Posts Tagged ‘Risk’
March 8, 2015 | 
Author Article by Gimena, Jenny
Problems With Foreign Exchange Risk: They show profit records make promises and almost brag about how easy it is to make money with this robot. Aside from these benefits online foreign exchange trading is also equipped with various tools that make your business easier to handle, and get more info about Problems With Foreign Exchange Risk below. Also awareness of practical applications would possibly not be enough as the Currency exchange is highly unpredictable and there are a few external factors for example political issues inspiring the flow of finances in the market.
Sure scalping is one of the best but there are a lot of others out there that you can find all over forums blogs and in chat rooms. After you learn to trade with consistency then you can start to focus on finding the most dependable trading system that will make you the most money. Well I hope you enjoy educating yourself and hope you start making money on the Forex. ) This means that when a change in Forex exchange rate simply compensates for differences in inflation rates the relative prices of U. See more on Problems With Foreign Exchange Risk and Amex Foreign Currency Charge.
See more on Problems With Foreign Exchange Risk. While the business may be promising success only happens when you allot some time to get to know it much better. This is why the foreign exchange trading arena is such a great cash cow to serious and part time traders alike. Foreign investing is considered by many investors as a way to either diversify an investment portfolio or seek a larger return on investment(s) in an economy believed to be growing at a faster pace than investment(s) in the respective domestic economy. Get more info about Proprietary Trading Firm Foreign Exchange
In reality it’s not quite this simple because there will be costs involved in this transaction but this does demonstrate the principle of profiting when the exchange rate moves up. Have you ever wondered how you could trade the FOREX while controlling and/or reducing the risks involved? Has the fear of losing in a big way kept you from entering this fast-growing market?, also see more on Problems With Foreign Exchange Risk. There are hundreds and thousands of factors which play a dominant role in influencing the merit of a currency against another. Also see more about Royal Forex Trading Stations. A customer in the forward market will be able to protect himself against the anticipated flows of foreign currency in terms of foreign currency.
About the Author
Problems With Foreign Exchange Risk: They show profit records make promises and almost brag about how easy it is to make money with this robot. Aside from these benefits online foreign exchange trading is also equipped with various tools that make your business easier to handle.
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Artiste : The Foreign Exchange Album : Connected Titre : The Answer Année : 2004.
Video Rating: 4 / 5
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Multi-National Oil Trading Group Goes With Aspect Enterprise Solutions For CTRM Commodities Trade And Risk Platform
(PRWEB) May 19, 2014
The three subsidiaries, Petro Singapore Trading PTE, PS Trading SA and PS Oil PTE, a group of petroleum products and petrochemicals trading companies, has chosen AspectCTRM SE (Standard Edition) from Aspect Enterprise Solutions as its backbone solution for trading and risk. In addition to mainstream trade, risk and operations management functionality the system will also be integrated with the group’s back-office accounting system.
AspectCTRM was first brought to the group’s attention by a team member who had used the solution with a previous firm. Soon it became obvious to senior staff that Aspect’s Software-as-a-Service (SaaS), Cloud-delivered application offered the key tools needed for the global team’s growth.
“From a trading and risk perspective alone AspectCTRM does everything we want and more, and Aspect demonstrated that they were able to deploy and implement their system in a short time, compared with other vendors,” said the group’s CFO. “AspectCTRM is flexible and we were able to engineer an accounting interface with the GIT WinEUR general ledger system relatively quickly.”
Another crucial element in the trading group’s choice of AspectCTRM was the future addition of new functionality. For example, Aspect recently added enhanced functionality for managing product movement by railcar. This is one more step in the continual evolution of the product line according to Aspect’s EMEA director of sales Yags Savania.
“Our aim is to build in the functionality our individual customers need to run their businesses more efficiently, and so continuously improve and expand our systems,” he says. “We also want to leverage the success of more niche back-office and ledger solutions. They are a perfect complement to our own trade and risk management software and we have proven time and time again the ease with which it integrates with third-party systems.”
Petro Singapore PTE Trading, PS Trading SA and PS Oil PTE are involved in physical trading, financing, risk management, oil derivative trading, hedging, storage and transportation with a strong focus on the Caspian, Black and Mediterranean Sea regions.
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Posted in Commodities | 
Tags: Aspect, Commodities, CTRM, Enterprise, Goes, Group, MultiNational, Platform, Risk, Solutions, Trade, Trading | 
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For the full video Masterclass sign up for free to http://www.kaplan-exam-tips.com In this Masterclass learn about the basics of what foreign exchange risk i…
Pioneer Solutions Receives Double The Recognition in 2013 Energy Risk Software Rankings
Denver, Colo. (PRWEB) March 12, 2013
Pioneer Solutions is pleased to announce their results of the 2013 Energy Risk Software Rankings.
