Commodity Trading, Commodity Market, Investing Commodity

The cost of carrying refers to the expenses incurred in owning and holding an asset. When you own an asset like stocks, land, or gold, you need to pay certain costs such as interest, storage fees, insurance, or other expenses associated with holding that asset over time. The cost of carrying is the difference between these expenses and the profits you earn from that asset. Essentially, it's the total cost of keeping the asset in your possession and the financial impact it has on your overall investment returns.   What is the Cost of carrying and Arbitrage? The cost of carrying or carry cost is the extra amount of money you need to spend to keep or hold onto an asset or investment. It can mean different things depending on the market you are involved in. This cost has a significant impact on trading demand and can even create opportunities for making profits through arbitrage. Arbitrage: The definition of cost of carry would be incomplete without the term arbitrage. So now le...

The difference between absolute returns and annualized returns in mutual funds is as follows: Absolute returns: This refers to the total return earned from an investment, without considering the investment period or comparing it to a benchmark. It is calculated by subtracting the purchase price from the selling price, dividing it by the purchase price, and multiplying by 100. Annualized returns: This is the amount of money your investment has earned on a per-year basis, considering the investment period. It is often referred to as the compounded annual growth rate (CAGR). It is calculated by using the absolute rate of return and the investment time horizon. When to use them: Absolute returns are useful when the investment time horizon is less than one year, such as calculating returns for a few months or up to one year. Annualized returns are more appropriate when the investment time horizon is more than one year, such as calculating returns for multiple years. Using th...

An introduction about Business Loan A business loan is a certain amount of money that a company borrows from a lender to support its financial needs. The company is required to repay the loan over time, following specific terms and conditions agreed upon with the lender. This borrowed money can be used for various purposes such as expanding the business, covering startup costs, purchasing equipment, or managing cash flow. Before applying for a business loan, it is important for business owners to understand their financing options, how loans work, and what criteria lenders typically consider when evaluating loan applications. Definition Business Loan: A business loan is money borrowed by a business to help with expenses that they cannot afford to pay for immediately. This could include things like buying new equipment, covering payroll, or expanding the business. However, the lender does not provide this money for free. They charge an additional fee called interest, which is a ...

What is a Mutual Fund? Mutual funds are like a pool of money collected from many people who have a similar goal of investing. This money is then managed by professionals called fund managers who decide where to invest it. The advantage for individual investors is that they do not have to worry about selecting and managing investments themselves. Mutual funds offer a diverse mix of investments, such as bonds, stocks, and debentures, to help balance the risks and potential returns. The income earned from these investments is distributed among the investors based on how much money they have put into the fund. So, it is a way for busy individuals to invest their money and potentially earn returns without having to actively manage their investments. How to invest in Mutual Funds? Investing in mutual funds can be done by following a simple method: Understand your investor profile: Determine your risk tolerance level and investment goals. This will help you decide how much money you ...

What are Future and Options? Futures and options are financial contracts that allow individuals or investors to speculate on the future price movements of various assets, such as stocks, commodities, or currencies. In simple terms, futures contracts are agreements to buy or sell an asset at a predetermined price and date in the future. Options, on the other hand, give the holder the right, but not the obligation, to buy or sell the asset at a specified price within a specific timeframe. Both futures and options provide opportunities for investors to make profits by taking advantage of price fluctuations in the market. For example, if an investor predicts that the price of a certain stock will rise in the future, they can buy a futures contract or an option to potentially profit from that anticipated increase. Futures and options can also be used as risk management tools. They allow businesses or individuals to hedge against potential losses due to adverse price movements. For i...

Libord Group offers different support services in efficiently handling various processes, such as the Corporate Insolvency Resolution Process, Liquidation Process, Fresh Start Process, Insolvency Resolution Process and bankruptcy process for individuals, proprietorship concerns, and partnership firms. These support services include: Claim Verification: receiving, and verifying claims from creditors, employees, and other parties involved in the insolvency process. Taking Over Control and Custody of Corporate Debtor: We take control of the assets and operations of the corporate debtor, ensuring their protection and preventing unauthorized actions. We also maintain inventories and supervise the operations of the corporate debtor. Corporate Insolvency Resolution Process: We conducts various functions related to the insolvency resolution process . We communicate with stakeholders, coordinate with professionals and experts appointed for the process, and assist in the preparation and...

Corporate debt restructuring is when a company that has taken on too much debt tries to reduce the amount it owes by changing the terms of the loans it has taken. This can involve negotiating with lenders to get better repayment terms, like lower interest rates or longer repayment periods, or even cancelling some of the debt altogether. The goal is to help the company get back on its feet financially so that it can continue to operate and pay its bills. It is like when you owe your friend some money, but you can't pay it all back right away, so you talk to your friend and work out a new plan to pay back the money over a longer period of time that is easier for you to manage. Understanding Corporate Debt Restructuring Corporate debt restructuring is when a company changes the terms of its existing debts to make it easier to repay. This is done by negotiating with creditors to reduce the amount of money owed, extend the repayment period, or reduce the interest rate. The goal is t...