e. takes the opposite side of) a customer's order without actually having it executed on an exchange.

Bulge - A rapid advance in prices.

Bull - One who expects a rise in prices. The opposite of "bear". A news item is considered bullish if it portends higher prices.

Bullion - Bars or ingots of precious metals, usually cast in standardized sizes.

Bull Market - A market in which prices are rising.

Bull Spread - The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a rise in prices but at the same time limiting the potential loss if this expectation is 'wrong. In the agricultural commodities, this is accomplished by buying the nearby delivery and selling the deferred.

Bull Vertical Spread - A strategy used when an investor expects that the price of a commodity will go up but at the same time seeks to limit the potential loss should this judgment be in error. This strategy involves the simultaneous purchase and sale of options of the same class and expiration date but different strike prices. For example, if call options are spread, the purchased option must have a lower exercise price than the sold option.

Buoyant - A market in which prices have a tendency to rise easily with a considerable show of strength.

Butterfly Spread - A three-legged spread in futures or options. In the options spread, the options have the same expiration date but differ in strike prices. For example, a butterfly spread in soybean call options might consist of two short calls at a $6.00 strike price, one long call at a $6.50 strike price, and one long call at a $5.50 strike price.

Buyer - A market participant who takes a long future position or buys an option. An option buyer is also called a taker, holder, or owner.

Buyer's Call - See Call.

Buyer's Market - A condition of the market in which there is an abundance of goods available and hence buyers can afford to be selective and may be able to buy at less than the price that had previously prevailed. See Seller's Market.

Buying Hedge (or Long Hedge) - Hedging transaction in which futures contracts are bought to protect against possible increased cost of commodities. See Hedging.

Buy (or Sell) On Close - To buy (or sell) at the end of the trading session within the closing price range.

Buy (or Sell) On Opening - To buy (or sell) at the beginning of a trading session within the opening price range.

C & F - "Cost and Freight" paid to a point of destination and included in the price quoted.

Call - (1) A period at the opening and the close of some futures markets in which the price for each futures contract is established by auction; (2) Buyer's Call generally applies to cotton, also called "call sale." A purchase of a specified quantity of a specific grade of a commodity at a fixed number of points above or below a specified delivery month futures price with the buyer allowed a period of time to fix the price either by purchasing a future for the account of the seller or telling the seller when he wishes to fix the price; (3) Seller's Call, also called "call purchase," is the same as the buyer's call except that the seller has the right to determine the time to fix the price; (4) option contract giving the buyer the right to purchase the commodity or to enter into a long position; and (5) the requirement that a financial instrument be returned to the issuer prior to maturity, with principal and accrued interest paid off upon return.

Call Cotton - Cotton bought or sold on call. See Call.

Called - Another term for "exercised" when the option is a call. The writer of a call must deliver the indicated underlying commodity when the option is exercised or called.

Call Option - A contract that entitles the buyer/taker to buy a fixed quantity of a commodity at a stipulated basis or striking price at any time up to the expiration of the option. The buyer pays a premium to the seller/grantor for this contract. A call option is bought with the expectation of a rise in prices. See Put Option.

Call Rule - An exchange regulation under which an official bid price for a cash commodity is competitively established at the close of each day's trading. It holds until the next opening of the exchange.

Capping - Effecting commodity or security transactions shortly prior to an option's expiration date by depressing or preventing a rise in the price of the commodity or security so that previously written call options will expire worthless and the premium received therefrom will be protected.

Carrying Broker - A member of a commodity exchange, usually a futures commission merchant, through whom another broker or customer elects to clear all or part of its trades.

Carrying Charges - Cost of storing a physical commodity or holding a financial instrument over a period of time. Includes insurance, storage, and interest on the invested funds as well as other incidental costs. It is a carrying charge market when there are higher futures prices for each successive contract maturity. If the carrying charge is adequate to reimburse the holder, it is called a "full charge." Also see Negative Carry, Positive Carry and Contango.

Cash Commodity - The physical or actual commodity as distinguished from the futures contract. Sometimes called Spot Commodity or Actuals.

Cash Forward Sale - See Forward Contracting.

Cash Market - The market for the cash commodity (as contrasted to a futures contract), taking the form of: (1) an organized, self-regulated central market (e.g., a commodity exchange); (2) a decentralized over-the-counter market; or (3) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.

Cash Price - The price in the marketplace for actual cash or spot commodities to be delivered via customary market channels.

Cash Settlement - A method of settling certain futures or option contracts whereby the seller (or short) pays the buyer (or long) the cash value of the commodity traded according to a procedure specified in the contract.

CCC - See Commodity Credit Corporation.

CD - See Certificate of Deposit.

CEA - See Commodity Exchange Authority.

Certificate of Deposit (CD) - A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

CFTC - See Commodity Futures Trading Commission.

CFO - Cancel Former Order.

Certificated or Certified Stocks - Stocks of a commodity that have been inspected and found to be of a quality deliverable against futures contracts, stored at the delivery points designated as regular or acceptable for delivery by the commodity exchange. In grain called "stocks in deliverable position." See Deliverable Stocks.

Changer - A clearing member of both the Mid-America Commodity Exchange and another futures exchange who, for a fee, will assume the opposite side of a transaction on the MCE by taking a spread position between the MCE and another futures exchange which trades an identical, but larger, contract. Through this service, the changer provides liquidity for the MCE and an economical mechanism for arbitrage between the two markets.

Charting - The use of graphs and charts in the technical analysis of futures markets to plot trends of price movements, average movements of price, volume of trading and open interest See Technical Analysis.

Chartist - Technical trader who reacts to signals read from graphs of price movements.

Cheapest-to-Deliver - Usually refers to the selection of bonds deliverable against the expiring bond futures contract.

Chooser Option - An option which is transacted at the present but which at some prespecified future date is chosen to be either a put or a call option.

Churning - Excessive trading of an account by broker with control of the account for the purpose of generating commissions while disregarding the interests of the customer.

Circuit Breaker - A system of trading halts and price limits on equities and derivative markets designed to provide a cooling-off period during large, intraday market declines. The first known use of the term circuit breaker in this context was in the Report of the Presidential Task Force on Market Mechanisms (January 1988), which recommended that circuit breakers he adopted following the market break of October 1987.

C.I.F. - Cost, insurance and freight paid to a point of destination and included in the price quoted.

Class (of options) - Options of the same type (i.e., either puts or calls, but not both) covering the same underlying futures contract or physical commodity (e.g., a March call at strike price 62 and a May call at strike price 58).

Clearing - The procedure through which the clearing house or association becomes buyer to each seller of a futures contract, and seller to each buyer, and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract.

Clearing House - An adjunct to, or division of, a commodity exchange through which transactions executed on the floor of the exchange are settled. Also charged with assuring the proper conduct of the exchange's delivery procedures and the adequate financing of the trading.

Clearing Member - A member of the Clearing House or Association. All trades of a non-clearing member must be registered and eventually settled through a clearing member.

Clearing Price - See Settlement Price.

Close, The - The period at the end of the trading Session officially designated by the exchange during which all transactions are considered made "at the close."

Closing-Out - Liquidating an existing long or short futures or option position with an equal and opposite transaction. Also known as Offset.

Closing Price (or Range) - The price (or price range) recorded in trading that takes place in the final moments of a day's trade that are officially designated as the "close."

Combination - Puts and calls held either long or short with different strike prices and expirations.

Commercial - An entity involved in the production, processing, or merchandising of a commodity.

Commercial Grain Stocks - Domestic grain in store in public and private elevators at important markets and grain afloat in vessels or barges in harbors of lakes and seaboard ports.

Commercial Paper - Short-term promissory notes issued in bearer form by large corporations, with maturities ranging from 5 to 270 days. Since the notes are unsecured, large corporations with impeccable credit ratings generally dominate the commercial paper market.

Commission - The charge made by a commission house for buying and selling commodities.

Commitments - See Open Interest.

Commodity Credit Corporation - A government-owned corporation established in 1933 to assist American agriculture. Major operations include price support programs, foreign sales, and export credit programs for agricultural commodities.

Commodity Exchange Authority - A regulatory agency of the U.S. Department of Agriculture established to administer the Commodity Exchange Act prior to 1975; the forerunner of the Commodity Futures Trading Commission

Commodity Exchange Commission - A commission consisting of the Secretary of Agriculture, Secretary of Commerce, and the Attorney General, charged with responsibility for administering the Commodity Exchange Act prior to 1975.

Commodity Futures Trading Commission (CFTC) -The Federal regulatory agency established by the CFTC Act of 1974 to administer the Commodity Exchange Act.

Commodity-linked Bond - A bond in which payment to the investor is dependent on the price level of such commodities as crude oil, gold, or silver at maturity.

Commodity Option - See Option, Puts and Calls.

Commodity Pool - An investment trust, syndicate or similar form of enterprise operated for the purpose of trading commodity futures or option contracts.

Commodity Pool Operator (CPO) - Individuals or firms in businesses similar to investment trusts or syndicates that solicit or accept funds, securities or property for the purpose of trading commodity futures contracts or commodity options.

Commodity Price Index - Index or average, which may be weighted, of selected commodity prices, intended to be representative of the markets in general or a specific subset of commodities (for example, grains or livestock).

Commodity Trading Advisor (CTA) - Individuals or firms that, for pay, issue analyses or reports concerning commodities, including the advisability of trading in commodity futures or options.

Congestion - (1) A market situation in which shorts attempting to cover their positions are unable to find an adequate supply of contracts provided by longs willing to liquidate or by new sellers willing to enter the market, except at sharply higher prices; (2) in technical analysis, a period of time characterized by repetitious and limited price fluctuations.

Consignment - A shipment made by a producer or dealer to an agent elsewhere with the understanding that the commodities in question will be cared for or sold at the highest obtainable price. Title to the merchandise shipped on consignment rests with the shipper until the goods are disposed of according to agreement.

Contango - Market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery month; the opposite of "backwardation."

Contract - (l) A term of references describing a unit of trading for a commodity future or option; (2) An agreement to buy or sell a specified commodity, detailing the amount and grade of the product and the date on which the contract will mature and become deliverable.

Contract Grades - Those grades of a commodity which have been officially approved by an exchange as deliverable in settlement of a futures contract.

Contract Market - (1) A board of trade or exchange designated by the Commodity Futures Trading Commission to trade futures or options under the Commodity Exchange Act; (2) Sometimes the futures contract itself (e.g., corn is a contract market).

Contract Month - See Delivery Month

Contract Unit - The actual amount of a commodity represented in a contract.

Controlled Account - Any account for which trading is directed by someone other than the owner. Also called a Managed Account or a Discretionary Account.

Convergence - The tendency for prices of physicals and futures to approach one another, usually during the delivery month. Also called a "narrowing of the basis."

Conversion - When trading options on futures contracts, a position created by selling a call option, buying a put option, and buying the underlying futures contract, where the options have the same strike price and the same expiration.

Corner - (1) To corner is to secure such relative control of a commodity or security that its price can be manipulated; (2) In the extreme situation, obtaining contracts requiring delivery of more commodities or securities than are available for delivery.

Corn-Hog Ratio - See Feed Ratio.

Cost of Tender - Total of various charges incurred when a commodity is certified and delivered on a futures contract.

Counter-Trend Trading - In technical analysis, the method by which a trader takes a position contrary to the current market direction in anticipation of a change in that direction.

Coupon (Coupon Rate) - A fixed dollar amount of interest payable per annum, stated as a percentage of principal value, usually payable in semiannual installments.

Cover - (1) Purchasing futures to offset a short position. Same as Short Covering. See Offset, Liquidation; (2) To have in hand the physical commodity when a short futures or leverage sale is made, or to acquire the commodity that might be deliverable on a short sale.

Covered Option - A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodities. For example, in the case of options on futures contracts a covered call is a short call position combined with a long futures position. A covered put is a short put position combined with a short futures position.

Cox-Ross-Rubinstein Option Pricing Model - An option-pricing logarithm developed by J. Cox, S. Ross and M. Rubinstein which can be adapted to include effects not included in the Black-Scholes model (e.g. early exercise and price supports).

CPO - See Commodity Pool Operator.

Crack - In energy futures, the simultaneous purchase of crude oil futures and the sale of petroleum product futures to establish a refining margin. See Gross Processing Margin.

Crop Year - The time period from one harvest to the next, varying according to the commodity (i.e., July 1 to June 30 for wheat; September 1 to August 31 for soybeans).

Cross-Hedge - Hedging a cash market position in a futures contract for a different but price-related commodity.

Cross margining - A procedure for margining related securities options and futures contracts jointly when different clearing houses clear each side of the position.

Cross-Rate - In foreign exchange, the price of one currency in terms of another currency in the market of a third country. For example, a London dollar cross-rate could be the price of one U.S. dollar in terms of deutsche marks on the London market.

Cross Trading - Offsetting or noncompetitive match of the buy order of one customer against the sell order of another, a practice that is permissible only when executed in accordance with the Commodity Exchange Act, CFTC regulations, and rules of the contract market.

Crush Spread - In the soybean futures market, the simultaneous purchase of soybean futures and the sale of soybean meal and soybean oil futures to establish a processing margin. See Gross Processing Margin.

CTA - See Commodity Trading Advisor.

CTI Codes - Customer Type Indicator codes. These consist of four identifiers which describe transactions by the type of customer for which a trade is effected. The four codes are: (1) trading for the member's own account; (2) trading for a proprietary account of the clearing member's firm; (3) trading for another member who is currently present on the trading floor or for an account controlled by such other member; and (4) trading for any other type of customer. Transaction data classified by the above codes are included in the trade register report produced by a clearing organization. See 17 C.F.R. 1.35 (e).

Curb Trading - Trading by telephone or by other means that takes place after the official market has closed. Originally, it took place in the street, on the curb outside the market. Under CFTC rules, curb trading is illegal. Also known as kerb trading.

Current Delivery Month - The futures contract which matures and becomes deliverable during the present month. Also called Spot month.

Daily Price Limits - See Limit (Up or Down).

Day Order - An order that expires automatically at the end of each day's trading session. There may be a day order with time contingency. For example, an "off at a specific time" order is an order that remains in force until the specific time during the session is reached. At such time, the order is automatically canceled.

Day Traders - Commodity traders, generally members of the exchange on the trading floor, who take positions in commodities and then offset them prior to the close of trading on the same trading day.

Day Trading - Establishing and offsetting the same futures market position within one day.

Dealer Option - A put or call on a physical commodity, not originating on or subject to the rules of an exchange, in which the obligation for performance rests with the writer of the option. Dealer options are normally written by firms handling the underlying commodity and offered to public customers, although the reverse may also be true.

Deck - The orders for purchase or sale of futures and option contracts held in the hands of a floor broker.

Declaration Date - See Expiration Date.

Declaration (of Options) - See Exercise.

Default - Failure to perform on a futures contract as required by exchange rules, such as failure to meet a margin call, or to make or take delivery.

Deferred Futures - The futures contracts that expire during the most distant months. Also called Back Months.

Months - See Forward Purchase or Sale.

Deliverable Grades - See Contract Grades.

Deliverable Stocks - Stocks of commodities located in exchange approved storage, for which receipts may be used in making delivery on futures contracts. In the cotton trade, the term refers to cotton certified for delivery. Also see Certificated Stocks.

Delivery - The tender and receipt of the actual commodity, tile cash value of the commodity, or of a delivery instrument covering the commodity (e.g., warehouse receipts or shipping certificates), used to settle a futures contract. See Notice of Delivery.

Delivery, Current - Deliveries being made during a present month. Sometimes current delivery is used as a synonym for nearby delivery.

Delivery Date - The date on which the commodity or instrument of delivery must be delivered to fulfill the terms of a contract.

Delivery Instrument - A document used to effect delivery on a futures contract, such as a warehouse receipt or shipping certificate.

Delivery Month - The specified month within which a futures contract matures and can be settled by delivery.

Delivery Nearby - The nearest traded month. In plural form, one of the nearer trading months.

Delivery Notice - The written notice given by the seller of his intention to make delivery against an open short futures position on a particular date. This notice, delivered through the clearing house, is separate and distinct from the warehouse receipt or other instrument that will be used to transfer title.

Delivery Option - A provision of a futures contract which provides the short with flexibility in regard to timing, location, quantity, or quality in the delivery process.

Delivery Points - Those locations designated by commodity exchanges where stocks of a commodity represented by a futures contract may be delivered in fulfillment of the contract.

Delivery Price - The price fixed by the clearing house at which deliveries on futures are invoiced - generally the price at which the futures contract is settled when deliveries are made.

Delta - See Delta Value.

Delta Margining - An option margining system used by some exchanges for exchange members and/or floor traders which equates the changes in option premiums with the changes in the price of the underlying futures contract to determine risk factors on which to base the margin requirements.

