These Security Contracts launched in November of 2002. Since then they have been considered one of the hottest investments around. No where else can you speculate in Amazon. com, AOL/Time Warner, GE or many more Fortune 500 corps for only 20 pips on the $. In this series I hope to educate you on this brand-new investment vehicle and grab you started on a contemporary way to speculate in issues.

Three types of investments are lumped beneath the heading of Security Contracts. Single Share Futures (SSF), Narrow-Based Indices (NBI) and contracts on Exchange Traded Funds (ETF).

Single Security Futures (SSF) contracts are standardized agreements between two participants to buy or to sell 100 financial instruments of a specific share in the future at a premium agreed upon now. These contracts are obligations and call for physical delivery of the share. These contracts might also have a minimum movement size of o.n.e cent ($0. 01)/share. With the standard contract being 100 convertibles, the minimum tick size is a buck. Financial instruments from all the NYSE and the NAZ are being traded as SSFs. The primary difference is that in the NBI, you may be instrument trading, at any given time, upward to nine financial instruments specific to a particular industry. In fact because of the NBI's industry specific focus, often the NBI should move independent from the broader based indices. NBI has been designed for the airlines, financial corporations, defense, drugs and the semiconductor industry along with 11 more industries that are detailed in their present book Security Contracts for Small Players.

Exchange Traded Funds (ETFs) are traded and priced similarly to individual instrument shares. They were said to be designed to be proxies for a group of issues. For example, there are ETFs that deal on the Nas that represent the NDQ 100 Index. This is known as "QQQ. " Then there is the "SPDR" (pronounced spider), that is meant to mimic the movements of the Standard and Poors 500, that is also traded on NDQ.

During this series we may talk about the exciting ultramodern investment known as Security Contracts. There are 3 essential differences between Security Commods and Shares. Margin, Shorting, and Account Balancing.

Ownership and Margin are two vastly different forms of investment control. Most share purchasers are used to a corporation listing on a share exchange, and in turn offering stock or ownership of the concern to the public. This ownership is then traded among various players when they buy or sale equities. Security Commods do not convey the same rights of ownership that stockholders have.

With Security Futures trading masters put upwards a "margin" that is also considered a "performance bond". Stockmarket investors, in most cases, can only have to put upwards 20 % of the value of the security.

Daily Account Balances of Security Contracts are real-time oriented. This means that shortfalls and profits are applied to our account per day. To access these funds, you do not requirement to liquidate ones order. Simply call ones trade facilitator and have him send the excess greenbacks to you.

Shorting Issues is discouraged. In fact, it is practically un-American. That's why it isn't a surprise that it is highly tricky and complicated to short equities on most exchanges. On the more hand shorting Security Contracts is no more complicated than taking a long order in commods.. The counter party to every futures contract is the clearing firm. This method allows there to be as many "short" commods contracts as there are "long" contracts contracts.

During this series we have talked about the exciting ultramodern investment known as Security Commods. No where else can you speculate in Fortune 500 firms for only 20 points on the $. The opportunities in Security Contracts take two forms "Hedging" and "Speculation".

HEDGING is defined by Merriam-Webster as taking a order in a futures stockmarket opposite to a trade held in the cash stockmarket to minimize the risk of spondoolicks mark down from an adverse number change. Market players who have their company 401(k) s heavily weighted in their multinational share should immediately benefit from using Security Commods. At the drop of a dime, they can protect themselves from the overexposure that a one-stock folio gives them toward market place downturns. Expect Enron. IRA account holders can also tailor Security Commods to their long-term needs.

SPECULATION
Investing in Single Share Contracts is so simple and versatile; it only makes sense that folk might no longer want to speculate or speculate on individual equities, as they did in the late 1990s. The major market places, such as NYSE or Nas Index, over time should lose all of their individual instrument traders to Single Share Commods. Just released is "arbitrage .