The Link Between The Stock And The Commodity Market

The stock market and the commodity market are linked in many ways. The rise and the fall of the stock market are based on the earnings of the company, both that has been reported or projected. When there is a slowdown in the business then there is a rise in the cost of production. This leads to falling in the earnings of the company and so the stock price of the company also falls. BTC Profit system.

In most of the cases when you see that there is a rise in the price of the commodities then the corporate earnings are going down. There could be some unusual cases when the stock and the commodity market moves in the same direction when the central bank enters the situation. However, this is not very likely.

The commodities market

The price of commodities is affected by supply and demand. In countries that are developing, there is a need for commodities to manufacture their goods, and this leads to the higher price of commodities. The increase in demand also attracts investors who wish to participate in the strong commodity market. The investors also participate in the commodity market because the commodity markets negatively correlated to the stock market. So investors pull out their money from the stock market and invest in the commodity market.

Stock market

When the commodity prices are lower than this means that the manufacturers are able to buy the commodities for a cheaper price and this causes their earning so rise and the stock price of the company also follows the same pattern. When the commodity price is high then this causes the manufacturing prices to rise and thus causes a drop in the stock prices. However, most companies in such a situation when the commodity prices are higher outsourced their manufacturing work to those countries where the commodity prices are lower. Also, they look to offshore work where labor is not expensive.

The global economy

When there is a decline in the global economy then the central bank will try to boost the economy of the country by keeping the interest rate low. This reduces the manufacturing cost because it lets the company borrow cheap money in order to fund their operations. The low rate reduces the cost of producing the commodities and this leads to high demand for the commodities and good earnings for the manufacturers. This leads to a rally in the commodity and the stock market when the central bank tries to stimulate the economy through a low rate of interest.

How are commodities and stocks traded?

Commodities are traded in future contracts. These are contracts which let you buy or sell the commodity at a specific time in the future.

Stocks are traded in the cash market. Youcanalsotrade stock futures.

To trade any of the asset class you need to first open an account with a brokerage firm.

Knowing the relation between commodities and equities lets you take an informed decision on when to switch your investment from one market to the other.

An Understanding of E-Micro Forex Futures

Although there does not exist any focal commercial center for the forex or foreign exchange advertises, external trade prospects are one approach to exchange Fx through trade exchanged contracts. Foreign exchange futures are like different contracts of futures where the money pairs’ trade rates go about as the hidden item in the trade.

During 2009, the CME (Chicago Mercantile Exchange) presented a lesser form of cash futures contracts which was known as the E-micro scale forex futures. These six money sets exchange at 1-tenth the measure of the relating Fx prospects contracts and create Fx futures exchanging more open to a more extensive assortment of merchants and financial specialists, including dynamic personal dealers, CTAs (small-scale commodity trading advisors) and SMEs (small and medium enterprises). Here let’s investigate these forex prospects and demonstrate how you can fuse them into your exchange.

What Are E-micro Forex Futures?

These contracts incorporate six trade exchanged money prospects that are about 1/10th the measure of the conventional cash contracts of the futures. As for the dealer or speculator, this compares to lessened edge prerequisites and fewer dangers that are related with the E-miniaturized scale’s enormous siblings. The E-micro foreign exchange contracts of futures are exchanged only on the CME Globex, which is the electronic exchanging stage of Chicago Mercantile Exchange and the world’s biggest directed foreign exchange commercial center. These three miniature contracts are completely interchangeable with the full-measure foreign exchange contracts of futures.

Among the contracts, three of them are completely exchangeable with the CME gathering’s complete forex contracts of futures: GBP/USD, AUD/USD and EUR/USD. Edges and trade expenses are downsized proportionately to full measure contracts. Consistently refreshed edge prerequisites for these contracts can be seen by connecting with the CME.

E-micro Forex Futures Contract Specifications

The CME provides 6 money combines just as E-small scale forex contracts of futures: USD/CAD, USD/CHF, AUD/USD, GBP/USD, USD/JPY, and EUR/USD. Like different futures items, every agreement has determinations with respect to the measure of the agreement, the base value increases, and the comparing tick esteem. These details enable merchants to comprehend the flow of each agreement and decide the potential benefit or misfortune for specific value fluctuations.

