Spotting for Opportunities in CFD Trading

They say that economic opportunities are everywhere. These may come in different platforms, instruments or even assets. Hence, CFD traders would have lots of ways to earn profits. However, it does not mean that traders should just keep on waiting for these opportunities to hit their post. Instead, what a fair trader should do is to search and explore actively for opportunities. If this happens, any trader would be successful in this field. Nevertheless, spotting for these sounds easier than what the reality has to offer.

With the foregoing, this article will discuss some tips on how traders can spot and grab these opportunities in CFD trading. The main concern here is to understand that this platform project long term. In other words, this means that the price would rise over time. Hence, the crucial part here is to identify those factors that may cause the market to move in the future. Specifically, these are about some economic triggers, as well as industrial triggers and even global affairs.

Opportunities from Economic Triggers

First and foremost, the primary stimulus in moving the market is none other than the wider economy. It is in this light that traders should be looking into the certain business, assets as well as activities that have an impact to the CFD contract. For instance, if a country is currently experiencing high unemployment rate, then this may cause some problems to businesses and companies with consumer focus. Further, a low price for the oil can be favorable to the airline industry. Hence, these are some of the qualifications and factors that traders should look.

Industries Trigger Opportunities

Secondly, on the other hand, there are also some industrial indicators that may trigger for market opportunities in CFD trading. For example, if there are some mergers within a market, then this will surely have an effect to the trade. As a matter of fact, this may pose some opportunities and threats too. Aside from that, there could also be some policies from the government that may hit the commodity that a contract is covering. Specifically, these policies may be about interest rates, bond rates, safety regulations and many more.

Further, the outlook to the market has some significant impacts too. If people are skeptical about the asset's future, then less people would surely dare to hold on it. Instead, the wise decision would be to go somewhere with clear fate and direction.

Global Affairs and Current Events

Current domestic and internal events may trigger for both opportunities and threats too. Among the most common concrete examples of this event, is the political relationship of trading countries. For instance, if the commodity in a CFD contract is on gold and other metal, there might some problems that may arise if the trading countries suddenly go to war.

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How Liv-ex Crowned London the Global Hub of Wine Investment

The leading lights of the wine-making world may be French and Italian, but when it comes to wine trading, all eyes fall on London.

London is the epicenter of what is the most developed commodity market for fine wine in existence-based in the UK. The roots of it lie deep in history, stretching back 900 years to the time of Henry II when the British ruled Bordeaux. The import-export links that were established during this time grew into a booming trade, and since then British passion for wine has never relented. If you visit the UK as a fine wine enthusiast today, you'll find an unparalleled trading infrastructure, and a pool of international buyers and sellers that's quite simply the biggest there is.

The attraction of the UK for wine traders is due in no small part to the London International Vintners' Exchange-better known as Liv-ex. It's no exaggeration to say that since Liv-ex was founded in 1999 by former bankers Justin Gibbs and James Miles, the exchange has revolutionized the fine wine industry. Not only is Liv-ex the world's leading online marketplace for fine wine, it's also the wine pricing authority.

Before Liv-ex, if you'd wanted to calculate the market price for a specific wine you'd have had to search through endless paper catalogues and lists. Now, with Liv-ex's exhaustive database of standardized fine wine prices available online, you can find accurate, up-to-date prices and trading histories at the click of a mouse. Though you may not be able to buy wines at Liv-ex's wholesale prices-a privilege reserved exclusively for established merchants-the database will give you a good indication of the money you could make on any wines you might wish to sell to a wholesaler.

From their humble beginnings, tucked away in a rented South London office above a pizzeria, Liv-ex has grown to attract a global membership of over 400 professional traders in 33 countries. Estimates suggest that these members now account for 80 percent of the world's fine wine turnover.

Liv-ex also runs the Fine Wine 100 index, which is the industry's leading price benchmark. Working in much the same way as the DJ30, the LVX 100 represents the price movement of 100 of the most sought-after wines on the market, and is calculated monthly. The famed Liv-ex blog provides yet another boon for fine wine enthusiasts and traders, with frequent posts on everything from the performance of specific brands to conditions of harvest, industry report summaries and the movement of indices. If you want an authoritative 'insider's guide' to the latest happenings in the global fine wine market, this blog is definitely one to follow.

Private investors may not be able to trade directly on Liv-ex, but if you're not a trading professional you can still benefit from an invaluable set of online tools specifically tailored to your needs. Cellar Watch ( www.cellar-watch.com ) gives collectors and enthusiasts professional-level access to Liv-ex data, including current and historical fine wine market prices, and recent Liv-ex bids and transactions. With the Cellar Watch Valuation Tool, you can create virtual cellars containing your wines, then monitor and analyze their performance. You can divide your wines into different cellars for investment and drinking if you want to, and even create a fantasy cellar for the wines you'd love to own.

With Liv-ex at the heart of global fine wine investment analysis, pricing and trade, it's little wonder that there's such a buzz of activity around the UK fine wine market.

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Pent Up Silver Demand and The CFTC Linchpin

As scandal after financial scandal take their toll on public confidence in the economic morass curiously called the financial system, what will be the trigger for a short covering panic in the metals markets?

With countries the size of Spain lining up to get bailed out and a lagging global economy, the United States is not that far behind Europe as individual states and local governments find it harder to stay afloat. Consequently, what you can purchase with a U.S. Dollar will continue to diminish.

The inventories for precious metals are dwarfed in relation to the amount of paper silver contracts used to keep prices controlled. When the eventual covering of contracts occurs, heavy buying will come from the large entities that unofficially represent or are literally the working arms of the central banks, exacerbating the panic.

Chilton Refutes FT Article

On August 5th, the UK financial daily, the Financial Times published an article entitled, "Four Year Silver Probe Set to be Dropped". The article began with, "A four-year investigation into the possible manipulation of the silver market looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation."

Responding to the article, CFTC Commissioner Bart Chilton stated on August 6th that, "The Financial Times report related to silver is not only premature, but inaccurate in several respects." He went on to say that, "I continue to believe, consistent with my previous statements and information from the public, that there have been devious efforts related to moving the price of silver."

He included the gold market being manipulated as well, stating, "There have also been silver and gold market anomalies outside of the silver investigation window that have raised, and continue to raise market concerns."

Chilton added "I think the public deserves some answers in the very near future." While the Commissioner may be pursuing the issue publicly, elements within the CFTC are trying to get the investigation dropped. Cui bono?

According to the FT, "The conclusion of the investigation will come as a relief to JPMorgan. Although no company or individual was named in the CFTC investigation, the Wall Street bank has suffered a torrent of allegations from silver investors on the blogosphere."

Silver, the Confidence Lynch Pin

Unwinding the enormous paper positions that have been established for decades to keep metals prices in check will create an enormous demand for precious metals. As more people see the value of hard assets, silver could be the lynch pin against which people determine economic value.

With metals prices maintaining current levels, a clear base has been established in the prices of silver and gold, with enormous pent up demand underlying the apparent lack of direction. If prices were allowed to be 'set free' - either through ending the short influence (forcing the shorts to close out) or by enforcing position limits, prices could skyrocket.

The pent up demand for sound money comes in large part from the ease in which that money can be obtained. Exchanging paper for silver can still be accomplished with relative ease. This may not be the case once supplies are exhausted by disproportionate demand.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals.

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