Delta Value - The expected change in an option's price given a one-unit change in the price of the underlying futures contract or physical commodity.

Deposit - The initial outlay required by a broker of a client to open a futures position, returnable on liquidation of that position.

Depository Receipt - See Vault Receipt.

Derivative - A financial instrument, traded on or off an exchange, the price of which is directly dependent upon (i.e. "derived from") the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement (e.g., the movement over time of the Consumer Price Index or freight rates). Derivatives involve the trading of rights or obligations based on the underlying product, but do not directly transfer property. They are used to hedge risk or to exchange a floating rate of return for a fixed rate of return.

Designated Self Regulatory Organization (DSRO) -Self regulatory organizations (i.e., the commodity exchanges and the National Futures Association) must enforce minimum financial and reporting requirements for their members, among other responsibilities outlined in the CFTC's regulations. When a futures commission merchant (FCM) is a member of more than one SRO, the SRO's may decide among themselves which of them will be responsible for assuming these regulatory duties and, upon approval of the plan by the Commission, be appointed the "designated self regulatory organization" for that FCM.

Diagonal Spread - A spread between two call options or two put options with different strike prices and different expiration dates.

Differentials - The discounts (premiums) allowed for grades or locations of a commodity lower (higher) than the par or basis grade or location specified in the futures contract. See Allowances.

Discount - (1) The amount a price would be reduced to purchase a commodity of lesser grade, (2) sometimes used to refer to the price differences between futures of different delivery months, as in the phrase "July at a discount to May," indicating that the price for the July future is lower than that of May.

Discount Basis - Method of quoting securities where the price is expressed as an annualized discount from maturity value.

Discount Bond - A bond selling below par.

Discretionary Account - An arrangement by which the holder of an account gives written power-of-attorney to someone else, often a broker, to buy and sell without prior approval of the holder; often referred to as a "managed account" or "controlled account". See Controlled Account.

Distant or Deferred Delivery - Usually means one of the more distant months in which futures trading is taking place.

Dominant Future - That future having the largest number of open contracts.

Double Hedging - As used by the CFTC, it implies a situation where a trader holds a long position in the futures market in excess of the speculative limit as an offset to a fixed price sale even though the trader has an ample supply of the commodity on hand to fill all sales commitments.

DSRO - See Designated Self-Regulatory Organization.

Dual Trading - Dual trading occurs when: (1) a floor broker executes customer orders and, on the same day, trades for his own account or an account in which he has an interest; or (2) an FCM carries customer accounts and also trades, or permits its employees to trade, in accounts in which it has a proprietary interest, also on the same trading day.

Duration - A measure of a bond's price sensitivity to changes in interest rates.

Ease Off - A minor and/or slow decline in the prices of a market.

ECU - See European Currency Unit.

Efficient Market - A market in which new information is immediately available gratis to all investors and potential investors. A market in which all information is instantaneously assimilated and therefore has no distortions.

EFP - Exchange for Physical. See Exchange of Futures for Cash.

Elliot Wave - (1) A theory named after Ralph Elliot, who contended that the stock market tends to move in discernible and predictable patterns reflecting the basic harmony of nature; (2) in technical analysis, a charting method based on the belief that all prices act as waves rising and falling rhythmically.

Equity - The residual dollar value of a futures, option, or leverage trading account assuming it were liquidated at current prices.

Eurocurrency - Certificates of Deposit (CDs), bonds, deposits, or any capital market instrument issued outside of the national boundaries of the currency in which the instrument is denominated (for example, Euro-Swiss francs, Euro-Deutsche marks, eurodollars, eurodollar bonds, or eurodollar CDs).

Eurodollar - U.S. dollar deposits placed with banks outside the U.S. Holders may include individuals, companies, banks and central banks.

Eurodollar Bonds - Bonds issued in Europe by corporate or government interests outside the boundary of the national capital market, denominated in dollars.

Eurodollar CD’s - Dollar-denominated certificates of deposit issued by a bank outside of the United States, either a foreign bank or U.S. bank subsidiary.

European Currency Unit - The official unit of account of the European Monetary System. It is a combination or basket of the currencies from the twelve European Community countries: the Deutsche mark, French franc, British pound sterling, Irish pound, Italian lira, Belgian franc, Dutch guilder, Luxembourg franc, Greek drachma, Spanish peseta, Portuguese escudo, and the Danish krona.

Even Lot - A unit of trading in a commodity established by an exchange to which official price quotations apply. See Round Lot.

Exchange of Futures for Cash - A transaction in which the buyer of a cash commodity transfers to the seller a corresponding amount of long futures contracts, or receives from the seller a corresponding amount of short futures, at a price difference mutually agreed upon. In this way, the opposite hedges in futures of both parties are closed out simultaneously. Also called EFP (Exchange for Physica1), AA (Against Actuals) or Ex-Pit transactions.

Exchange Rate - The price of one currency stated in terms of another currency.

Exchange Risk Factor - The delta value of an option as computed daily by the exchange on which it is traded.

Exercise - To elect to buy or sell, taking advantage of the right (but not the obligation) conferred by an option contract.

Exercise (or Strike) Price - The price specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the option.

Exotic Options - Any of a wide variety of options with non-standard pay out structures, including Asian options and Lookback options mostly traded in the over-the-counter market of the option.

Expiration Date - The date on which an option contract automatically expires: the last day an option can be exercised.

Extrinsic Value - See Time Value.

Ex-Pit - See Transfer Trades and Exchange of Futures for Cash.

FAB Spread - Five Against Bond. A futures spread trade involving the buying (selling) of a five-year Treasury note futures contract and the selling (buying) of a Treasury bond futures contract.

Fannie Mae - See Federal National Mortgage Association.

FAN Spread - Five Against Note. A futures spread trade involving the buying (selling) of a five-year Treasury note futures contract and the selling (buying) of a ten-year Treasury note futures contract.

Fast Tape - Transactions in the pit or ring take place in such volume and with such rapidity that price reporters are behind with price quotations, so insert "FAST" and show a range of prices.

Federal National Mortgage Association (FNMA) - A corporation created by Congress to support the secondary mortgage market; it purchases and sells residential mortgages insured by the Federal Home Administration (FHA) or guaranteed by the Veteran's Administration (VA).

Feed Ratio - The relationship of the cost of feed, expressed as a ratio to the sale price of animals, such as the corn/hog ratio. These serve as indicators of the profit margin or lack of profit in feeding animals to market weight.

FIA - See Futures Industry Association.

Fictitious Trading - Wash trading, bucketing, cross trading, or other schemes which give the appearance of trading. Actually, no bona fide, competitive trade has occurred.

Fill or Kill Order - An order which demands immediate execution or cancellation.

Financial Instruments - As used by the CFTC, this term generally refers to any futures or option contract that is not based on an agricultural commodity or a natural resource. It would include currencies, securities, mortgages, commercial paper, and indices of various kinds.

First Notice Day - The first day on which notices of intention to deliver actual commodities against futures market positions can be received. First notice day may vary with each commodity and exchange.

Fix, Fixing - See Gold Fixing.

Floor Broker - Any person who, in or surrounding any pit, ring, post or other place provided by a contract market for the meeting of persons similarly engaged, executes for another person any orders for the purchase or sale of any commodity for future delivery.

Floor Trader - An exchange member who executes his own trades by being personally present in the pit or place for futures trading. See Local.

F.O.B. (Free On Board) - Indicates that all delivery, inspection and elevation or loading cost involved in putting commodities on board a carrier have been paid.

Forced Liquidation - The situation in which a customer's account is liquidated (open positions are offset) by the brokerage firm holding the account, or, in the case of leverage accounts, by the leverage transaction merchant, usually after notification (margin calls), because the account is undercapitalized.

Force Majeure - A clause in a supply contract which permits either party not to fulfill the contractual commitments due to events beyond their control. These events may range from strikes to export delays in producing countries.

Foreign Exchange - Foreign Currency. On the foreign exchange market, foreign currency is bought and sold for immediate or future delivery.

Forward - In the future.

Forwardation - See Contango.

Forward Contracting - A cash transaction common in many industries, including commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery.

Forward Market - Refers to informal (non-exchange) trading of commodities to be delivered at a future date. Contracts for forward delivery are "personalized," (i.e., delivery time and amount are as determined between seller and customer).

Forward Months - Futures contracts, currently trading, calling for later or distant delivery. See Deferred Futures.

Forward Purchase or Sale - A purchase or sale between commercial parties of an actual commodity for deferred delivery.

Free Crowd System - A system of trading, common to most U.S. commodity exchanges, where floor members may bid and offer simultaneously either for their own accounts or for the accounts of customers, and transactions may take place simultaneously at different places in the trading ring. Also see Board Broker System and Specialist System.

Frontrunning - With respect to commodity futures and options, taking a futures or option position based upon non-public information regarding an impending transaction by another person in the same or related future or option.

Full Carrying Charge, Full Carry -See Carrying Charges.

Fundamental Analysis - Study of basic, underlying factors which will affect the supply and demand of the commodity being traded in futures contracts. See Technical Analysis.

Fungibility - The characteristic of interchangeability. Futures contracts for the same commodity and delivery month are fungible due to their standardized specifications for quality, quantity, delivery date and delivery locations.

Futures - See Futures Contract.

Futures Commission Merchant - Individuals, associations, partnerships, corporations and trusts that solicit or accept orders for the purchase or sale of any commodity for future delivery on, or subject to the rules of, any contract market and that accept payment from or extend credit to those whose orders are accepted.

Futures Contract - An agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined at initiation of the contract; (2) which obligates each party to the contract to fulfill the contract at the specified price: (3) which is used to assume or shift price risk; and (4) which may be satisfied by delivery or offset.

Futures-equivalent - A term frequently used with reference to speculative position limits for options on futures contracts. The futures-equivalent of an option position is the number of options multiplied by the previous day's risk factor or delta for the option series. For example, 10 deep out-of-the-money options with a risk factor of 0.20 would be considered 2 futures-equivalent contracts. The delta or risk factor used for this purpose is the same as that used in delta-based margining and risk analysis systems.

Futures Industry Association (FIA) - A membership organization for futures commission merchants (FCM's) which, among other activities, offers education courses on the futures markets, disburses information and lobbies on behalf of its members.

Futures Price - (1) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange. (2) The price of any futures contract.

Ginnie Mae - Pass-through mortgage-backed certificates guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae). The certificates are backed by pools of FHA insured and /or VA guaranteed residential mortgages, with the mortgage and note held in safekeeping by a custodial financial institution. Also called G.N.M.A.’s or G.N.M.A. certificates.

Ginzy Trading - A trade practice in which a floor broker, in executing an order-particularly a large order, will fill a portion of the order at one price and the remainder of the order at another price to avoid an exchange's rule against trading at fractional increments or "Split ticks." In In re Murphy, [1984-86 Transfer Binder] Comm. Fut L. Rep. (CCH) at PP 31,353-4 (Sept.25, 1985), the Commission found that ginzy trading was a noncompetitive trading practice in violation of Section 4c(a)(B) of the Commodity Exchange Act and CFTC Regulation 1.38(a).

Give Up - A contract executed by one broker for the client of another broker that the client orders to be turned over to the second broker. The broker accepting the order from the customer collects a wire toll from the carrying broker for the use of the facilities. Often used to consolidate many small orders or to disperse large ones.

Globex - An international electronic trading system for futures and options that allows participating exchanges to list their products for trading after the close of the exchanges' open outcry trading hours. Developed by Reuters Limited for use by the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT), Globex was launched on June 25, 1992, for certain CME and CBOT contracts. Various MATIF (Marche a Terme International de France) contracts are scheduled to begin trading in early 1993, and, at this writing - August, 1992, several New York and European exchanges have expressed an interest in participating in Globex.

G.N.M.A. - The Government National Mortgage Association; a government agency within the Department of Housing and Urban Development that, among other things, guarantees payment on Ginnie Maes.

Gold Certificate - A certificate attesting to a person's ownership of a specific amount of gold bullion.

Gold Fixing (Gold Fix) - The setting of the gold price at 10:30 AM (first fixing) and 3.00 PM (second fixing) in London by five representatives of the London Gold Market. See London Gold Market.

Gold/Silver Ratio - The number of ounces of silver required to buy one ounce of gold at current spot prices.

Good This Week Order (GTW) - Order which is valid only for the week in which it is placed.

Good 'Til Cancelled Order (GTC) - Order which is valid at any time during market hours until executed or cancelled. See Open Order.

GPM - See Gross Processing Margin.

Grades - Various qualities of a commodity.

Grading Certificates - A formal document setting forth the quality of a commodity as determined by authorized inspectors or graders.

Grain Futures Act - Federal statute which regulated trading in grain futures, effective June 22, 1923; administered by the U.S. Department of Agriculture; amended in 1936 by the Commodity Exchange Act.

Grantor - The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, stands ready to purchase the underlying commodity (or futures contract) in the case of a put option or to sell the underlying commodity (or futures contract) in the case of a call option.

Gross Processing Margin (GPM) -Refers to the difference between the cost of a commodity and the combined sales income of the finished products which result from processing the commodity. Various industries have formulas to express the relationship of raw material costs to sales income from finished products. See Crack and Crush.

GTC - See Good 'Til Cancelled order.

GTW - See Good This Week order.

Haircut - (1) In determining whether assets meet capital requirements, a percentage reduction in the stated value of assets. (2) In computing the worth of assets deposited as collateral or margin, a reduction from market value.

Hardening - (I) Describes a price which is gradually stabilizing; (2) a term indicating a slowly advancing market.

Heavy - A market in which prices are demonstrating either an inability to advance or a slight tendency to decline.

Hedge Ratio - Ratio of the value of futures a contract purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.

Hedging - Taking a position in a futures market opposite to a position held in the cash market to minimize the risk of financial loss from an adverse price change; a purchase or sale of futures as a temporary substitute for a cash transaction that will occur later.

Hog-Corn Ratio - See Feed Ratio.

Hybrid Instruments - Financial instruments that possess, in varying combinations, characteristics of forward contracts, futures contracts, option contracts, debt instruments, bank depository interests, and other interests. Certain hybrid instruments are exempt from CFTC regulation. See Commission Rule 34.1(b).

IB - See Introducing Broker.

Income Security - A security whose nominal (or current dollar) yield is fixed or determined with certainty at the time of purchase.

Index Arbitrage - The simultaneous purchase (sale) of stock index futures and the sale (purchase) of some or all of the component stocks which make up the particular stock index to profit from sufficiently large intermarket spreads between the futures contract and the index itself.

Initial Deposit - See Initial Margin.

Initial Margin - Customers' funds put up as security for a guarantee of contract fulfillment at the time a futures market position is established. See Original Margin.

In Sight - The amount of a particular commodity that arrives at terminal or central locations in or near producing areas. When a commodity is "in sight," it is inferred that reasonably prompt delivery can he made; the quantity and quality also become known factors, rather than estimates.

Intercommodity Spread - A spread in which the long and short legs are in two different but generally related commodity markets. Also called an intermarket spread. See Spread.

Interdelivery Spread - A spread involving two different months of the same commodity. Also called an intracommodity spread. See Spread.

Interest Rate futures - Futures contracts traded on fixed income securities such as GNMA's, U.S. Treasury issues, or CDs. Currency is excluded from this category, even though interest rates are a factor in currency values.

Intermarket Spread - See Spread and Intercommodity Spread.

International Commodities Clearinghouse(ICCH) - An independent organization that serves as a clearinghouse for most futures markets in London, Bermuda, Singapore, Australia, and New Zealand.

In-The-Money - A term used to describe an option contract that has a positive value if exercised. A call at $400 on gold trading at $410 is in-the-money 10 dollars.

Intracommodity Spread - See Spread and Interdelivery Spread.

Intrinsic Value - A measure of the value of an option or a warrant if immediately exercised. The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for the commodity or futures contract.

Introducing Broker (or lB) - Any person (other than a person registered as an "associated person" of a futures commission merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result therefrom.

Inverted Market - A futures market in which the nearer months are selling at prices higher than the more distant months; a market displaying "inverse carrying charges," characteristic of markets with supply shortages. See Backwardation.

Invisible Supply - Uncounted stocks of a commodity in the hands of wholesalers, manufacturers and producers which cannot be identified accurately; stocks outside commercial channels but theoretically available to the market.

ISDA - The International Swap Dealers Association, Inc., a New York-based group of major international swap dealers, which has published the Code of Standard Wording, Assumptions and Provisions for Swaps, or Swaps Code, for U.S. dollar interest rate swaps as well as standard master interest rate and interest and currency swap agreements and definitions for use in connection with the creation and trading of swaps.

Job Lot - A form of contract having a smaller unit of trading than is featured in a regular contract.

