Category: Reddit Post

How To Trade OIL – Risk Management Calculation

Oil is a very attractive asset for investors from the point of view of potential profitability; still strict risk management is required here due to the high asset volatility, as well as the product understanding. There is no pip calculation basis for commodities trading. The Bid & Ask price you see is the price for one barrel of oil. What needs to be checked before you start trading OIL: Does the contact have expiry date? If yes, plan accordingly. At the date of expiry the trade will be automatically closed or rollovered with the automatic new contract price adjustment. Check with your Broker first and refer to the Contract Expiration Calendar on a website. Check the minimal position and the leverage available. At some Brokers the leverage might be just 1:10 so the trading can be affordable with a properly balanced account only. Learn the risk management calculation. Let’s take CRUDE OIL (WTI) as the example with 1:10 leverage and the price 80 USD per barrel. RISK MANAGEMENT CALCULATION: In this example I will take the case when 1 contract of CRUDE OIL equals 100 barrels but check twice – it might be 1000 barrels at some platforms (reflected in Specification). 0.01 contract position size = 1 barrel 80.00 x 1 barrels/ 10 (your leverage) = 8 usd It means that it will take 8 usd as the margin requirement from your balance. Opening 0.01 contract position means that you buy/sell 1 barrel. Price movement just on 1 USD can potentially bring you 1 USD profit as well as the same drawdown. 0.10 contract position size = 10 barrels 80.00 x 10 barrels/ 10 (your leverage) = 80 usd It means that it will take 80 usd as the margin requirement from your balance. Opening 0.10 contract position means that you buy/sell 10 barrels. Price movement just on 1 USD can potentially bring you 10 USD profit as well as the same drawdown. 1.0 contract position size = 100 barrels 80.00 x 100 barrels/ 10 (your leverage) = 800 usd It means that it will take 800 usd as the margin requirement from your balance. Opening 1.0 contract position means that you buy/sell 100 barrels. Price movement just on 1 USD can potentially bring you 100 USD profit as well as the same drawdown. NOTE: Do not forget about the Market 3-day swaps that are taken on Fridays. Always check Contract Specification in the Market Watch before the new asset trading. Where to trade? You know 👉 https://track.pepperstonepartners.com/visit/?bta=38408&brand=pepperstone submitted by /u/FXgram_ [link] [comments]

Incredible

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Falling new home sales: a warning of a broader economic downturn

According to recent publications, in May, new home sales in the United States fell to 619 thousand, down 11.3% for the month and 16.5% for the year. The volume of unfinished housing sales in May decreased by 2.1%, falling below the recessionary low of April 2020. This is the lowest level since records began in 2001. The reason for this dynamics is the rise in prices. Particularly interesting is that the average price of an existing home has risen above the average price of a new home. This has happened only once since 2005. Another sign that the housing market is starting to stall, which calls into question the broader economic outlook. How will we survive the recession? https://preview.redd.it/fmfld1j7ud9d1.png?width=1280&format=png&auto=webp&s=2ec668d7eb9aceb8889212c3b8f17dba9e7686dc submitted by /u/dll_crypto [link] [comments]

Most Talkable Assets Of The Week

💻 SMCI – Super Micro Computer is the most discussed potential addition to the Nasdaq 100 🥾 NKE – Nike fell into the abyss after earnings 💊 NVO – Pregnancy as side effect of Novo Nordisk’s saviors of humanity from obesity 🥇 DJT – Trump Media & Technology Group rose 7.7% following the first presidential debate Thursday evening 📈 SOL-USD – Solana’s price is jumping after VanEck filed for a Solana EFT in the US called the VanEck Solana Trust Quote of the week: ‘For a security to be mispriced, someone else must be a damn fool. It may be bad for the world, but not bad for Berkshire.’ – Charlie Munger Is there anything missing? Anyway, have a great weekend everybody. submitted by /u/FXgram_ [link] [comments]

