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Commodity System Trading: Your Blueprint for Success

Commodity system trading is a trading method built on defined sets of rules. Throughout our lives, we use sets of rules to guide us along: a diet to lose weight, an exercise routine to get fit or a recipe to prepare a fancy meal. A surprisingly high percentage of traders, however, enter the commodity markets without the slightest idea as to how they plan to succeed. Systematic trading can offer these traders a guideline for success. A properly designed commodity trading system is the first building block of a winning trading strategy. It will define how you are going to trade, beginning with the style of trading. It will define the markets you trade and the time frame you will trade in. Of course, the bottom line is… it will tell you when to buy and sell. A winning trading strategy will also contain a money and risk managementcomponent to manage drawdowns and perhaps even a portfolio selection process. Commodity system trading offers a long list of benefits to traders. The most important is that it awards you the luxury of your time. With a systematic approach to commodity futures trading, you can trade a large number of markets throughout the world in several time zones without being tied to your computer all day. Also, trading with a system enables you to easily analyze your performance and removes the indecisiveness of when to act. Of course, nothing is perfect and commodity system trading has its disadvantages as well. These include trading with a flawed system, chasing the latest success (by jumping from system to system) and trading a system in the wrong market environment. What makes a successful commodity futures trading system? A successful system is founded on common sense logic with robust parameters and trades with a positive edge. Also, it should not be impossible to trade and so should be easy to follow. Some misconceptions about commodity system trading are that there is a perfect system or “holy grail”, that open source code is superior to black box code and that system trading removes the emotion from trading. For more information click: https://www.investopedia.com/university/tradingsystems/

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The Future of Finance: 10 Years After the Financial Crisis

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Car Finance - What You Should Know About Dealer Finance

Car finance has become big business. A huge number of new and used car buyers in the UK are creating their automobile purchase on fund of some sort. It might be in the form of a bank loan, finance from the automobile, leasing, credit card, even the trusty'Bank of Mum & Dad', or other forms of fund, but comparatively few people actually buy a car using their own money .

A generation ago, a private car buyer with, say, #8,000 cash to invest would usually have purchased a car up to the value of #8,000. Today, the exact same #8,000 is far more likely to be utilized as a deposit on a vehicle that might be worth many tens of thousands, followed by up to five years of monthly payments.

With numerous manufacturers and dealers claiming that anywhere between 40 percent and 87 percent of automobile purchases are today being made on finance of some sort, it's not surprising there are lots of folks jumping on the automobile finance bandwagon to gain from buyers' wants to get the newest, flashiest car available inside their monthly cashflow limits.

The allure of funding a car is very simple; you can buy an automobile which costs far more than you can manage up-front, but can (ideally ) manage in small monthly chunks of money over a time period. The issue with car finance is that lots of buyers do not realise that they usually end up paying a lot more than the face value of the automobile, and they don't read the fine print of car finance agreements to comprehend the implications of what they're registering for.

For clarification, this author is neither pro- or anti-finance when purchasing a vehicle. What you must be careful of, however, are the complete implications of funding an automobile - not just when you purchase the vehicle, but over the full duration of the finance and even later. The business is heavily regulated in the UK, but a regulator can not make you read files carefully or force you to make prudent automobile finance decisions.

Financing throughout the dealership

For a lot of , funding the car through the dealership at which you are purchasing the vehicle is very suitable. There are also frequently national offers and programs which can make financing the car through the dealer an attractive choice.

This blog will focus on the two chief types of car finance offered by automobile dealers for private auto buyers: the Hire Purchase (HP) and the Personal Contract Purchase (PCP), with a brief mention of a third, the Lease Purchase (LP). Leasing contracts will be discussed in another site coming shortly.

What is a Hire Purchase?

An HP is quite enjoy a mortgage on your house; you pay a deposit up-front and then pay the rest off within an agreed period (usually 18-60 months). Once you've made your final payment, then the vehicle is yours. This is the way that automobile finance has worked for many years, but is now beginning to lose favour from the PCP choice under.

There are numerous advantages to a Hire Purchase. It's straightforward to understand (deposit and a number of predetermined monthly payments), and the buyer can choose the deposit and the term (number of payments) to suit their requirements. You may choose a duration of up to five years (60 months), which will be longer than most other fund choices. You can generally cancel the arrangement at any time if your circumstances change without enormous penalties (although the amount due may be more than your car is worth early on in the agreement term). Usually you are going to find yourself paying less in total with an HP than a PCP if you're planning to maintain the car following the fund is paid .

