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Is it illegal to open up a small Forex hedge fund? I am a private Forex trader who wants to expand into a small online hedge fund. Note: This is not code for a pyramid scheme or ponzi scheme. I am talking about trading real money. What is the legality on this? How much money can I trade before having to register with U.S. Securities?
Does anyone know where I can find some some investors to contribute start up capital for a forex hedge fund? I have developed a proprietary expert advisor (trading robot) that has a 78% win ratio and a less than 20% drawdown. My monthly average is 38% compounded monthly. I'll be a millionaire in two years, with or without investors, but since no one is promised tomorrow...I would like to accelerate this process. Advice?
Forex Hedge Funds advice? Hi, I am planning to partner with a friend to launch a Forex investment Offshore Hedge Fund. I would like to read some books about previous successful FOREX Hedge Funds so I can get a better understanding of what our risks, limitations and expectations might be. What are the top Hedge Funds trading Forex? Besides Soros, which I would call more like a Macro Fund vs our investment techniques that are going to be short-term. Thanks
Does anybody know about forex hedge ? im looking for a real and profitable forex hedging system
please teach me some Forex Hedge Strategy other than getting interest? Because receving interest is not alowed in some religion
Starting a Forex Hedge Fund (Structure)? We are 2 partners looking to launch an Offshore Forex Fund for European and Latin American investors primarily. We are would like to know how the structure needs to be set up since one of us is based in the US and the other in a European country. So far we understand that the management company should be in an Island (Bahamas, Cayman...). - Do we have to open an Advisor in the US and a Research in the European country, so we both can get paid by the main Management company? - When opening an Advisor in the US, Do we have to be registered with the SEC? Many thanks
Which is one of the Best Forex Hedging Strategy ? I would like to know how to benefit from Forex Hedging without merely stopping loses but making Profits.
Are there any stock brokers who allow traders to hedge? Buy hedge here I mean go long AND short on the same stock at the same time. If you know of one, what are there commissions like? I hedge FOREX and want to branch out, thanks.
Does anyone have a list of online forex brokers that offer both spot and option trading? I am interested in trading forex pairs and using options to hedge my live forex positions. Does anyone know where can I find a list of forex brokers that offer me the possibility of opening positions (just like any forex broker out there) but at the same time buying american-style options from them in order to hedge my open long or short positions (in conjunction with a stop-loss order or by itself)?
Hedging forex risks when trading currency for profit.? If I were to trade USD/GBR on forex market, what sort of hedge would I use to reduce my level of risk? Ie would I buy other currencies at the same time, or use forward contracts / future contracts or even options. Which is the most common and effective. Thanks
I want know about forex hedging so can any body explain me? our company is importer so want get advantage of? what should i do for that do we need to contact any broker is so than can u give me details of it or what procedure is requrd we r importer & need to do remmittance regularly so came to know that thro forex hedging we can get advantage purchasing foreign securities. can anybody explain me this as my boss have given me this job. paricularly in india
Are there any good websites, similar to the baby pips school, that teach about hedge funds? Baby pips teaches about FOREX, not hedge funds. I need a website with 'lessons' like this. www.babypips.com/school I completely understand that you don't "trade" hedge funds, I used babypips.com as an example because I like the way the website explains things.
What is mean by hedging in forex trading. Plz explain? What is mean by hedging in forex trading. Plz explain. thanks
What is the best forex broker who has cent account with 1:500 leverage, allowing hedging, and 10,000 lot size? I'm looking for a Forex broker who provide cent accounts with the following features: 1- hedging on same currency should be possible 2- Leverage is 1:400 or 1:500 3- Lot size can go up to 10,000 4- reputable in trading and withdrawal of funds Thanks
Is there any intelligence to trading FOREX or is it merely subject to interbank flows and basic supp/demand? How can one trade forex in a manner that least resembles gambling-- over what period of time can one see some logic to a forex trade? Who are the main players that govern the price levels of currency and what effects do individual traders have? how do hedge funds trade currencies? Does technical analysis really work? The idea of of using tech analysis seems so silly--what is the theory behind it? Any additional information you may have, I'd really appreciate.
