Beyond the Horizon
Dynamic Perspectives
Friday, January 17, 2025
Tuesday, May 9, 2023
Thursday, May 4, 2023
Sunday, April 30, 2023
Saturday, April 29, 2023
What is a shipper’s responsibility when shipping solid bulk cargoes under SOLAS, MARPOL and the IMSBC Code?
— BIMCO (@BIMCONews) April 26, 2023
Answer below 👇#cargo #shipping #internationaltradehttps://t.co/Uj3RSK3f3s
Warning!!!
— Neptune P2P Group (@neptune_p2p) April 28, 2023
Issued: 28/APR/23 0310UTC sent by ships master
ATTACK
UKMTO have received a report of a vessel under attack in position 1531.838N 05213.688 (18NM
south of Nishtun, Yemen). Shots fired at vessel, 3 boats with 3-4 POB on each.#maritimesecurity pic.twitter.com/01EKWNqvK1
Thursday, April 27, 2023
What is an Arctic air mass?
An Arctic air mass is a large body of air that originates in the Arctic region and is characterized by its very low temperatures. These air masses are typically formed during the winter months when cold air over the Arctic region becomes isolated and starts to move southward, often affecting regions such as Canada and the northern United States.
Arctic air masses can bring very cold temperatures, strong winds, and heavy snowfall to areas they impact. They can also cause extreme weather conditions such as blizzards and ice storms. Because of their low temperatures, they can be dangerous to human health, particularly for those who are not properly prepared for the cold.
What does it mean when a market is in equilibrium?
When a market is in equilibrium, it means that the quantity of goods or services supplied by producers is equal to the quantity of goods or services demanded by consumers. In other words, there is no excess supply or excess demand in the market, and the market price remains stable.
At equilibrium, the market forces of supply and demand are in balance, there is no incentive for producers to change their prices or output levels, and consumers do not have any unfulfilled demands.
It's important to note that equilibrium is a dynamic concept and can be affected by changes in market conditions, such as changes in consumer preferences, technology, government policies, or other factors that can shift the supply and demand curves. When these changes occur, the market will adjust to a new equilibrium point.
Wednesday, April 26, 2023
What is Derivative markets?
Derivatives markets are financial markets that deal in financial instruments that derive their value from an underlying asset, such as a stock, bond, commodity, or currency. Derivatives markets are used by traders and investors to manage risk, speculate on future price movements, and provide liquidity to markets.
The most common types of derivatives are futures, options, swaps, and forwards. Each type of derivative has its own unique characteristics and applications.
Futures contracts are agreements to buy or sell an underlying asset at a predetermined price on a specific date in the future. Futures contracts are standardized and traded on organized exchanges, such as the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX). Futures contracts are often used by traders to speculate on the direction of an asset's price movements or to hedge against potential losses.
Options contracts give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specific date. Options contracts are traded on exchanges, such as the Chicago Board Options Exchange (CBOE) or the International Securities Exchange (ISE). Options can be used for a variety of purposes, including hedging against potential losses, generating income through writing (selling) options, or speculating on the direction of an asset's price movements.
Swaps are contracts between two parties to exchange cash flows based on a notional amount of an underlying asset. Swaps can be used to hedge against interest rate or currency risk, or to speculate on changes in these factors. The most common types of swaps are interest rate swaps and currency swaps.
Forwards are agreements to buy or sell an underlying asset at a predetermined price on a specific date in the future, similar to futures contracts. However, forwards are not standardized and are typically traded over-the-counter (OTC), meaning that they are not traded on organized exchanges. Forwards can be customized to meet the specific needs of the parties involved in the transaction.
Derivatives markets are important for several reasons. First, they provide a way for market participants to manage risk. For example, a company that produces a commodity, such as oil, can use futures contracts to hedge against price fluctuations. Second, derivatives markets provide liquidity to markets. By allowing market participants to easily buy and sell financial instruments, derivatives markets ensure that there is a ready supply of capital for investment and other activities. Finally, derivatives markets can be used to speculate on future price movements, which can help to uncover valuable information about the underlying assets.
However, derivatives markets can also pose risks to investors and the broader financial system. One risk is counterparty risk, which is the risk that one of the parties to a derivatives contract will default on their obligations. Derivatives markets also have the potential to amplify market movements, as traders who use leverage (borrowed money) to speculate on price movements can quickly generate large profits or losses. Finally, derivatives markets can be susceptible to fraud and manipulation, as evidenced by the high-profile cases of Enron and MF Global.
In response to these risks, regulators around the world have implemented a range of measures to increase transparency, reduce risk, and promote stability in derivatives markets. These measures include mandatory reporting of derivatives transactions, central clearing of certain types of derivatives, and margin requirements for certain types of transactions.
Overall, derivatives markets play an important role in the global financial system, providing a way for market participants to manage risk, generate income, and speculate on future price movements. However, these markets also pose risks that must be carefully managed by regulators and market participants alike.
By NJS
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An Arctic air mass is a large body of air that originates in the Arctic region and is characterized by its very low temperatures. These air ...
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