This text explains the futures industry to beginners and veterans alike. The book covers the basics of the futures industry, looking at topics that cover: speculation and managed futures, choosing a broker and placing an order, technical analysis, hedging and spreading, financial and stock and index futures, trading options, and governmant agencies and oversight. This updated edition also looks at the new forces that are shaping the industry, such as: electronic exchanges, new research in the area of technical analysis, the emergence of the Euro currency, increased importance of stock indices; the growing importance of electronic trading and the Internet, and new rules and regulations.

Table of Contents

Introduction. Chapter 1. Trading Stocks versus Trading Commodity Futures. Chapter 2. The Electronic Exchange. Chapter 3. Speculation Is Not a Four-Letter Word. Chapter 4. Managed Futures--A Good Alternative. Chapter 5. Commodity Index Futures--The Basket Approach to Investing. Chapter 6. The Trading Plan. Chapter 7. Choosing a Broker. Chapter 8. The Order. Chapter 9. Forecasting Prices--Supply and Demand. Chapter 10. Basic Price Patterns--Forecasting Tools. Chapter 11. Technical Analysis. Chapter 12. Technical Analylsis--The Tools and How They Work. Chapter 13. Volume and Open Interest. Chapter 14. Commodity Hedging--A Primer. Chapter 15. Hedging--The Basis. Chapter 16. Your Banker and Hedging. Chapter 17. Commodity Hedging in Action. Chapter 18. Energy Hedging--Some Examples. Chapter 19. Fact and Fiction About Spreads. Chapter 20. Financial Futures--An Introduction. Chapter 21. Money--Trading the Ultimate Commodity. Chapter 22. Understanding the "Yield Curve." Chapter 23. The Interest Rate Contracts. Chapter 24. Hedging Applications for Interest Rate Futures. Chapter 25. Stock Index Futures and Options. Chapter 26. Commodity Options. Chapter 27. Strategies for Trading Options. Chapter 28. Historical Development of Commodity Futures Trading. Chapter 29. The Commodity Futures Exchange. Appendix i: Commodity Trader's Scorecard.

About the Author

Mark Powers is one of the futures industry's most respected and influential figures. A key participant in drafting many of the original contract specifications for trading currency and financial derivatives, Powers is the CEO of Powers and Dubin Asset Allocation and Management and former editor of The Journal of Futures Markets. He also served as chief economist for the Commodity Futures Trading Commission and has contributed his expertise as a director on numerous futures exchanges.