Kerb Trading or Dealing - See Curb Trading.

Large Order Execution (LOX) Procedures - Rules in place at the Chicago Mercantile Exchange that authorize a member firm which receives a large order from an initiating party to solicit counterparty interest off the exchange floor prior to open execution of the order in the pit and that provide for special surveillance procedures. The parties determine a maximum quantity and an "intended execution price." Subsequently, the initiating party's order quantity is exposed to the pit; any bids (or offers) up to and including those at the intended execution price are hit (accepted). The unexecuted balance is then crossed with the contraside trader found by the LOX procedures.

Large Traders - A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one contract market equaling or exceeding the exchange or CFTC-specified reporting level.

Last Notice Day - The final day on which notices of intent to deliver on futures contracts may be issued.

Last Trading Day - Day on which trading ceases for the maturing (current) delivery month.

Leaps - Long-dated, exchange-traded options.

Leverage Contract - A contract, standardized as to terms and conditions, for the long-term (ten years or longer) purchase (1ong leverage contract) or sale (short leverage contract) by a leverage customer of a leverage commodity which provides for: (1) participation by the leverage transaction merchant as a principal in each leverage transaction; (2) initial and maintenance margin payments by the leverage customer; (3) periodic payment by the leverage customer or accrual by the leverage transaction merchant to the leverage customer of a variable carrying charge or fee on the initial value of the contract plus any margin deposits made by the leverage customer in connection with a short leverage contract; (4) delivery of a commodity in an amount and form which can be readily purchased and sold in normal commercial or retail channels; (5) delivery of the leverage commodity after satisfaction of the balance due on the contract; and (6) determination of the contract purchase and repurchase, or sale and resale, prices by the leverage transaction merchant.

Leverage Dealer - See Leverage Transaction Merchant.

Leverage Transaction Merchant - Any individual, association, partnership, corporation, or trust that is engaged in the business of offering to enter into, entering into, or confirming the execution of leverage contracts, or soliciting or accepting orders for leverage contracts, and who accepts leverage customer funds or extends credit in lieu of those funds.

Licensed Warehouse - A warehouse approved by an exchange from which a commodity may be delivered on a futures contract. See Regular Warehouse.

Life of Contract - Period between the beginning of trading in a particular futures contract and the expiration of trading. In some cases this phrase denotes the period already passed in which trading has already occurred. For example, "The life-of-contract high so far is $2.50." Same as Life of Delivery or Life of the Future.

Limit (Up or Down) - The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange. See Daily Price Limits.

Limit Move - A price that has advanced or declined the permissible limit during one trading session, as fixed by the rules of a contract market.

Limit Only - The definite price stated by a customer to a broker restricting the execution of an order to buy for not more than, or to sell for not less than, the stated price.

Limit Order - An order in which the customer specifies a price limit or other condition, such as time of an order, as contrasted with a market order which implies that the order should be filled as soon as possible.

Liquidation -The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering. See Cover.

Liquid Market - A market in which selling and buying can be accomplished with minimal price change.

LocaI - A member of a U.S. exchange who trades for his own account and/or fills orders for customers and whose activities provide market liquidity. See Floor Trader.

Locked-In - A hedged position that cannot be lifted without offsetting both sides of the hedge (spread). See Hedging. Also refers to being caught in a limit price move.

London Gold Market - Refers to the five dealers who set (fix) the gold price in London: Mocatta & Goldsmid, N. Rothschild & Sons, Johnson Matthey, Sharps Pixley, and Samuel Montagu & Co.

London Option - A generic term sometimes used to describe options on physical commodities or on futures contracts traded abroad (typified by options on London commodity markets). These options, which often had nothing whatsoever to do with legitimate foreign markets gained notoriety--prior to their ban in the United States in 1978 - because of the sales practices and fraud allegations associated with the American dealers who sold them.

Long - (1) One who has bought a futures contract to establish a market position; (2) a market position which obligates the holder to take delivery; (3) one who owns an inventory of commodities. See Short.

Long Hedge - Purchase of futures against the fixed price forward sale of a cash commodity.

Long the Basis - A person or firm that has bought the spot commodity and hedged with a sale of futures is said to be long the basis.

Lookback Option - An option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.

Lot - A unit of trading. See Even Lot, Job Lot, and Round Lot.

LTM - Leverage Transaction Merchant.

Maintenance Margin - See Margin.

Managed Account - See Controlled Account and Discretionary account

Margin -The amount of money or collateral deposited by a customer with his broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring the broker or clearinghouse against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened; (2) Maintenance margin is a sum which must be maintained on deposit at all times. If the equity in a customer's account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer's equity. See Variation Margin.

Margin Call - (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a daily or intra-day variation payment, because of adverse price movement, based on positions carried by the clearing member.

Market Correction - In technical analysis, a small reversal in prices following a significant trending period.

Marketer - See Distributor.

Market-if-Touched (MIT) Order - An order that becomes a market order when a particular price is reached. A sell MIT is placed above the market; a buy MIT is placed below the market. Also referred to as a board order.

Market Maker - A professional securities dealer who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. By maintaining an offering price sufficiently higher than their buying price, these firms are compensated for the risk involved in allowing their inventory of securities to act as a buffer against temporary order imbalances. In the commodities industry, this term is sometimes loosely used to refer to a floor trader or local who, in speculating for his own account, provides a market for commercial users of the market. See Specialist System.

Market-on-Close - An order to buy or sell at the end of the trading session at a price within the closing range of prices. See Stop-Close-Only Order.

Market-on-Opening - An order to buy or sell at the beginning of the trading session at a price within the opening range of prices.

Market Order - An order to buy or sell a futures contract at whatever price is obtainable at the time it is entered in the ring or pit. See At-The-Market.

Mark-to-Market - Daily cash flow system used by U.S. futures exchanges to maintain a minimum level of margin equity for a given futures or option contract position by calculating the gain or loss in each contract position resulting from changes in the price of the futures or option contracts at the end of each trading day.

Maturity - Period within which a futures contract can be settled by delivery of the actual commodity.

Maximum Price Fluctuation - See Limit (Up or Down).

Member Rate - Commission charged for the execution of an order for a person who is a member of the exchange.

Minimum Price Contract - A hybrid commercial forward contract for agricultural products which includes a provision guaranteeing the person making delivery a minimum price for the product. For agricultural commodities, these contracts became much more common with the introduction of exchange-traded options on futures contracts, which permit buyers to hedge the price risks associated with such contracts.

Minimum Price Fluctuations - Smallest increment of price movement possible in trading a given contract.

Momentum - In technical analysis, the relative change in price over a specific time interval. Often equated with speed or velocity and considered in terms of relative strength.

Money Market - Short-term debt instruments.

Naked Call - See Naked Option.

Naked Option - The sale of a call or put option without holding an offsetting position in the underlying commodity.

Naked Put - See Naked Option.

National Futures Association (NFA) - A self regulatory organization, composed of futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, commodity exchanges, commercial firms, and banks, that is responsible--under CFTC oversight--for certain aspects of the regulation of FCMs, CPOs, IBs, CTAs, and their associated persons, focusing primarily on the qualifications and proficiency, financial condition, retail sales practices, and business conduct of these futures professionals.

Nearbys - The nearest delivery months of a commodity futures market.

Nearby Delivery Month - The month of the futures contract closest to maturity.

Negative Carry -The cost of financing a financial instrument (the short-term rate of interest), when the cost is above the current return of the financial instrument. See Carrying Charges and Positive Carry.

Net Position - The difference between the open long contracts and the open short contracts held by trader in any one commodity.

NFA - National Futures Association

NOB Spread - Note Against Bond. A futures spread trade involving the buying (selling) of a Treasury note futures contract and the selling (buying) of a Treasury bond futures contract.

Non-Member Traders - Speculators and hedgers who trade on the exchange through a member but do not hold exchange memberships.

Nominal Price (or Nominal Quotation) - Compute price quotations on futures for a period in which no actual trading took place, usually an average of bid and asked prices.

Notice Day - Any day on which notices of intent to deliver on futures contracts may be issued.

Notice of Delivery - A notice that must be presented by the seller of a futures contract to the clearinghouse. The clearinghouse then assigns the notice and subsequent delivery instrument to buyer. Also Notice of Intention to Deliver.

Notional Amount - The amount (in an interest rate swap forward rate agreement, or other derivative instrument) or each of the amounts (in a currency swap) to which interest rates are applied (whether or not expressed as a rate or stated on a coupon basis) in order to calculate periodic payment obligations. Also called the notional principal amount, the contract amount, the reference amount, and the currency amount.

Offer - An indication of willingness to sell at a given price; opposite of bid.

Offset - Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or covering a short sale of futures through the purchase of an equal number of contracts of the same delivery month. See Cover.

Omnibus Account - An account carried by one futures commission merchant with another futures commission merchant in which the transactions of two or more persons are combined and carried in the name of the originating broker rather than designated separately.

On Track (or Track Country Station) - (1) A type of deferred delivery in which the price is set f.o.b. seller's location, and the buyer agrees to pay freight costs to his destination; (2) commodities loaded in railroad cars on track.

Opening Price (or Range) - The price (or price range) recorded during the period designated by the exchange as the official opening.

Opening, The - The period at the beginning of the trading session officially designated by the exchange during which all transactions are considered made "at the opening."

Open Interest - The total number of futures contracts long or short in a delivery month or market that have been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery. Also called Open Contracts or Open Commitments.

Open Order (or Orders) - An order that remains in force until it is cancelled or until the futures contracts expire. See Good 'Til Cancelled and Good This Week orders.

Open Outcry - Method of public auction required to make bids and offers in the trading pits or rings of commodity exchanges.

Option - (1) A commodity option is a unilateral contract which gives the buyer the right to buy or sell a specified quantity of a commodity at a specific price within a specified period of time, regardless of the market price of that commodity. Also see Put and Call (2) A term sometimes erroneously applied to a futures contract. It may refer to a specific delivery month, as the "July Option."

Option Buyer - The person who buys calls, puts, or any combination of calls and puts.

Option Grantor - The person who originates an option contract by promising to perform a certain obligation in return for the price of the option. Also known as Option Writer.

Original Margin - Term applied to the initial deposit of margin money each clearing member firm is required to make according to clearing house rules based upon positions carried, determined separately for customer and proprietary positions, similar in concept to the initial margin or security deposit required of customers by exchange regulations. See Initial Margin.

Out-Of-The-Money - A term used to describe an option that has no intrinsic value. For example, a call at $400 on gold trading at $390 is out-of-the money 10 dollars.

Out Trade - A trade which cannot be cleared by a clearinghouse because the trade data submitted by the two clearing members involved in the trade differs in some respect (e.g., price and/or quantity). In such cases, the two clearing members or brokers involved must reconcile the discrepancy, if possible, and resubmit the trade for clearing. If an agreement cannot be reached by the two clearing members or brokers involved, the dispute would be settled by an appropriate exchange committee.

Overbought - A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bullish and long have turned bearish.

Overnight Trade - A trade which is not liquidated on the same trading day in which it was established.

Oversold - A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bearish and short have turned bullish.

P&S (Purchase and Sale Statement) - A statement sent by a commission house to a customer when any part of a futures position is offset, showing the number of contracts involved, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges, the net profit or loss on the transactions, and the balance.

Paper Profit or Loss - The profit or loss that would be realized if open contracts were liquidated as of a certain time or at a certain price.

Par - (1) Refers to the standard delivery point(s) and/or quality of a commodity that is deliverable on a futures contract at contract price. Serves as a benchmark upon which to base discounts or premiums for varying quality and delivery locations. (2) In bond markets, an index (usually 100) represents the face value of a bond.

Path Dependent Option - An option whose valuation and payoff depends on the realized price path of the underlying asset, such as an Asian option or a Lookback option.

Pay/Collect - A shorthand method of referring to the payment of a loss (pay) and receipt of a gain (collect) by a clearing member to or from a clearing organization that occurs after a futures position has been marked-to-market. See Variation Margin.

Payment-in-Kind - Refers to an alternative to cash payments to producers of various commodities under the U.S. Department of Agriculture acreage control program authorized by Congress in 1985. The payments consisted of generic certificates which could be exchanged for commodities held in government warehouses or redeemed for equivalent monetary value.

Pegged Price - The price at which a commodity has been fixed by agreement.

Pegging - Effecting commodity transactions to prevent a decline in the price of the commodity so that previously written put options will expire worthless, thus protecting premiums previously received.

Pit - A specially constructed arena on the trading floor of some exchanges where trading in a futures contract is conducted. On other exchanges the term "ring" designates the trading area for a commodity. See Ring.

Pit Brokers - See Floor Broker.

Point - A measure of price change equal to 1/100 of one cent in most futures traded in decimal units. In grains, it is 1/4 of one cent; in T-bonds, it is one percent of par. See Tick.

Point-And-Figure - A method of charting which uses prices to form patterns of movement without regard to time. It defines a price trend as a continued movement in one direction until a reversal of a predetermined criterion is met.

Point Balance - A statement prepared by futures commission merchants to show profit or loss on all open contracts by computing them to an official closing or settlement price, usually at calendar month end.

Pork Bellies - One of the major Cuts of the hog carcass that, when cured, becomes bacon.

Portfolio Insurance - A trading strategy which attempts to alter the nature of price changes in a portfolio to substantially reduce the likelihood of returns below some predetermined level for an established period of time. This can be achieved by moving assets among stocks, cash and fixed-income securities or, with the advent of stock index futures contracts, by hedging a stock-only portfolio by selling stock index futures in a declining market or purchasing futures in a rising market.. The objective is to create an exposure similar to that of a stock portfolio with a protective purchased put option.

Position - An interest in the market, either long or short, in the form of one or more open contracts. Also, "in position" refers to a commodity located where it can readily be moved to another point or delivered on a futures contract. Commodities not so situated are "out of position." Soybeans in Mississippi are out of position for delivery in Chicago, but in position for export shipment from the Gulf.

Position Limit - The maximum position, either net long or net short, in one commodity future (or option) or in all futures (or options) of one commodity combined which may be held or controlled by one person as prescribed by an exchange and/or by the CFTC.

Position Trader - A commodity trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from the day trader, who will normally initiate and offset a futures position within a single trading session.

Positive Carry - The cost of financing a financial instrument (the short-term rate of interest), where the cost is less than the current return of the financial instrument. See also Carrying Charges and Negative Carry.

Posted Price - An announced or advertised price indicating what a firm will pay for a commodity or the price at which the firm will sell it.

Prearranged Trading - Trading between brokers in accordance with an expressed or implied agreement or understanding, which is a violation of the Commodity Exchange Act and CFTC regulations.

Premium - (1) The amount a price would be increased to purchase a better quality commodity; (2) refers to a futures delivery month selling at a higher price than another, as "July is at a premium over May"; (3) cash prices that are above the futures price, such as in foreign exchanges. If the forward rate for Italian lira is at a premium to spot lira, it is selling above the spot price. See Contango, Discount; (4) the money, securities or property the buyer pays to the writer for granting an option contract.

Price Basing - A situation where producers, processors, merchants or consumers of a commodity establish commercial transaction prices based on the futures prices for that or a related commodity (e.g., an offer to sell corn at 5 cents over the December futures price). This phenomenon is commonly observed in grain and metal markets.

Price Discovery - The process of determining the price level for a commodity based on supply and demand factors.

Price Manipulation - Any planned operation, transaction or practice calculated to cause or maintain an artificial price.

Price Movement Limit - See Limit (Up or Down).

Primary Market - (1) For producers, their major purchaser of commodities; (2) in commercial marketing channels, an important center at which spot commodities are concentrated for shipment to terminal markets; and (3) to processors, the market that is the major supplier of their commodity needs.

Principals' Market - A market where the ring dealing members act as principals for the transactions they conclude across the ring and with their clients.

Privileges - See Option.

Program Trading - The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called "program" trading when index funds and other institutional investors began to embark on large-scale buying or selling campaigns or "programs" to invest in a manner which replicated a target stock index, the term now also commonly includes computer aided stock market buying or selling programs portfolio insurance, and index arbitrage.

Prompt Date -The date on which the buyer of an option will buy or sell the underlying commodity (or futures contract) if the option is exercised.

Public - In trade parlance, non-professional speculators as distinguished from hedgers and professional speculators or traders.

Public Elevators-Grain elevators in which bulk storage of grain is provided for the public for a fee. Grain of the same grade but owned by different persons is usually mixed or commingled as opposed to storing it "identity preserve". Some elevators are approved by exchanges as "regular" for delivery on futures contracts.

Purchase and Sale Statement - See P&S.

