Spread Trading

A spread is the simultaneous purchase and sale of the same or similar commodity in the same or different contract months. Spread trading is usually considered to be a lower risk strategy than an outright long or short futures position, and therefore margin requirements are usually much less than an outright long or short futures

Just like with any commodity a spread can be bought and sold at "x" price, and it can be charted just like any other market.

You must be asking "How do I make money if I am long and short the same commodity?" The answer is you are hoping to profit from the difference in the two contract months, not from a trend higher or lower in any particular market. With a spread, you follow the relationship, or difference between the contracts, without having to pick a market direction.

Some of the advantages of spreads are:

1. typically require smaller margin deposits

2. underlying market direction isn't important

3. seasonal patterns exist among spreads

Sunny Sheffield

A month's visit to UK Midland, Sheffield gave me an opportunity to explore UK's country side. Though Sheffield is considered as one of the UK city, I would rather call it a well developed village. It is surrounded by mountains, and roads within the city sway up and down. Whole city seems to have been built above a table of mountains.

Don't really know why is it called SUNNY Sheffield ? Like any other UK city except London, it too has a City Centre right in the middle of the town. There I was fortunate to experience Britain's biggest Halloween party called Fright Night. On the night, locals get together on the street fancying ghostly characters. There are traders who come around to sell articles of speciality and for kids, there are loads of games in action. I could not stop myself from clicking continuous rounds of photographs. They will soon appear on buzzy_biz. To view them you will require a yahoo id.

Meadowhall is another magnificent shopping place to visit. It is considered to be one of the biggest malls of UK. Tram service from City Centre gets you over there. Other major attractions around the city are York, Alton Towers - biggest amusement park of UK and Castle town.

While returning from Sheffield to London, until halfway I had Ford Galaxy to my availability while remaining half was covered by Mercedes. Timing were almost similar to what it takes to reach Bombay from Pune. We touched London in less than 3 hours, while it took another 2 hours to reach home. It seems same traffic situation applies to all major world cities.

If you are visiting UK, Sheffield is worth visiting, even it means for a shorter duration.

New wave of spammers

A couple of days back Guardian reported the new ways adopted by spammers. Here is a summary of the article:

Why spam is out of control ? There is no single cause, say experts, but rather a confluence of unfortunate events. One of the biggest problems is that the main vehicle for spam - vast networks of home computers infected with malware, known as "botnets" - have been growing in size.

These botnets have existed for about five years. They are created when worms or Trojan horse programs are used to infect a PC, taking control of it and forcing it to accept commands sent by a central controller. The commands, traditionally sent via a real-time online chat protocol called Internet Relay Chat (IRC), were initially used to force large numbers of bots to attack a target web site, flooding it with traffic in a distributed denial of service (DDoS) attack.

DDoS attacks still happen, but bots are increasingly used to send spam emails, in effect acting as their own mail servers. In the 1990s, spam was mostly channelled via unprotected email servers online, used to send thousands of unsolicited emails anonymously. But then network administrators began locking them down.

Now, spammers send email directly from home machines thanks to botnet operators who program them to become email servers and then sell their processing power and bandwidth.

How can botnet operators maintain the overall volume of email while reducing the number of emails per bot? By increasing the number on the network. According to Dean Turner, senior manager of Symantec's Security Response team in the US, the company saw almost 4.7m new active bot network machines in the first half of this year. And Johannes Ullrich, chief research officer at the SANS internet Storm Center, which monitors online threats, saw the number of attacking client machines rocket from 770,000 on October 15 to 1,845,000 six days later.

The trade-off for more focused spam will be the effort involved in gathering information about their targets, explains Heron. But just as legitimate markets evolve, so do illegitimate ones, concludes Watson. "One of the common opinions in the botnet tracking community is that in this particular arms race, the black hats currently have the upper hand."

Virtual Local Guide

Gone are the days when you hire a local guide to see historical places! While standing in a queue outside Buckingham Palace, I was wondering about how and who would explain me the significance of the corners of Her Majesty's Queen Elizabeth's official residence.

Once we entered the palace the first thing that was handed over to us was the mobile phone-like device with a pair of headphones. This was an interactive device which behaves exactly like your local guide and explains each of the state rooms in full details. Each of the rooms has a number clearly visible. If you want to repeat any of the details for that room, you just need to dial that number on the keypad.

