Tuesday, September 5, 2017

Over-the-counter market vs exchange-traded derivative contracts


One of the major advantages of exchange-traded futures and options is that the exchange guarantees every contract, thus relieving the holder of the risk of default by the writer. This means that potential option buyers are relieved of the burden of evaluating the creditworthiness of the writer. To protect itself against the risk of default by the writer for futures and options contracts, exchanges impose substantial capital and stringent margin requirements on option-writers. Membership requirements and standards are high and members’ positions are constantly monitored by the futures exchange. In addition, a futures exchange will maintain a large clearing fund to meet unforeseen circumstances.

 

Major international banks have for many years marketed the advantages and flexibility of futures and options contracts to their multinational corporate clients. Since multinational corporations have varied demands, not all of which can be matched by exchanges, banks have found it worthwhile to offer tailor-made futures and options contracts to meet the specific needs of their clients. This tailor-made market which allows for negotiation of the terms of the contract between the buyer and seller of an option is known as the over-the-counter market (OTC). The OTC market is dominated by major banks and securities houses, and contrasts with the standardized contracts on offer at the futures and options exchanges. The major advantage of the OTC market is that a client’s specific needs with regard to the size, exercise price and expiration date of the contract can be met.

 

Open interest is the outstanding number of contracts obligated for delivery. Consider four traders A, B, C and D, none of whom has any current position in a futures contract. If trader A takes a long position in a new contract with trader B taking a short position, then the open interest rises by one contract. Similarly, if trader C takes a long position in a futures contract with trader D taking the short position, then open interest rises by a further one contract.

 

 For most futures contracts, especially those that involve physical commodities such as gold, cotton and so on, the physical delivery of the commodity would be a cumbersome process. To avoid getting involved in the actual delivery process most traders enter into what is known as a reversing trade prior to the maturity of the contract. That is, they will liquidate their position at the clearing house so that they neither have to actually deliver or actually receive the underlying commodity. In our example, traders A and C are committed to buying the underlying commodity upon expiry, while traders B and D are committed to delivering it upon expiry. Trader A may not actually wish to receive the underlying commodity and trader D may not wish to actually deliver it, and hence at some date prior to expiry trader A and trader D will take out reversing trades to liquidate their positions. Trader A will take out a contract to sell the underlying commodity (at the then prevailing market price). As far as the clearing house is concerned, then A will have no net position in the futures market since it has an identical futures contract to both receive and deliver the underlying instrument. If trader A sold his contract to a new party E then the open interest would have been left unaffected by A’s trade. If, however, trader A had sold his position to trader D who was also undertaking a reversing trade, then open interest would have declined by one since both A and D have effectively negated their positions with the clearing house.

Jordan Schleider of NQ Trader and EJS
Jordan@nqtrader.us
jordan@ejs.net
http://ejs.net
http://nqtrader.us

 

 

Thursday, August 24, 2017

Chasing the 2017 Eclipse


Hi All

Just to let everyone know I am back at NQ Trader​ and all is running as usual.
My trip to see the 2017 eclipse was not quite as planned but otherwise successful.​ I am working a few more pictures and will try to post them ASAP.

Something important that I learned through this process is that trying to photograph an eclipse is not easy. Every article I read about shooting an eclipse started by saying don't shoot your first one just watch it. Of course I didn't listen.

The technical aspects of the shots were very clear to me but I had no way to practice and therefor was not able to anticipate the problems that I would encounter.

Additionally the weather plays a huge part in viewing and photographing an eclipse. I found myself changing plans and locations hours prior to totality.

All in all it was a great trip and I learned a lot, but I would like to pass along the statement that I heard so often while researching, don't try to shoot your first eclipse.

Thanks for taking the time to read this article. If you want to see some of my pictures visit my website JordanSchleider.com


Thursday, August 17, 2017

Ground Zero At The Great American Eclipse Of 2017 by Jordan Schleider


I am taking a couple of days off trading at NQ Trader for the upcoming total eclipse. This will be a first for me. Over the years, there have been many partial eclipses and some total eclipses in other parts of the world but I have never had the opportunity to view a total eclipse. The path that the eclipse is taking puts the center about 500 north of my location, so I plan to drive up the day before and get ready for the event.