Put Option - An option to sell a specified amount of a commodity at an agreed price and time at any time until the expiration of the option. A put option is purchased to protect against a fall in price. The buyer pays a premium to the seller/grantor of this option. The buyer has the right to sell the commodity or enter into a short position in the futures market if the option is exercised. Also see Call Option.

Pyramiding - The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.

Quick Order - See Fill or Kill Order.

Quotation - The actual price or the bid or asked price of either cash commodities or futures contracts.

Rally - An upward movement of prices following a decline. Same as Recovery.

Random Walk - An economic theory that price movements in the commodity futures markets and in the securities markets are completely random in character (i.e., past prices are not a reliable indicator of future prices).

Range - The difference between the high and low price of a commodity during a given period.

Ratio Hedge - The number of options compared to the number of futures contracts taken in a position necessary to be a hedge; that is, risk neutral.

Ratio Spread - This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike price.

Reaction - The downward price movement tendency of a commodity after a price advance.

Recovery - An upward price movement after a decline. Same as Rally.

Regular Warehouse - A processing plant or warehouse that satisfies exchange requirements for financing, facilities, capacity and location and has been approved as acceptable for delivery of commodities against futures contracts. See Licensed Warehouse.

Replicating Portfolio - A portfolio of assets for which changes in value match those of a target asset. For example, a portfolio replicating a standard option can be constructed with certain amounts of the asset underlying the option and bonds. Sometimes referred to as a Synthetic Asset.

Reporting Level - Sizes of positions set by the exchanges and/or the CFTC at or above which commodity traders or brokers who carry their accounts must make daily reports about the size of the position by commodity, by delivery month, and whether the position is controlled by a commercial or non-commercial trader.

Resistance - In technical trading, a price area where new selling will emerge to dampen a continued rise. Also see Support.

Resting Order - An order to buy at a price below or to sell at a price above the prevailing market that is being held by a floor broker. Such orders may either be day orders or open orders.

Retender - In specific circumstances, some contract markets permit holders of futures contracts who have received a delivery notice through the clearing house to sell a futures contract and return the notice to the clearing house to be reissued to another long; others permit transfer of notices to another buyer. In either case, the trader is said to have retendered the notice.

Retracement - A reversal within a major price trend. Reversal - A change of direction in prices.

Reverse Conversion - With regard to options, a position created by buying a call option, selling a put option, and selling the underlying futures contract.

Riding the Yield Curve - Trading in an interest rate future according to the expectations of change in the yield curve.

Ring – A circular area on the trading floor of an exchange where traders and brokers stand while executing futures trades. Some exchanges use pits rather than rings. See Pit.

Risk Factor - See Delta Value.

Risk/Reward Ratio - The relationship between the probability of loss and that of profit. This ratio is often used as a basis for trade selection or comparison.

Roll-Over - A trading procedure involving the shift of one month of a straddle into another future month while holding the other contract month. The shift can take place in either the long or short straddle month. The term also applies to lifting a near futures position and re-establishing it in a more deferred delivery month.

Round Lot - A quantity of a commodity equal in size to the corresponding futures contract for the commodity. See Even Lot.

Round Turn - A completed transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.

Rules - The principles for governing an exchange. In some exchanges, rules are adopted by a vote of the membership, while regulations can be imposed by the governing board.

Sample Grade - In commodities, usually the lowest quality of a commodity, too low to be acceptable for delivery in satisfaction of futures contracts.

Scale Down (or Up) - To purchase or sell a scale down means to buy or sell at regular price intervals in a declining market. To buy or sell on scale up means to buy or sell at regular price intervals as the market advances.

Scalper - A speculator on the trading floor of an exchange who buys and sells rapidly, with small profits or losses, holding his positions for only a short time during a trading session. Typically, a scalper will stand ready to buy at a fraction below the last transaction price and to sell at a fraction above, thus creating market liquidity.

Scalping - The practice of trading in and out of the market on very small price fluctuations. A person who engages in this practice is known as a scalper.

Security Deposit - See Margin. Seller's Call - See Call.

Seller's Market - A condition of the market in which there is a scarcity of goods available and hence sellers obtain better conditions of sale or higher prices. Also see Buyer's Market.

Seller's Option -The right of a seller to select, within the limits prescribed by a contract, the quality of the commodity delivered and the time and place of delivery.

Selling Hedge (or Short Hedge) - Selling futures contracts to protect against possible decreased prices of commodities. Also see Hedging.

Series (of Options) - Options of the same type (i.e., either puts or calls, but not both), covering the same underlying futures contract or physical commodity, having the same strike price and expiration date.

Settlement - The act of fulfilling the delivery requirements of a futures contract.

Settlement or Settling Price - The daily price at which the clearing house clears all trades and settles all accounts between clearing members for each contract month. Settlement prices are used to determine both margin calls and invoice prices for deliveries. The term also refers to a price established by the exchange to even up positions which may not be able to be liquidated in regular trading.

Sharpe Ratio - A measurement of trading performance calculated as the average return divided by the variance of those returns; named after William P. Sharpe.

Shipping Certificate - A negotiable instrument used by several futures exchanges as the futures delivery instrument for several commodities (e.g., soybean meal, plywood, and white wheat). The shipping certificate is issued by exchange-approved facilities and represents a commitment by the facility to deliver the commodity to the holder of the certificate under the terms specified therein. Unlike an issuer of a warehouse receipt who has physical product in store, the issuer of a shipping certificate may honor its obligation from current production or through- put as well as from inventories.

Shock Absorber - A temporary restriction in the trading of stock index futures which becomes effective following a significant intraday decrease in stock index futures prices. Designed to provide an adjustment period to digest new market information, the restriction bars trading below a specified price level. Shock absorbers are generally market specific and at tighter levels than circuit breakers.

Short - (1) The selling side of an open futures contract; (2) a trader whose net position in the futures market shows an excess of open sales over open purchases. See Long.

Short Covering - See Cover.

Short Hedge - See Selling Hedge.

Short Selling - Selling a futures contract with the idea of delivering on it or offsetting it at a later date.

Short Squeeze - See Squeeze.

Short the Basis - The purchase of futures as a hedge against a commitment to sell in the cash or spot markets. See Hedging.

Small Traders - Traders who hold or control positions in futures or options that are below the reporting level specified by the exchange or the CFTC.

Soft - A description of a price which is gradually weakening. Also refers to commodities such as sugar, cocoa, and coffee.

Soften - The process of a slowly declining market price.

Sold-Out-Market - When liquidation of a weakly-held position has been completed, and offerings become scarce, the market is said to be sold out.

Specialist System - A type of trading commonly used for the exchange trading of securities in which one individual or firm acts as a market-maker in a particular security, with the obligation to see that trading in that security is fair and orderly by offsetting temporary imbalances in supply and demand by trading for his own account. Also see Board Broker System and Free Crowd System.

Speculative Bubble - A rapid, but usually short-lived, run up in prices caused by excessive buying which is unrelated to any of the basic, underlying factors affecting the supply or demand for the commodity. Speculative bubbles are usually associated with a "bandwagon" effect in which speculators rush to buy the commodity (in the case of futures, "to take positions") before the price trend ends, and an even greater rush to sell the commodity (unwind positions) when prices reverse.

Speculative Limit - See Position Limit.

Speculative Position Limit - See Position Limit.

Speculator - In commodity futures, an individual who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.

Split Close - Term which refers to price differences in transactions at the close of any market session.

Spot - Market of immediate delivery of the product and immediate payment. Also refers to a maturing delivery month of a futures contract.

Spot Commodity - (1) The actual commodity as distinguished from a futures contract; (2) sometimes used to refer to cash commodities available for immediate delivery. Also see Actuals or Cash Commodity.

Spot Month - See Current Delivery Month.

Spot Price - The price at which a physical commodity for immediate delivery is selling at a given time and place. See Cash Price.

Spread (or Straddle) - The purchase of one futures delivery month against the sale of another futures delivery month of the same commodity; the purchase of one delivery month of one commodity against the sale of that same delivery month of a different commodity; or the purchase of one commodity in one market against the sale of that commodity in another market, to take advantage of and profit from a change in price relationships. See also Arbitrage, Switch. The term spread is also used to refer to the difference between the price of one futures month and the price of another month of the same commodity. A spread can also apply to options.

Squeeze - A market situation in which the lack of supplies tends to force shorts to cover their positions by offset at higher prices.

SRO - See Designated Self-Regulatory Organization.

Standby Commitment - A put option in Ginnie Mae trading which gives the holder the right, but not the obligation, to make delivery.

Stop-Close-Only Order - A stop order which can only be executed, if possible, during the closing period of the market. See also Market-on-Close Order.

Stop Limit Order - A stop limit order is an order that goes into force as soon as there is a trade at the specified price. The order, however, can only be filled at the stop limit price or better.

Stop Order - This is an order that becomes a market order when a particular price level is reached. A sell stop is placed below the market, a buy stop is placed above the market. Sometimes referred to as Stop Loss Order.

Straddle - See Spread.

Strangle - An option position consisting of the purchase or sale of put and call options having the same expiration but different strike prices.

Street Book - A daily record kept by futures commission merchants and clearing members showing details of each futures transaction, including date, price, quantity, market, commodity, future, and the person for whom the trade was made.

Striking Price (Exercise or Contract Price) - The price, specified in the option contract, at which the underlying futures contract or commodity will move from seller to buyer.

STRIPS - Separate Trading of Registered Interest and Principal Securities. A book-entry system operated by the Federal Reserve permitting separate trading and ownership of the principal and coupon portions of selected Treasury securities. It allows the creation of zero coupon Treasury securities from designated whole bonds.

Strong Hands - When used in connection with delivery of commodities on futures contracts, the term usually means that the party receiving the delivery notice probably will take delivery and retain ownership of the commodity, when used in connection with futures positions, the term usually means positions held by trade interests or well-financed speculators.

Support - In technical analysis, a price area where new buying is likely to come in and stem any decline. Also see Resistance.

Swap - In general, the exchange of one asset or liability for a similar asset or liability for the purpose of lengthening or shortening maturities, or raising or lowering coupon rates, to maximize revenue or minimize financing costs. In securities, this may entail selling one issue and buying another. In foreign currency, it may entail buying a currency on the spot market and simultaneously selling it forward. Swaps may also involve exchanging income flows, for example, exchanging the fixed rate coupon stream of a bond for a variable rate payment stream, or vice versa, while not swapping the principal component of the bond.

Swaption - An option to enter into a swap - i.e., the right, but not the obligation, to enter into a specified type of swap at a specified future date.

Switch - Offsetting a position in one delivery month of a commodity and simultaneous initiation of a similar position in another delivery month of the same commodity, a tactic referred to as "rolling forward." Also see Arbitrage.

Synthetic Futures - A position created by combining call and put options. A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same strike price. A synthetic short futures is created by combining a long put and a short call with the same expiration date and the same strike price.

Systematic Risk - Market risk due to price fluctuations which cannot be eliminated by diversification.

Taker - The buyer of an option contract.

T-Bond - See Treasury Bond.

Technical Analysis - An approach to forecasting commodity prices which examines patterns of price change, rates of change, and changes in volume of trading and open interest, without regard to underlying fundamental market factors.

Ted Spread - The difference between the price of the three-month U.S. Treasury bill futures contract and the price of the three-month Eurodollar time deposit futures contract with the same expiration month.

Tender - To give notice to the clearing house of the intention to initiate delivery of the physical commodity in satisfaction of the futures contract. Also see Retender.

Tenderable Grades - See Contract Grades.

Terminal Elevator - An elevator located at a point of greatest accumulation in the movement of agricultural products which stores the commodity or moves it to processors.

Terminal Market- Usually synonymous with commodity exchange or futures market, specifically in the United Kingdom.

Theta - The derivative of the option price equation with respect to the remaining time to expiration of the option. A measure of the sensitivity of the value of the option to the passage of time.

Tick - Refers to a minimum change in price up or down. See Point.

Time-of-Day Order - This is an order which is to be executed at a given minute in the session. For example, "Sell 10 March corn at 12:30 p.m."

Time Spread - The selling of a nearby option and buying of a more deferred option with the same strike price.

Time Value - That portion of an option's premium that exceeds the intrinsic value. The time value of an option reflects the probability that the option will move into-the-money. Therefore, the longer the time remaining until expiration of the option, the greater its time value. Also called Extrinsic Value.

To-Arrive Contract - A transaction providing for subsequent delivery within a stipulated time limit of a specific grade of a commodity.

Trade Option - A commodity option transaction in which the taker is reasonably believed by the writer to be engaged in business involving use of that commodity or a related commodity. See Commission Rule 32.4.

Trader - (1) A merchant involved in cash commodities; (2) a professional speculator who trades for his own account.

Transaction - The entry or liquidation of a trade.

Transfer Trades - Entries made upon the books of futures commission merchants for the purpose of: (1) transferring existing trades from one account to another within the same office where no change in ownership is involved; or (2) transferring existing trades from the books of one commission merchant to the books of another commission merchant where no change in ownership is involved. Also called Ex-Pit Transactions.

Transferable Option (or Contract) - A contract which permits a position in the option market to be offset by a transaction on the opposite side of the market in the same contract.

Transferable Notice - A term used on some exchanges to describe a notice of delivery. See Re-tender.

Treasury Bills - Short-term U.S. government obligations, generally issued with 13, 26 or 52-week maturities.

Treasury Bonds (or T-Bond) -Long-term obligations of the U.S. government which pay interest semiannually until they mature or are called, at which time the principal and the final interest payment is paid to the investor.

Treasury Notes - Same as Treasury Bonds except that Treasury Notes are medium-term and not callable.

Trend - The general direction, either upward or downward, in which prices have been moving.

Trendline - In charting, a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called bullish; if down, it is called bearish.

Underlying Commodity - The commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised. Also, the cash commodity underlying a futures contract.

Variable Price Limit - A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movements for any one trading day.

Variation Margin - Payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions.

Vault Receipt - A document indicating ownership of a commodity stored in a bank or other depository and frequently used as a delivery instrument in precious metal futures contracts.

Visible Supply - Usually refers to supplies of a commodity in licensed warehouses.

Volatility Quote Trading - Refers to the quoting of bids and offers on option contracts in terms of their implied volatilities rather than as prices.

Volume of Trade - The number of contracts traded during a specified period of time. It may be quoted as the number of contracts traded or in the total of physical units, such as bales or bushels, pounds or dozens.

Warehouse Receipt - A document certifying possession of a commodity in a licensed warehouse that is recognized for delivery purposes by a commodity futures exchange.

Warrant - An issuer-based product that gives the buyer the right, but not the obligation, to buy (in the case of a call) or to sell (in the case of a put) a stock or a commodity at a set price during a specified period.

Warrant or Warehouse Receipt for Metals - Certificate of physical deposit, which gives title to physical metal in an exchange approved warehouse.

Wash Sale - Transactions that give the appearance of purchases and sales but which are initiated without the intent to make a bona fide transaction and which generally do not result in any actual change in ownership. Such sales are prohibited by the Commodity Exchange Act.

Wash Trading - Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without resulting in a change in the trader's market position.

Weak Hands - When used in connection with delivery of commodities on futures contracts, the term usually means that the party probably does not intend to retain ownership of the commodity, when used in connection with futures positions, the term usually means positions held by small speculators.

Wild Card Option - Refers to a provision of any physical delivery Treasury Bond or Note futures contract which permits shorts to wait until as late as 8:00p.m. on any notice day to announce their intention to deliver at invoice prices that are fixed at 2:00p.m., the close of futures trading, on that day.

Winter Wheat- Wheat that is planted in the fall, lies dormant during the winter, and is harvested beginning about May of the next year.

Writer - The issuer, grantor, or maker of an option contract.

Yield Curve - A graphic representation of market yield for a fixed income security plotted against the maturity of the security.

Fear and Greed: Two Strong Emotions to Manage in a Grain Weather Market

2007-07-13T22:25:00.000+01:00

There is nothing like a rip-roaring "weather market" in the grain futures to seriously challenge the two most important emotions a trader can experience: fear and greed. In the heat of a weather scare in grains, prices become extremely volatile and trader emotions run very high, as the latest weather forecasts can and do turn markets "on a dime."

Some would argue that "fear" and "greed" are terms that have been over-used and overemphasized in our industry. Yes, they have been bandied about a lot, but for good reason. In general terms, too much fear in trading will not allow a trader to even pull the trigger to enter a trade. Or, even if a trade is entered, fear will prompt a trader to set a stop that's too tight, or to exit a trade before a strong-trending move gets well under way. Importantly, fear can cause a trader to lose sleep at night, which by itself can cause a myriad of problems.

Generally, greed will cause a trader to become intoxicated with thoughts of hitting the "grand slam" of trading, instead of being content with a base hit or even a double. Home runs and grand slams occur only rarely in trading futures. However, weather markets do allow for numerous base hits and a few doubles--and even a triple here and there.

