THE CRA PERSPECTIVE Index Trading for the Global Trader Understanding Global Indices, Market Breadth, Volatility, Futures, Options & Risk Management One market view can represent hundreds of companies, multiple sectors and an entire economic narrative. “An index is more than a number on a screen. It is a constantly changing picture of collective expectations.” When traders look at an index such as the NIFTY 50, S&P 500, NASDAQ-100, Dow Jones Industrial Average, DAX or Nikkei 225, they are not simply looking at one company. An index represents a basket or methodology designed to measure a particular segment of a market. Its movement can therefore reflect changes in corporate earnings expectations, interest rates, economic data, investor sentiment, sector performance and global risk appetite. That makes index trading fundamentally different from trading a single stock. ONE INDEX. MANY COMPANIES • MANY SECTORS • MANY EXPECTATIONS ...
It
doesn’t! The oxygen level of the planet has varied quite dramatically in the
last 500 million years. It was 35 per cent during the Carboniferous period, around
300 million years ago; as the climate, cooled and land plants died off, oxygen
fell to as low as 12 per cent by the beginning of the Triassic. Back then, the
air at sea level would have felt thinner than at the top of the Alps today.
Burning
fossil fuels has reduced oxygen levels very slightly – about 0.057 per cent
over the last 30 years. Deforestation only has a small effect because when
rainforest is cut down, other plants are usually grown in its place. But it’s
marine phytoplankton (plant plankton), rather than trees, that produces about
75 per cent of atmospheric oxygen. Global warming will have a significant
impact on phytoplankton, which is a much more serious threat to oxygen levels.



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