This year, Pioneer Solutions, ranked in the top five in 15 separate categories, including No. 1 in Carbon Emissions. This is more than double the number of individual categories which Pioneer was ranked in the previous year and nearly quadruple since 2011.
Pioneer also ranked for the fourth year in a row for their customer support and ease of integration abilities. Other notable category rankings include: Best Overall ETRM Platform, Best for Project Delivery on Time and Within budget, Best Market Knowledge, and Regulatory Compliance.
Uday Baral, President and CEO of Pioneer Solutions, commented, “We are very pleased that the effort we have been putting into our product and business practices is being acknowledged by the ETRM community. We feel that the recognitions we have received this year are a great testament to the fact that our next-generation software solutions are gaining momentum in the industry.”
George Bradshaw, Director of ETRM & EMIS Solutions (EMEA) for Pioneer Solutions noted, “Energy professionals are year on year becoming more aware of Pioneer’s capabilities and value proposition, and to see this reflected by our rankings results is a great achievement.”
Here is a detailed list of Pioneer’s 2013 rankings:
1. Carbon emissions trading
2. Customer/support services
3. Best for project delivery on time and within budget
4. Physical and financial integration
5. Integration of different data sets
6. Best market knowledge
7. Overall ease of using the system
8. Best market knowledge
9. Portfolio management
10. Best overall ETRM platform
11. Best middle-office system
12. Regulatory compliance
13. Order routing & connectivity
14. Market risk: Gas
15. Front Office Trade Capture
In addition to surveying participants on vendor capabilities, the survey also gathers information from respondents about their plans and preparedness on certain issues. This year, the big topics were budgets and regulatory compliance.
According to the report, 45% of participants say their budgets will remain the same while 28% and 27% expect an increase or decrease, respectively.
When it comes to regulatory preparedness, only 20% said that their systems are ready for regulations such as Dodd-Frank, EMIR, and REMIT. Five percent report being not at all ready. Luckily, 40% say they are almost ready and 34% are not quite ready, but have started the process.
The Energy Risk survey assesses software vendors based on the functionality, usability, performance, and reliability of solutions by conducting an online poll of industry users of energy trading and risk management tools.
Pioneer Solutions has been participating in the survey since 2009 and has seen notable progress each year.
To access Pioneer’s full results, follow this download link.
Also be sure to check out Pioneer’s ETRM Blog for up-to-date info on Pioneer Solutions as well as a variety of industry topics.
About Pioneer:
Pioneer Solutions LLC is a global software provider of next generation Energy Trading and Risk Management (ETRM) Environmental Management Information Systems (EMIS) & Enterprise Compliance Solutions. Pioneer’s comprehensive suite of products are designed specifically for utility and energy companies and offer a single seamlessly integrated platform that can handle all commodity types, risk exposures and compliance needs.
Offering the latest in business processing capability, Pioneer’s products offer the user a configurable environment that allows for customizable templates for workflow and user-defined custom formula entry. Serving some of the largest utilities and energy companies across the globe, Pioneer’s flexible solutions are designed for rapid deployment and easily adapt to clients’ unique business processes, model complex trading scenarios and automate business processes.
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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Posted in Commodities | Tags: 2013, Double, Energy, Pioneer, Rankings, Receives, Recognition, Risk, Software, Solutions | 4 Comments »
Study Finds that Multi-State Catastrophic Risk Pools Deliver Significant Benefits in Major Tropical Events
SILVER SPRING, M.D. (PRWEB) March 07, 2013
In the wake of the multi-state destruction wrought by the one-two punch of Superstorm Sandy and the nor’easter that followed, a new study suggests that geographically diverse, multi-state catastrophic risk pools provide clear financial benefits without creating subsidies between low and high risk areas. Sponsored by Florida State University (FSU), the study was conducted utilizing the powerful, science-based risk modeling platform from Kinetic Analysis Corporation, a leader in multi-model impact forecasting and risk assessment for catastrophic events.
The study was conducted by Charles C. Watson, Jr., director of R&D at Kinetic Analysis and developer of the modeling system used in the study; Mark E. Johnson, professor of statistics with the University of Central Florida; and Randy E. Dumm. It sought to determine whether geographic diversification reduces the amount of reserve funds required to cover catastrophic losses. This was accomplished by analyzing performance of insurance portfolios drawn from various combinations of nine coastal states in the Southeastern U.S. based on tropical cyclone losses.