I am also planning to photograph the different phases of the eclipse, which is turning out to be a very complex and exciting project. This is one of the photos I am attempting to replicate. The shot is of a fully eclipsed sun with the corona visible out into space. It is only possible to photograph this phenomenon during totality while you are in the direct path and it only presents itself for a couple of minutes.

I am very excited about the event and I will make sure to post pictures, as they are available.

Sunday, August 6, 2017

Free SEO Class Updates

The free SEO classes offered by Jordan Schleider of EJSIT are off to a great start. If you are looking to learn a little more about search engine optimization or you are just starting out these classes are perfect for you.

EJSIT is a computer consulting company that offers many services in the local south Florida area. Some of those services include:
 
  • SEM SEARCH ENGINE MARKETING
  • MASTER KEYWORD RESEARCH
  • ON-PAGE RANKING FACTORS
  • LINK BUILDING
  • GOOGLE WEBMASTER TOOLS
  • WEBPAGES BUILT FOR SEO
  • SEO FOR LOCAL VISIBILITY
  • SEARCH AND SOCIAL MEDIA ESSENTIALS
  • GOOGLE
  • YELP
  • YP
  • TWITTER
  • FACEBOOK
  • GOOGLE ANALYTICS

  • If you need help with anything related to computers and networks please do not hesitate to give us a call or drop us an email.

    Jordan@ejsit.net
    561-447-7148
    http://ejsit.net

    Saturday, July 1, 2017

    Events and Classes

    Jordan Schleider is head trader and founder at NQ Trader http://nqtrader.us and he also runs EJSIT http://ejsit.net

    Jordan offers free futures trading classes for all levels at NQ Trader weekday mornings from 9-11 am EST. If you are interested please email or call Jordan at 754-800-1810 or Jordan@nqtrader.us.

    Jordan Schleider also offers free evening SEO search engine optimization classes to help get you business off the a good start. These SEO classes cover the following areas and more:


  • LEARN THE SKILLS YOU NEED FROM A TOP SEO EXPERT
  • SEM SEARCH ENGINE MARKETING
  • MASTER KEYWORD RESEARCH
  • ON-PAGE RANKING FACTORS
  • LINK BUILDING
  • GOOGLE WEBMASTER TOOLS
  • WEBPAGES BUILT FOR SEO
  • SEO FOR LOCAL VISIBILITY
  • SEARCH AND SOCIAL MEDIA ESSENTIALS
  • GOOGLE
  • YELP
  • YP
  • TWITTER
  • FACEBOOK
  • GOOGLE ANALYTICS

  • For more information contact Jordan Schleider of EJSIT at 561-447-7148 or email jordan@ejsit.net

    Monday, June 26, 2017

    Social Media Posts by Jordan Schleider

    Social Media Posts by Jordan Schleider

    One of Jordan Schleider's newer hobbies turned projects NQ Trader http://nqtrader.us has developed a fairly complex network of websites and marketing techniques that employee a very unique form of online marketing.

    Jordan Schleider uses a combination of funnels, drip campaigns and automated email marketing programs to drive business to NQ Trader. In addition Jordan has created a marketing program in conjunction with Amazon KDP which allows Jordan to give away advertising e-books through KDP and have Amazon promote the NQ Trader books free.

    During the NQ Trader project Jordan Schleider has developed an entirely new skillset surrounding internet marketing that has proven financially lucrative as a new revenue stream for EJSIT http://ejsit.net which is a subsidiary of EJS http://ejs.net.

    For questions about NQ Trader, EJS, and EJSIT contact Jordan Schleider directly at
    jschleider@ejs.net

      

    Thursday, June 22, 2017

    Jordan Schleider Current Projects

    Up to date projects for Jordan Schleider

    NQ Trader http://nqtrader.us classes and groups daily starting at 9:00 am EST

    Live online futures trading classes and groups dealing with an advanced technical analysis trading system and price action scalping. The average student spends about four months learning the basics of futures trading plus a trading system.

    EJSIT http://ejsit.net Information Technology

    Computers, SEO, Networks, Internet Marketing, Email Marketing, Website Design, CRM Support and more. Zoho http://zoho.com Salesforce http://salesforce.com Mailchimp http://mailchimp.com