How do large institutions and hedge funds open large positions(regarding the forex markets)? For example a large hedge fund wants to buy 300 million USD from a major pair in the shortest time possible. What strategy could he use in order to open the position without affecting the price too much. Would he buy them in increments from different interbank platforms( if yes, how small, and how many seconds or minutes before the next increment) or would he open it in a single large block from 1 interbank platform? Also i have seen in interbank platforms like currenex, that you can actually open a position with one large block of up to 100 million USD based on ECN prices. But by doing that you have to pay the large spread of 5-9 pips(even for the major pairs). Would this action of buying 100 million USD would move the price 5-9 pips respectively. Another question i have is if by using many interbank platforms to open a position with increments, will you actually not move the price a lot(example: 300 million USD divided by 4 interbanks, 75 million for currenex, 75 million for icap ebs, 75 million for hotspot fx, 75 million for fxall in lets say a period of 2 minutes and increments of 1 million) will this be a good strategy, or it doesn't matter if you use different platforms? Is this legal (to use many platforms)?
Has anyone used a profitable forex expert advisor? Please only answer if you have actually made money using one of the EA's. Personal experience only, and not people who lost money and are just telling me its a scam. Im currently looking into Destiny NN 3.3 and Steinitz HAS MTF Hedge Robot I asked this question before and someone answered "I am an expert advisor and I don't use FOREX to make money" This is not an answer, if you have no Idea what I'm asking . . . don't try to answer.
Can I hedge against falling interest rates in the US dollar by holding a forex position? My CDs rates are falling because the Fed is depressing rates. That's also sending the dollar down. Since our economy is slowing the Fed will probably drop rates more. I'm thinking that if I pick a country paying higher rates I should offset a lot of my loss in interest income. I probably won't put a lot of money there, but at 100:1 rates forex accounts have a lot of leverage. Is this a sound idea and if so, what currencies have good "carry trade" rates right now?
What is a forex expert advisor? I have seen many ads on the internet that say something like this: We are offering you, 2 of our best sellers Expert Advisors, select 2 from the next list: SAFE NEWS EA or CORRELATION HEDGE EA or TRADE THE CABLE EA I want to kow what this is talking about, and what a forex expert advisor is? Thanks.
Normal Leverage of a Hedge fund or famous traders? Where can I find information about average leverage used by hedge funds or famous traders like soros? I'm particulary interested in forex/equity areas.
a hedging strategy for forex? I would like to know a simple hedging strategy for forex. I'm new to forex, I got a demo account right now, but I'm losing money. What's a good stategy, and what's a simple way to know which direction a currency is headed. I know it's hard but what are some of the obvious indicators. In stocks when there is some scandal or a defective product it's guaranteed that the price will go down, is there obvious indicators for forex?
how does hedging work in forex? I haven't been able to figure it out. If you invest in two different currency pairs that mirror each other, how does a person expect to make any money, Does anyone know how to do this? which currency pairs do you use and how much can a person hope to earn, percentage wise, in relation to their original investment. Also I currently use Oanda any problems I should know about regarding this broker? Thanks in advance
The forex broker which provide hedging with the narrowest spread for EUR/USD and USD/CHF? I want to know which forex broker has the narrowest spread for EUR/USD and USD/CHF with hedging facility.
What is the ideal education for a Treasury Manager? I did my PGDBM (Finance) from ICFAI Hyderabad (Now a Deemed University). I have worked for 2.75 years into actuarial valuation and am now Asst. Manager (Corporate Finance) in a manufacturing MNC. In the long run I want to work with the in-house Treasury Dept. of an MNC, dealing with hedging forex exposures, managing LC/BGs, managing liquidity, etc. What might be an ideal further education?
how to hedge against falling PAKISTAN RUPEE? I want to sell Pak Rupee in 2012 for US$ at current rate,,,,,, is it possible to do that based on forward forex trading?
What is OPEN a SELL/BUY Position? (Forex AvaTrader)? I've been using a practice account in AVAFX. and im planning to open a real trading account. but i want to know clearly what is OPEN a SELL POSITION and OPEN BUY POSITION? I really want to know what it works. im a bit confused with the buy and sell. thing. also CLOSE POSITION AND HEDGE POSITION? THANKS! hope you can provide easy explanation. thanks :)
what is the best way to work in forex traiding, i mean how i know when to buy and when to sell? i am stocking on it with some hedges, so help me plz!!
