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Tuesday, April 7, 2009

What is a Barrel of Oil?

By Terry Stanfield

If you are interested in oil and gas investing it is important to understand what a barrel of oil is and how it can affect your investments.

Oil and petroleum is measured by the barrel in the United States. This measure refers to crude oil and other petroleum products. In gas investments, oil will be referred to as barrels of oil when the talk about the price of oil going up. A barrel of crude oil is 42 gallons. For global reporting purposes the term barrel is used interchangeably. In Europe, they might even convert the production of oil to tons.

In the late 1800s an oil barrel was a wooden barrel. Today the barrels are steel drums. These barrels are used to transport oil on big tankers. However, it is very important to understand that the barrels aren't used so much anymore for transporting crude oil. Most petroleum is transported by means of oil tankers and pipelines today. A barrel of oil is the universal term for the measurement for oil investments.

The measurement of a barrel of oil came from some oil fields in Pennsylvania in the early 1860s. At this time there was not a standard container for oil and the containers consisted of anything they could put it in. However, because of oil and gas investing and the prices of oil, distrust between buyers began to rise. This created a standard oil barrel to be used.

Oil investments might also use the term "barrels per day". This term is a measurement for actual refinery throughput rather than the actual capacity. The "barrels per day" is actually computed in one way. The number of refined barrels of oil processed by the plant will be divided by the number of days that the refinery has been in operation. "Barrels per day" is also used in terms of consumption. This might be referred to as millions of barrels per day or thousands.

Gas investments also should note that barrels of oil do not make that much gasoline to be used for consumption of motor vehicles. Petroleum is used to make almost everything people use like tires for their car, plastics, ink for printers, clothing, and more. One 42 gallon crude barrel of oil only makes less than half of that in gasoline for a car, which is approximately 19.5 gallons of gas.

Oil and gas investing requires a little knowledge about barrels of oil. It is important to know that crude oil must be taken to a refinery and refined into gasoline. It cannot just be poured into a vehicle. A barrel of oil is only a term for measurement today for investment purposes. This method of transporting oil is not the standard. Although it is still used, only a small percentage of transporting oil happens this way today. - 23208

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Australian Silver Kangaroo - A Corker Of A Coin

By Christina Goldman

The beautiful Australian Silver Kangaroo would definitely be a great addition to any coin collection because of its potential intrinsic value. The Silver Kangaroo is an epitome of the high quality of RAM, (The Royal Mint of Australia), minted coins, world-renowned for their exquisite craftsmanship and design.

Investing in this coin could serve as a hedge against inflation owing to the popularity it has acquired, which was bolstered to a great extent 1-oz. silver makeup. This single-ounce concept has proven convenient and effective for trade and purchase purposes, the liquidity aspect characteristically sought by most astute investors.

So just how did the Australian Silver Kangaroo come into existence?

The Kangaroo, (scientifically classified under the genus Macro), is highly regarded as the official animal icon for Australia as, along with the bird emu, it appears in the countrys coat of arms. The kangaroo and the emu, so many Aussies say, are representative of Australia because these animals can only move forward thus epitomizing the nations drive to ever step ahead.

The kangaroo was further immortalized as a countrywide icon in 1993 when The Royal Mint of Australia started to mint a coin in its respect : the Australian Silver Kangaroo. Because of its potential natural worth, this RAM mintage would be an enriching addition to any coin collection.

Early coin editions are highly sought, particularly those of the 1998 vintage. Limited minting by the RAM is what makes the Australian Silver Kangaroo a very attractive investment proposition. In 2007, for instance, RAM minted just 15,000 of this coin bullion.

The design of the coin, which varies each year, has also been elegantly rendered for that year. It proudly displays the highly recognizable kangaroo engraving back-dropped against the constellation of the Southern Cross.

Rounding out these distinctive features is the coins diameter of 40.6 mm and thickness of 4 mm. Face value of this coin is at 1 Australian dollar, just a mere fraction of the intrinsic value that this silver bullion coin enjoys among collectors and investors all over the world. - 23208

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A Look at the Forex Exchange Market

By Betha Mmari

The mystery that is the foreign exchange marketplace might in addition be listed as FX or it is optional to be linked with with the forex. All of these stand for the identical thing, and that is the clientele of buying and selling among different banks, business organizations, companies in addition to governments that are set in many assorted countries The monetary market is one that is always altering leaving dealings needed to be looked after by factors and banks.

Because the internet has opened up the world to foreign markets, scams have developed in order to capitalize on those who don't understand that foreign exchanges must be made via a licensed broker with approval from foreign markets. Financial like stocks, currency and cash are swapped through these foreign exchanges and forex will be present and exist when one currency is traded for another. Think about a trip to a neighboring nation. Where are you going to be able to 'trade your money' for the value of the rate of exchange in the nation you are vacationing to? This is the way forex trades, and it isn't readily available in all banks, neither in all financial centers because forex is a special exchange service.

Individuals and even small businesses who are seeking to make a huge sum of money quick can easily become the victims of scams when discovering about the ins and outs of foreign markets. As forex is seen as how to make a quick buck or two, people don't question their participation in such an event, but investing through a fake firm or illegitimate broker, a loss of all your money can certainly be expected.