Trading a full-blown weather market in the grains--and surviving to trade again another day--is a great experience for all traders. While there is some degree of a weather market scare in the grain futures nearly every year, the "full-blown" and highly volatile weather markets that are usually marked by severely dry weather conditions in the U.S. Corn Belt come around only once in a few years. While the year 2002 does not compare with the last major weather market of 1988 (at least not as of this writing), it does rank well above the "run-of-the-mill" weather markets that occur about every year in the grains.

Here are a few valuable lessons that a trader can learn by trading the grains during a weather market--lessons that can be applied to trading other markets during more volatile trading conditions.

¾ My experience in trading weather markets is that there is tremendous pressure on all traders to "follow the herd." Deviating from the consensus market opinion is not easy. However, it's the traders that can step in and sell into rallies or buy into dips that seem to have more success in trading weather markets. In other words, doing some contrary thinking and trading can pay dividends in weather markets.

(I'll give you an actual example of how contrarian thinking and trading can be successful

in the grains. The year was 1988, the last big drought year in the Midwest that saw corn

and soybean prices skyrocket. It was a Friday in July that saw corn and bean prices trade

sharply higher, based on ideas the hot and dry weather would continue in the Corn Belt.

Then, after the close, the National Weather Service issued its 6-10 day forecast that, sure enough, called for more hot and dry weather for the Corn Belt. Bulls confidently headed home for the weekend. Even "local" traders on the Chicago Board of Trade floor went home long--something most never do, especially over a weekend.

Well, come Monday morning, the updated weather forecasts had changed a bit, but more importantly, trader psychology had changed immensely. The drought and resulting poor yields had all been factored into the market with prior price gains, culminating with Friday's big push higher. Corn and bean markets traded limit down on Monday and recorded very sharp losses for around three days in a row.

I know of one trader who used contrary opinion thinking and bought put options on corn that Friday that prices were pushing higher. He made a good deal of money that next week. )

¾ For bulls, it's important to remember that markets are the most bullish at the very top--it's downhill from there. Recognizing the clues that suggest a top is in place in the grains, during a weather market, is especially difficult, as technical indicators can become less reliable. Thus, being content to catch a bigger part of a price trend should be the goal of the trader. Don't be disappointed if you did not capture all of a price move in grains in a weather market. Becoming greedy and trying to do just that will usually get a trader into serious trouble.

¾ Pyramiding trades or "averaging down" losing trades is a no-no. (Unless, adding futures positions was in your initial trading plan of action.) One cannot believe the extreme temptation there is to add to winning positions when a profitable trade is occurring in a weather market in grains. Being long soybeans and hearing a bullish weather forecast heading into the weekend certainly invites adding a couple more long contracts on Friday. But that is pure greed kicking in. Greed in trading is not good.

That is it for this week. You can also visit my daily blog at www.traderblogs.com. Have a great weekend!

Jim Wyckoff became a financial journalist with Futures World News for many years, cutting his teeth as a reporter on the futures trading floors in Chicago and New York, where he covered every futures market traded in the United States at one time or another. Click here for full bio >>

10 Rules For Successful Trading

2007-07-13T22:14:00.002+01:00

Traders have developed lots of rules over the years in an attempt to refine the way they make trading decisions. So it’s not hard to come up with a list of 10 trading rules that can be part of a trading plan. Some are generic and general and not exclusive to any particular trader or trading approach. Others can be very precise as traders tweak rules into their trading system. The rules below have been selected for their broad appeal to many types of traders. They are presented in no particular order of importance.

1. Don’t trade markets about which you know very little.
This is not to imply that you have to be a fundamental expert on every market you wish to trade. However, you should know about what fundamentals are impacting, or could impact, a market you are contemplating trading. For example, a person who has only traded grains would not want to jump right into a Treasury Bond futures trade without first doing a bit of homework on how the bond market trades – price increments (dollar amount per tick), trading hours, on what exchange the market trades, etc.

A trader could pick up a Wall Street Journal and read the “Credit Markets” section for a week or so to become familiar with fundamental factors that influence the bond market. Also, consider this: Most traders enjoy the process of trading. If they did not, they would likely just hand their money over to a “fund manager” and give the manager discretionary control over their money. Learning and knowing what fundamental factors are impacting or could impact a market that a trader plans to trade is part of the process (enjoyment) of trading.

2. Don’t trade hot “tips.”
You may trade for 20 years and never hear a good trading tip. Reason: There aren’t any . . . at least not any that are any good for regular individual traders. Markets are way too big and too tightly regulated to be impacted by any tips or inside information. Any legitimate “early information” has almost certainly already been factored into the market price structure by the time most individual traders could ever benefit from it.

Don’t confuse tips with rumors. Markets do move on rumors more than just occasionally. Rumors are a part of trading but still fall into the category of “not much use” to off-floor traders. Besides, many rumors are never confirmed as fact and are often self-serving to those who try to start them.

3. Don’t get too fancy with your market orders.
Entering a trade “at the market” with a market order may be the best way to enter a trading position, especially in markets that are liquid (have high open interest). It’s certainly the easiest way to enter. Fiddling around with limit or stop-limit or other multi-step orders to save a tick or two or three can cost a trader a good entry point or even a missed trade altogether.

It’s certainly easy to be guilty of this offense because every trader is always trying to get just a little better price. This doesn’t mean that limit or stop-limit or other types of orders are not useful in certain circumstances because they are. However, most trade entries are best made “at the market.” Look at pitchers in major league baseball who “nibble” with their pitches around home plate. Most wind up with a walk instead of an out.

4. Don’t form a new market opinion during trading hours.
This rule goes hand in hand with the rule that says you need to stick to your trading plan of action. Day-to-day market “noise,” or the minor up-and-down price fluctuations of a market, can be at least distracting to a trader and at most prompt the trader to make a hasty and poorly founded trading decision.

5. Don’t force trades; if you don’t see a trade, stand aside.
Don’t chase a market just to put on a trade. Try to exhibit patience and discipline in trading – easily said but hard to follow. Patience and discipline are not easy virtues for any trader to learn because a typical futures trader has a “Type A” personality with a competitive nature who hates to wait in lines. However, to have even a chance at success in trading, you have to control your impatience. If you happen to miss a trading opportunity because you waited too long, other trading opportunities will come along.

A good trade is usually profitable right from the beginning. If the market price moves “your way” in the first couple days after you’ve executed the trade, then odds are significantly higher that your trade will be a winner if you have waited patiently for the right position. This rule reinforces the notion that tight protective stops are an important part of trading success. But there is a time to be impatient: If a straight futures trade is under water after two or three days, more times than not it’s prudent to take a small loss and move on. Do not be patient with losers.

6. Use intermarket analysis to spot trading opportunities.
No market trades in isolation but is influenced by what is happening in a number of related markets. Don’t focus on just one market as much of today’s single-market technical analysis does. Instead, take into account developments in other markets that are likely to affect prices in your target market. If you trade stock indexes, you have to be aware of what is taking place in interest rate, currency and commodity markets such as gold. The price of a market you want to trade may be the sum of what is happening in ten or more interrelated markets.

7. Watch open interest statistics, especially in options.
When you are contemplating trading any contract, make sure to first check the open interest for that specific contract or strike price. If a futures contract or options strike price has a low open interest total, it is probably best to seek out a more liquid contract. Fills on both entry and exit can be tough and may produce more slippage than is desired. When you get into a position, be sure it is liquid enough so you can get out on favorable terms.

8. Know what you can and cannot control.
You can control the market you want to trade. You can control the type of market order you want to give your broker. You can control when you want to enter the market. You can control the amount of contracts you wish to trade. You can control when you want to exit the market.

But you can’t control the market, which often has a habit of doing unusual and unexpected things. Knowing and prudently managing the market factors you can control and knowing that you cannot control the market gives you a trading edge.

9. Make the market’s action confirm your opinions.
If you have a particular market on your “radar screen” for a trade, don’t just jump in based on a hunch or a “gut feeling” or because you want to get a fill right away. That’s when a market order advised above may not be in your best interest. Make the market first confirm your opinion. Make the market show you some strength if you want to be long, or make it show you some weakness if you want to be short.

10. Do not overtrade.
Trying to trade too many markets or too many contracts in one market can create problems for an undercapitalized trader. There is no set rule for how many markets a trader should trade at one time. Some traders can trade many markets at the same time and not have a problem. However, if you are feeling stress about a position you are carrying or can’t keep up with what’s going on in all the markets you are trading, then you are likely over-trading.

For those traders who are really not sure how many markets to trade at one time or how many contracts to trade for each position, it’s always better to take a conservative approach. Step in slowly until you become comfortable trading in a larger size or in multiple markets.

Top 10 Rules For Money Management

2007-07-13T22:09:00.000+01:00

You may be filled with knowledge about trading or have a sound trading system using the latest technical indicators, but most professional traders will tell you that the single, most important factor in futures trading success is using good money management principles. A higher percentage of winning trades or yet another trading tool may be helpful, but if you do not have a good money management plan in place for trading futures, you are not likely to remain in the trading game very long. You need to develop your own money management program for entering or exiting markets, sizing your positions, etc. based on the size of your account and your trading style, but here are some principles to guide you, listed in no particular order.

1. Bulls make a little. Bears make a little. Pigs get slaughtered.
In other words, do not be a greedy trader. If you are a bull, don't expect to get in at the bottom and out at the top. If you are a bear, don't expect to pick an exact market top and ride a market all the way down to the lowest low. Thinking otherwise allows the destructive "greed" emotion to take over. Greed has been the ruin of many traders.

2. Any fool can get into a market, but it's the real pros that know when to get out.
Indeed, market entry is certainly an important element of successful trading. However, exiting the trade is paramount. Many times a trader will allow a market to "go against" him or her for way too long and way too far--meaning big trading losses. See next item.

3. Use protective buy and sell stops.
One of the major mistakes many traders make is not using protective buy and sell stops when they enter a trade. Or, traders may pull their protective stop, "hoping" the market will turn in their favor. Don't be fooled into using "mental stops." Determining where to place protective buy and sell stops BEFORE market entry is one of the best money-management tools available.

4. Don't put all of your eggs in one basket.
Using a large percentage of your entire trading account for one trade is unwise. Remember that even professional traders will have more losing trades than winning trades over time. The key to success is minimizing losses on the more numerous losing trades and maximizing profits on the fewer winning trades. See next item.

5. Cut losses short. Let winners ride.
Using a pre-determined protective buy or sell stop will cut your trading losses short. Using a trailing protective stop on trades that become profitable will allow you to maximize profits on the winning trades.

6. Only the markets know for sure.
Don't ever think you "know" what a market will do at any given point in time. One of the biggest advantages for sound money management is "knowing that you don't know" what a market will do at any given time. A recipe for trading disaster is thinking you know that a market will do. Remember the old trading adage: "Markets will do anything and everything to frustrate the largest amount of traders."

7. Be humble.
When trading profits are taken, be glad that it was not a trading loss. Don't grouse because you left a bunch of money "on the table" after you exited your winning position.

8. On selling options, use caution.
There are some traders who do sell options on futures (as opposed to buying options) and make profits doing it. And there are many traders that don't. I heard a veteran speaker at a trading seminar once say: “I made over 40 trades selling options in a year, with 97% winners--and still lost money.” Remember the old saying that if it sounds too good to be true, it usually is.

9. Don't over-trade.
Trying to trade too many markets at one time is not good money management. If you run into a losing streak, cut down on trading--DO NOT try to trade more markets just too quickly recoup lost money.

10. To succeed at trading markets, one must first survive at trading markets.
Be conservative with your trading account and trading methods--especially if you are a less experienced trader. Go for those "base hit" trades, and don't swing for the fence and try to hit a home run in a trading decision. Traders need to survive to trade another day, if the absorb a few losing trades.

Trading Forex The Mini Way

2007-07-13T21:56:00.000+01:00

Trading forex

the mini way

While foreign currency is the world’s largest financial market, it can also be quite cost prohibitive. However, with mini forex futures and mini spot trading, traders can participate in the forex world with much less money at risk.

By Darrell Jobman

Because of its global reach, the forex market has become a favorite of traders from professional money managers seeking to diversify their portfolios into a new asset class to

individual retail speculators trying to make a profit. The forex market is attractive to traders for many reasons. Because it trades virtually around the clock, it reacts instantaneously to geopolitical tensions, natural disasters, and economic reports.

“For some traders, abrupt price changes could be devastating if they trade the larger forex contracts,” says Jim Wyckoff, senior market analyst for TradingEducation.com. “Trading mini forex lots or mini currency futures contracts gives them much better leverage than they can get in stocks, where they must put up at least 50 percent of the purchase price, and with much less risk than they might have in the futures markets.”

Where to trade?

Traders with experience in futures may want to trade forex futures; those more familiar with stocks and bonds may be more comfortable in a spot (cash) forex account. The decision could also depend on the amount of money available. Trading both futures and spot forex requires separate accounts, although firms that handle transactions in both venues can transfer money quickly from one account to the other.

Futures. The Chicago Mercantile Exchange lists futures on a number of foreign currencies, including the Polish zloty and Israeli shekel, as well as some cross-rates. However, most of the activity is in the “majors” — euro, Japanese yen, Swiss franc, British pound, and the New Zealand and Canadian dollars — vs. the U.S. dollar. Most of the trading is done electronically. Each trading “day” begins at 5 p.m. and runs overnight through 4 p.m. the next day. The best liquidity is between 7:20 a.m. and 2 p.m., the regular pit-trading hours.

There are only two mini-forex futures contracts: the euro (E7) and the Japanese yen (J7). Both are half the size of the regular contract, with a one-point move worth $6.25. Typical margin set by the exchange (which can change) is around $1,400 per mini contract compared to $2,700-$2,800 for the full-size contracts.

The quoting convention for some currency futures may be a little strange. Instead of a cash market price of, say, 110 yen per U.S. dollar, forex futures trade in terms of dollars per yen, or 0.009091 in this case (9/10 of a cent).

The advantages of futures include trading in a centralized marketplace with multiple bid/ask prices; pricing is transparent and available to everyone, regardless of size or location; there is no counter- party risk because the exchange clearing organization is on the other side of every trade; and anonymity for those who want it. Futures advocates contend that your biggest risk as a spot forex trader may not be market risk, but the firm you are dealing with. Many spot forex firms are not regulated by any government agency.

The cash forex market. The standard trade-lot size in the cash forex market is 100,000 units of a currency, but each lot in a mini forex account is only one-tenth that size, or 10,000 units. A one-point change in price (i.e., a “pip”) is usually worth $1 in a mini lot instead of $8-$10 in the fullsized version. As a result, risk in a mini forex account is much less, and the amount of margin needed may be only several hundred dollars. However, a larger amount is recommended (the minimum is set by each firm, not the exchange as is the case in forex futures).

For the trader trying to learn the ropes of forex trading or wanting to test a trading strategy, the lower financial outlay is welcome news. Of course, profits also aren’t as large, but if one mini lot is too small for you, there’s nothing that says you can’t trade two or three lots, or five lots or 100 lots, especially as you become more experienced in forex trading. This provides more flexibility to scale in and out of positions at different price levels.

Most spot forex firms also list 20 or more pairs, so you aren’t limited to trading a foreign currency against the U.S. dollar. It’s just as easy to trade, for example, the British pound against the Japanese yen, giving you additional opportunities to profit.

In almost all cases, whichever pairs are available for trading in a full account can be traded in a mini account. However, you should double-check with the brokerage just to be sure.

In addition to the smaller size, lower margins, less risk, and greater flexibility, there are other advantages to mini forex spot trading. There is true 24-hour trading with no overnight gaps (Table 1); bid/ask prices are always available, even in thin trading hours; and there are no quarterly contract expirations, so time and contract month are not considerations as they are in futures.

Plus, spot forex firms typically provide customers with real-time quotes, charts, and news at no charge (even for mini forex traders), as well as a trading platform and demo or simulated accounts in which traders can practice before they begin trading with real money. If you are shopping for a mini forex firm, be sure to check out all of these features as well as its margin and leverage rules.

The mini forex contract may seem small, but it’s one of the best ways to get more bang for your buck with the least risk.

Darrell Jobman is Editor-in-Chief of www.TradingEducation.com, which provides free daily and weekly commentaries for traders. He is an acknowledged authority on the financial markets and has been writing about them for more than 35 years.

Source: TradingEducation.com

Why do you want to trade?

2007-07-13T21:55:00.000+01:00

You may be comfortable accepting the fact that you don’t know everything there is to know about trading yet, but you definitely should have a good idea about several things when you get into trading. The first is why you want to trade in the first place. People have a number of motives for trading, all of which have merit, but you should be clear what it is that is driving you into trading. Your reasons for trading may go a long way in determining your trading style.