“Single state portfolios, on which the current property insurance system is based, are far from optimal. They are large enough to encompass the risk from single events, but not large enough to diversify that risk sufficiently to take advantage of different climate zones or areas not hit by a single major storm.” said Watson.
Added Johnson: “Creating portfolios covering diverse climate zones, such as combining properties from both the Gulf of Mexico and Atlantic Coasts, is highly advantageous over portfolios in a single region. Covering all exposures in the entire study area, Texas to Virginia, was the most efficient and sustainable grouping examined.”
In addition, the study found that a system covering all storm hazards (wind, wave, flooding) would be more efficient and much easier for consumers to navigate than the current system where private insurance covers wind damage, but flood damage is covered through a separate government backed insurance through FEMA, each with different rules and deductibles.
The study’s findings are particularly relevant in the wake of Sandy, which pelted coastal and inland regions with high winds, driving rains, heavy snow and flooding along the Eastern Seaboard. Kinetic Analysis projects that that storm’s direct impacts could run as high as $ 25 billion, excluding the New York City underground infrastructure.
Sandy has renewed calls for a federal catastrophe plan that creates risk pools across larger geographic areas – along with objections that doing so will force low-risk areas to subsidize high-risk states. However, the study found the opposite to be true. As geographic diversity increased, funding levels for sustainable catastrophic risk pools decreased relative to premiums, actually resulting in savings for both low and high risk areas.
“If subsidies are created in this setting, it is due to incorrect risk pricing rather than the risk itself,” said FSU’s Dr. Randy Dumm. “Our analysis found that each state derives benefits from geographic diversification regardless of risk ranking. In fact, failure to diversify catastrophic wind risk may impose its own set of costs in the form of lost diversification benefits that exist precisely where they are needed, for less frequent and more severe catastrophic events.”
Specifically for the portfolios analyzed, reserves totaling just over $ 130 billion would be required for each of the nine states to individually cover 100-year losses. However, for a portfolio covering the entire region, required reserves total just $ 71.1 billion. The difference is due to the extreme unlikelihood that all states would suffer a 100-year event in any given year.
Utilizing Kinetic Analysis’ robust modeling platform, numerical calculations for the risk diversification study were generated by:
1. Simulating all Atlantic storms (1871-2011), with a complex high resolution storm hazard model consisting of wind, wave, storm surge, and rain components
2. Determining damage to the target portfolio using a composite damage function derived from six different public domain damage function families
3. Analyzing the output statistically and conducting a financial analysis on various portfolios and policy provisions
“This study is a significant addition to the body of scientific knowledge upon which critical decisions governing risk pooling and geographic diversity of insurance portfolios are made,” said Steven Stichter, CEO, Kinetic Analysis. “As a company, we are particularly gratified to see our modeling tools successfully utilized in a meaningful way that addresses real-world issues confronting federal and state governments in protecting their populations and infrastructures.”
About Kinetic Analysis Corporation
Kinetic Analysis Corporation is a leader in multi-model impact forecasting and risk assessment for catastrophic events. Based on a pioneering approach that uses the best techniques from scientific literature and current event information, Kinetic Analysis produces detailed, site-specific hazard and impact information for active events to support real-time decisions. It employs the same, globally consistent multi-model platform to produce high-resolution hazard and loss assessments for improved long-term risk management.
©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Posted in Derivatives | Tags: Benefits, Catastrophic, Deliver, Events, Finds, Major, MultiState, Pools, Risk, Significant, Study, Tropical | 4 Comments »
Economic reality and projections 2013 – Collapse.
Video Rating: 4 / 5
Posted in Derivatives | Tags: Collapse, Currency, Derivative, Devaluation, Dollar, Risk | 2 Comments »
Write-up by John Reizner
It appears that with each significant market swoon, commentators come out of the woodwork on economic television and speak of systemic risk to the economic markets, typically from hedge fund or complex derivative blow ups, or events from China. I think there is constantly the risk, nonetheless tiny, that such an event could happen and cause a meltdown, and we would be foolhardy to say this would never take place.
But truly, is there such a catalyst now for a catastrophic market place occasion? I believe the catalyst could be either triggered by one particular or much more of four aspects: a hedge fund (s) seizing up, a derivatives transaction gone seriously awry, the level of our public and private debt, or events from Asia, particularly China.
The initial threat element to the soundness of the monetary markets is excessive debt. Sir John Templeton, possibly the greatest global investor of our time, has said that never ever just before has our economic technique been so mired in both public and private debt. Further he has stated that never ever just before has any civilization in history escaped from such levels of debt with out dire consequences for its citizens and the society. We will be faced with a lower standard of living for all our folks if we do not soon address the spending budget deficit and reform the level of future Medicare and Social Security obligations.
