April 18, 2012
Mastering swaps

According to Reuters, the SEC and CFTC are moving toward finalization of a definition for “swap dealer.”

In a swap trade, Party A exchanges the cash flows of its financial instrument for that of Party B. According to the Financial Regulatory Reform Center, a “swap dealer” is any person that:

·         Holds itself out as a dealer in swaps

·         Makes a market in swaps

·         Regularly enters into swaps with counterparties in the ordinary course of business for its own account

·         Engages in any activity causing the person to be commonly known as a dealer or market maker in swaps in connection with the CFTC-regulated swaps

In Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options, author Andrew M. Chisholm enables readers to gain a solid working knowledge of these concepts.

 The SEC/CFTC “swap dealer” tag is expected to come with more oversight and increase the cost of such trades. The designation also will give firms latitude to exempt swaps for hedging.

Reuters notes that the Dodd-Frank financial oversight law, which was first proposed in December 2010 in reaction to the financial crisis, has changed dramatically. While it originally allowed firms to be designated swap dealers if they traded more than $100 million in swaps over a 12-month period. As Reuters reports, energy companies and commodity traders lobbied to alter the provision to bump the threshold to $8 billion for most asset classes as an initial phase-in. In time, the threshold could drop to $3 billion.

Both regulatory agencies face legal challenges over the rules. There also are concerns that the SEC and CFTC have not fully analyzed the economic impact and rule formulation processes.

To learn more about swaps, futures, options and other financial instruments affected by Dodd-Frank, go to TradersPress.com. There, you’ll find everything priced to meet or beat those you’d find on Amazon and you’ll receive free S&H when you spend $25 or more.

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April 5, 2012
Around the Horn — a sure bet dinger

Some girls dream of being ballerinas or princesses.

Not me. As I sat at my grandpa’s knee and learned about baseball, I nurtured dreams of being a Major League Baseball umpire.

I’m not kidding —- not even a little. I love almost everything about the game. I’d tell you about the “almost,” but it’s such a minor, nit-picky thing that would make me sound nutty.

So will this: I’m a long-suffering Chicago Cubs fans. Today marks the opening of the 2012 Cubs season and puts me in mind of a unique book filled with useful trading insights.

Around the Horn: A Trader’s Guide to Consistently Scoring in the Markets by Adrian Manz notes the similarities between baseball, America’s pastime, and trading, an American institution.

Like baseball, trading requires sound coaching, honest self-knowledge and shrewd understanding of “the game.”

“They both started as relatively informal endeavors in New York and grew into massive institutions,” he writes. “Organized trading started under a tree along a wall that protected a city. The wall gave name to a street, and the street later became home to one of the most venerable institutions on earth. Organized baseball started in fields around the same city. Its popularity grew, and it spread to fields around the country.”

Shop Traders Press® for the lowest prices on this and other titles. We’ve done all the leg work; if you find it Amazon has it priced lower, send us a link, and we’ll beat it! In addition, all orders of $25 or more delivered to addresses within the continental United States will ship for free!*

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September 2, 2011
At Least Peek through Your Fingers

I know. I know! How much bad news can you possibly read?

Sure, it’s tough not to wince when someone says anything that sounds remotely like “market.” But we have to power through—stiff upper lip and all that.

My mantra the past few weeks has been, “You can’t run from your problems.” I mean, of course I can, but they chase me. And they’re fast.

So I’m not running. I stopped covering my eyes with my hands. I’m diving in!

I started with this month’s SFO (Stocks, Futures, Options) Magazine, which includes several great articles that can firm up your resolve:

·        Risky Business? Gauge FX Trades Using Risk Management by Brian Dolan

·        Hot Currencies to Watch by Paul J. Kavanaugh, CTA

·        Trading with ADD (Attention Deficit Disorder) by Kenneth Reid, Ph.D.

·        And more!

At SFOmag.com, check out Gold’s a Winner Out of Bleak Jobs Data—But Don’t Chase; It’s Still a Rangeby Kira Brecht andStock Watch: Has the Market Folded? Banks are My ‘Tell’ by Joe Donohue (LOVE this one!). You also might consider attending Greg Michalowski’s free webinar, Forex: It’s Not as Foreign as You Think.

In addition to the array of free trading resources from Wasendorf & Associates Inc., such as Traders Press Weekly, SFO magazine, SFO Weekly and SFO’s webinar series, we’ve upped our blog code discounts! From now on, use any Traders Press blog codes to receive 20% off sitewide and free U.S. S&H* at TradersPress.com. (I’m partial to promo code KGBLOG911, and I hope you are, too.)

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