Profits
Probably every trader’s goal is to make money. But if that is your main reason for trading, are you willing to do what it takes to achieve this goal? It will mean you have to provide the seed money and other resources you need to be successful, and it will involve a commitment to learning to gain trading experience.

If trading is going to be your business, you obviously have to put making money high on your list of goals. That requires consistent, strong discipline and the ability to control your emotions as none of the experience or success you have gained in other areas will guarantee that you will be a success in trading. Your trading approach may even be boring, but if your real goal is making money, you will have to have the discipline to stick with a trading plan.

Being ‘right’
Are you a person whose greatest satisfaction comes from being right about things? Traders generally love to compete and be better than everyone else in whatever they do. Just having the opportunity to crow a little about their prowess is their biggest reward.

However, trading may be one of the worst places to look to feed an ego. Whatever success you have had in other aspects of your life may not transfer very well to the trading arena, which has been known to humble even the strongest ego. Of course, traders have to have a strong sense of ego to have enough confidence to trade, but you’ll have to keep that ego in check whenever you enter a market position if you want to survive as a trader.

Excitement
Trading certainly can provide plenty of excitement, both highs and lows, and that may be reason enough for trading. But expect to pay an entertainment tax. Just being in a market position can be exhilarating and can inspire you to keep up with what’s happening in the market and in the world’s news events.

However, to be successful over a longer term – unless you have deep pockets – you usually will have to forego the excitement and emotion generated by trading, just as you have to keep a lid on your ego trip. You naturally will experience some excitement whenever you are trading, but it is a factor you must control. If excitement is an objective of trading for you, perhaps the solution is to have one account you trade conservatively and another account where you get a little wilder.

A Foreign Exchange (FOREX) Trading Primer

2007-07-13T21:02:00.000+01:00

Yes, Now we are going to another realm of making dollars, i mean REAL dollars online with....FOREX! Yes! thats what am talking about, but dont get confused, this is different from e-currency excahnge we have been talking about....anyway let me not talk too much...read on...

The largest traded "market" in the world is not the U.S., Japanese or European stock markets. It's the foreign exchange market. It's called Forex for short, or also called the cash currency market. Speculators can and do trade this huge market, in which nearly 2 trillion dollars (and other currencies) can change hands every day.

The main function of the foreign exchange market is to provide the mechanism for making cross-border payments and determining exchange rates between currencies. Major components that make up the Forex market are the spot market (37%) used by traders and speculators, swaps (43%), and options and forwards (20%).

A Forex trade is executed through the simultaneous buying of one currency and selling another (currency pair). While most currencies are tradable, five currencies (four currency pairs) represent the majority of foreign exchange trading volume. They are the Euro ( EUR/USD), Yen (USD/JPY), British pound or cable (GBP/USD), and Swiss franc (USD/CHF).

Figure 1 – Chart showing breakdown of currency pairs traded on Forex markets. Source: Triennial Central Bank Survey 2004.

A major difference between Forex and other financial markets is that the former is open 24 hours a day. The trading day begins in Sydney, Australia on Monday while it is still Sunday in North America and Europe, and ends in New York on Friday afternoon.

There are no commissions in Forex trading--only point spreads measured in pips, with one pip being equal to one-tenth of one percent (0.01%). Since the point spread in pips represents the cost of entry, it is desirable to keep it to a minimum and why major currency pairs are most popular. The majors experience the tightest spreads, often as low as three to four pips.

Spot currency trading lots typically are worth $5 million to $10 million, with the minimum contract size being $500,000. Amounts smaller may be traded with some firms offering minimum investments of as little as a few hundred dollars on margin far exceeding 100:1. However, this is extremely risky and therefore not recommended. Currency futures and options contracts may also be traded for much smaller amounts, but firms handling the trades generally charge commissions.

FOREX Trading Becoming Ever More Popular
Of all financial instruments traded, Forex is believed by many traders to be the best suited for technical analysis, for a number of reasons. First, it dwarfs all other markets by trading volume. According to an April 2004 Triennial survey for the Bank for International Settlements, average daily turnover in traditional foreign exchange markets (Forex) amounted to $1.9 trillion in the cash exchange market and another $1.2 trillion per day in the over-the-counter (OTC) foreign exchange and interest rate derivatives market.

Forex trading has grown some 2000% over the last three decades, rising from barely $1 billion per day in 1974 to an estimated $2 trillion by 2005. Markets never close so there is no build-up or backlog of client overnight orders or pent-up reaction to news stories hitting the market at the open. This means that there are no gaps to create instant losses (or gains) for those holding overnight.

The Trend is Indeed Your Friend
There are two basic types of markets: trending and trading-range markets. It is far easier to make money in the trending markets. Currencies tend to experience longer-lasting trends than other markets, and can last for months or even years. This makes them ideal vehicles for trend-trading and breakout systems. This explains why chart pattern analysis works so well in Forex trading. With such widespread groups playing the game around the world, crowd behaviour plays a large part in currency moves, and it is this crowd behaviour that is the foundation for the myriad of technical analysis tools and techniques.

Lower Volatility in FOREX Trading
Due in part to its size, Forex is less volatile than other markets. Lower volatility equals lower risk. For example, the S&P 500 Index trading range is between 4% and 5% daily, while the daily volatility range in the Euro is around 1%.

The Intermarket Advantage
One example is the "Intermarket" method of market analysis developed many years ago by respected industry professional Louis B. Mendelsohn. Trading veterans know that markets are interdependent, with some markets more heavily influenced by certain markets than others. Mendelsohn's VantagePoint analytical software detects hidden, yet repeating patterns that occur between related markets.

Figure 2 – Shows other markets that drive and influence the Euro/USD.

The challenge from a trader’s perspective is how to take these often-complex relationships and integrate them into a workable trading strategy. For the purposes of this article, VantagePoint Intermarket Analysis Software charts developed by Market Technologies (www.tradertech.com) were employed. It uses a combination of neural network indicators to incorporate intermarket forces analysis into the software. Indicators provide forecasts of a potential change in market direction in advance, thanks to an ability to analyze a complex array of intermarket forces acting on the issue under study.

Figure 3 – Shows VantagePoint Intermarket Analysis software forecasting trends in the AUD/JPY market with nearly 80% accuracy. Source: VantagePoint Intermarket Analysis Software – www.VP4x.com

Don't Forget Market Fundamentals
Like their commodity and stock counterparts, successful Forex traders also can’t forget about the fundamentals of the market. Here are some reports worth discussing.

1) Interest rate announcements by central banks. Language in meeting minutes published following announcements or rate change decisions. E.g. Federal Open Market Committee (FOMC) Minutes.

2) Government debt and deficit figures that show changes for the better, or worse. Increasing deficits, for example, often portend an increase in interest rates as the government competes with the private sector for investment capital. The difference between stocks and Forex is that increasing rates are usually good news for a currency.

3) Quarterly GDP reports. Preliminary national GDP announcements also have the potential to affect market sentiment.

4) Economic or geopolitical events such as elections, conflicts and political uprising etc. Anything that investors or traders think may destabilize or impact the market.

5) Reports such as the Institute of Supply Management in the US and Purchasing Management Index in Europe tend to be closely watched by traders.

6) Industrial production figures, jobs (non-farm payrolls in the U.S.) and employment figures can impact markets including currencies since they could have a direct bearing on national interest rate and economic policy.

7) Yen traders closely follow Japanese reports such as the Tankan quarterly survey for insights into currency movement.

8) Market sentiment published by market commentators and news services. It is often a good idea to buy on rumour, sell on news.

Forex is the ideal market for the experienced trader who has paid his or her "trading tuition" in other markets. Forex is by far the largest market in dollar volume, is less volatile, experiences longer, more accentuated price trends and does not have trading commissions.

However, there are no free lunches. Traders must use all the trading tools at their disposal. The better these fundamental and technical tools, the greater their chance for trading success. While intermarket and other relationships are often complex and difficult to apply effectively, with a little high-tech help, traders and investors can enjoy the benefits of using them without having to scrap their existing trading methods.

New E-CURRENCY XPLOSION MANUAL!

2007-07-06T23:17:00.000+01:00

Hey Friend, what more can i say? or how many testimonies do i have to post here for you to believe that E-currency trading is for real?

Now its high time you took action! And i have just what you need...an all n' all about Trading E-currency...its my E-CURRENCY XPLOSION MANUAL!...

This manual teaches you how to trade E-currency and begin pulling out your profits on a daily basis! You wont even believe your eyes that you will be able to do this..but this manual will show EXACTLY what to do....

Now you wonder how do i get it? Well i just want you to get your own portion of the profits from the e-currency system thats why i decided to churn out this manual...

Now here's how to be a part of the flow...

*If you are a member of www.igoldforum.com ( You will have to send me your forum username) i would let you have this mind blowing manual for a token of ....N4000 ONLY....too much? well keep asking until express leaves you!

Payment method 1:

Pay into any branch of
GUARANTY TRUST BANK (GTB PLC)
Account Number : 412-407371-1590
Account Name: OSAWEMWENZE EMMANUEL

or
Pay into any branch of
FIRST INLAND BANK PLC
Account Number: 08054229945
Account Name: OSAWEMWENZE EMMANUEL

After you've paid, please send me your teller Number, Date and amount Paid and name of depositor to iwantdollarsonline@yahoo.com

Payment method 2:
Pay the sum of $27 to this e-gold link here http://tinyurl.com/ypuedn stating in your payment memo "E-currency Xplosion Manual" (if you use egold to pay, please send me your email address so i can mail you the ebook within 24hrs so you can start reading it immediately)

OR
if you want Hard Copy, you simply pay the sum of N5500 ONLY (state your address and name and send to the mail above) and then it will be shipped to your state of residence in Nigeria.

NOW, for none members of www.igoldforum.com (sorry for that...why dont you become a member and enjoy this price slash?) you will have to pay the sum of N5000 (for the ebook) to the above stated account or the sum of $29 to this egold link http://tinyurl.com/ypuedn

So, once the bank confirms your payment, i shall send the ebook or the hard copy to the stated address, if there is going to be any delay, i shall let you know.

Now some marketers will give you alot of freebies to "attract" and "lure" you to buy there product, not me! I dont give out freebies because i want to lure some one per say to buy my product, i do waht the name says...FREEBIES are FREEBIES...no more no less..so trust me, i would add invaluable freebies to this you would rush back to this blog to post your thank you's every day!

Let me not talk too much, a word is enough for the wise..for doubters, please stay away! This is real business, not for freaky hearts but for strong and enterprising minds....

just see what people i have not even met are saying about this....

"a brand new subject for me and probably many others too: Trading E-Currency for Dollars. But now I know where to come for ALL the info because this blogger knows and tells EVERYTHING about it. Very thorough and useful site...Obviously the product of a good, clear thinker and writer.. " http://freewebmall.bettr.com

"Wow! There's lots of info there. You are one smart cookie...the info is needed. Thanks. Nice Job!. " http://ourbooksandstuff.blogspot.com

So, are you still here? go at once and pay for your E-CURRENCY XPLOSION MANUAL now...this is a limited offer...trust me, i WILL increase this price VERY SOON!

Let's Meet at the Top!

E-currency Trading Business "Being a Trader, Having more Money and Freedom"

2007-07-06T23:12:00.000+01:00

You just heard about Electronic Currency Trading. You hear about people making money with it. You wonder if you can make money with it. Is it too complex? Is it a scam? Could you double your income with it? Read on to find the answers.
Can you really make money with the E-currency Trading Business ? How can I get started? Will I be able to get my money out? These are some of the questions you would want the answers to. Granted it is a complex system to learn. At first you need to have a proper strategy to make "big money" fast.
The good news is you CAN make good money with this system. Here are some facts about the E-currency Exchange Business :
-Once you have started, managing your the E-currency Exchange Business portfolio takes 30 minutes a day, most days even less.
-You can start with as low as 50 bucks, but to be honest you could be sorry you didn't put more. Your money will grow really fast.
-When you get started with the E-currency Exchange Program, you make money from day 1.
-It shouldn't take you more than 6 months to take your portfolio from 3 figures to 5 figures. Tip: Always re-invest your profits until you hit 5 figures.
Do you feel you should be earning more? Are you fulfilling what you were meant to be in this life? Do you think you could get there easier if you had more money and more time? These were some of the questions we asked for ourselves before we got into Electronic Currency Trading. You may find yourself asking these same questions, and you have to look inside to see if this system is right for you.
I highly recommend this opportunity because, not only has it worked for me, but it also has worked for many people I know. It makes you money and it isn't a hassle at all. It's always a pleasure to see that you have more money that the day before.
Let's say you know what the E-currency Trading Business is and what it can do for you. You are ready to start. How do you do that? What is the path you need to follow to make start making money fast? From our own experience, we recommend one way: Taking a program that Trains you how to make money with e-currency. There are courses like Gary Jezorski's CurrencyExchangeProfits, Matt Gagnon's Mazu and Warren Barnes's Learn-ecurrency-exchange, which can really put you up to date in what you need to do to make good money with this system.
If you are seriously interested in earning more money, I can say you can have that for yourself today, think about the things you really want, and if you think you deserve a second income, my advice is to get started right now. Based on my experience I can tell you it could be one of the most rewarding experiences.

Discover what are the best ways to learn about electronic currency exchange, visit my site (http://www.electronic-currency-exchange.com) for the inside scoop on you can learn more about How to learn E-currency Exchange
Article Source: http://EzineArticles.com/?expert=Charles_Cruz

E-Currency Exchange: 4 Great Income Streams and Counting

2007-07-06T23:09:00.000+01:00

This article provides a brief overview of the 4 sources of income we can take advantage of as a participant in the e-currency exchange trading system.
Specifically, I am refering to the e-currency exchange program through DXinOne. DXinOne is by far the leader in facilitating e-currency conversions. The fees charged to account for these transactions is how DXinOne makes money. They are in essence a clearing house.
So how do I make money in this? The first and most important income source is the Portfolio. The first thing you will want to do is open an account and start building a portfolio. It does not cost anything to open an account. Fund the account with as little as $25 and start building your portfolio. As you progress you will be able to use leverage to increase the overall value of the portfolio. It is not uncommon to see portfolio growth of 20 to 40% per month. This is accomplished by combining the daily profits and the leverage to add to your portfolio. The average daily profits on your portfolio will range from about .15% to .35% depending on the supply and demand in the system.
The second source of income in the e-currency exchange program is to become qualified as a Merchant. Don't get excited, you aren't selling anything. Merchant is just a term given to signify those that have qualified to participate in the actual e-currency exchange process. Thousands of times each day there exists the need to convert from one e-currency to another or e-currency to hard cash etc. This is where the Merchants come in. The Merchants receive a fee of 4 to 14% for making funds available to make these conversion transactions possible. To qualify as a Merchant you must have a portfolio value of at least $5,000 and you have had a DXinOne account for at least 90 days.
The third source of income is the P4 Program (Pre-Paid Profits Program). This program provides non merchants the ability to earn a per transaction fee for exchanging with active merchants. Merchants need liquidity to perform their functions and are willing to pay a fee for this liquidity. The fee paid to the non merchant ranges from 5 to 7% of the transaction. Caution: I have seen a lot of advertising boasting the P4 Program as "Huge instant profits" and "You get paid first" etc. Unfortunately, you do not have the whole picture. The rest of the picture is 2 part. The first is, when you have completed a transaction you will have to exchange those funds in order to do anything with them. This exchange will cost you upwards of 3%, so the real returns are cut in half or so. The second part of the picture is the reality of the time required to perform the e-currency exchange process. As of the writing of this article the process is extraordinarily long. Expect the process to take 2 weeks or longer depending on how the system is flowing and how much you are trying to exchange. So maybe the truth is 2 to 4% return every 3 weeks. Still not too bad for passive income.
The fourth source of income is for webmasters. This is called the AdsExposed Program where advertising is placed on your website. You will receive pay per click revenue from those ads.
So now you have the 4 sources of income currently being offered by DXinOne. The great thing is DXinOne is a progressive organization. They have many other programs and services in the works that will be launched as time goes by.

Merv Thompson Author and operator of http://www.futures- brokers-review.com a website providing tools, resources and reviews for todays trader.