Scams to watch out for:

A forex scam is one that involves trading but will turn out to be a fraud and where you have no chance to get back your hard earned money. Giving up your money to an exchange firm who promises they are legitimate forex traders, you might want to do some careful checks to ensure they are permitted to do business in your country. Companies with dubious histories aren't tolerated in the forex market, as they have previously taken people's money.

In the last five years, with the help of web sites, forex exchanges and the easy information of forex trading has become all the rage. Banking institutions are the top of the line for forex exchanges to take place, where a trained and licensed broker is going to complete transactions and requirements you set forth. The forex broker makes commissions for every deal, and this is the normal way of the stock trade business.

One other kind of scam that is fairly regular in the forex markets is software the should assist you in your trades. It is important to learn about the foreign markets, and to practice and be prepared for following and making trades. You should successfully depend on a trading tool that will make a difference in your knowledge level. Consult with your financial broker or your bank to discover the most you can about the forex markets and also tips on avoiding becoming a victim with no money left. - 23208

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Forex Options Trading Strategy

By Hass67

Remember George Soros; the one who had broken the British pound and brought the Bank of England to its knees in the early 90s. George Soros made cool $1 Billion profit in a matter of few days by betting on the fact that the British pound was overvalued and Bank of England could not sustain its price for long.

He decided to purchase $10 Billion of puts and calls options by using all their funds assets as collateral. George Soros was willing to gamble everything on a single bet.

George Soros had perfect knowledge of the currency markets. He was sure of his bet and had the conviction that the Bank of England could not prop the overpriced British pound for long. His conviction was shared by other currency speculators. The only difference between him and them was the huge amount of the bet he placed. Bank of England was forced in just of 24 hours to take the British pound out of the European Monetary System and let it float freely. His gamble had paid off.

British pound plummeted in the currency markets. George Soros had won his bet. He became famous as the man who broke the British pound with his pictures in all the famous newspapers and magazines.

Daily more than $3 trillion are transacted in the currency markets. You as a forex trader can profit from the volatility in the currency markets using a number of methods. Forex options is one of the methods

Spot, futures and options are three contracts that are traded on centralized exchanges and available to you as a retail forex trader. Swaps and Forwards are two more contracts traded in forex markets for hedging by large institutions like big banks, multinational corporations and off course hedge funds.

Lets discuss trading forex options. Options are derivative products that give you the right to buy or cell or certain underlying asset at a predetermined price known as a strike price before or on a certain date known as the exercise date.

The underlying asset in case of the forex options is the currency. Now, forex options give you the right but not the obligation to purchase/sell a certain amount of a particular currency on payment of a premium.

You may or may not exercise your right to buy/sell the currency. If the market price of the currency is above/below your strike price, you can buy/sell that currency by exercising your option.

If the currency market price is below/above the strike price of the forex options contract that you had purchased by paying a small premium; you can simply let the options contract expire. You only lose the premium.

If you want to try forex options then there is a very good forex options strategy that lets you profit regardless of the direction in which the currency market is moving.

This method is guaranteed to give you profits with an ROI of 30-50%. Try this method. It is risk free. - 23208

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Stock Trading and the Importance of Following Rules

By Jim Fredrickson

When it comes to following rules, most traders in the stock and commodity markets let it go in one ear, and out the other. This severely hinders trading. Being a good trader requires a serious amount of time and patience.

To be able to trade well in any market you have to gain the necessary skills. Don't worry, there are many good traders we can emulate. Here we will go over some great stock trading and analysis tips.

In the stock market, you will meet a lot of investors. Basic needs are fulfilled by depending on one another but when it comes to stock investing, you need to be independent. Youre on your own, just like in a battlefield.

You cannot will the markets in any way. There are normal ebbs and flows of the market that you will have to learn to control the best way you can, if you are to have any success at all. You may feel totally in control of some aspects of your life, but I assure you that will not be the case always with stock trading. You have to learn to out-smart the market, in a sense.

One way to be successful in stock trading is to control your behavior and the market information youre dealing with. Since it would be impossible to control the stock market fully, you need to control or manipulate yourself. All the information you have should be viewed objectively and you need to ensure that you behave accordingly; thereby promoting your best interests. You must learn to create rules in how to trade wisely and you must strictly follow such rules.

Many traders will often find themselves moving away from their rules for one reason or another. Don't be that trader. It is a human condition of ours at times to want to do so. Sometimes the freedoms you enjoy from being a stock trader are the exact thing that can cause your downward spiral. Remember again to set certain boundaries ahead of time, before the trade, and to stick to them.

Are you familiar with any that have had success? If you have, you will certainly know that they are consistent, and level-headed. They follow their plan to a 'T', and make the kind of living that others are envious of. Once you are able to be more like them you can surely reach the same levels of limitless income.

Traders who cannot follow their own game plans are the traders who lose their shirts fast. Take it easy as you begin, risk little, and you will begin to learn how stock trading works.

If you are new to the game make sure you learn the basics first. Their are endless annals wherever you go that will teach you various technical trading strategies and other things pertaining to the stock market. If one man can do it, so can another. Start now by learning these things, and remember to always follow your rules. - 23208

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