Readings: Hawala in oil futures, Trading performance, Riding RCOM
- Economic Times: The hawala route to global oil futures
. . . some of the seasoned investors and commodity traders are betting on global crude oil futures, by routing their transactions through the hawala route. They are taking positions in international commodity exchanges by paying the margin money in the unofficial foreign exchange market. Some international brokerages, with a domestic presence, are facilitating these transactions smoothly, where investors deposit the margin amount equivalent in rupee with their Indian subsidiary. The trade is done through the broker’s office in some other location — mostly Dubai, given that Hawala trades are most rampant in the Middle East.
Officially, investors are permitted and allowed to invest up to $200,000 in overseas markets such as shares in the US, the UK or Japan. But, last year, an RBI circular clarified that investors, as part of this remittance scheme, are not allowed to invest in futures and options on overseas stock exchanges.
- SFO Magazine: Blowing the Whistle on Yourself
. . . those who make trading their living and career spend much more time self-coaching than other traders. They may or may not hire professional coaches for assistance, but they almost always engage in guiding their own performance.
. . . three measures are ones I see most frequently among successful traders at trading firms:
1. Keep Detailed Score of Your Trading
2. Keep a Detailed Trading Journal
3. Keep Detailed Track of Markets
- Hindu Business Line: RCom alleges price hammering in shares, seeks SEBI probe
Reliance Communications (RCom) shares went up 12.50 per cent on Friday amidst reports of a complaint made to SEBI alleging price hammering of RCom and ADAG group companies’ shares. It appears that from June 20 the open interest position started declining progressively till the closing of the contract, may be due to shorting.
The drop in market price of the company assumes significance in the context of the RCom’s plan to sell part of its stake to the South African telecom major MTN.
Again, one of our systems picked up RCOM yesterday - we were in fact short RCOM and then reversed later in the day. Didn’t catch as much of the 12% rally as we would’ve liked to - but hey, prices reflected some underlying catalyst and we got to ride it!
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