What is the blue moon?

The Blue Moon is a business month in which an activity involving different types of derivatives is considered to be particularly aggressive and frequent. The month will include heavy trading on all forms of derivatives, including futures and options, which means that the actual scope of investment involved in the blue month trading can focus on a relatively small market sector or almost the entire market. Although this type of commercial activity may be somewhat harder to detect than the general business, which includes all investments, the identification of the month, which is likely to be blue, can be very lucrative for individual and institutional investors.

The identification of the upcoming blue month can be very important for investors who earn money from security funds, futures for commodities and similar businesses. This is because the ability to predict increased trading with these assets can also facilitate the determination where this activated or sold to the bestOdu. For example, if the investor is currently holding futures that are betrayed in six months, he knows that trading in these future will be very aggressive in a few months, he can consider selling these assets during the blue month to wait for the climax of futures.

While the Blue Moon is characterized by an unusually large volume of derivative trading during the thirty -day period, sometimes there is a disagreement in what criteria is used to determine what is a high volume. In some cases, analysts identify a benchmark, which is based on the previous period, which has been more or less generally considered a blue month, and the same designation will grant the upcoming period expected to experience a similar volume of trading. Other times, the Moon may be considered blue if the anticatted level of trading is significantly more than during any month in the current calendar year. UnderstandingWhy the month is considered Blue will provide another overview of whether investors should be prepared to participate in transactions or continue to use their usual investment strategies.

The designation of the Blue Moon does not guarantee any specific outcome for investors participating in business activities. It is still necessary to assess the potential of each purchase and consider the consequences of the derivative sales during this period. Only by considering the risks against possible remuneration, the investor can decide whether trading in the blue month should include something of the norm, or whether there are convincing reasons to buy or sell in increased volume within this time frame.