Safety and Security of the E-micros

As contracts of futures, E-smaller scale items are a piece of a trade exchanged, controlled market. The E-micros advertise is controlled by the CFTC (Commodity Futures Trading Commission) and the NFA (National Futures Association). Dissimilar to the money forex advertise, where diverse members view distinctive costs (based on the agent), estimating is unified and all members in the market approach a similar discount offer and enquire the costs using E-smaller scale forex contracts of futures.

CME clearance goes about as the counter-party to each exchange. As it were, CME clearance is the purchaser to every merchant, and the dealer to every purchaser, for all intents and purposes wiping out any counter-party risks of credit. Furthermore, client stores are maintained totally isolated.


At the point when the CME propelled the E-smaller scale forex contracts for futures during 2009, six items were presented. At 1/10th the extent of the complete sized contracts, it provides brokers the chance to exchange forex in a directed commercial center and with the diminished edge and hazard presentation.


A Detailed Comparison Between The Traditional And The Modern Payment Schemes


The payment method has evolved from the traditional methods of

  • Barter system: Since the beginning of time, people have been swapping items of equivalent values and still continue its usage in many communities today.
  • Exchange of tokens: These tokens are small items including shells or precious metals used instead of large goods.
  • Presenting written promises: Often known as the paper money which was used to pay the bearer with a particular amount. These are light weighted and easily transferable means of payment. Cheque leaf is an extended version of this system.
  • Use of virtual money: People started exploiting invisible fund transmission via digital means that later led to the development of automated banking, international payment cards, and electronic money transfers. By the end of 20th century, people started seeing the real form of money when they used a card to withdraw the required amount from a cash machine and the rest was safe with the bank’s computer system.

To a scheme of using

  • E-commerce: This was a trend in internet exploited regions, where billions of euros spent at online retailers made possible by Visa transfer. This made the online shopping safer and easier than ever.
  • Chip cards: With the capability of transferring anything that can be digitized, on a sole multi-purpose chip card, it became easy with debit and credit accounts, ticket booking, insurance managing and a lot more.
  • TV commerce: This was a major step to revolution when everything comes under the comfort of your living room within your interactive digital television. You can easily visit any online shopping sites, buy what you have seen in commercials, and pay to watch for a premium show or settle your household bills. Each and everything is possible by just inserting your chip card into the set-top box and tapping your personal identification number into the remote and selecting the safe visa service.
  • Person to person money transfer: This is a flexible and rather inexpensive method of cash transaction from one person to another made possible by online internet banking.
  • Mobile commerce in the 21st century: Mobile phones have the power to outrage landlines. They bring in the freedom of transacting while you are on move.
  • PayPal and Google express: These initiates electronic transfer of money with cheaper or no transaction cost.

Nowadays, payments are more like a business that includes the transaction fees, liabilities with rules and rewards. Further, the merchant is guaranteed payment only if

  • The card reader can read the valid chip cards or with an alternative to identifying signatures.
  • And the most important is the presence of card at the time of purchase.

Fintech has brought in a revolution of sorts

The storm in the teacup phenomenon:

Can you believe that till recently, I had never cared to open a savings account with a bank only because I thought the process of going to the bank for opening one and then hitherto every time that I wanted to withdraw or deposit cash was so cumbersome that the already busy me could do away with the extra hassles than be safe with the money!

I have had a risk in the house for years without realizing:

Money, big or small is a risk all the same and if even I think it is a hassle to rush to banking institutions, imagine the kind of dilemma the business houses would be in running to the banks in and out ten times in a day!

But things have changed and for the better!

Today, if you ask me why I have actually planned to stash my money in the bank account it is only because online transfers and mobile wallets make it easier for me to travel cashless and also carry enough money on myself. I do not even have to rush to places to get my passbooks updated. I rather check my bank balance online while I am only waiting for the curry to cook or waiting to catch a cab. And oh yes, I can even pay the cab even without removing a single penny physically via online payment obviously!

The best time for startups apparently!

Forbes list of startups talks majorly about eighty percent of the businesses that were crowd-funded. Now, what is that? Traditionally, a businessman wanting to start his own setup would be required to make at least two hundred visits to his bank to be able to pass the process of applying and being granted loans. But today, with the power of crowdsourcing, it is possible and very well to moot an idea on the internet and receive funds from investors across the globe that have only heard about the big idea and apparently are ready to invest in your big thing without even having seen you!

That is the power of the internet and the power of Fintech for you!