I was overwhelmed by this fantastic device. All the instructions were being accurately vocalized and went on synchronously, as we walked throughout the palace.

Technology is taking it's leap to surmount incorrect human acts. May be we in India we can implement such devices at historical monuments like Red Fort, Taj Mahal, Mysore palace, etc. This will give organised employment to the unemployed, who will take care of such systems and at the same time save tourists from being duped by the local unorganised guides.

Eighth wonder of the world

Is there any race going on for the eighth wonder of the world? With Disneyland in California claiming to be the eighth wonder and now an amazing roadway Jebel Hafeet Mountain Road in UAE, convinces me of countries and organisations vying to claim the eight wonder.

Governments of the world are employing dedicated efforts to claim the eighth wonder of the world. Where does India stand here? Is it even making any attempt to build an eye-popping monument or infrastructure in addition to Taj Mahal? This is a wake-up call for the Government of India to emerge from the chronicles of corruption and stream to quickly improve and build a spectacular marvel of excellence in engineering.

Human-less work force

At most of the common places in London or may be in the whole of United Kingdom IT is playing a big role. I am talking of the positions in India like apartment security guard, bus conductors, ticket collectors, motor man, etc.

Yesterday, I had been to a place called Bow Church by DLR (Docklands Light Railway). The fully automated trains on this line are driverless. Coincidentally, I was able to grab the front seat in the very first coach, a place where motor man sits. I was amazed at the way DLR was being operated. Though, there is an operation board, it is generally locked up. Occasionally, you may find a PSA (Public Service Agent) roaming around in the train and if need be, monitors the operation with minimal intervention. Running on elevated track, many liken DLR to a roller coaster ride as the train climbs and swoops its way through Docklands to Greenwich.

How much time before this becomes a reality in an Indian city like Bombay? Bombay is in extreme need for human-independent mode of transport. Transport strikes will become nightmares, once such systems are implemented.

Travel to London - Part II

As I entered the flight, the attendant guided me to my seat. I unpacked some of the technical handbooks from my cabin bag and comforted myself in the one of the allotted aisle seats. Flight was pushed backed from it's original position. Although it was moving, it felt as if it was being dragged by some small vehicle, as yet the engines were silent. It felt that it was being lead to the start of the runway. Suddenly, there was a pause of about 2 minutes, I was completely lost. Didn't knew, what the pilots were up to. We were strictly instructed to be seated and tighten our seat belts.

Instantly, engines started roaring, and the bird thumped-off the runaway. I couldn't take my eyes off the faraway window on my left. Machine gradually gathered speed and took-off. Objects on the land started becoming smaller and smaller and soon we were in air. All that was visible was sky and clouds. Flight attendants and airhostess were off, serving beverages and juices. As I was not well, I preferred some piping hot tea for myself.

Being alone on a maiden flight and that too when you are not well, becomes a boredom. Soon luncheons were served. Being a veggie I preferred veg. meal pack. It was pretty good then heard of.

As London approached, the altitude was being reduced at an enormous rate. A severe pain kicked-off in my ears. It felt like my ear drums would soon blow-off. Pain was intolerable and I had to immediately call one of the flight attendant. Upon explaining the problem, he instantly pointed it to be the result of the cold that I was suffering from. He asked me to take deep breaths and exhale while trying to yawn, similar to the way we do while waking up in the morning. Asked me to nibble a chocolate. Remedy surely brought some relief. As the aircraft touched ground, pain was almost off. That was a bizarre experience that I would always remember.

My check-out took only 45 mins. As I was not carrying any coins or calling cards, I used my India credit card to ring up my room mate in London. He guided me to reach Canary Wharf and agreed to pick me up from station. Started-off experiencing London tube train with a change at Piccadilly Circus reached Canary Wharf in half an hour. He was there to pick me up and there I was, at my new, but temporary address in London.

The apartment was cosy and comfortable. It has all the required amenities and is well above expectation. I helped myself with some hot dinner and got inside the bed for a good night sleep.

Travel to London - Part I

Travel to the city of London happened at a blink of an eye. At a short notice of 4 days, I was conveyed about my overseas trip. On a lovely Friday afternoon in Bombay when we were preparing for my sister's night-flight to US, my cell buzz zed and it was none other than my senior, who intimated me of the urgent travel requirement to UK, for next Wednesday.