Bolivia officially legalizes crypto payments for bank

Bolivia has lifted the ban on Bitcoin and other cryptocurrencies. On June 26, the Central Bank of Bolivia (BCB) officially announced that banks can now conduct transactions with crypto. This regulatory change revokes Board Resolution N°144/2020, which had been in place since December 2020. This regulatory adjustment results from a collaboration between the Central Bank of Bolivia, the Financial System Supervisory Authority (ASFI), and the Financial Investigations Unit (UIF). The update aligns Bolivia with the recommendations of the Latin American Financial Action Task Force (GAFILAT), which has been pushing for adaptations to crypto. Although cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia has reminded citizens that cryptocurrencies are not considered legal tender. This means there is no obligation for businesses to accept them as payment. The BCB emphasized this point to ensure the public understands the limitations and legal status of cryptocurrencies in Bolivia. In addition to lifting the ban, the BCB has announced plans to incorporate information on the risks associated with cryptocurrencies into its Economic and Financial Education Plan. This aims to educate the public on how to safely handle cryptocurrencies and understand the potential risks involved. Bolivia hated crypto The ban lift comes after years of stringent regulations. In 2014, Bolivia’s Financial System Supervision Authority issued a resolution prohibiting the use of crypto. This ban cited a lack of consumer protection and the potential for money laundering. Again, in 2022, the Bolivian central bank prohibited the banking sector from using, marketing, or transacting cryptocurrency assets. The reason given was to protect the public from “risks, frauds, and swindles” and to prevent “economic losses.” This regulatory change occurs against a backdrop of political and economic turmoil. Recently, Bolivia experienced a dramatic coup attempt. Soldiers took over La Paz’s central square and rammed the presidential palace with an armored truck. The coup, led by rogue General Juan Jose Zuniga, was put down as quickly as it began. Zuniga was arrested on live TV after realizing he had little support for his actions. submitted by /u/Lor1al [link] [comments]

“Children of Ozempic.” Women Taking Ozempic Report Unexpected Pregnancies

The weight loss drug may lead to unintended pregnancies, but it can also increase fertility and help with infertility treatment, reports the journal Nature https://www.nature.com/articles/d41586-024-02045-w The weight loss and type 2 diabetes drugs Ozempic and Wegovy have received approval from nearly all regulators worldwide and have passed all phases of clinical trials. The active ingredient, semaglutide (Ozempic and Wegovy are brand names of the Danish company Novo Nordisk), has been tested and used for over ten years. However, as the widespread use of these drugs began, with them being considered literal “saviors of humanity from obesity,” reports of side effects started to emerge. Women on social media began writing about unintended pregnancies while taking Ozempic and Wegovy. Some women became pregnant while on birth control pills, which did not work properly. There were also reports from women previously diagnosed with infertility who were able to conceive after a course of weight loss medications. On one hand, this is an unpleasant side effect that disrupts people’s plans, but on the other hand, it is hopeful news for many couples as it gives them a chance to have a child. While the scientific community awaits additional data on the impact of these drugs on fertility with bated breath, the stock market seems to be responding already. MT5 Pepperstone submitted by /u/FXgram_ [link] [comments]

Investments Are Not All Sunshine and Rainbows_part 2

part 1 is here Guys who have raised a lot of money seem incredibly successful. Any entrepreneur would be pleased, especially when respected gentlemen managing billion-dollar funds “believe” in them. In theory, it all looks beautiful: capitalists provide cash, advice, and connections, along with PR and inspiration. But there are some problems with other people’s money. Firstly, funds make large bets. And they need large wins. Ben learned this the hard way: the fund that invested in him didn’t want to make 10 or 25 million dollars. They needed at least a hundred million. Secondly, big venture capitalists have become very selective and rarely make more than 2-3 investments a year. They are looking for startups that show explosive growth in large markets. A company that will be sold for 50 million dollars bringing them a 30 percent profit won’t make a big difference for the fund owners. Some investors would rather crush a small, good startup to death trying to turn it into a unicorn than agree to a modestly positive deal. And the founders will have to pass up a great offer for them personally just because the big boss doesn’t find it grand enough. submitted by /u/FXgram_ [link] [comments]