Wednesday, September 23, 2009

Bling Bling.

I am currently tasked to study the World Gold Market now, how it works and shit...

my nose is fucking bleeding.. I can't stop it from bleeding! haha!

if you're interested.. here are some of the terms the wicked traders use. You might get to use this once or twice in your life to either impress ladies, or impress their parents, especially if they are market traders, you need to know this shit.

if you are thinking of entering the market, wherein I believe in the NY COMEX, the minimum trade is 100 oz. Bid/Ask as of right now is USD 1,014.90-1015.90 so thats around minimum USD101,490??? hahaha... i'm not sure about this but that's how i understand it. If you have Golden Balls, by all means, trade the shit out of yourself.

Half of the terms here are used in all types of markets (equities, commodities, FX, whatever) excluding dry and wet. The other half are specific for Gold. Here goes:

Bar: Typical gold product, either for trading or for accumulation. Bars come in a variety of shapes weights and purities and different bars are favoured in different parts of the world.
Bear:Someone expecting prices to fall.
Bid/ask: Bid or buy is the price a dealer is prepared to pay for gold bullion. Ask or sell is the price offered by the seller. (see also definition of spread)
Bull: Someone expecting prices to rise
Bullion: Originally meaning "melting place" or "mint", probably from the French bouillon, boiling.
Bullion Coin: A legal tender coin whose market price depends on its gold content, rahter than its rarity or face value
Certificates: Gold certificates are a method of holding gold without taking delivery.
CFTC: Commodity Futures Trading Commission, the regulatory body in the US covering future markets
COMEX: the New York Commodity Exchange
Contango: The difference between a forward price and a nearby price when the former exceeds the latter
Delivery: The transfer of the asset from seller to buyer.
Delta: The proporortion by which the price of an option changes in response to a change in the price of the underlying asset.
European Option: An option that may only be exercised on the date of expiry.
Face Value: The nominal value given to legal tender coin or currency
Fineness: Gold purity. usually expressed in parts per thousand thus 995 or two nines five is 995/1000 or 99.5% pure.
Fix: The London gold fixing takes place twice daily over the telephone and sets aprice at which all known orders to buy and sell gold on a spot basis at the time of the fix can be settled. The London Fix is the world standard price.
Forward contract: a principal's contract that trades an asset for settlement on a specific date in the future. Each forward contract is "tailor-made"
Futures contract: an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date
GOFO: The Gold Offered Forward Rate (OR GO Forward Offered Rate), which is the rate at which dealers will lend gold against US dollars.
Gold Standard: A monetary system based on convertability into gold; paper backed and interchangeable with gold.
Hedging: The use of derivative instruments to protect agains price risk.
Karat: Unit of fineness, scaled from one to 24. 24 karat gold (pure gold) has at least 999 parts pure gold per thousand; 18-karat has 750 parts pure gold and 250 parts alloy, etc.
Liquidity: The quality possessed by a financial instrument of being readily convertible into cash without significant loss of value.
Lot: alternative term for a futures contract.
Mark to Market: The valuation of an open position as at current price levels.
Naked short: A seller of a contract who does not have the metal to back up his position
Spot Price: The price for spot delivery which in the gold market is two days from the trade date
Spread: The difference between Bid (the price a buyer is prepared to pay for gold) and Ask (the price at which a seller offeres to sell) prices.
Stale Bull: Speculator who has bough a commodity or trading instrument in the expectation of price rises and then sells on disappointment at the market's faiulre to fulfill his expectations.
Stop Loss Order: An order that will close out a loss making position when the price reached a specific level.
Troy Ounce: The standard weight in which gold is quoted in the international market, weighing 31.1035g

and my favorite:

Numismatic: Coins valued for their rarity, condition and beauty beyond the intrinsic value of their gold content.

Douche: You are Numismatic
Girl: What? Numismatic?
Douche: Yeah. You are rare, one of a kind, in exceptional condition and you have beauty beyond the intrinsic value of your golden heart.
Girl: *blush*

WTF?! hahah!

subukan mo nga! haha!

now i gotta go work.

image from here

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