Understanding Investing

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Investing in Commodities via the Futures Markets

The futures markets are the most direct way to get exposure to commodities. Futures contracts enable you to purchase an underlying commodity for an agreed-upon price in the future. [more…]

Questions to Ask before Investing in Commodity Mutual Funds

Before you invest in a mutual fund, you should gather as much information as possible about the fund itself, as well as about the mechanics of investing in the fund. You can get answers to these questions [more…]

Questions to Ask before Investing in Any Commodity

Whether you decide to invest through futures contracts, managed funds, or commodity companies, you need to gather as much information as possible before you start trading. [more…]

How Global Oil Reserves and Production Relate to Investing

As a commodities investor, knowing which countries have large crude oil deposits is an important part of your investment strategy. As demand for crude oil increases, countries that have large deposits [more…]

How Crude Oil Is Classified: Key to Commodities Investment Strategy

If you want to invest in the oil industry, you need to know what kind of oil you’re going to get for your money. Crude oil is classified into two broad categories: light and sweet, and heavy and sour. [more…]

Investing in Natural Gas as a Commodity

Natural gas makes for a good investment because it is an important source of energy both in the United States and around the world, accounting for approximately 25 percent of energy consumption. [more…]

What Is Currency Trading?

Currency trading is speculation, pure and simple. The securities you’re speculating with are the currencies of various countries. For that reason, currency trading is both about the dynamics of market [more…]

What Is the Interbank Market?

When people talk about the “currency market,” they’re referring to the interbank market. The interbank market is where the really big money changes hands. Minimum trade sizes are one million of the base [more…]

Trading in the Interbank Market

The interbank market is an over-the-counter (OTC) market, which means that each trade is an agreement between the two counterparties to the trade. There are no exchanges or guarantors for the trades, just [more…]

What Are Currency Pairs?

Forex markets refer to trading currencies by pairs, with names that combine the two different currencies being traded against each other, or exchanged for one another. Additionally, forex markets have [more…]

How to Identify Base and Counter Currencies

When you look at currency pairs, you may notice that the currencies are combined in a seemingly strange order. For instance, if sterling-yen (GBP/JPY) is a yen cross, why isn’t it referred to as “yen-sterling” [more…]

What Affects Currency Rates?

The forex market sets the value of one currency relative to another, so data's being digested about at least two major international economies at the same time. Add in half a dozen or more other national [more…]

What Are the Trading Hours of the Forex?

The forex market is open and active 24 hours a day from the start of business hours on Monday morning in the Asia-Pacific time zone straight through to the Friday close of business hours in New York. At [more…]

Key Daily Times and Events in Foreign Currency Trading

In addition to the ebb and flow of liquidity and market interest during the global currency trading day, the following daily events tend to occur around the same times each day. [more…]

What Is a Hedge Fund?

In the investment world, “I run a hedge fund” has the same meaning as “I’m a consultant” in the rest of the business world. In general, a hedge fund is a private partnership that operates with little to [more…]

What Are Characteristics of Hedge Funds?

A hedge fund differs from so-called “real money” — traditional investment accounts like mutual funds, pensions, and endowments — because it has more freedom to pursue different investment strategies. [more…]

Who Manages Your Hedge Fund?

Many different people work for, with, and around hedge funds. The person who organizes the hedge fund and oversees its investment process is the fund manager [more…]

Hedge Fund Fees to Expect with Your Investment

Hedge funds are expensive, for a variety of reasons. If a fund manager figures out a way to get an increased return for a given level of risk, he deserves to be paid for the value he creates. [more…]

Know What Communication to Expect from Your Hedge Fund Manager

The partnership agreement you sign with your hedge fund manager probably will cover what kind of communication the hedge fund manager wants to arrange and how often he’ll make contact. [more…]

Types of Hedge Fund Partnerships: General and Limited

Most hedge funds are structured as lightly (if at all) regulated investment partnerships, but that doesn’t mean that the partners within a fund are equal. Some partners stand on higher ground than others [more…]

Do You Meet Hedge Fund Investing Qualifications?

Hedge funds aren’t for everyone. If you don’t meet the SEC’s definition of an accredited investor, you can’t invest in a hedge fund. And some hedge funds go beyond the SEC requirements, making sure that [more…]

Alternative Assets in Hedge Funds

An alternative investment is anything other than stocks, bonds, or cash. Hedge fund managers, sniffing out opportunities to meet their investment objectives, often turn to alternative assets. [more…]

Questions to Ask Your Hedge Fund Manager

Because hedge funds are structured as partnerships, you enter into a relatively intimate business relationship with the fund manager when you buy into the fund. Consider asking these questions as you build [more…]

Paperwork Required for Hedge Fund Purchases

After you and your hedge fund manager decide to work together, the next stage in the process is the purchase. However, before you can sign the partnership agreement and hand over your money, you and the [more…]

What to Expect in Your Hedge Fund Contract

When you enter into a hedge fund, the fund manager presents you with a contract drawn up by the fund’s law firm. This contract specifies contractual obligations that both parties — the investor who purchases [more…]

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