Basic Basics

If a trader is a buyer, he has taken a long position. A long position involves purchase of a futures contracts in hope that price of contract will increase in future. Let’s say our friend Trader Bob contracts in March to buy a widget (a long position) in June for $10. June rolls around, and price of a widget is now $13. That means Bob now has right to buy widget for $10 even though going rate is $13. Bob goes ahead and buys widget for $10, then turns around and immediately sells it for $13, pocketing difference.

A trader who is a seller takes a short position, which involves sale of futures contracts in anticipation of prices falling in future. Trader Bob in this case contracts in June to sell a widget in September for $13. Fall comes around, and going rate for widget in September turns out to be $9. Trader Bob buys a widget for that going rate of $9, then immediately turns around and exercises his right sell widget for $13, profiting from difference. At first, it might seem odd that Trader Bob is contracting to sell something he does not yet own. But look at situation this way instead: in June, Bob makes a commitment to sell a widget to Sam in September for a guaranteed price of $13. If Bob can buy widget for less than that sometime before September, he will make a profit.

All of this is made simple and easy in a new book: A Simple Guide to Astronomical Wealth: STARS Method of Trading Futures. Like Bob, you too can make huge profits by trading STARS method.

Anybody can learn STARS method – its easy! Just go to: www.tradetofreedom.com

Copyright © Jeff Schweitzer

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Homeowners have a right to know true cost of a mortgage Customers have a right know true cost of their mortgage. There are many components that make up a mortgage package, each with its own variable cost. Make sure that you know what is in your package and exact dollar amounts before you close on your home loan. Some of items are down payments, interest rates, points, closing fee, appraisal costs and insurance payment for first month.

To encourage this open practice nationwide, Fannie Mae has created a True Cost Calculator. Customers can enter their information and see what true total cost will be for their mortgage, and their options for saving some money.

Homeowners have right to be free of regulatory burden You have right to get new homes and mortgage financing without too much intrusion from government as far as regulatory fees, paperwork and time are concerned. This does not free your or your builder from abiding by local laws and zoning ordinances. Instead, this type interference will be reduced and not hamper your ability to qualify for a mortgage, or leave you open to huge fees when you try to close.

Homeowners have a right to know about mortgage decisions There will be more transparency among lenders and brokers so that customers know what goes into a mortgage package, who makes decisions, when are decisions being made, and what you can do if outcome is not what you intended, or what you would like to happen. It should always be clear, or feel free to ask your Broker, Banker or Lender: what else can you do to make application process smooth and efficient?

And what are your rights as far as making changes later on and if there are any fees attached to changing your mind.

Every banker or lender in industry should be familiar with your Mortgage Bill of Rights. You can find out more at Fannie Mae Website.