Sovereign risk is the risk of a government defaulting on its debt obligations, or being unwilling or unable to meet its financial obligations in a timely manner. This risk can be caused by a number of factors, including political instability, economic problems, or a natural disaster. Sovereign risk can have a significant impact on the … Read more
When investors are said to be in a risk-on mood, it means they are willing to take on more risk in order to achieve higher returns. This generally leads to a rise in stock prices and other risky assets, such as commodities. When investors are in a risk-off mood, they are more conservative and seek … Read more
In the futures market, “full carry” refers to the total cost of holding a position in a futures contract, including interest costs, storage costs, and any other associated costs. This is in contrast to “net carry”, which only includes interest costs. For example, if you are long a futures contract for wheat, the full carry … Read more
Documentary collections are a type of trade finance in which a seller arranges for the collection of payment from the buyer through a bank. The buyer instructs their bank to make payment to the seller’s bank, which in turn forwards the funds to the seller. The main benefit of documentary collections is that they provide … Read more
The Chicago Mercantile Exchange (CME) is the largest futures exchange in the United States. Chicago Mercantile Exchange (CME) trades futures contracts on a wide variety of products, including metals, energies, Treasury bonds, and currencies. It is a leading provider of market data and research on these products. The CME is a member of the CME … Read more
A warehouse receipt is a document that proves that a certain amount of a commodity has been stored in a warehouse. This document can be used as a form of collateral in futures and commodities trading. What are commodities? A commodity is a physical good that is standardized across producers and can be traded on … Read more
In futures and commodities trading, actuals refers to the physical commodities that are being traded. These are the underlying assets that are being bought and sold in the market, as opposed to paper assets such as futures contracts. Actuals can also refer to the actual prices of commodities, as opposed to the prices of futures … Read more
The carrying charge market is the market in which participants trade contracts for the right to take delivery of a commodity at a future date, and in which the commodity is paid for upfront. This market is also sometimes referred to as the forward market or the futures market. In the carrying charge market, participants … Read more
A dawn raid is a type of surprise inspection that is conducted by regulatory authorities. The purpose of a dawn raid is to gather evidence of possible illegal or unethical activities. Dawn raids are often conducted without prior notice, and they can be extremely disruptive to businesses. Dawn raids are typically conducted by teams of … Read more
Types, Purpose, and How To Write One. What is a White Paper? A white paper is a type of informational document that is commonly used in business. White papers are typically used to provide information about a company or product, or to persuade potential customers to purchase a product or service. White papers are usually … Read more
