How A Financial Advisor For Debt Management Can Help You

debt management financial advisor

Most people in developed countries have financial problems. Even households with a higher than average income are burdened by credit card debt. Borrowing from one card to cover the monthly balance on another one is common practice. However, such unhealthy habits don’t help people get rid of their debt, many individuals being already certain they are never going to become financially independent.

Donald Frank of points out “The role of a financial advisor for debt management is to help people understand which are their most dangerous behaviors and money-related habits so that they can correct them. Most people who struggle with debt have no idea what a monthly expenses budget is. They never plan for the future. They just spend their salary until it’s finished, and then start borrowing money from friends until their next pay. This habit alone has the effect of a boulder rolling from the top of a hill.”

You use the money to buy food and to pay your bills, but this takes a toll on your next month’s income. By the time you repay your debt, the remainder of your salary isn’t going to be enough for all your current expenses. Soon you are going to run out of cash again, so you are going to ask your friends for another round of help. Add an emergency situation on top of this habit and you can quickly sink in the debt ocean which is the moment when payday loans kick in. You get approved for a cash advance, you use the money to sort out your emergency, and you hope you are going to repay it as scheduled. However, when the next pay comes, you are going to be left with nothing, as all this debt may even exceed the money you earn. Since you have no savings, this can be the beginning of the disaster for you and your family. You could use professional help to overcome this challenge, as you aren’t savvy enough to sort it out by yourself.

debt repayment planningA financial advisor for debt management can provide you the education you lack so that you can understand the basic money management principles. You are going to learn how to budget for various expenses and which debt to repay first. A smart advisor should be able to offer you creative solutions for repaying your debt faster. For instance, you may reduce the interest rates a lot by refinancing all your loans and credit cards. You can start building your emergency fund slowly but surely. Even if you manage to put aside 10% of your earnings, you can save a nice amount, provided that you are consistent. Smart financial advisors teach their clients to automate the saving process. You can instruct your back to take 10% of your earnings and deposit it into a special savings account. Since you aren’t going to see this money, saving it is going to be easier. There are many other helpful tips like this a debt management professional can teach you.

The Role And Responsibilities Of The Commodity Futures Trading Commission

cftc building

The Commodity Futures Trading Commission (CFTC), established in 1974, is an independent agency which regulates the options and futures markets. Under the Commodities Exchange Act, it is illegal to commit fraud during futures trading. The CFTC’s mission is to foster transparent, open, financially sound and competitive markets. The CFTC is tasked with avoiding systemic risk and protecting the market users, their funds, the public and consumers from fraud, abusive practices, and manipulation. Following the financial crisis of 2007 and under the Dodd-Frank Act, the CFTC has been transitioning to stricter regulations and more transparency in the multitrillion-dollar swaps market.


For more than 150 years, futures contracts for agricultural commodities have been traded in the United States. These trades have been regulated by Federal law since the 1920s. In 1922, the Grains Futures Act set the central authority. This authority was updated in 1936 by the Commodity Exchange Ac.

Trading in futures has expanded rapidly since the 1970s and includes commodities beyond physical and agricultural. Today, futures trading involves a wide variety of financial instruments, including U.S. and foreign government securities, foreign currencies, and international and U.S. stock indices.

The CFTC was created in 1974 by Congress with the mandate to regulate the futures and options markets within the United States. It replaced the U.S. Department of Agriculture’s Commodity Exchange.

In 2000, Congress passed the Commodity Futures Modernization Act, which expanded and renewed the mandate for the CFTC. This act also directed the Security Exchange Commission to partner with the CFTC in developing joint regulation for the single-stock futures market. Single-stock futures started trading in November 2002.

In 2010, the CFTC realized expanded authority in regulating the swaps markets under the Dodd-Frank Act. The commission was directed to prohibit reckless schemes which attempt to manipulate the market.


Another responsibility of the CFTC is to encourage efficiency and competitiveness of the futures market. Its goal is to ensure its integrity and to protect users against abusive trading practices, manipulation, and fraud. The commission also provides the clearing process’ financial integrity. Like the SEC, the CFTC does not regulate directly the soundness and safety of individual firms, unless they are swap dealers or participants.

Beginning in 2014, the CFTC is responsible for overseeing designated contract markets, swap data repository, derivatives clearing organizations, swap dealers, commodity pool operators, futures brokerage commission merchants, as well as other intermediaries. The CFTC works in partnership with other foreign regulators, including the Financial Conduct Authority in the United Kingdom.

Oversight Of Derivatives

In 1998, energetic lobbying resulted in the CFTC being provided responsibility for oversight of over-the-counter derivatives which was in addition to the commission’s current mission which gave them responsibility for regulating exchange-traded derivatives.

There was some concern that the CFTC would change the Swap Exemption and may try to impose new regulations on the swap market. There were two reasons for this. First, the CFTC commented on the SEC broker-lite proposal that it might create possible conflict with the Commodity Exchange Act CCEA). They stated this was because certain OTC derivatives fall under the CEA and as such are subject to the authority of the CFTC.

Second, in May of 1998, the CFTC published a concept release which asked for comment on regulating the OTC. The CFTC wanted to know if regulation of the OTC derivatives market should be done and what the regulations should cover.

In 1999, at the request of the U.S. Treasury, the SEC, and the Federal Reserve Board, legislation was passed which limited the authority of the CFTC to make sure rules as they pertained to swaps and hybrid instruments. This limit, which lasted until the end of March 1999, froze pre-existing legal status of hybrids and swap agreements if they were already entered into under the Swap Exemption, the Swap Policy Statement, the Hybrid Instrument Rule, or the Hybrid Interpretation.

