As we dive into another week, let’s continue our discussion on carry trades. So far, we’ve explored the borrowing side in detail, but now it’s time to shine the spotlight on lending, the second integral part of this family. To recap, borrowing in carry trades involves buying a futures contract for the nearest date while […]
It’s time to shake off the old and ring in the new year, quite literally! With fireworks lighting up the sky, dragon dances taking over the streets and family feasts that could put any buffet to shame, Chinese New Year or Lunar New Year or Spring Festival is all about celebrating fresh starts and good […]
In our last discussion, we explored the concept of lending and walked through an example of selling March and buying April. This time, let’s dive into what happens when the market is in contango, a situation where prices for future contracts are higher than nearby prices. What is Contango? Simply put, contango occurs when the […]
A very Happy Republic Day to everyone! Team AL Circle takes immense pride in celebrating the spirit of our great nation. Let’s honour the values of freedom, unity, and progress that our Republic stands for and continue striving towards a sustainable and innovative future. Together, let’s build a brighter and sustainable tomorrow. Jai Hind! As […]
So, what happens when you borrow in backwardation? Well, the rule is simple—you lose money. Why? Because in a backwardation curve, the nearby price is higher than the future price. That’s just how the market moves! Let’s break it down: If you borrow to postpone a short, say from April to May, April’s price is […]
In our previous discussion, we explored the concept of borrowing carry trades to anticipate long positions. Let’s dive deeper into how borrowing works in a contango market and why it often leads to profit. Borrowing and Long Positions in Contango Imagine this scenario: we’re holding a long position for April but need to shift it […]
The year 2025 has only just begun and it’s already been coined as “the year of AI Agents” on LinkedIn. Many new startups popped out of the ground, promising to deploy autonomous agents to make smart technological and business decisions. For aluminium manufacturing this translates to having autonomous agents that integrate with control systems and […]
Aluminium foil originated from the brilliant minds of Swiss inventors Dr. Lauber, Neher, and Cie in the early 20th century. During the first half of the century, its usage rapidly increased, particularly during the war, where it played a significant role in food preservation. With its versatility, various industries soon discovered innovative ways to implement […]
In our last discussion, we explored how borrowing is used to postpone a short position, with an example of buying April and selling June. When the market was in contango, we earned profits, and during backwardation, the strategy still worked in our favor. But when the conditions were unfavorable, we faced losses. Today, let’s shift […]
In our previous session, we explored how borrowing works in a contango market. Let’s quickly recap and then shift our focus to backwardation. Contango Recap: In a contango scenario, the price of a future contract for a later date is higher than the price for a nearer date. Here’s how it works: Borrowing in Contango: […]