FKLI Futures Trading - Bursamalaysia
This will chronicle trading in the FKLI & FCPO futures. If you don't like what you see/read in this blog, just surf away. These opinions are our personal opinions and just a record of our thoughts..."In evolution, it’s not the biggest, the fiercest nor the smartest that survive, it’s the one that changes the fastest.” I.e. the key word is to adapt the trading style to the markets, until it stops working
Wednesday, November 30, 2016
Tuesday, November 29, 2016
Monday, November 28, 2016
Friday, November 25, 2016
Thursday, November 24, 2016
Wednesday, November 23, 2016
Monday, November 21, 2016
Friday, November 18, 2016
The features of an NDF include:
- notional amount: This is the "face value" of the NDF, which is agreed between the two counterparties. It should again be noted that there is never any intention to exchange the notional amounts in the two currencies
- fixing date: This is the day and time whereby the comparison between the NDF rate and the prevailing spot rate is made.
- settlement date (or delivery date): This is the day when the difference is paid or received. It is usually one or two business days after the fixing date.
- contracted NDF rate: the rate agreed on the transaction date, and is essentially the outright forward rate of the currencies dealt.
- prevailing spot rate (or fixing spot rate): the rate on the fixing date usually provided by the central bank, and commonly calculated by calling a number of dealers in the market for a quote at a specified time of day, and taking the average. The exact method of determining the fixing rate is agreed when a trade is initiated.
Because an NDF is a cash-settled instrument, the notional amount is never exchanged. The only exchange of cash flows is the differencebetween the NDF rate and the prevailing spot market rate—that is determined on the fixing date and exchanged on the settlement date—applied to the notional, i.e. cash flow = (NDF rate – spot rate) × notional.
Consequently, since NDF is a "non-cash", off-balance-sheet item and since the principal sums do not move, NDF bears much lower counter-party risk. NDFs are committed short-term instruments; both counterparties are committed and are obliged to honor the deal. Nevertheless, either counterparty can cancel an existing contract by entering into another offsetting deal at the prevailing rate"
Thursday, November 17, 2016
Wednesday, November 16, 2016
Monday, November 14, 2016
Friday, November 11, 2016
Usdmyr. Onshore spot vs non deliverable forward, which is the 'true' rate.
Well, since the spit is based on an actual currency asset, the Ringgit it is derived based on BNM fix, to facilitate actual physical need to match buyers and sellers, transacting for business; this is the better gauge of value.
NDFs are just a tool for speculators, basically a tool for evil speculators to influence se. Timent. Just bullcrap....
Thursday, November 10, 2016
Wednesday, November 09, 2016
Tuesday, November 08, 2016
Wednesday, November 02, 2016
"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore
THE END OF AN ERA
From Dragons and Bulls by Stanley Kroll
Intro and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet/a>
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system