Transferring money to and from business entities and parties now becomes cheaper and far easier than what was before ever. Mobile transfers through various mobile applications enable transfers in real time which is a boon for small and medium businesses. Such business is neither cash-strapped nor have to waste time and energy running to the bank and other transfer institutions trying to transfer small sums of money. Truly, Fintech has revolutionized the business world today and how!

Do you have the right bank account?


Unless you have been living under a rock everyone in the present day has a bank account. It is not safe or prudent to stash your cash at home. In the bank, while the interest rates are dismal, your money is safe and does earn some interest unlike when kept at home.

It is really simple to open a bank account. You can do it online without any hassle. The problem begins in identifying the right bank.

How to choose a bank for your account

You must be aware that when you open an account in any bank you have to pay for the services rendered. For their part, a bank will provide you with an ATM card, checkbooks and give access to internet banking wherein you can check your account balance from anywhere anytime. Nowadays, all of the above services are provided by a majority of the banks free of cost but some banks still charge you a nominal service charge.

Here are a few other features that you must consider when choosing a bank to house your funds.

  1. How secure will your funds be? Choose banks that are insured by the Federal Deposit Insurance Corporation or the National Credit Union Association. Anything else must be steered clear off.
  2. What are the all the fees levied? This is a good comparison feature between banks as some banks levy charges for usage of paper checks and interbank transactions while others offer these services for free. A bank representative might be able to provide a clear picture on this account.
  3. Is it easy to deposit cash and checks? You must inquire if the banks allow mobile deposits instead of you going in search of a branch and depositing it physically. Of course, this factor comes into play only if you need to deposit often.
  4. What are the interest rates: This is another tilting factor; interest rates vary between banks and you must choose one that is most profitable to you. You must consider not only the interest rate on your deposit but also the rate levied on your transactions and loans. Choose a bank that is able to provide a balanced rate in both cases.
  5. What is the minimum balance required? Several banks levy fees when your balance drops below the minimum amount; it is, therefore, wise to know the minimum balance requirements before you open your account.

A good customer service will be an additional bonus.

Impact of inflation on businesses


Whenever we hear the word inflation, the first thought it reaches our mind is that how will it be affecting the consumers. However, it is not only individuals but also business enterprises that get affected by inflation majorly. Both the business and the consumers together get affected by the inflation badly. Below mentioned are few ways the inflation creates an impact on the business organization.

  • Increasing the price gradually– The business organizations are bound to increase the price. They increase the price gradually so that the chance to incur the revenue loss will be reduced. The increasing of price gradually will prevent the sudden hike in prices. Another way the business enterprises deal with the inflation is reducing the packaging size while maintaining the same price level. This small quantity change won’t be noticed by the customers as they are mainly focused on price.
  • Read about trading robots here

  • Cost of inventory– The inflation not only increase the price of the goods which consumers wish to buy but also those goods which the business uses as inventory and materials. When the cost of inventory costs goes high, you are bound to sell the goods at exorbitant rates. And if your competitors have not raised the price of their goods, the consumers will definitely opt for the alternatives. If the price of inventory goes down in future, you will be holding the materials which have been bought at much higher cost. Hence if you feel the inventory price will drop, it is best to buy the right quantity of goods and not to stock up for future.
  • Price fluctuation– Whenever the product or service prices fluctuate, the business will end up spending more money changing the price tags and printing new menus to list out the correct prices. This costs incurred are known as menu costs. Imagine the labor charge you need to spend on if daily the price tag has to be changed. More money will be wasted on reprinting the products price. Over time, the cost of all these will add up to a bigger amount. Hence at the time of price fluctuation, the price is not printed individually on the product, rather it would be put up on the rack. Or else, you need to ask the helper to help you out the final price of the product you wish to purchase.

The business organizations have to do a great deal of planning while facing the inflation period in order not to incur a loss during the period.




The beginner’s guide to mutual funds investing

You must have heard about mutual funds, but do you know what they exactly are?

Every website on mutual funds will claim that it is the best place to invest your money. Why even commercials will vouch that they are the best place to invest your money in to and if you are not doing it you are not doing the best of things and that years later you will only have yourself to blame but by then alas! It would be too late to make amends.

This kind of dramatics will definitely get you curious as to what exactly is mutual funds and set you thinking perhaps that if it is so good and everyone else is already at it, what is stopping you from investing in them.

This guide:

Fret not; this short guide can hopefully be able to tell you what you are looking for. At the end of this guide, we are hopeful that you will be appreciative of mutual funds and also partake a journey of letting your funds grow with it.

