Thursday, September 13, 2012

SQ13.

Hope this will be an interesting one, or at least something which is different.
Simply, explain the cartoon on the right hand side of the image with respect to the statue (or the building) and the set of letters below it.
Though it's not really difficult, I would give you 15 points to tell me what can the cartoon signify here, and 5 more for explaining the connect.


15 comments:

Robin...... said...

The cartoon shows a 'tall' and a 'short' guy which signifies 'short selling' a term used in 'FUTURES TRADING'.

The picture on the left is of the Dojima Rice Exchange Monument which signifies the 1700s development in Osaka, Japan where the concept of futures trading developed first.

The 12 letters of English alphabet denote the Month Codes in Futures Contracts eg. F is for January, G for Feb and so on...

ROBIN TRAKROO

Chirag Jain said...

Long and Short, two terms used in the futures market to indicate Buy and Sell Positions.
Dojima Rice Exchange gave rise to the futures market as we know it. And the letters shown are characters needed to punch in for trading in the futures market.

adish jain said...

The cartoon on the right side depicts long-short i.e. futures market(trading). The monument on the left is DOJIMA rice exchange, first futures exchange.
The alphabets shown are futures contract symbols/codes for different exchanges.

ADISH JAIN

Subhashish said...

Commodity-based Derivatives.

The image seems to be a pun on the word 'short', as in shorting a derivative or an asset.

The Dojima Rice Exchange is where commodity-based trade began. FGHJKMNQUVXZ (all months) signified the months in which Crude Oil commodity derivatives are available.

Umang Gupta said...

The Connect is Commodity Trading
- The Dojima Rice Exchange was the first commodity trading exchange of the modern world.
-FGHJKMNQUVXZ are Futures symbols for delivery months.
- The cartoon basically refers to "going long" and "going short" which is related to commodity futures. Going long refers to purchasing futures contract while going short refers to selling.
Thus, the first two images represent commodity trading, while the tall and short cartoon refers to long/short aspect of commodity trading.
Umang Gupta

RAKTIM NAG said...

the first pic is of the dojima rice exchange monument.the cartoon signifies the sculpture of the 2 children with the sheaf of rice (tall & short).
the 12 letters given are the standard symbols for the delivery months used in futures exchanges/markets (ie F to Z denotes january to december).now dojima rice exchange can be called the world's first derivative exchange (started with trading rice futures).

raktim nag.

RAKTIM NAG said...

1st pic - dojima rice exchange monument.now dojima rice exhange can also be called the world's first futures derivative exchange (trading in rice futures).
the 12 letters F to Z are standard symbols of delivering months (ie january to december) in futures exchanges.
the cartoon having the tall & short man signifies the situations of the buyer and seller in a forward contract (ie long position and short position respectively).

raktim nag.

MAYUR FINANCE said...

The image on the left is of dojima rice exchange which was the first futures market in japan.

The long and short height persons symbolize the forward contracts.

The long person referring to the buyer making commitment to take the delivery of the concerned asset and short height symbolizing seller who has taken the commitment to deliver the asset.

Those alphabets are the codes of month used to refer to the 3rd character in the code of future contract.

Mayur Gupta

bikash agrawal said...

By Bikash Agrawal

The Cartoons on the Right side talks about going long and short in the Futures Market/Commodity Market. The building is Dōjima Rice Exchange.

Most Futures contracts codes are four characters. The first two characters identify the contract type, the third character identifies the month and the last character is the last digit of the year.
Third (month) futures contract codes are F,G, H,J, et al.

Arushi Jamar said...

Long & Short.
Dojima Rice Exchange, where the oldest derivatives were traded.
The cartoon also says long & short.
The letters have something to do with trading on an exchange.
Arushi Jamar

Shubham jain said...

The connect among the images is 'Future Contract'.

The Statue or the building is of Dojima Rice exchange located in Osaka where the first future exchange took place.

The Cartoon signifies the small guy looking at the big guy which is his future.

In future contracts each month has a specific letter of the alphabet assigned to it, as follows:

Contract Months:

F January
G February
H March
J April
K May
M June
N July
Q August
U September
V October
X November
Z December

Thereby explaining the alphabets below the image.

Shubham jain said...

I Change my answer.

The connect among the images is 'Future Contract'.
The Statue or the building is of Dojima Rice exchange located in Osaka where the first future exchange took place.


The alphabets given below the statue image represents the following :

In future contracts each month has a specific letter of the alphabet assigned to it, as follows:
Contract Months:

F January
G February
H March
J April
K May
M June
N July
Q August
U September
V October
X November
Z December


The cartoon represents 'Hedge Fund Strategies – Long/Short Equity Hedging '.

smartflight said...

Dojima Rice exchange (first picture) is located in Osaka where the first future exchange took place. This exchange was established in 1697 and was based on the Japan's system of
rice brokers.

The letters F, G, H, J, K, M, N, Q, U, V, X, Z each correspond to a month, starting from January and ending with December. So, F implies January, G implies February ... X implies November and Z implies December. These letters are used in future contracts.

The cartoon features a dwarf, and a tall guy. Alternatively, we could relate to them as short and long as in, Long/Short equity hedging.

Sanchit Gupta said...

the set of letter is the future contract symbols which are month codes. the picture on the left is of Dojima Rice Exchange.
sanchit gupta

Unknown said...

the connect:Futures Market

The statue (or the building) relates to the world's first commodity futures exchange. Established in 1697 in Osaka, Japan, by samurai who wanted to control the rice markets, the Dojima Rice Exchange was originally a market where rice was bartered. The exchange was dissolved in 1939.


For futures contracts specifying physical delivery, the delivery month is the month in which the seller must deliver, and the buyer must accept and pay for, the underlying.This list of letters is the conventional letter codes used in tickers to specify delivery month.

The cartoon signifies the different ways in which one can trade in a futures market i.e. by going long or by going short.
In finance, short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments, with the intention of subsequently repurchasing them ("covering") at a lower price.
In practical terms, going short can be considered the opposite of the conventional practice of "going long", whereby an investor profits from an increase in the price of the asset.

Achal Bhalla