Get detailed information on e-currency trading at e-Currency Exchange
Article Source: http://EzineArticles.com/?expert=Merv_Thompson

More About Dxinone E-currency Trading

2007-07-06T23:06:00.000+01:00

E-currency trading is growing into a worldwide business. If you are looking for a growing business that will never let down E-currency is a great one. Dxinone is a very confusing system for a person that has never seen or used it before. If you have no idea how to sign up or start to fund your account you will miss out on a very good way of making money-using e-currency.
The web page they use offers no guide to helping you start using the Dxinone system. There are however VERY helpful guides that you can buy for a small price that teach you everything you need to know about Dxinone, and how to get start in e-currency.
Once you join Dxinone and make an account you can then fund your account with money using NetPay, E-gold, E-bullion, and a few others. Once you have funds in your account you can then start to make money in the e-currency system. You will buy digots with the funds in your account. These digots act like a share of stock would. A window will open in Dxinone, and you will see a list of places you can buy digots from. These digots will be how you are going to profit from the e-currency system.
Once you have used all the money in your dxinone account you now will see how the system works. Each night you can log into dxinone, and check up on your digots to see how much you made in profit. Everyone has a different way for buying his or her digots. Again buying and selling digots is just like buying and selling stock. You will see under your TDV Total digot value how much profit you have. You can also tell how much money you used, and how much you can take out of dxinone. Each night you will gain any where from .35% to .5% in returns as profits. The nice thing about dxinone is that your money is compounded daily unlike other investments that might only compound weekly or even monthly. Each night you are making money with e-currency.
As you can see it can be very hard for someone to learn how to use or even start with Dxinone. This is a system that everyone should get to know, as it is a very profitable way of making money online with e-currency exchange.

Visit Mazu e-currency online for more information about dxinone and e-currency trading.
I used the mazu guide to help me get started in Dxinone. It also helped me take my $400 investment into Dxinone and turn it into $5,100 in 4 months. Visht Mazu E-currency Online to see how the mazu guide can help you.

Article Source: http://EzineArticles.com/?expert=Chris_Rohrer

Sneaky Little Truth That Puts An Easy $2000 Adsense Money In Your Pocket.

2007-07-06T23:03:00.000+01:00

Google’s Adsense program is quietly making people rich and I am sure you know that. However, most people who are into the adsense program and *trying* hard to make good monthly pay outs are in the dark on certain killer strategies that produce good cash from adsense. It is quite easy to rake in as much as $2000 from adsense if you follow this easy procedure. It is simply about know what works and how to monetize what works even further. I was playing around in my adsense account when something caught my attention.

It read.. “When a publisher who signed up for Google AdSense through your referral earns $5.00 within 180 days of sign-up, you will be credited with $5.00. When that same publisher earns $100.00 within 180 days of sign-up and is eligible for payout, you will be credited with an additional $250.00. If, in any 180 day period, you refer 25 publishers who each earn more than $100.00 and are all eligible for payout, you will be awarded a $2,000.00 bonus. * (* A Google AdSense referral is counted only for publishers never previously enrolled in Google AdSense. You may only receive 1 bonus payout per year. )

WOW.. I was shocked. So, if several people join the adsense program through me, I stand a chance of earning an easy $100 when they become eligible for payout and even better, I get $2000 when 25 people become eligible for payout in a 180day period. That got me thinking.. Why on earth have I been mucking around, inserting the images for download of the browser when I could have concentrated myefforts on promoting the join adsense links? Of course I know fully well that a lot of those who join the adsense program will try to get their payouts as quick as possible and as soon as they do – I also get paid. Immediately I realized this, I began “mucking” around with all adsense on all of my sites. I changed a lot of the banner images to reflect “join adsense” instead of all the other low paying… you know. If you still haven’t caught on to this,well you are hearing it now. Its time to begin to do some tweaking at your end of things and start getting people to joinyour adsense.
© 2007, Oluwafisayo Akinlolu.
============================================
Want more tricks, tools, twists and turns that guarantee increased revenue? Rush over to http://profitbomb.com

Questions that you want answered

2007-06-27T15:17:00.000+01:00

Some of the questions that you would be asking me are list here,have a look:

1. What is DXInOne and the E-Currency Business?
2. What is the best way to learn this business?
3. Why would businesses want to use E-Currency instead of other payment systems?
4. How do I Start my E-Currency Business?
5. Can I Lose Money?
6. How Do I Best Manage My DXPortfolio?
7. How Do I Know What Digots To Purchase?
8. What Fees are associated with trading within the DXInOne system?
9. What are the differences between a Spend and DXDirect payments?
10. How is DXDA calculated?
11. What is the OADXD Activation Fee, and what is it calculated on?
12. I just paid my OA fees. Why didn't my OA fee balance go back to $0?
13. What should I do if I can't pay my OA fees from my Incoming Balance and have to stay on Standard OA?
14. How can I OutXchange funds from my DX G2 Portfolio?
15. How Do I Repay DXDW?
16. How Do I Purchase Digots?

What is DXInOne and the E-Currency Business?
This business, you are investing in digots, which are actually shares of currency exchange companies from around the world. By doing this, you are providing liquidity for e-currency exchanges to take place in the online marketplace. Similar to a bank account, your funds remain in your account even though they are being used. Not only can you earn 1.5 - 4% a week on your funds, but the daily compounding will allow your portfolio to grow substantially in a very short period of time. It's actually possible to double your initial investment in 30-50 days and will continue to see growth each month thereafter. Exactly how much you can make depends on how much you put into the system, time and money, and how good your digot picks are for each session.
I would suggest only putting in a few hundred dollars of your own money to start your portfolio, and let the system work for you, generating you more money. It will take you a little longer to get your portfolio up in value, but slow and stead wins the race! This is a great business to get into now because e-currencies are just starting to take off now.
What is the best way to learn this business?
The best way to learn any business is to read as much as you can about it, until you're comfortable with it. This blog is a great resource to learn all about DXInOne and the e-currency exchange business but there is a lot to learn.
I understand blogs and e-books are not for everyone, so if you decide to purchase a full-support course instead, I would recommend you get my E-Currency manual called E-Currency Exposed! This is the only full course that has all the new DXInOne information available today. Until the other courses out there update their information, this is the only one I will be recommending to folks.
There are other courses available, but you must know this, that the E-Currency Exposed! manual was completely rewritten in 2007 and has all the latest DXInOne rules and procedures for managing your accounts and making the most out of this opportunity to help increase your profits.
Whether you use a free website and forum or e-book, you have so many options available to make the best out of this business. The rest is up to you.

Why would businesses want to use E-Currency instead of other payment systems?

More and more businesses will use e-currencies for several reasons:
1. Security - To this day, many people don't like giving their credit card information over the internet. And with so many credit cards databases being compromised lately, I can see why.

2. Price - E-currencies are cheaper for the business than credit cards. As you should know, credit cards charge businesses a certain percentage to accept payments with their cards. E-currencies charge a much, much lower rate than standard credit card companies.

3. Speed - e-currencies process instantly, not like many credit cards. This is also why many people used PayPal, e-gold and StormPay because payments are immediate. Many transactions that involve credit cards, require you to wait until your information is verifies. With e-currencies, you are already verified, so there is no waiting.

4. No Charge Backs - Businesses doesn't have to worry about a charge back disputes with an e-currency. Once a transaction is complete with an e-currency, the transaction is complete. Businesses don’t have to deal with customers reversing the charges. Good companies still offer guarantees and warrantees, but they don’t have to deal with all the games bad customers use to try to beat the system.

5. Truly Global Acceptance – Many countries do not accept credit cards for payment. Many times if you want to order something from a foreign country, you need to wire funds. This is very expensive and requires you to setup bank accounts to perform these transactions and it can be very time consuming and problematic. If your funds don’t get there, you need to do wire traces. These take up to 30 days. E-currencies are immediate. Nothing gets lost and you get the product or service you purchased without waiting.

6. Flexibility – There are literally hundreds of e-currencies and they continue to grow all the time. The more ways a company gives customers to pay for their products or services, the more a business will generate in income, therefore increasing profits.
There are many more benefits as well, but you should get a good understanding of why e-currencies are such an attractive option for businesses that conduct their offerings online.

How do I Start my E-Currency Business?

Very simple! Basically you open up a DXInOne account first. Then you open an e-currency account. This allows you to convert your money into e-currency. Then you open an account at a Digital Gold Currency Exchange Provider to perform the actual conversion and deposit the e-currency into your e-currency account. Lastly, you start buying digots, and watch your portfolio grow.

Can I Lose Money?

As with any investment, it would be possible to lose money. The DXInOne Company has been around for 5 years now and e-currency is just starting to be universally accepted from online merchants around the world. This is a great time to get into this business, because the demand is high and it's only going to get bigger.
The way you build your portfolio, is to purchase digots (digital currency). These digot go up or down during each trading session. Each trading session is approximately 23 hours long. If you chose digots that went up in value from the previous session, you made money on those digots. If you chose digots that went down in value, you lost money on those digots. The fact is, most digots increase in value. As with any kind of investment, the stock market included, is to diversify your portfolio. When you are diversified, the winners will greatly outweigh the losers. You will make money in this system and depending on how your digots perform; you can make some very nice returns. You also see how you're doing every 24 hours, so you know exactly what your portfolio is worth and how it performed the previous session. You have total control over your accounts.

How Do I Best Manage My DXPortfolio?

Starting around July 9, 2005, DXInOne started implementing some new rules to help manage the disproportionate TDVs from DXDUs from peoples DXPortfolios. Since some of the rules have changed, you should read through My DXPortfolio post to see the strategies DXInOne suggests for managing your portfolios. This is literally from their help section off their website to make it easier for folks.

How Do I Know What Digots To Purchase?

It depends on who you ask. Some people buy for different reasons. For example, digots split just like stocks do if they get too high in price. A digot will usually think about splitting in the mid to high teens. Many people buy higher priced digots, so after splits, they will have more digots in their portfolio. Others, like myself, go in the opposite direction. I like to buy lower priced digots, with low premiums, to keep my fees down, and I can purchase a larger quantity of digots. Whatever works for you?

What Fees are associated with trading within the DXInOne system?

As with any stock-like transaction and digots are similar to stocks, there are fees involved. There are two fees when purchasing digots; a Buyers Fee and a Premium Fee. These fees together get added to you accounts Credit Line. A Credit Line is kind of like a loan, except you don't have to pay this back. However, the amount of money in your Credit Line (CL) figures into how much DXG (DXGold) you'll be able to invest in the next day’s session. I have never heard of a good reason to pay this CL down, but you can if you like. Depending on your account value, sometimes it's worth paying it down to get more DXG Available for the next session and sometimes it just isn't worth it.

What are the differences between a Spend and DXDirect payments?

Both a Spend and DXDirect payments originate from the senders Available Balance (AB) and got to the Recipients Available Balance and both of these transactions have the same transfer fees associated with them. The only difference is that a Spend immediately goes into the AB of the recipient and no other steps are necessary to complete the transaction. A DXDirect payment must be "claimed" by the recipient and then "released" by the sender. A DXDirect would be something you would use for purchasing something from someone you didn't know, or trust. A Spend would be used for sending funds to someone you trusted and wanted to just send money from your account to theirs.

How is DXDA calculated?

DXDA is calculated on the following formula:

DXDebit Available = (%Qualified * TDV) – CL - DXDU

Monthly OA fee is based on the amount of DXDebit you've used and the size of your TDV. Your Incoming Balance (IB) is the only balance where your fee is discounted. DX encourages us to pay our OA fee from IB.

What is the OADXD Activation Fee, and what is it calculated on?

If you pay from your Incoming Balance (IB):
OA fee = TDV - DXDU x 2.75%
OADXD fee = DXDU x 3.75%

If you pay from a Standard Source (Avail Balance, RB, DXDA):
OA fee = 3.75% x TDV + 4% x DXDU

I just paid my OA fees. Why didn't my OA fee balance go back to $0?

Your OA balance does not go back to 0 because as your port grows, so do your gains. DXInOne has this in place so your profits don’t go through the roof. They keep a tight balance between your OA and TDV gains.

What should I do if I can't pay my OA fees from my Incoming Balance and have to stay on Standard OA?

1. Withdraw all Available DXDebit to your DXAccount Available Balance. Go to Personal -> DXPortfolios -> DXDebit -> Withdraw DXDebit and withdraw all of your DXDebit Available to your DXAccount Available Balance.

If you have more than one DXPortfolio, then repeat this step for each of them.

2. Make sure your OA fees are set to NOT come out of your Available Balance. Go to Personal -> DXPortfolio -> Activation Status. Click on the "Settings" link on your DXPortfolio.

Scroll down to where you see the OA Fee Payment Options 1 through 5. Set the first to "Available Reserve Balance" and all the rest to "Disabled" - this will ensure that your Available Balance will not be touched by your DXPortfolio.

If your OA fee cannot be paid then your DXPortfolio will go out of OA and will not gain DXDebit. It will NOT affect your OutXchanges or your DXAccount Available Balance.

3. Wait for things to change. If you want to list those funds in OutXchanges you can, but you don't have to. You could instead use them in adsXposed to make money in the meantime.
Do these steps look familiar? They are the same steps that you follow to "get out" of DXInOne. The only difference is that you are not looking to abandon DXInOne. However, in order to keep your DXPortfolio in good standing you do need to pay the OA fee from the Incoming Balance.

With that in mind, these steps will put your DXPortfolio on "hold" until you can either bring in new funds or OutXchanges speed up (hopefully the latter).

How can I OutXchange funds from my DX G2 Portfolio?

1. Portfolio G2...DX Debit...Withdraw DX Debit
When you have multiple Ports/Accounts, you are presented with a screen where you can chose the FROM portfolio, and TO account. When you've done that the Portfolio you have chosen comes up.

2. From that portfolio, you can then choose which Digots you want to give up. Of course you must choose your worst performing digots. You can "tag" any digots you want, up to the amount of PF you have. It’s a good way to get rid of your badly performing digots.

3. After you done that, you finalize the withdrawal, and the PF will be moved to your account, and the digots you tagged will disappear.

4. Now you can OutXchange the PF from your Account to your External eService.

How Do I Repay DXDW?

1. Personal - DXPortfolioG2 - DXDebit - Withdrawal Details
2. Select Port
3. Click DXID
4. Select 'Drop Withdrawal' option or Second option (you choose which digots to drop from withdrawal).

How Do I Purchase Digots?
1. Personal - DXPortfolioG2 - Buy Digots - Digot Screen
2. Select your DXPortfolio, click NEXT
3. Choose a Continent (Tip: to avoid currency fluctuations, choose a continent in the same base currency as your port. For example, North America for USD port).
4. Select ALL DIGOT SYMBOLS at bottom of page. Click NEXT or Continue to go to Digot Screen.
5. Simply insert the quantity of a digot you wish to buy in the QTY column and then click the '0's in the adjacent Total Buy column. This will give you your costs for buying that quantity of a digot symbol.
6. After you've bought your digots, scroll to the bottom of page and click on PREVIEW to view your purchase. Go back and buy some more if you still have RB funds remaining and/or cut back on quantity if you've exceeded your RB budget.
7. If satisfied with PREVIEW, click on BUY NOW.
8. You can now go to Port Summary to view your digot holdings.

Tip: Digot Buy Strategy to maximize gains: LOW PRICE (.20 or lower) LOW PREMIUM%(premium x price/100) HIGH ACTIVITY (click bottom arrow under ACTIVITY to isolate the top 5 to 10 digots with high activity. Filter through criteria and buy qualifiers).

Choosing Digots to Purchase

2007-06-25T11:43:00.001+01:00

Hi, you have to know the kind of digots to purchase, so if you are ready, lets continue,

Below are the exact steps I use to work within the DXSynergy/DXInOne DXPortfolio system and it's working well at the moment.

Here we go, step-by-step:

NOTE: When you see terms with an arrow between them that means to click on the menu item name and then traverse the sub-menus. For example if you see this:
Personal -> DXProfile -> Summary
that means click on the Personal menu item at the top of the page, then drag your mouse down to DXProfile and then drag your mouse down and over to Summary and then click your mouse button to select this choice.

First, transfer your e-currency from one of your e-currency accounts (e-Gold, AlertPay, NetPay, etc.) (Though I would prefer E-gold as they are safe, convenient and easy to fund) to your DXSynergy account. For the remainder of this example, I will use e-gold as the form of e-currency.

1. Log into your DXSynergy/DXInOne Account
2. Take a quick look at your DXSummary:
Personal -> DXSummary
These are your current balances. At this point, everything should be $0.00.

3. Transfer money from your e-gold account to your DXSynergy/DXInOne Accounts Incoming Balance:
Personal -> DXAccounts -> InXchanges -> E-Service
In the following screen you will see lots of e-currency choices in the "Choose An E-Service To InXchange From" section. For this example we will click on the E-Gold (Gold) choice. Click the button so it is on and click NEXT at the bottom of the screen.

In the "Choose An External Account To InXchange From" section you should only have one e-gold account at this point, so click the circle on the right to select it.

Next in the "Choose A DXAccount To InXchange To" section, select your main DXSynergy/DXInOne DXAccount.

Last, in the "Enter InXchange Currency & Amount" section, Choose USD as the InXchange Currency and type in the amount of money you want to InXchange from your e-gold account and click Preview InXchange.

