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: […]
In trading, understanding the concept of borrowing and its connection to contango can open doors to significant profit opportunities. Let’s break it down. What is Borrowing? Borrowing involves buying a commodity or asset for a near-term date and selling it for a further date. For instance, if you’re short in April and want to move […]
In the tapestry of modern life, aluminium is a silent metal warrior. It has the potential to weave through many parts of our daily life. This is possible for such a metal as it can blend resilience and versatility like no other metal. The application of aluminium in our daily lives is conceivable because of […]
Carry trades are a key strategy in commodity trading, and today, we’re diving into the concept of borrowing. Let’s break it down with an example. Imagine you’re a speculator, and you’ve taken a short position for April. Now, you realize you need to move this position to June. Can you just call your broker and […]
As we step into 2025, let’s explore a fascinating shift in the aluminium market: how a typical contango can transform into backwardation. Contango in Aluminium: In a normal aluminium market, the three-month price is historically higher than the cash price—a classic contango. This reflects costs like storage, insurance, and interest. However, this equilibrium can shift […]
Aluminium, a marvel of modern material science, is revolutionising the packaging industry with its unmatched blend of strength, versatility, and sustainability. From sleek beverage cans that chill faster to resealable food containers that lock in freshness, aluminium is redefining how we preserve and protect. Its lightweight nature reduces transport costs and carbon footprints, while its […]
2024 has been an exhilarating year for the aluminium and die-casting industries, and AL Circle has been proud to stand at the forefront as a media partner for some of the most prestigious global events. With innovation, sustainability, and collaboration in focus, these events brought industry leaders together under one roof, and we were thrilled […]
Aluminium has created a huge buzz in the creative industry this year. From unique festive decorations to large art installations, aluminium has been the ultimate material of choice. In fact, aluminium and innovation are a dynamic duo, redefining possibilities across industries. From sleek transportation designs to cutting-edge fashion, its presence in end-use sectors is growing […]
2024’s aluminium business has been all about making leaps towards sustainability, hat tip to the efforts of visionary brands committed to shaping a greener future. Here’s a roundup of some of the top contributions that are helping to redefine the industry: ICMM’s Framework for Scope 3 Emission Reduction The International Council on Mining and Metals […]