When Sir John was alive I picture he was vividly impressed with the catastrophic stock industry crash of 1929 and the deflationary unwinding that occurred for far more than a decade afterward. He has said that an additional crash will definitely happen, but that we can’t know what it will strike. Chairman Bernanke, a student of the Excellent Depression, that era’s moniker, has been reported to think that the Fed could drop funds from helicopters in order to stem off a deflationary spiral such as what occurred throughout the collapse of the 1930′s. (which would be a rather exciting spectacle). A deflationary collapse such as happened in the thirties is possibly the most devastating economic blow that can occur to a society’s economic method.
The second threat element is the behavior of hedge funds in the market. There are now over 8,000 hedge funds managing hundreds of billions of dollars. Hedge funds give a valuable service to the industry by offering liquidity to the marketplace so the rest of us can reliably execute our trades. But a lot of funds use a fantastic deal of leverage in an try to accomplish greater returns. The hedge fund Long Term Capital Management, begun by John Meriwether in 1994, a former Salomon Brothers bond trader, accomplished great returns in its early years, but ran into difficulty in 1998 when the Russian government defaulted on its debt. Returns afterward went negative as a outcome of the consequences of the default. As the firm was utilizing a high level of leverage, their outcomes were severely impacted. A multi billion dollar bailout of the fund had to be organized to avoid a contagion and collapse in the monetary markets.
The third risk element to the markets is derivatives. Derivatives are investment instruments based on underlying assets such as stocks, bonds, commodities, indexes, interest rates, and so on. The derivative can include put and call alternatives, commodity futures, or interest rate swaps, etc. There are opportunities in these instruments to reap huge reward or fantastic loss. There are both publicly traded derivatives and ones traded by private agreement. Warren Buffett was quoted from his March 2003 annual letter about the danger of a miscalculation in complicated derivatives transactions. He stated, “we view them as time bombs, each for the parties that deal in them and the financial system.” This statement is taken from http://www.forbes.com/property_asia/2003/05/09/cx_aw_0509derivatives.html with regards to their opinion of these varied instruments. Both Alan Greenspan and Warren Buffet are concerned that fewer economic institutions are handling derivative transactions, and Buffett has called them “weapons of mass destruction.” Id.
The fourth risk to the economic markets is events from China. The February 2007 Shanghai industry swoon shook the confidence of investors worldwide. We do not yet know how this will play out. The record of the last twenty seven years is good. The industry has recovered ground lost from sudden industry downturns in 1987, 1989, and 1998. The best guidance if you want to hunker down is diversification of assets, and to maintain sufficient assets to cover your debt should the unthinkable take place.
This write-up contains the opinions and suggestions of its author and is designed to offer beneficial info to the reader on the subject matter covered. The author may or might not have present positions in the investments mentioned in this function, and the author might from time to time make investments in a manner that is not described here. Past efficiency is no guarantee or prediction of future outcomes and any investments created, based on the opinions and concepts contained in this operate, could or may possibly not be effective. The methods contained herein may not be suitable for each scenario, and the author is not engaged in rendering legal, accounting, investment advisory or other professional services.
About the Author
My existing e-book, AWay to Wealth – the Art of Investing in Widespread Stocks, is available at my internet site, http://www.ReiznersWay.com.
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Posted in Derivatives | Tags: China, Debt, Derivatives, Funds, Hedge, Market, Panic, Risk, Systemic | 6 Comments »
Offshore Currency Risk
(PRWEB) July 7, 2005
International commerce has rapidly elevated as the web has provided a new and far more transparent marketplace for individuals and entities alike to conduct international business and trading activities. Significant adjustments in the international economic and political landscape have led to uncertainty concerning the direction of foreign exchange rates. This uncertainty leads to volatility and the require for an powerful automobile to hedge foreign exchange rate risk and/or interest rate adjustments while, at the exact same time, effectively ensuring a future monetary position.
Each and every entity and/or individual that has exposure to foreign exchange rate risk will have specific foreign exchange hedging needs and this internet site can not possibly cover each and every existing foreign exchange hedging circumstance. As a result, we will cover the much more common reasons that a foreign exchange hedge is placed and show you how to properly hedge foreign exchange rate risk.
Foreign Exchange Rate Risk Exposure – Foreign exchange rate risk exposure is frequent to virtually all who conduct international business and/or trading. Buying and/or selling of goods or services denominated in foreign currencies can instantly expose you to foreign exchange rate risk. If a firm price is quoted ahead of time for a contract using a foreign exchange rate that is deemed proper at the time the quote is given, the foreign exchange rate quote may not necessarily be proper at the time of the actual agreement or performance of the contract. Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.
