Simplifying Commodities Trading

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Commodities Profile ImageTrading commodities has been the foundation of human economic activity through the ages, fundamental for our survival as individuals and fundamental for the sustainability of our economic and social systems. However, historically commodity trading has been the preserve of large traders, big commodity powerhouses and institutional investors. This is partly because understanding the nuances of commodities takes more effort than shares which is also why popular media coverage of commodities is minimal as compared to coverage of stocks – you see many more ‘experts’ commenting on stocks as compared to commodities.

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Credit Risk: Under the Spotlight!

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We highlight – via a series of posts on Credit Risk Management (Read the  prelude –  “Risk Management : How Can we Help You?“) – the ever-growing challenge of credit risk in financial institutions, the benefits of real-time analytics and the wave of change that can be brought about with Heckyl’s unique capabilities. We bring to you the first post, from the series.

The credit crisis of 2008 and resulting failures of high-profile firms proved to be a major wake-up call for financial institutions to put Credit Risk Management under spotlight.credit score image

Exposure to the probability of default by their debtors, also called as Credit Risk, is the major risk the global banking system is facing today. In the current volatile market condition, where Indian companies are confronted with issues like demand slowdown, unfinished projects set up at inflated costs, lengthening working capital cycle squeezing cash flows, it is not uncommon for an institution to default on payments. This leads to huge non-performing loans sitting on the banks’ balance sheets.

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China’s Dragon Takes a Breather, Growth Engine Halts

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Chinese economy background
Chinese economy background

After successful triumphs over US and UK in the last decade bears are back in business in 2015 and this time they have laid their eyes on the world’s fastest growing economy China. It has been fueling the global economic growth for past several years and any slowdown will have repercussions not only on world markets but also on major asset classes.

In order to gauge a country’s economic performance, one can look at key economic parameters like Money market (Interest Rate), Economic growth (GDP Growth Rate), Business performance (Industrial Production), Consumer confidence (Retail Sales), Trade analysis (Exports), Housing sector (Newly Built Home Prices), Investment (Capital Flows), Government reserves (Foreign Exchange Reserves) and finally Equity markets (Shanghai). Let us understand how China’s financial and economic indicators are performing in the current scenario.

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Profitable Trading Tips with the 15 Minutes Built-Up Screen : IDFC Case Study.

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Colourful NumbersWe have continuously flagged “15-Minutes Built Up Screen” in our F&O product as one of the most important screens for devising profitable trading strategies. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.

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How to Make Profitable Trades using Heckyl’s F&O Platform : A Best-Case Example

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maxresdefaultWe highlight a very important feature of Heckyl F&O platform: 15-Minutes Built Up Screen in today’s blog. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.

While there are various use-cases for the 15-minutes built up screen, we highlight the short selling use case in this blog. Short selling implies selling a stock on a particular day and buying the same on the next trading day. The underlying reason for short selling is that the trader expects the stock price to go down. An equivalent of short selling can be buying a put of an appropriate strike price.

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Should the Fed hike rates? Cues for the Global Markets ahead : Part I – Thinking like the Fed

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US-federal-reserveWith low inflation and falling inflation expectations, the Federal Reserve is believed to execute a rate hike this year. The funds rate is the mechanism the Fed uses to regulate short-term interest rates in the economy, which in turn moves across the yield curve.

The Fed has two objectives: stable prices and firm economic growth. The Central banks stimulate the economy by cutting rates when the economy is slowing down. While lower rates can bring economic growth, they mostly come with an inevitable consequence: Inflation.  Read the rest of this entry »

Heckyl’s Social Media Heatmap helps beat the Indian Market Mayhem

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tweetGlobal jitters headed by China on concerns of economic slowdown in the world’s fastest growing economy , led to tremors in the financial markets across the globe. China’s equity market went through a roller-coaster ride in the last six months touching a peak of 5122 on June 6, surging 66 percent in a very short span of time. The stock market bubble finally busted and the index closed near 3000, losing over 40 percent in last three months.

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