Can someone explain Carry Trading to me? What is the approximate interest rate for a long-term hedge (in Forex) using EUR/USD and USD/CHF. Of course this is dependent on your broker, but could someone explain how to calculate it please? Thanks.
Hedge foreign currency income? I receive my income in foreign currency and thus my home currency fluctuate every month. I would like to hedge but do not want to use forex trading, since my small income is not worth the risk and the cost of engaging in foreign exchange market. Is there any other way I can hedge my income? I am looking for some creative ideas. Thanks
Forex players.... I need some advice...? Hi, How are you? I have been hedging the forex, however it has now become illegal.... I have the option of switching my account to a UK account to continue hedging or remain on US system... no hedging... meaning I can only trade in one direction of the market... Would you switch the account or keep it as a US account... Thanks and God Bless, Ms S
Whats the best non-NFA regulated Forex Broker? I like hedging and I don't want them to change my leverage. Any recommendations for NON NFA brokers? Bianca and Jake. You are both obviously just website advertisements. Since I'm quite a capable trader and do not need to learn from your site I will not be clicking on your links. Bianca, the first thing you need to do is "get to grips" with the fact that people whom spam these websites are the cockroaches of the internet.
Where, as an Individual Trader, can you potentially realize the HIGHEST return? In principle, would that be Stocks, Options, Futures, Forex, Hedge Funds or what? I’m not necessarily concerned about the inherent RISKS involved, but the highest potential in terms of return on investment (i.e. money at risk). Please justify your answer.
Has anyone tried making money on Forex.com?? I want to learn more about trading because i'm interested in Hedge Funds. Should I use Forex.com to learn the basics??
can i create an verifiable track by trading forex in demo a/c? as a testimonial to start a hedge fund...i have five months track of forex demo a/c...is it enough........
How successful is hedging method apply on currency trading?? I just wanna to see proof from experience traders who trade using the hedging strategy in the forex market
Any good books on forex trading? I would like to learn how to perform correlated/hedge trades...such as the EUR/USD + USD/CHF. Can anyone recommend some books on the subject? Thanks.
how to get loan from japan @ 0.5% ? whom to approach ? what securities needed if i am in india / dubai ? I WILL LIKE TO ARBITRAGE ON INTEREST RATES WITH MINIMAL RISK USING ENOUGH FOREX HEDGE AND DEPLOYING MONEY IN INDIAN GOVERNMENT BONDS AND SAFE ARBITRAGE OPPORTUNITY WHENEVER AVAILABLE ON NSE CASH /FUTURE & OPTION / BSE CASH. MONEY IS ABSOLUTELY SAFE AND TOTALLY LIQUID.
What are Hedge Funds? What are hedge funds?and how they are related to forex market?
What are or where can I find details of Forex trading regulations for Australia? Particularly on the types of trading allowed e.g. hedging
How do you feel about using loans to invest? How do you feel about using credit to invest in higher yielding investment vehicles, then keeping the difference in interest for yourself as profit? People (especially Americans) comfortably buy cars that depreciate on credit, or buy houses using loans. How do you feel about using that same concept but investing the funds from your line of credit with your Forex trader, stock broker, or hedge fund for example? Resources: http://corporatemillions.com
Does anyone know an online Forex broker that allows simultaneous buying & selling of a same currency pair? They usually call this hedging a currency pair
hedge funds and technical trading? Hedge funds are an area that I really don't know much about in terms of demographics. I do understand that traditionally the "hedge" in hedge fund derived from pairs trading, but that since then many of them have deviated away from that. 1. Are there currently many hedge funds that specialize in technical trading? 2. Many that specialize specifically in futures trading? e.g. commodities, forex, etc 3. Any sites with statistics on the breakdowns? thanks
Which areas in the USA has most people trading Forex? I can't find any info on this anywhere!? Just curious. I know for online stock trading, pretty much every area in the USA is covered. But Forex is such a high-risk arena and one that is FULL OF SCAMS, that I don't think ordinary people would trade it. My friend started a business startup that delivers live Forex quotes for free and asked if I'd join. Well, I want to know if the time and effort I put in will be worth it. Which areas in the US has most people wanting to trade Forex? What type of people like to trade forex? I get the feeling it's mostly hedge fund managers in NYC who do it.....rather than individual middle class people.