Interest Rate Risk Exposure – Interest rate exposure refers to the interest rate differential between the two countries’ currencies in a foreign exchange contract. The interest rate differential is also roughly equal to the “carry” expense paid to hedge a forward or futures contract. As a side note, arbitragers are investors that take advantage when interest rate differentials between the foreign exchange spot rate and either the forward or futures contract are either to high or too low. In simplest terms, an arbitrager may possibly sell when the carry price he or she can collect is at a premium to the actual carry expense of the contract sold. Conversely, an arbitrager might acquire when the carry expense he or she might pay is much less than the actual carry price of the contract purchased. Either way, the arbitrager is seeking to profit from a tiny price discrepancy due to interest rate differentials.
Foreign Investment / Stock Exposure – Foreign investing is considered by many investors as a way to either diversify an investment portfolio or seek a bigger return on investment(s) in an economy believed to be growing at a faster pace than investment(s) in the respective domestic economy. Investing in foreign stocks automatically exposes the investor to foreign exchange rate risk and speculative risk. For example, an investor buys a certain amount of foreign currency (in exchange for domestic currency) in order to purchase shares of a foreign stock. The investor is now automatically exposed to two separate risks. Very first, the stock cost might go either up or down and the investor is exposed to the speculative stock cost risk. Second, the investor is exposed to foreign exchange rate risk due to the fact the foreign exchange rate might either appreciate or depreciate from the time the investor first bought the foreign stock and the time the investor decides to exit the position and repatriates the currency (exchanges the foreign currency back to domestic currency). For that reason, even if a speculative profit is achieved simply because the foreign stock price rose, the investor could truly net lose cash if devaluation of the foreign currency occurred although the investor was holding the foreign stock (and the devaluation quantity was greater than the speculative profit). Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.
Hedging Speculative Positions – Foreign currency traders utilize foreign exchange hedging to shield open positions against adverse moves in foreign exchange rates, and placing a foreign exchange hedge can help to manage foreign exchange rate risk. Speculative positions can be hedged through a number of foreign exchange hedging vehicles that can be used either alone or in mixture to generate entirely new foreign exchange hedging strategies.
John Nobile – Senior Account Executive
CFOS/FX – Online Forex Spot and Options Brokerage
Post Source: http://EzineArticles.com/
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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
New Guide Focuses on Commodity Trading & Risk Management Ancillary Software
Brno, Czech Republic (PRWEB) August 04, 2011
CommodityPoint, a leading provider of globe-class research, analysis and consulting for global commodity markets, announced the release of The CommodityPoint Sourcebook – CTRM Ancillary Items Version two. The guide gives detailed listings of over 30 Ancillary CTRM goods and vendors.
“In this second version, we anticipate an increased interest as a result of the addition of new software categories,” said CommodityPoint Director of Organization Development Mark Tredway. “Several much more vendors have been included this will provide much better insight into the marketplace, permitting prospective users to have a much more powerful tool in their search for ancillary CTRM merchandise.”
This latest component of the CommodityPoint Sourcebook Series focuses on products and software that, although ancillary to the core CTRM software utilised by commodity trading and risk management organizations, have grow to be an increasingly critical component of the infrastructures essential to compete in today’s markets. Every listing supplies graphical data, plus functionality and product install base info to help decide the very best selections in supplemental CTRM software program to support specific company requirements.
The CommodityPoint Sourcebook – CTRM Ancillary Products is offered as a totally free download from each the UtiliPoint web site (http://www.utilipoint.com) and CTRM Blog (http://www.ctrmblog.com).
About CommodityPoint®
CommodityPoint is a division of leading energy and utilities analyst and consulting firm, UtiliPoint International, Inc. and a subsidiary of Midas Medici Group Holdings, inc. CommodityPoint provides Commodity Trading & Risk Management (E/CTRM) investigation, analysis and consulting services that provide insight into enterprise issues, trends, processes and technology, to energy, agricultural and metals trading organizations, utilities, banks, brokers, funds, investors and vendors, enhancing their competitive position and supporting critical enterprise decisions. With offices in Europe and the United States, and backed by an experienced research team, CommodityPoint gives an unparalleled view of the marketplace. Pay a visit to CommodityPoint on the internet at http://www.Commodity-Point.com.
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Posted in Commodities | Tags: Ancillary, Commodity, Focuses, Guide, Management, Risk, Software, Trading | 1 Comment »