Author Archive: Khurram Naik

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Trading the Global Markets: Dow Jones DAX and EURO STOXX 50

Trading the Global Markets: Dow Jones DAX and EURO STOXX 50

You may have heard of the DJ DAX and EURO STOXX and you’re wondering what these are. Contrary to what you might expect, they’re not stores in SoHo or slim geeks dueling on the wheels of steel. These are both equity futures contracts traded at Eurex, which is the second largest derivatives exchange in the […]

The heat over ICE

The heat over ICE

The battle for the CBOT between CME and ICE is illustrative of the future of futures. Futures exchanges are no longer simply markets, but for-profit businesses, and unlike most for-profit businesses or even most exchanges special considerations must be made. Futures contracts are not like stocks, which can be bought at one exchange and sold […]

Behavioral Economics: A Primer

Behavioral Economics: A Primer

In most people’s minds finance and economics are the domains of clear, quantitative thinking. Economists merely uncover financial truth one after another as they develop new mathematical tools for modeling capital and how wealth is created. Markets, likewise, are ethereal natural forces tapped into rather than created. In truth, the assumptions that underly the pricing […]

Futures Trading: A few examples

Futures Trading: A few examples

To see how trading in the futures markets work, consider these examples. 1. Trading the S&P 500 futures The E-mini S&P 500 is a popular equity futures contract to trade. Let’s say you thought the S&P 500 was going to increase in value. Instead of buying a number of shares to sell later at a […]

The Future of Futures in India

The Future of Futures in India

India banned futures trading in wheat and rice yesterday. According to the UN’s Food and Agriculture Organization, India is the world’s second largest producer of wheat. India just began importing wheat after 6 years and recently banned exports. Prime Minister Manmohan Singh is facing unrest as inflation rises. India is also potentially faced with lowering […]

Alternative Rock and Alternative Investment

Alternative Rock and Alternative Investment

Given the recent fears from the overheated real estate market, a record trade deficit and the squeeze put on by historically high energy prices, it’s easy to be concerned about inflation. Commodities have historically been used as a hedge against inflation, and that hasn’t changed. What has changed is how accessible the ability to allocate […]

“Trading Rules That Work” by Jason Jankovsky

“Trading Rules That Work” by Jason Jankovsky

[Disclaimer: I work with Jason Jankovsky on trader education] The markets come with their own basic rules. In the case of futures and foreign exchange, the most important rule is that these are zero sum markets. That is, for every winner there is a loser. The other basic rule is that order flow dictates price […]

What are the futures markets for?

What are the futures markets for?

What are the futures markets? Let’s begin with a story about trains. Before trains, the nation was divided into small markets for various commodities, but with trains came the first truly national markets. Now it was cheap for farmers and grain merchants to deliver goods to the places that needed them most – and would […]