The most important disadvantage of an HP when compared with some PCP is higher monthly payments, meaning that the value of the car you can usually afford is significantly less.

An HP is generally best for buyers who; aim to keep their cars for quite a while (ie - longer than the finance term), have a huge deposit, or want a very simple automobile fund plan with no sting in the tail at the conclusion of the agreement.

What is a Personal Contract Purchase?

A PCP is often given other titles by producer fund companies (eg - BMW Select, Volkswagen Solutions, Toyota Access, etc.), and is very popular but more complex than an HP. Most new car fund offers advertised these days are PCPs, and a dealer will attempt to push you towards a PCP within an HP since it's more likely to be better for them.

Like the HP above, you pay a deposit and also have monthly payments over a semester. However, the monthly payments are reduced and/or the term is shorter (typically a max. Of 48 months), since you are not paying off the entire car. In the end of the term, there's still a massive chunk of this finance unpaid. This is normally known as a GMFV (Guaranteed Minimum Future Value). The automobile finance provider ensures that, within certain conditions, the vehicle will be worth as much as the remaining fund owed. This gives you three options:

1) Give the vehicle back. You won't receive any cash back, but you won't need to pay out the rest. This usually means you have been renting the car for the whole time.

2) Pay out the remaining amount owed (the GMFV) and keep the vehicle. Given this amount could be several thousands of pounds, it is not usually a viable option for most people (which is why they had been financing the car in the first place), which normally results in...

3) Part-exchange the car for a new (or newer) one. The dealer will rate your auto's value and look after the fund payout. If your car is worth more than the GMFV, you may use the gap (equity) as a deposit on your next vehicle.

The PCP is best suited for people that want a new or near-new automobile and completely intend to change it in the end of the agreement (or maybe even sooner). For a personal purchaser, it usually ends up cheaper than a rental or contract hire finance merchandise. You are not tied into return to the identical manufacturer or automobile for your next car, as any dealer can pay out the fund for your car and complete the arrangement on your behalf. It is also good for buyers who would like a more expensive automobile with a lower cashflow than is usually possible with an HP.

The drawback of a PCP is the fact that it will lock you into a cycle of changing your car every couple of years to avoid a huge payout at the conclusion of the arrangement (the GMFV). Earning money to cover the GMFV and keep the car usually gives you a monthly payment that's extremely bit more affordable than starting again on a new PCP using a new automobile, therefore it almost always transforms the owner into replacing it with a different vehicle. For this reason, manufacturers and traders love PCPs since it keeps you coming back every 3 decades rather than maintaining your car for 5-10 years!

What is a Lease Purchase?

An LP is a bit of a hybrid between an HP and a PCP. You have a deposit and low monthly payments such as a PCP, with a large final payment at the end of the arrangement. But, unlike a PCP, this final payment (often called a balloon) isn't guaranteed. This means that if your vehicle is worth less than the sum owing and you want to sell/part-exchange it, you would need to pay out any gap (called negative equity) before even considering paying a deposit on your next vehicle.

Read the fine print

What is absolutely essential for anybody purchasing a car on finance would be to read the contract and think about it carefully before signing anything. Lots of folks make the mistake of buying a car on finance and then end up being not able to create their monthly payments. Given your finance period may last for the next five years, it is critical that you carefully consider what might happen in your life over those next five years. Many heavily-financed sports cars have needed to be returned, often with serious financial consequences for the owners, because of unexpected pregnancies!

As part of purchasing a car on financing, you need to consider and discuss all of the a variety of financing options available and be aware of the pros and cons of different automobile finance products to ensure you're making educated decisions about your money.

Stuart Masson is founder and proprietor of The Car Expert, a London-based unbiased and independent car buying agency for anybody looking to purchase a new or used car.

Originally from Australia, Stuart has had a passion for cars and the automotive industry for almost thirty decades, and has spent the last seven years working in the automotive retail industry, both in Australia and in London. For more information, check getmyoffers capital one review.