Easy to understand and easy to invest:

The mutual fund investing guide aims at helping you understand the nitty-gritty of investing in mutual funds. It is universally accepted that mutual funds investing are not just easy to understand but also to invest and profit from.

This one is for everyone:

Before you begin classifying as to who is the right candidate to start investing in mutual funds, let me tell you that the simplicity, accessibility and the versatility that the medium of mutual funds is, it has become a powerful vehicle for investing not just for the newcomers who are coming in by drones but also the seasoned and professional investors. The investing is a great way for saving and creating a corpus by regular saving for retired people. College students and even housewives!

Definition of a mutual fund:

In the simples to f terms, a mutual fund is an investment/security that the investors pool their money in one professionally managed investment. the investment is done in

  1. Stocks
  2. Bonds
  3. Cash
  4. Combination of the above three.

An investment in any one of the above form is called holding and a combined investment that is professionally managed by a manager is called a portfolio.

The investor only needs to identify the kind of mutual funds that work best for him and then a company that he or she thinks is hit for manage their portfolio. Now he has to determine his investment slab and write a check to the company along with his preference of investments. The portfolio manager shall deal with his investments from time to time to ensure that the investment earns a good profit.

Wasn’t that simple and sweet?!

Myths About Business Funding

Starting and growing business needs money. However, you may not necessarily have the money to grow it. That is where you will have to take a loan. Ask any small business owners and they would have a negative feeling about taking a loan. The account receivables are looked down upon by many but the potential that it offers should not be overlooked.

There are many myths that come into place when you talk about business funding,

Funding goes hand in hand with success

It is not necessary that every company would need funds to run the business and it is also not necessary that all companies would become successful in the long run. If you take money from angel investors then be ready to succumb to their pressure where they would take control of how to manage your business, at least a part of it. If you need money then look for other methods of asking friends and family or taking a bank loan before you approach a venture capitalist.

Getting funds to run your business can be long and tiring

The application process to get funds to run your business could be a little tiring but it is not hassling to keep you away from your business. The paperwork system is also dying out now and banks today have a quick and smooth process where the loan is sanctioned.

Business needs outside funding when they are not performing very well

Every business needs money. It could be possible that the market’s slow and thus you need money to run our business. It could also be possible that there is a huge demand in the market and you need money to grow your business even further. Extra money or lending money does not mean that the business is doom. But this is not really the truth. A business would need capital both in good as well as bad times.

The investors have not understood my business idea

If you have tried to approach an investor and get funding and if you have not succeeded then understand why that could be the reason.  Investors pay a lot of attention to projects that they themselves understand and also on people whom they know. It is important that you approach the right investor. The investor should be clear about what you are selling and only then will he be confident to invest his money in your business. Take time to understand why the investor was not interested in your business and why did they not accept your business plan.

CSR Could Lead To Pressure For The Company To Show Better Financial Results

CSR programs and initiatives are being taken by most companies now and this could lead to pressure to show a strong financial result because of conducting CSR activities. This is true for most companies and many wonder what the real intention of a CSR activity is? Is it to show better financial results or do something for the society?

This indeed loses the core reason of why CSR is there in the first place. However, it would be wrong to say that companies do not see some inherent profits from conducting CSR activities.

Most believe that it takes some three to five years for a good CSR strategy to actually start showing results. It could lead to better employee engagement and also better access to talent. CSR also leads to building a strong and reputed brand image. In the long run, the CSR initiatives could lead to the business getting into innovation seriously and transforming the culture of the company. It could also change the way the firm sees it today.

Companies are seriously attempting this and there are many today who have joined this bandwagon.

Some also think that CSR initiatives are not causing any extra pressure on the firm to show better financial results. There have had always been the push to show better results and this is going to stay forever. CSR initiatives do have an impact on the results of the company and it can be said without doubt that neglectingCSR activities are indeed foolish.

Companies have to start measuring the impact of CSR activities on the finances along with the other activities that they do. It is apart of the company actions and cannot be separated.The costs spent in doing CSR activities should not be kept on records to show what financial gains it could bring about.

CSR policies will secure the broad financial gains of the company.

Companies should aim to have a CSR program that is robust. This has many advantages.Shareholders are now very vocal about what they expect from the company. Having good CSR practices is sure to benefit the company in the long run but that should not let the company forget about the main reason to carry out the CSR activities.