Can usa citizens open a forex account....? Which allows them to benefit from investing their money in others hedge trading activities i.e. PAMM and thus are not therefore governed by the US regulatory bodies because they are not trading? Thanks
Speculation in forex/futures/interbank/cash settlement only? In theory, the benefit of speculators in the market is to provide liquidity for those who need to hedge for business purposes. My question is, in futures and forex, contracts are cash-settled and 99% of brokers forbid any physical delivery in both the spot Forex and Futures forex/commodity/index/etc futures. How is public speculation money being effectively used as the other side of the hedge trade if we aren't trading the same contracts as the big boys? Like with FXCM or any other Forex broker that says they are STP, when they credit your account 100,000QTY of EUR/USD if you went long 1 standard lot, are they really giving you 100,000 euro's that another person (Be it a bank, company, government) needed to unload on the Interbank? That's how these companies market, but I'm wondering if it's a bunch of false advertising anymore. okay so can you give me a view of the flowchart? i.e x > y > z whos balance sheet changes?
Bigger investments then Hedge funds? Hai 1. I am a aggresive investor seeking to invest my money for higher returns. I know hedge funds gives you the best return in short time, other may be S&P and Real Estate (maybe i dont know), what i am searching is theoritically hedge funds give you the best high return or not is there any more big investment (other then starting your own private business) 2. Hedge Funds have the best of the managers found in any industry, they have all big strategies, they invest in stock, S&P, forex, this, that, all, now my question is should i should i invest indivdually in all the markets or search for the best legitimate hedge funds on earth? I am 21 yearz old, planning to make a fortune out of 50,000 USD (my father gave me for business), he said now smart investments can double, triple... your money, its your brain now which should start to work Please give me the best of advice avaliable, i would love to hear from experts and managers
Ok, so a hedge fund is basically? a group of experienced investors who invest in diverse portfolios................ie: stocks, shares, forex..........................etc. So you get their money............who's name are you investing in? the company? yours? or the individual customer? How does a new start up usually gain clients?
Do you think a "Forex exchange" website is a good idea? So...do you think it's a good business if a website acts as a forex broker that matches orders between its customers? Something like an ECN or a DMA broker...but without offering the orders on some intranet of other banks, hedge funds - but just its own customers? Like...on the fictional website "exforex.com" :) someone wants to buy 100,000 eur with usd and another customer wants to sell 100,000 eur. The website makes money of the spread - which here can be just one pip fixed. Because there are no middlemen and middlemen of middlemen and middlemen of middlemen of middlemen...etc. I guess this could be a very profitable idea...but there's one problem. In order for such orders to be matched, one will need say 100,000 customers or more. So if I start such website, I don't see how I will get thousands of customers so that the orders are easily matched, or at least some serious % of them. Even big stock exchanges like ASX have problems with liquidity, let alone a new website. I guess if I had one million in my bank account it would be much easier, but I can start such website with as low as just $50-$70k of my own money which won't be enough even for leverage. Would you use such a broker anyway? 10x and happy new year!
thinking to start a hedge fund - will I be labeled the new Madoff? So...I happen to have a little less than $100k - which I know is a tiny amount for professional capital. And...that's why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily...as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum - like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case - most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet - so offering 6% APY looks achievable. But...you know...the obstacle are obvious (weak ecomony, lowered investor's trust, no track record...etc.). thanks in advance!
in Forex Why if EUR/USD price goes up the price of the USD/CHF tends to go down? then What is your Hedge strategy, How much you buy and sell
Help me to get suitable forex broker for me.? Registered broker.. Allowed hedging.. Leverage to 1:400 or 1:500.. Low spreads for major pairs.. Less withdrawal fee.. MT4 Platform..
