Why do commodities traders always check the LME website?
Why do traders regularly check the London Metal Exchange (www.lme.co.uk)? Response: The London Metals Exchange (LME) has been established for over 130 years and is the world’s foremost non-ferrous metals and plastics market. Traders can obtain accurate price data, forecasts, and analysis about the futures contracts that are offered by the exchange. The LME offers…
Should I add to super or pay off debt?
I am a 57 yr old part time female worker working 2 days a week as a nurse. My hubby is a process worker working 38hrs week and has a second job delivering Pizza. My 3 children stay as at home with the eldest working full time this year and the twins still in 3rd…
Transition to Retirement strategy – is it tax effective?
I will be turning 55 next financial year. All I have read or heard from the commentators are it is beneficial to start a transition to retirement pension (TRP). Is it a tax effective strategy for everyone over the age of 55? Would you please give some examples where TRP is not a good tax…
What do most forex traders do when they trade forex?
To accurately capture the information requested in this question for the foreign exchange market is difficult. This is due in part because foreign exchange is mainly traded on an over the counter basis rather than on a centralised exchange and as such, much of this information remains proprietary in nature. Also complicating this question is…
What is a popular strategy for short-term forex traders?
For many traders, trading key announcements is seen as an opportunity to profit quickly due to the volatility that surrounds these events. One such event that is popular with traders is the US non-farm payrolls. This occurs on the first Friday of every month. The non-farm payroll is the measure of how many new jobs…
Why do forex traders always talk about range trading?
No, range trading doesn’t require you to use a laptop while you are in the saddle….it is a way of taking advantage of markets where a clear trend exists, and prices range up and down within a well-defined channel. Range trading is a strategy that depends on selling highs and buying lows of a well-defined…
Why do futures prices converge on spot prices during the delivery month?
Prior to expiry, the price of futures contracts will most likely either be at a premium to the physical or a discount. As the contract approaches expiry these two prices will converge, or meet. Why does this happen? There are a number of factors involved here; one of the main reasons is what’s called cost…
Can the futures market predict if the Australian sharemarket will open higher or lower?
Investors use the futures market to predict whether the Australian sharemarket will open higher or lower on a daily basis. This can be achieved in several ways including reviewing offshore futures contracts, in markets like Europe and the United States to see how particular stock indices, including the FTSE and the S&P500 traded overnight. In…
Can support and resistance levels tell you where a share price is heading?
Understanding support and resistance levels can greatly assist both traders and investors. It’s all about understanding how prices tend to move. There are usually psychological barriers to prices moving beyond key levels. Support and resistance is all about understanding where those levels are and how prices are likely to move from that level. Think of…
How do you trade Australian shares after hours?
The market opens at 10:00am, and normal trading occurs until 4pm. From 4.01pm to 4.10pm, the market goes into a pre-open phase where investors may continue to enter orders into the market. The ‘Closing Single Price Auction’ (CSPA), determines the closing price of stocks each trading day and this occurs between 4.10pm and 4.11pm on…
