William Albert Securities Limited trades in a whole range of commodities for our clients, ranging from crude oil, precious metals, orange futures and many others. Oil and Gold are the most widely traded liquid commodities in the world.
We cover some of the key contracts in London, New York, Chicago, Paris, including:
- Cocoa, Coffee, Orange Juice, Sugar
- Cotton, Lumber
- Corn, Oats, Wheat
- Soyabeans, Rice
- Cattle, Hogs, Pork Bellies
Mini and full Contracts
Apart from full contracts we offer mini versions of all our Commodities contracts at 20% and 50% of the main contract size, with the same low dealing spreads.
Risk Protection
Commodities can often be subject to striking price movements, with prices sometimes becoming half or double in a short span of time. Trading with Guaranteed Stops on all our Commodity contracts ensures less risk.
Gearing
Our low margin requirements mean you can take a sizeable position without blocking up large amounts of money.
Commission-free
All our charges are built into the dealing spread. Our bid/offer spread is based on the underlying futures market.
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Commodities Examples
Limited Risk protection is available on all our Oils and Metals markets.
This can be especially useful as the underlying markets often operate a system of price limits. Limited Risk protects you against the possibility of being locked into mounting losses should the market go 'limit down' or 'limit up'.
Opening the position
It is midday on 27 April 2010 and you foresee the price of Crude Oil is to fall but you want to limit your potential risk. So you decide to sell two contracts of September Light Crude Oil with Limited Risk protection (one contract is the equivalent of $10 per cent).
Let’s assume our quote for May Light Crude Oil is 12196/12202. With Limited Risk transactions, you pay a premium on your opening price. So your position is opened at 12196 (bid price) minus 4 (the Limited Risk premium) = 12192.
Placing the Guaranteed Stop,
Your position is opened at 12192.
You decide to put your Guaranteed Stop at 12260. So the most you can lose on your position is:
Stop level - 12260
Opening level - 12196
Difference - 64
Maximum possible loss: 64 points x 2 contracts x $10 per point = $1280
Triggering the Guaranteed Stop
Your predictions initially prove correct, and over the next couple of hours Light Crude prices fall to 12139. However, during the rest of the day, Light Crude prices jump suddenly and within a few hours, our quote has risen to 12680/12686.
Your position is automatically closed at 12260. You have lost $1280, but the Limited Risk protection saved you from a potential loss of nearly $10,000.
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