The CFTC has provided secret exemptions from hedging regulations to 19 market participants and banks since 1991 which has allowed these entities to accumulate unlimited positions. The 2008 financial crisis brought these practices to light when Congress asked for information on who participated in the markets which was especially important because a bank or a trader with an exemption could impact the price of a commodity.

Other loopholes in CFTC regulations are believed to have contributed to the lack of transparency and the skyrocketing prices of the oil markets.

In November of 2014, the UK Financial Conduct Authority and the CFTC fined six banks for their role in manipulating the foreign exchange market. These banks were Chase, JPMorgan, Citigroup, RBS, HSBC, and UBS. The fines totaled almost $1.5 billion to the CFTC and $1.2 billion to the UK Financial Conduct Authority.

The CFTC maintains offices in New York, Chicago, and Kansas City, MO. There are presidentially-appointed commissioners who serve five-year terms which are staggered.

An Overview on Day Trading Crude Oil


crude oil tanks

Crude oil day trading is among the exciting products one can choose to day trade. The great liquidity it possesses allows one to realize whether they are right or wrong in the trade since moves a little bit. For this reason, it’s among the most profitable products that anyone should trade in. crude oil trading is a fast moving market and one can see relatively large p/I swings by trading a single contract using just $10. Many active day traders find Crude Oil as an excellent day trade choice.

Among the reasons that make crude oil trading a hot choice includes the fact that the volume traded averages at about 300,000 contracts daily. The liquidity is another factor; crude oil trading is considered a liquid trading market, although it usually not as liquid as others like the eMini SP. A trader should understand that slippage is more likely in markets that are of less liquidity. Slippage here means getting filled at prices that aren’t the ones desired. Traders, therefore, should be ready to experience slippage to some extent in crude oil day trading.

crude oil day tradingThe trading hours in crude oil day trading are usually from 9 AM to 2.30 PM EST. These regular sessions are at times referred to as Pit Session hours. The extended trading hours are 23.25 hrs. that has a 45-minute break. Each day for the extended trading hours starts at 4.15 pm CT.

Another of the main reason one should consider trading crude oil is the intraday volatility. Volatility refers to the measure of the distance the market will change over a period of time. This shift is usually in either direction. Markets with higher volatility are preferred by traders than those with less volatility. Volatility in this market varies not only weekly and monthly, but it depends on the day of the week as well. Volatility is mostly elevated around Wednesdays during the weekly crude oil inventory report. As a matter of fact, the report has the ability to shake the market back and forth in a dramatic manner such that most traders pause for a while to let the tremors settle before starting any other trades.

The point value for crude oil day trading is $100, and the trade moves in percentage increase of 1/100. That means that the least price move will be $0.01 and the dollar values 10 dollars. Each shift of the price of the contract by a cent will mean a change of the dollar value by $10.

crude oil tradersThe price drivers in this market are not only the inventories. Through speculation, the crude oil market can see desirable trends, in fact during the 2008 oil spike, speculators got their share of the blame for pushing the prices too high. Despite the market being driven by speculation, there are many more factors to consider. The same is what happened in the 2014 and 2015 plummet.

Looking from the demand point of view, the effect of growth level in countries like India, China and Brazil must be taken into account. Demand from these countries increases when the global economy is at a healthy state. This is the main reason oil prices and stock market seem to move in tandem. Crude oil has its price in dollars which means that variation in the dollar value has the ability to affect the oil prices inversely.

Crude oil is a great market option for a day trader. The market has many influences that drive the price and since when many businesses are being done, the liquidity shifts the market fast. Crude oil day trading is a market with lots of activity for a day trader to get revenue from.

How to Make Effective Use of Futures Trading

There have been many rumors going around that futures trading is a legit way of making money online. It is, therefore, important to understand what this form of trading entails.

This trading like any other trading is about predicting in which direction the market will move. Based on whether or not your predictions were correct, you will see yourself making a decent profit.

Future Trading Screen
Future Trading Screen

There is no doubt that the internet is not short on having hundreds if not thousands of these online programs that claim to make you money. However, there is a big difference when it comes to futures trading.

Futures trading is not a get rich scheme that promises to make you a millionaire overnight. If you do a bit of research on where futures trading originated, you will be able to find out that this is the same form of trading that happens in some of the most prestigious investment firms today.

For many years, the question of how come bankers get paid high bonuses has circled the news for decades, and we finally know how. Investing in various markets is the way to making real money which is now available through futures trading.

Seeing that technology had advanced so much from say ten years ago, is the main reason that futures trading can easily be found on every home computer. There is no rocket science about it but plain, simple common sense. The markets that are being offered through futures trading include currency, wheat, beef, gold, oil, etc. Even though some of these commodities may sound remote regarding investment; that does not take away its profitability.

If you do decide to go ahead with this futures trading, then there are a few things that you want to keep in mind. Even though futures trading offers a wide range of markets to choose from, this does not mean that all of them are as profitable as the other. For this reason, it is crucial that one takes the time to research each market carefully before you decide to invest.

At the end of the day, the only reason you will go ahead with this form of trading is all to do with making money. For this reason, we highly recommend carefully outlining each market as to the percentage of profit that you can expect from each.

Do keep in mind that this will be live trading, and there are chances where you can see yourself having a loss from time to time. For this reason, it is, even more, important that you also consider the market that offers the limited loss possible for your investment.

Futures trading is the way forward for the future. With these tough economic times, I’m sure we can all make some use with some extra money through futures trading.