Method and System for Investing in Commodity Futures Contracts
First Claim
1. A method for providing a commodities index trading investment system comprising:
- selecting a plurality of commodity groupings for an index;
selecting one or more commodities in each of the plurality of commodity groupings;
buying highly collateralized longer-dated futures contracts for each of the one or more commodities;
selling each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract;
buying a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold;
paying fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index;
updating account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges; and
if required, paying-out proceeds from the selling each of the highly collateralized longer-dated futures contracts on the last day of trading in the month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract.
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Accused Products
Abstract
In accordance with an embodiment of the present invention, a method for providing a commodities index trading investment system may include selecting (110) a plurality of commodity groupings for an index; selecting (120) one or more commodities in each of the plurality of commodity groupings; and buying (130) highly collateralized longer-dated futures contracts for each of the one or more commodities. The method may also include selling (140) each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract; and buying (150) a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold. The method may still further include paying (160) fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index; updating (170) account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges; and paying-out (180) proceeds to investors, as required.
29 Citations
29 Claims
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1. A method for providing a commodities index trading investment system comprising:
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selecting a plurality of commodity groupings for an index;
selecting one or more commodities in each of the plurality of commodity groupings;
buying highly collateralized longer-dated futures contracts for each of the one or more commodities;
selling each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract;
buying a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold;
paying fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index;
updating account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges; and
if required, paying-out proceeds from the selling each of the highly collateralized longer-dated futures contracts on the last day of trading in the month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A system for providing a commodities index trading investment system comprising:
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means for selecting a plurality of commodity groupings for an index;
means for selecting one or more commodities in each of the plurality of commodity groupings;
means for buying highly collateralized longer-dated futures contracts for each of the one or more commodities;
means for selling each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is least two-months earlier than the expiration date of the nearest longer-dated futures contract;
means for buying a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold;
means for paying fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index;
means for updating account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges; and
means for paying-out proceeds from the selling each of the highly collateralized longer-dated futures contracts on the last day of trading in the month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18)
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19. A machine-readable medium having stored thereon a plurality of executable instructions for performing a method comprising:
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selecting a plurality of commodity groupings for an index;
selecting one or more commodities in each of the plurality of commodity groupings;
buying highly collateralized longer-dated futures contracts for each of the one or more commodities;
selling each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is three-months earlier than the expiration date of the nearest longer-dated futures contract;
buying a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold;
paying fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index;
updating account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges; and
if required, paying-out proceeds from the selling each of the highly collateralized longer-dated futures contracts on the last day of trading in the month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27, 28)
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29. A method for providing a commodities index trading investment system comprising:
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selecting a commodity grouping for an index;
selecting one or more commodities from the commodity grouping;
buying highly collateralized longer-dated futures contracts for each of the one or more commodities;
selling each of the highly collateralized longer-dated futures contracts on a last day of trading in a month that is at least two-months earlier than the expiration date of the nearest longer-dated futures contract;
buying a next-year'"'"'s highly collateralized longer-dated futures contract of another commodity for each highly collateralized longer-dated futures contract sold;
paying fees and commissions associated with the management of the index as well as those associated with the buying and selling of the futures contracts in the index; and
updating account balances to reflect the net effect of the buying and selling of the futures contracts and the fee and commission charges.
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Specification