Welcome to Commodity Education and Training

We, at The Joker Brokers, have a combined experience of over 50 years in the grey market, off-ledger business. We thought that it is important to be educational, informative, and helpful to those that really would like to know about this business. If you are serious about this business it would be very important to be educational and informative.

We are going to discuss serious matters, for people seriously interested in international trade and higher finance.

As a member of our community you will receive periodic emails specific to those interests explored at our blog or The Joker Brokers, and this will include real trade procedures and documentation, compliance issues, fraud, scams, and everything relating to international business/finance from the point of view of those that have closed.

We have associates that are International Lawyers, corporate traders, brokers, export/import experts, intermediaries, even trained Bankers. All of these people find this list, the services, and products offered at The Joker Brokers to be very useful. If you want to learn more about international trading, commodities, import and export, and the whole realm of this business you will benefit from our membership. In fact, we are so sure that if you do not benefit from our membership then we will be more than happy to have you discuss with one of our associates (closers) what it really takes to make a close.


Sunday, April 10, 2011

Primary vs Secondary Market Banking Activity

As many of you have been learning about financial instruments and private security transactions nobody ever goes into much detail between the difference of the secondary and primary market.  The majority of deal making with brokers is within the secondary market, but many do not realize the difference between the two.

The primary market is the market which happens at the financial institutions or the Top World Bank's level.  Most of the people you deal with on a day to day basis do not have access to a Top European Banker to ask questions about financial instruments or private transactions.  There are advantages to primary market over the secondary market.  One of the key advantages of the primary market is predictability.  In the primary market and throughout the Top World Banks, they are able to predict the gain and/or loss ten or mores in advance whether it be medium term notes, currencies, or the like.  The primary market has safety for the client.  This is the similar to predictability.  If the Top World Traders are able to predict the outcome ten or more years in advance then safety of the transaction is an obvious.  The other aspect within the primary market is experience.  We would say any Top World Trader has been doing this type of activity for most of their life and have the correspondents (other Top World Banks) to work together.  The downside to the primary market is it is virtual impossible to penetrate.  You have to know or know of someone that knows of a Top World Banker that is experienced within this arena of activity.  Another illustrative example is the oil business.  The top players like Chevron, Exxon, and Shell are the primary market and anything else would be the secondary market.

The secondary market is exactly what it says it is.  It is second to the primary market.  The activity which takes place at the primary market level reaches down to the secondary market level or sometimes in finance mentioned as, the street level.  The main disadvantage of the secondary market is the amount of fraudulent activity.  Another disadvantage is the unpredictability of trading activity.  Traders in the secondary market cannot predict ten years out and beyond.  Secondary market traders can be from a top world bank, but most of them are not.  Think of it this way; why would a trader working in the primary market decided to go out on his or her own and work in the more unpredictable secondary market?  They wouldn't.  This is how some inexperienced traders that have done a few transactions end up in the secondary market attempting to make a lot of money off the client and putting the client at more risk than the primary market.  Also, this is the market where fraudulent traders can take off with the clients money, or have the client block funds in their bank account and nothing happens resulting in a waste of time and loss of little money, and worse case putting a bad taste in the clients thinking about this type of activity.  The advantage to the secondary market is it can be fairly easy to penetrate if you have a client with the money.  This same advantage comes with a disadvantage, a lot of fraudulent activity.  You can run in circles for years with brokers masquerading as buyers, sellers, and high net worth individuals.  To put in perspective, the secondary market is the internet market and the primary market is the relationship market.  We do not want to stick our foot in our mouth either.  The secondary market is a relationship market too, however, at the end of the day, you will found out that elusive secondary, grey, market is full of many individuals that do not understand the basics of this type of business.

While we have stated some negative information about the internet, we would like to state the internet is a great tool to prospect for new clients or more business.  Just keep your eyes open for anything suspicious and do not believe what everyone says. 

Professional Commodity Training

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