I was stunned at the news, even though I had a very faint idea about the subject. This being my first overseas travel, I had to start from the tail-end of purchasing my baggage, as well. There was an overhead of purchasing new suits, ties, blazers, etc. as they form mandatory part of the attire, while working at HQ office. Within 2 days I completed my priority shopping, and rest of the list was left with my parents.

Monday morning I had to travel back to Pune to collect tickets and other relevant data and documents. These helter-skelter made me fall sick, as I hardly slept or ate anything. By the time I reached Pune, I was engraved in perfect cold and fever. Things in Pune were not easy. Completing long travel formalities, segregating and packaging my luggage and data clean-up from my PC, made life worse. There was an added UK airport requirement of chest x-ray too. Most of my time and energy was consumed, and by the time I reached Mumbai (Home), it was already 11pm, Tuesday night.

On the way, back to Bombay, I text messaged my news of travel, to all near and dears. Some called back, while some messaged back and some even made to my home by 11:30 pm. I was supposed to take a 'British Airways' flight scheduled to take-off at 1:00 pm next day, on Wednesday. As I was deadly tired and was suffering from high cold and fever, I decided to take some rest before getting onto final packaging and set my alarm to 3:30 am.

Starting at 3:30 in the morning got everything together. Packing went for 4 long hours which included arranging clothes, spices, initial food, etc. As usual weight of the luggage exceeded the permitted 23 kgs. This lead to packing and unpacking, most of the time, reaching trade-offs. My parents accompanied me to the airport. When leaving home it was dry and sunny, but soon the rains took over. Though, airport is at a 30 minutes drive from my home, it took us 1.5 hrs to reach. Finally, finding my way through the morning traffic and rains, checked-in at the airport at 10:30 am. Parents waited until security check was completed.

Rest of the experience will be continued in Part II.

Mumbai BLASTS back

On 11th July, 2006, after a gap of 13 years, Mumbai was again struck by the serial bomb blast. This time Mumbai suburban trains fell victim to the catastrophe.

Last 2 weeks kept Mumbai terrified, first by the torrential rains, followed by bandh called by Shiv sena activists and now the serial blasts. Inspite, of these events the ever-resilient Mumbai showed all the courage to return back to normalcy.

In the normal situation people of Mumbai are least bothered about each other. But, in the event of calamities Mumbai ensures to minimize loses by generously helping those, affected. After yesterday's bomb blasts and closure of Mumbai's lifeline,(suburban trains) many social communities came forward and worked all night to ease the situation. Locals were seen distributing free biscuits, tea and coffee. While some were seen helping Mumbaites get back to home. This allowed Mumbai to get back to business almost instantly.

This resilient nature is Mumbai's answer to those, who want to strand it. If you try disturbing Mumbai, it blasts back with all the vigour. Come what may, Mumbai will never stop breathing.

Do you really need college degrees to be successful?

When you look at the world's most successful men, you find most of them are college dropouts and don't have a college degree. The likes are Bill Gates, Azim Premji, Dhirubhai Ambani, et cetra. Does this mean to be successful in today's business world, college degrees are not a necessary ingredient? Then why do corporates stress on employees possessing a valid college degree ?

Bob Rosner from ABC news writes :

My undergraduate years were a valuable time for me. I learned how to do my own laundry, how to drink Jell-O shots, how to use a cafeteria tray as a sleigh, how to kiss with one leg on the floor, how to cram all night for a test and how to forget everything the moment that the test was over — all helpful skills to possess, sort of.

Just last week I talked to a woman who had run an office for two U.S. senators, been a successful entrepreneur and is currently thriving in an entirely new career. She accomplished all of this without a college degree. Yet, there are many jobs that she cannot apply for.

That does leave us with a problem. If we are going to level the playing field in terms of those with, and those without a college education, how will we decide who are the better people to hire? We'll have to look at each person and not use a convenient, and often inappropriate, yardstick.

A few considerations: What has the person accomplished at work? How do the people they've worked with feel about his or her contributions? Has the person traveled abroad? Has the person done volunteer work? Does he speak another language? Does she know what's going on in the world? Does the person understand your industry and its competitors? I would argue that all these are more reliable measures of what a person can contribute to your organization than a tired, old piece of sheepskin.

Click here to see Bob Rosner in an exclusive interview with ABC news.

Wake up America - India rising

Check out this video- Makes you feel proud, for India.

Click here!