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Sources of Business Finance

Sources of business finance can be studied under these heads:

(1) Short Term Finance:

Short-term finance is needed to meet the current needs of business. The current needs may include payment of taxes, salaries or wages, repair expenses, payment to creditor etc.. The need for short-term finance arises because sales revenues and buy payments aren't perfectly same in all the time. Sometimes earnings can be low as compared to buys. Further earnings might be on credit while purchases are on money. So short term finance is needed to match these disequilibrium.

Sources of Short-term fund are as follows:

(I) Bank Overdraft: Bank overdraft is very popular source of company finance. Under this customer can draw certain sum of money over and above his original account balance. Thus it's simpler for the businessman to satisfy short term unforeseen expenses.

(ii) Bill Discounting: Bills of trade can be dismissed in the banks. This gives money to the holder of this invoice which may be employed to finance immediate needs.

(iii) Advances from Customers: Advances are primarily demanded and received for the affirmation of orders However, these can also be used because of funding the operations necessary to execute the job sequence.

(iv) Installment Purchases: Purchasing on installment gives more hours to make payments. The deferred payments function as a source of funding small expenses that should be paid immediately.

(v) Bill of Lading: Bill of lading and other export and import documents function as a guarantee to take loan from banks and that loan number may be utilized as finance for a brief period of time.

(vi) Financial Institutions: Different financial institutions also help businessmen to get out of financial issues by giving short-term loans. Certain co-operative societies may organize short term financial aid for businessmen.

(vii) Trade Credit: It is the usual practice of the businessmen to buy raw material, shop and spares on credit. Such transactions lead to increasing accounts payable of the business which are to be paid after a specific time period. Goods are offered on cash and payment is made after 30, 60, or 90 days. This enables some freedom to businessmen in fulfilling financial issues.

(2) Medium Term Finance:

This finance is required to meet with the medium term (1-5 years) needs of the business enterprise. Such financing are essentially required for the balancing, modernization and replacement of machinery and plant. These are also necessary for re-engineering of the organization. They aid the direction in completing medium term capital projects within planned time. Following are the sources of medium term finance:

(I) Commercial Banks: Commercial banks are the major source of medium term finance. They supply loans for different time-period against proper securities. At the conclusion of conditions the loan may be re-negotiated, if required.

(ii) Hire Purchase: Hire buy means purchasing on installments. It permits the company house to possess the required goods with payments to be made in future in consented installment. Obviously that some curiosity is always charged on outstanding quantity.

(iii) Financial Institutions: Several financial institutions such as SME Bank, Industrial Development Bank, etc., also provide long-term and moderate financing. Besides supplying finance they also provide technical and managerial assistance on different matters.

(iv) Debentures and TFCs: Debentures and TFCs (Terms Finance Certificates) can also be used as a source of moderate term finances. Debentures is an acknowledgement of loan from the company. It could be of any duration as agreed among the parties. The debenture holder enjoys return in a predetermined rate of interest. Under Islamic mode of financing debentures was substituted by TFCs.

(v) Insurance Companies: Insurance companies have a massive pool of funds given by their policy holders. Insurance businesses grant loans and also make investments out of this pool. Such loans are the origin of medium term funding for various businesses.

(3) Long Term Finance:

Long term finances are the ones which are demanded on permanent basis or for at least five years tenure. They are essentially desired to satisfy structural changes in business or for hefty modernization expenses. These are also required to initiate a new business plan or for a long term developmental projects. Following are its sources:

(I) Equity Shares: This method is most commonly used all over the world to raise long term finance. Equity stocks are payable by people to make the funds base of a massive scale enterprise. The equity share holders shares the gain and loss of the company. This system is safe and secured, in ways that amount once obtained is just repaid at the time of wounding from the business.

(ii) Retained Earnings: Retained earnings will be the reservations that are generated in the excess profits. In times of need they may be employed to fund the company project. This is also called ploughing back of profits.

(iii) Leasing: Leasing can be a supply of long-term finance. With the help of leasing, new equipment can be acquired without any heavy outflow of money.

(iv) Financial Institutions: Different financial institutions such as preceding PICIC also offer long term loans to business houses.

(v) Debentures: Debentures and Participation Term Certificates are also used as a source of long term financing.

Conclusion:

These are various sources of finance. In fact there is no hard and fast rule to distinguish among short and medium term sources or moderate and long-term sources. A source such as commercial lender can provide both a short term or a long term loan in line with the needs of customer. However, these resources are often utilized in today's business world for raising financing. Find out more info click http://www.creditcardquestions.com/