Jubilee Ace Bobby Low’s cryptocurrency arm continues to garner attention, but the company’s three-pronged, diversified approach to trading and fund allocation remains unchanged, reinforcing the firm’s multifaceted approach to creating wealth.
A recent corporate briefing was held by Jubilee Ace Bobby Low’s Chief Investment Officer Shawn Colbert, who said that for the company to continue expanding it is necessary and critical that growth be spread across its numerous divisions.
During an examination of their Commodity Division, he noted that commodity markets can be unpredictable and that there may appear to be no rhyme or reason to their fluctuations. Prices are affected by supply and demand in most cases, though. Prices tend to rise when the market displays a smaller supply.
There are three main reasons why commodities prices go up or down, he explained. The first is the state of a commodity market’s basic structure. A surplus of inventory tends to force prices down. Prices tend to rise when there is a shortage of inventory due to a high level of demand. A second reason why commodity prices fluctuate is because of the market’s technical status. Troisièmement, the behaviour of investors, traders and other market participants is often influenced by price charts. Besides currency movements and geopolitical issues, economic growth and government policies are other factors that impact the prices of commodities in the market.
From household budgets to business revenues to the nation’s GDP, the price of crude oil has an impact on the economic ecology at every level. Price variations and dips in crude oil can send global exchanges into a tizzy as a result of news cycles, policy changes, and fluctuations in the world’s markets.
Crude Oil Supply: As OPEC’s member nations work together to determine prices by increasing or decreasing crude oil production, they have been a dominant force on the world’s trading floors for decades. Governments, oil firms, speculators, hedgers, investors, traders, politicians, and consumers eagerly follow OPEC’s every move. External factors such as weather patterns, E&P prices, investments, and technologies also affect crude oil supply.
Crude Oil Demand: As a result of strong economic growth and industrial production, oil demand tends to increase. Transportation, population expansion, and seasonal fluctuations are all key factors that affect demand.
Opportunities: Depending on one’s risk appetite, investment capacity, time frame, etc., many trading techniques can be applied on the financial market. One can buy/sell outright, make a long-term investment, hedge, or arbitrage their way through the process.
Arbitrage is the simultaneous purchase and sale of an asset in order to profit from the difference in price, according to its basic definitions.
Three requirements must be met in order for arbitrage to occur:-
Ideally, all marketplaces would have distinct pricing for the asset.
Similar cash flow assets should be valued differently.
In the case of commodities, a future-priced asset must trade at a different price today than its future price discounted at risk-free interest or carrying costs. Price convergence is a product of arbitrage, and the pace at which it occurs shows market efficiency.
Contrary to popular belief, arbitrage trading is not risk-free, despite the fact that it appears to be. In addition, the ratio of profits to losses may fluctuate from time to time, depending on market conditions.
Currently, the global oil trading business is undergoing a number of transformations. This competitive environment has been altered by a combination of low commodity prices, increasing capital requirements and improved pricing transparency. Margin erosion, arbitrage opportunities have been decreased, and participants have changed.