The next page summarizes your choice. When you're ready, click on the InXchange Now button at the bottom. You may Edit InXchange if you want to change something.

If you chose InXchange Now you will be connected to your e-gold login page. Log into your account to finalize the transfer. Once completed, you will be directed back to your DXSynergy/DXInOne account.

4. Next you must transfer the money you just added to your Incoming Balance to your Reserve Balance:
Personal -> DXPortfolios -> Reserve Balance -> From DXAccount
Select the "Choose A DXAccount To Transfer From" and the "Choose A DXPortfolio To Transfer To". In the Transfer Currency field at the bottom of the page, choose DXG as the currency. In the Transfer amount, enter your Incoming Balance total and click Preview Transfer. On the next screen, confirm your choice and click "Transfer Now!" button.

5. Now you're ready to Buy digots:
Personal -> DXPortfolios -> Buy & Sell Digots -> DigotScreen
Select the DXAccount you want to use (you only have 1), and click Next

DXSynergy - Choosing Digots to Purchase
Section E - Choosing Digots to Purchase
Now this is where you will hear lots of different ways to pick digots, which ones to buy, how much to spend, etc. I am giving you my advice on how I choose digots for the lowest price and premiums and best performance. You can do as I do, or check the forums to see if you like someone else's strategy better. E-books are a very good resource for multiple strategies at different stages in managing your DXPortfolio.
Here's what I do:

Since I'm only buying USD digots in my USD DXAccount, I first click on the North America Continent, or choose North America from the Continent menu pick.

Next, I choose United States of America in the Country menu pick and then click View DigotScreen. Don't touch the values that are pre-filled in for you.

On the next screen you will see all the US digots available for purchase. I sort these by Price by clicking the little up-arrow on the Price column. Now my digot choices have the cheapest ones at the top of the list.

The next thing to look at is the "Premium" column. This is the percentage you will pay per digot when making your purchases. The higher the premium, the more money it will cost you to buy. I always purchase the lower priced digots with the lower Premiums. This saves money on purchasing fees.

I do not recommend Spreading your purchases with the Spread Amount choice on the page. It's your choice.

See how much money you have in the Reserve Balance at the top of the page. That's how much money you have to purchase digots with. Start typing in the number of digots you want to purchase for each e-currency. Once you click to the next field, you will see in how much these purchases will cost. Keep typing in numbers until you spend most of your Reserve Balance. If you lose track, then just click the Preview button at the bottom to see how much money you've used up so far with the choices you're making.

Keep an eye on the "Payable From Credit Line" each time you click Preview. This is the total of your Premium and "Total Buyers Fee". This is how much you transaction fees will be. This value gets added to your Credit Line. Your Credit Line does not have to be paid back, but it does figure into how much DXG your will be able to use for the next session.

When you're happy with your digot choices, click the Buy Now button and you're done. You have just purchased digots for your first e-currency trading session!

Work at Home With Make Money Online in Blog has lots of money making ideas for people who want to work at home and make money online. It offers three (3) backlinks to your websites and/or blogs if you link to its blog from your new or old posts.

Creating Your DXSynergy DXPortfolio and Trading information

2007-06-25T11:36:00.000+01:00

Hi, lets continue now,

DXSynergy - Creating Your DXSynergy DXPortfolio
Part C - Creating Your DXSynergy DXPortfolio

At this point you should have just finished creating your DXAccount I hope? OK. Now you need to create your DXPortfolio. Your DXPortfolio is where you will do all your trading from.

In the previous post I told you that you would be purchasing things called "digots". You make your digot selection from within your DXPortfolio. Remember, you will select digots from certain countries, cities or states. For example USD, EUR, AUD and many others.

So now you need to create your DXPortfolio in the same currency as the DXAccount you just created.

So, for the following example we will be creating a USD backed DXPortfolio:

1. Log into your DXSynergy account with the username and password you chose when you registered.
2. Click on the following menus to create a new DXAccount:

Personal -> DXPortfolio -> Create/New

3. In the "DXPortfolio Currency" field, choose the currency you want to use as your primary currency. For this USD example, you would choose the "USD - US Dollar". Also notice your Currency choices are limited to those DXAccounts you currently have created. Once you made your choice, click the "Continue" button to move to the next screen.

4. In this screen you need to select the "DXPortfolio Creation Level" you will be starting at. This level is the amount of money you want to initially fund your DXPortfolio with from the DXAccount you will be using to back this portfolio. So, if you will be starting with $25, you would choose the "DigotStandard" DXPortfolio Level. If you're starting with $50, you would choose "DigotProfessional 1". You get the point, I'm sure? (regarding the start up amount, I would rather you started with $200 or above, for faster growth returns)
(If you want a reliable e-gold exchanger, whom I also fund my e-gold though, go to www.goldnairaexchange.com)

5. Next, in the "Select A DXAccount" section towards the bottom of the page, select the DXAccount you want to connect to this DXPortfolio and use as it's primary funding source.

6. In the last section type in the name you would like to use for your DXPortfolio in the "DXPortfolio Name" box provided. For example, "Emma’s USD DXPortfolio". When you're done, click on the "Create Now!" button to create your DXPortfolio.

That's it! Congratulations! You've just created your first DXPortfolio.

DXSynergy - Trading Facts You Must Know

There is so much to learn when it comes to trading within the DXSynergy system.

If you want my suggestion on buying and selling digots, please read on:

I do not have a Merchant Account (console) because I'm not ready to make that commitment. As of writing this, there are also no Merchant accounts available. These accounts are based on supply and demand. There needs to be a fine balance between the two, so the system can thrive.

IMPORTANT FACT 1: When you create a DXAccount in DXSynergy, make sure you create your DXPortfolio in the same currency. Always try and purchase the same digot symbols as your DXPortfolios base currency to avoid any currency exchange fees.

IMPORTANT FACT 2: If you want to mix up digot destination purchases in one DXPortfolio, create your DXAccount and DXPortfolio in the DXG base currency. This will help save on any currency exchange fees as well.

That being said, I personally do not want a DXMerchant account at this time because it requires a lot more hands-on attention that a DXPortfolio account. You must log into your console at least 3 to 4 times per day, to process transactions. You also have to tie up your funds to process these requests. Also, some people involved in transactions don't follow through in a timely manner, causing your transaction to be in the “pipeline” until the deal is done. The rewards are higher with commissions and bonuses, but there are headaches. With the Portfolio side, all we care about is buying digot and getting our TDV (Total Digot Value) to grow. I like the Portfolio side, or don’t you?

Ok. Back to the Portfolio side.

The new DXSynergy system was just recently updated in May 2005. You will notice many sites and programs out there are out of date. Many forums may be current but the information on the site about how to do things, still reference the old system. The information on this blog to the best of my knowledge is current and relates to the new DXSynergy (formerly DXInOne) system.

If this post has been useful to you, I would like to read your comments on the shoutmix corner and tell your friends (and enemies) as well about this blog.

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NB: You can use this post for free if you want to, but on the condition that you leave it untouched and add this link to it… http://iwantdollarsonline.blogspot.com thank you.

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Work at Home With Make Money Online in Blog has lots of money making ideas for people who want to work at home and make money online. It offers three (3) backlinks to your websites and/or blogs if you link to its blog from your new or old posts.

Creating E-currency Accounts

2007-06-11T09:22:00.002+01:00

Hi Friend,
Here’s the next part of making dollars online with e-currency trading. We shall be talking about the account information of the DXSynergy accounts so you can understand what they entail so you can trade successfully online.
But today, we shall be talking about creating your DXSynergy DXAccount. So, if you are ready, I am, so let’s get the ball rolling…

DXSynergy - Opening your DXSynergy Accounts

Part A - Account Information

You need to understand at least the four (4) subsections of your DXInOne Account. If you're just starting out, you do not need to understand the DXMerchant in section 4. It will take you many months to reach this level:

1. DXProfile:

The DXProfile section is where your personal and account information is kept. You can make changes to your personal information here.

Information such as:

1. Passwords

2. Email Address

3. Uploaded documents to verify your identity

4. Mailing Address

5. And a few other personal settings

2. DXAccount:

Now that you have your DXSynergy and E-currency exchange accounts created, and verified, it's time to get busy. If you haven’t already done so, please log into your DXSynergy account. You need to know the following sections to begin:

Your DXAccount is the key part of your DXInone business. It is where you conduct all your e-currency trading, buying and selling of digots (digital shares), Inxchanging and Outxchanging of funds.
The balances found within your DXAccount are:

1. Available Balance

2. Pending Balance (uncleared funds)

3. Incoming Balance

4. Total Balance

From within your DXAccount you can:

1. OutXchange your funds (take money out of the system)

2. Send funds via Dxdirect

3. Pay your OA fees

4. Transfer funds to another Dxinone user

When you InXchange funds they are placed in your Incoming Balance. When you want to OutXchange funds back to e-service bank, they need to be in Available Balance, hope you are following? OK.

3. DXPortfolio:

Your DXPortfolio is the main part of your Dxinone business from day 1. It is what you use to create income for yourself to build up your Portfolio and run your DXSynergy business.

The important balances and entries of your DXPortfolio are:
1. TDV (Total Digot Value), your overall value of your portfolio

2. Reserve Balance (how much money you have to buy digots with)

3. DXDebit (Total, Used & Available)

4. CL (Credit Line), where Admin, Premium and Broker fees are charged.

5. Additional balances and information

You may only purchase digots from your Reserve Balance (RB). That means after each daily session of trading, you could reinvest any EOS gains you received in your RB. Also when your DXDA balance gets big enough, transfer these funds to your DXAccount’s Available Balance (AB), and OutXchange these funds to your e-service(s). Once the OutXchange has been processed, you either InXchange the funds back to reinvest in the DX system, or spend your money as you wish (I know you like that!)

If you decide to InXchange funds back to continue growing your DX Portfolio, once your InXchange is complete, you will have funds in your Incoming Balance (IB). You must then transfer those funds back to your DXPortfolio’s Reserve Balance and continue purchasing digots. (NB This is how you build your portfolio to a considerable amount where you can now live off its continuous income!)

4. DXMerchant:

The DXMerchant side is where the actual exchanges take place. This is where you can earn bonuses for processing OutXchanges and Claims and more.

The balances found within your DXPortfolio are:

1. Float Balance (Available, Pending & Total)

2. Claim Bonus (Melt Bonus)

3. Claim Bonus (Melt Balance)

4. Claim Bonus (Instant)

From within DXMerchant you can:

1. Process OutXchanges

2. Process Claims

3. Receive InXchanges

Now let’s see how we can create our DXAccount in DXSynergy…

DXSynergy - Creating Your DXSynergy DXAccount

Part B - Creating Your DXSynergy DXAccount
At this point you should be registered as a DXUser but you haven't created any accounts or portfolios to start trading in. The first thing you need to do is create your DXAccount.

You now need to decide what currency you're going to be trading in. The way this business works, as you will soon learn, is to build up your portfolio by purchasing things called "digots". You will select digots from certain countries, cities or states. For example you can purchase USD (United States) digots, or EUR (European), AUD (Australian) and many others. If you purchase digots that are not in the same backing currency as your DXPortfolio, then you will be subject to paying small conversion fees. To be exempt form these conversion fees, just purchase the same digot currencies that your DXPortfolio is backed by.

So, for the following example we will be creating a USD backed DXAccount:

1. Log into your DXSynergy account with the username and password you chose when you registered.

2. Click on the following menus to create a new DXAccount:

Personal -> DXAccount -> Create/New

3. In the "DXAccount Name:" field, choose the name you want to use for your Account. For example "Bobs USD Account" and click the Create Account button.

4. In the "DXAccount Currency" field, choose the currency you want to use as your primary currency. For this USD example, you would choose the "USD - US Dollar"

That's it! Simple! You’ve just created your DXAccount.

In my next post, I will take you through the steps for creating your DXSynergy Portfolio, so stick around.
If this post has been useful to you, I would like to read your comments on the shoutmix corner.

Let's Meet at the Top!

Osawemwenze Emmanuel

08054229945

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NB: You can use this post for free if you want to, but on the condition that you leave it untouched and add this link to it… http://iwantdollarsonline.blogspot.com thank you.
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E-Currency Trading Tips

2007-05-22T12:14:00.000+01:00

Hi Friend,

Today’s marks another day in our lives…or should I say, Internet lives? Ha! Well , how was your weekend like?

So, lets get down to business….Guess what I have for you today? E-CURRENCY TRADING!

Yes! E-currency trading, ever heard of it? Its what is making those that have long heard about it very wealthy, legally! So if your seat belts are tight enough, lets take a ride into the world of E-currency Trading.

Well, E-currency per say means the exchange of one e-currency for another e-currency. Simple as that!
Ok lets look at it in terms of a real money example. If you're going to another country that does not accept money from your country, you would want to convert your money to the currency of the country you’re going to. Companies that provide this service charge a fee for doing so. The same applies to e-currency.
If you exchange one e-currency for another, there are “Merchants” who perform this transaction for you. These Merchants take a certain percentage for performing this service.

Now, to get started in E-currency trading, you have to know “how” it works and what to do to make the most profits out of it.

Now, with as little as $25, yes $25 you could be on your way amassing large monthly income with that amount you invest. All you do is invest that $25 in e-currency trading, reinvest its weekly earning and without putting further funds in, you could expect to generate a monthly income of over $4,800 in just three years, based on an average growth of 2% per week. All from just $25 investment!

So what do you do to improve your earning status? Here’s what you do,

1. Create an e-currency account

2. Fund your e-currency account (there are a lot of e-currency exchangers, just do a research on google.com and you will find them)

3. Create an exchange account with http://www.dxinone.com/ (thats the company that runs a secure e-currency trading)

4. Inject funds into the DXINONE system

5. Buy digots/shares with your injected funds

6. Get your DX Debit

7. Pay your fees regularly and continue trading!

Now all these steps may sound like Greek to you, but don’t fret yourself, in my next post, I’ll explain every one of them in details. This is just to wet your appetite about e-currency trading.
So, stick with me for the explanations of those aforementioned steps on e-currency trading. Hope it was useful to you? Hope you have a great day!

Lets Meet at The Top!

Osawemwenze Emmanuel
08054229945

Work at Home With Make Money Online in Blog has lots of money making ideas for people who want to work at home and make money online. It offers three (3) backlinks to your websites and/or blogs if you link to its blog from your new or old posts.

5 Vital Tips to Get You Started in Online Investments

2007-05-14T12:00:00.000+01:00

Hi Friend,
How was your weekend? ok i hope. guess what?

The internet today is filled with a lot of online programs that promise to “help” you make dollars online without stress, but only few of them actually do.

Why? That’s because they never had the intention to help you make the so called dollars online in the first place.

But all that can change now….how? I’ll let you in on it.

Many a time you see websites telling you to pay certain amounts for promised benefits or services (which never come), and then after you have paid for it, they abscond with your hard earned money...just like that.

Now you can carefully avoid this if you can take the following steps:

1. Understand properly the kind of program being advertised.
Does it meet with your interest? Are you at ease with the program or doubtful about the program? If you are doubtful, please I beg you, log out from that page! You could get your fingers badly burnt my dear.

2. Contact the program administrator for enquiries.
This will help you know if they will respond in later times, and also help you determine their level of efficiency. If they don’t respond after one week, what else are you waiting for? Please forget about the site.

3. View their testimonials of users/members of the program.
You could check their testimonial page. Have their product or system worked before for others? And is it still working? Are the testimonials credible enough or just dummies?

4 How long have they been in that business/program?
You have to know how long that kind of program has existed by visiting their “about” page, or checking the footnote on the website page. This will give you a clue to how long they’ve been existing.

5. Finally, ask around for persons who have done it before in your location.
This is very important as you have to have proof from people around you who are involved with online money making to know if the program is genuine or just another rip off.

Lastly, pray God to give you wisdom to decide wisely. This cannot be undermined.

These 5 vital tips may not be fire-proof enough but at least it can greatly guide you as it did me in my early days of online investments.

Keep this in mind always: NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE.
Happy Investing.

PS: If this post was useful to you, you can make your comments on the "shoutmix" corner.

Let’s meet at the top.

Emmanuel Osawemwenze
08054229945

Welcome to dollars online

2007-05-07T19:18:00.000+01:00

Hi friend,

My name is Osawemwenze Emmanuel, the 21st Century Netpreneur! Ever since i got wind of the internet, i have always searched for legitimate and easy ways to make money, no...scrap that....dollars online without stress, and guess what? I've found it!

I strongly believe that i can make the internet work for me, and that is what i tell my friends, including you! It can work for you as well! If i make dollars online, You can too!!!
Once again, I welcome you!

Lets meet at the top!

Osawemwenze Emmanuel

08054229945