True Lies

Lie for the sake of lie. Lying frequently is a habit that could ruin the life of others as well as yours. If there is an issue, it should be openly communicated and if lied upon, could translate into a bigger issue. If true picture of the problem is known, a way could be found out to solve it. But if, the problem itself is not clear, then it becomes difficult to find a solution and it is quite possible that you could end up finding a solution that could be irrelevant.

Some people become so used to lying that they are not even aware that they are lying. It becomes their inherent habit and in the process they keep creating problems over problems. Though in Bhagvad-gita, lying has found support from Lord Krishna. He proclaims, "Lie spoken for the benefit of mankind is not a lie and is equivalent to 100 truths". Liars always stick to those lines to justify, when caught. This way they invite more problems.

What we can conclude from here is "Lying makes a man imperfect". Though truth is bitter, you should have the courage to face it. Running away from reality won't solve the problem, but would inflate it unnecessarily. Face it to solve it and get rid of it as soon as possible.

"Use" or "Utilisation"

I have often seen the word "use" being frequently used by managers in the corporate world. E.g. "We can use Mr. X for support and use Mr. Y for coding". I am against using such words, which amounts to the insult of the person in whose context it is being used. The correct word, which sounds better, is "Utilisation". After all, organisations utilises your skills for performing certain tasks or activities that you might be expert in.

The word "Utilisation" shows respect for that person's skill set. It also makes you feel that you will be paid or rewarded as per your skill sets whereas word "Use" makes you feel exploited. It makes you feel that they just want your skills without paying you appropriately.

The word "Utilisation" expresses two-way give and take relationship, while "Use” specifies only one way flow - from employee to employer. Though, employee anyway continues doing the work, that he is assigned, the use of words shows up it's difference in his quality of work.

Different words send different vibrations among employees, even though managers might not have intended what the receiver interprets. Thus, managers should be extremely careful in this regard as different words with almost same meaning, create different meanings for different people.

Rule 49 (O)

Here, I got a very interesting e-mail from a friend regarding exercising Rule 49 (O). It says :

In a particular constituency, if a voter has dislikes all of the candidates competing there, then he can show his dislike to all of them by registering for 49 (O).

Steps for doing this :
1. While registering the name at the time of voting, convey the booth officials that, you want to go for Rule 49 (O).
2. Register your signature in the 49 (O) form available there.

Done.
Now, if the number of 49 (O) count is larger than that of the winning candidates total vote count, then a re-election is called there.

More than all, the shameful fact is,
This 49 (O) is available ever since 1960, but it is in no way conveyed to the people. Neither the government communicate this, nor did the election commission.

As long as the people are unaware of this one, the political parties are enjoying by winning the election and ditching our country. To stop this disaster to continue further, we don't need to take a sword and fight against the government. Just help every citizen to know that they have such a powerful weapon which can be used for ensuring their welfare.

None of the media will be ready to publish this 49 (O). Let us do this by ourselves. Communicate this information with all your family, friends, neighbors as much as you can and let them know their right. Please send this mail to everyone you know and request them to spread it across to everyone.

Convey this information to as many people you know. Not only, we get a satisfaction that we have done a good service for our country's welfare.

This is very well equal to what our patriots have done for the independence of our country.

Very less time left before the next election drama. Before that lets make sure that everyone speaks about this word "49 (O)".

Need v/s Greed

There is a very thin line between man's need and his greed. Say, if a man earns Rs. 10,000 and is able to satisfy his basic wants with Rs. 6,000, he will be a satisfied individual. He will feel happy. But, when his income increases, his wants too increase proportionately. In economic terms this is called 'Marginal propensity to consume'. This increase in expense then turns into greed. We will always find such individuals running for more money to satisfy their "unlimited demands of life". That's how we find most of the people in this world, unsatisfied.

His want for more money never ceases and he enters a rat race of living life with more and more lavishness. Thus, never allowing him to do something big, that he had wanted to do in life. A self-controlled and disciplined man keeps his wants stable, even when he has a raise. This allows him to do things that he had always wanted to do. He is not afraid of failure and becomes a successful individual in society.

We can see this from various examples. One of it is, Infosys head and founder Narayan Murthy. He still lives a common man's life, washing his own clothes and utensils. He has not employed any servant at his residence, even though Infosys employs more than 20,000 IT professionals.

This shows that living life simple will leave you with more money, allow you to be more satisfied and do things that you had always wanted to do, as money is no more a concern.