Metals trading handbook
A market companion for users
of the London Metal Exchange
Metals Trading Handbook, by
Paddy Crabbe, offers an invaluable training manual and reference source for anyone working
within the non ferrous metals industry or trading on the London Metal Exchange. At the
core of its thorough analysis lies the principle that simple explanation and minimal
jargon are invaluable to the practitioner.
- Structure
and workings of the exchange
- Risk
identification
- Management
and trading techniques
- Strategies
and instruments available to today's metals traders.
- The
crucial areas of internal control, accounting and regulation
Metals Trading Handbook
offers positive advice and stimulation to those concerned with the pricing and delivery
risks of non ferrous metals. It starts with simple fundamentals and moves onto more
complex situations. Its central aim is to give the reader essential building blocks with
which to develop a more proactive approach to solving everyday problems.
The text examines the way the
LME operates, how prices are formed, the significance and timing of "official
settlement" prices, how risk in the forward markets occurs and changes, how risk
builds up, methods of recognition and hedging the exposure to priced metal, the impact on
valuations (marking to market), profit and loss and cashflow.
This book will be essential
for those already involved in the metals business and also for the financial, investment
and advisory community internationally.
About the Author
Paddy Crabbe began his metals
life as an LME clerk and progressed to dealing in the 'Ring'. Shortly after that he set up
and ran a department trading in physical metals. during which time he created and managed
many hedging programmes, which combined pricing on the LME, hedging, physical delivery
metal on a CIF programme and delivered works basis and foreign exchange. During that time
he taught many producers and consumers how to operate on the LME and delivered lectures
about the LME in several countries.
Contents
Part I: The LME today
Background, recent history
and developments
Roles clientele and other
uses of LME
Market-place and daily
routine
Forward structure of delivery
methods
Part II: Risk identification,
market instruments and uses
Risk identification: Analysis
of a market book
Pricing in physical contracts
Basic elements of hedging
Practical hedging
Options
Part III: Management,
regulation and control
Organisation and management
Brokers: Management, trading
and office staff
Regulation, regulators and
control
Matching and clearing systems
Internal control, systems and
accounting
Appendices
Glossary
Index
460 pages