Why isn't there a forex currency index? Just like the stocks are combined into NASDAQ for example, then why can't you combine the forex pairs and assign them a mathematical value??? Take a look here: http://www.fxstreet.com/rates-charts/currencies-glance/ Fxstreet lists 34 forex pairs. Benefits: - Less risk.More pairs - less risk. Traders will take advantage because the market is open day/night in contrast to the daily trades among the stock market. That said, the forex traders gain several times more action with reduced risk, thanks to the combination of many pairs at once. No surprises anymore:Think about it: The european bank annouces higher rates, but the expectations were for lower rates. So, if you trade EUR/USD you will lose when you have selled. With such important news you will lose perhaps over 50 pips and if you trade on 100:1 leverage buying more than 1 lot...say goodbye to your money. Even without leverage the big players will lose, unless they utilize some industrial espionage :) to predict the rates that are going to be anoounced. So...if the one pair goes higher with 50 pips, else will go downtrend with 50, which keeps the balance. Of course if the balance is perfect :) 50/50 the index won't move and you will not benefit at all :), but in case where you have 50/25 you get your 25 or less if your predictions are in the right direction. There is one drawback, of course, like anything in life :): With so many pairs it will be impossible to rely on any news announcements. Your only hope will be the candlestick chart, perhaps combined with some additional mathematical technics(martingales, random walk avoidance, compound interest) and economical such(hedging, options..). But isn't the technical data the favourite to the forex traders? So far, sadly there isn't a "forex index" to my knowledge??? So the best you can do is simply make your own "portfolio" and assign it a mathematical value. I plan to create a computer program(...a can do that ;), to calculate and trace such index value of about 40 forex pairs. If I succeed, I will post it here with link to website to see the index in action :). Thanks.
New forex Regulations? the cftc and nfa have new rules for firms and investors, such as the new fifo rule not allowing ppl to hedge, are there anything else, as an investor i should know about so i wont brake no laws
Is this these new forex rule legal? The NFA is supposedly going to force traders manage their positions using FIFO. FIFO (First In First Out), however, is an inventory method used to assess the cost of bulk inventory, and forex positions are not bulk inventory. Each position is individually tracked. Therefore, there is no question about the cost of a trader's positions. There is no question in my mind that if this is in fact being forced upon traders, that it is being done so not in the name of transparency, but to incapacitate responsible trading methods that utilize time frame considerations and position cost averaging. I've also heard that hedging is getting eliminated. The whole reason why so many investors went bankrupt over the past 18 months is that they were not hedged when they should have been. Does anyone know who pushed for these changes? Can anyone tell me why I should rethink my opinion of why anyone would want these rules in place? Can anyone give a me a starting point for the legal reasoning behind any of this?
Is there really some kind of logic to short term FOREX trading? Or is it the case that...? ... only over longer periods of time can there be any rationale to currency price movements, as regards the fundamentals of the economy. In other words, is intraday trading more like setting chips on a roulette table? Also, how much of the future (i.e., to what period of time in the future) is priced in to a currency? Does trading in anticipation of the future (speculation) create severe irrationality in price movements in currency? Is speculation a majority of the force behind currency price levels? Technical analysis sometimes feels like meaningless, wishful thinking. Also, how do hedge funds trade currencies? Which market do they go through (directly through banks and central banks?) or do they use the market makers that individual traders use? What is the most theoretically (and practical) way to go about trading currencies? I don't mind sleeping 3 hours a day for fundamental analysis, I've done it- but am I winning for the reasons I think I'm winning?
Do i reli need a college degree to know how all the things in investment(stock market,derivatives,forex)? It seems the things in investment are pretty easy. I can master them by reading books and newspapers and the internet of course. I read the CFA paper and they are common sense to me who have learnt 3 years accounting and economics in high school. I know in setting the price of options you need statistics/math. But to become the next warren buffet i know i don;t need that. So i can be a hedge fund group CEO and investment bank CEO/CFO without college degree???Is that possible? Instead of wasting time in college to learn what i already mastered, why not just earn some money and invest it?
hedgeforprofit.com? have any one here have use the forex hedge system from this website? do you know where i can find user review for their tehnique?
I beginning to gain more money, but I'm not that materialistic? I've been doing well at trading/investing in stocks/derivatives/forex (currency) and have been able to acquire a nice income and soon I plan to get involved in working with a hedge fund. My one question is that, with all this money, what should I do? I'm not that materialistic?
The best deal for Forex automoney? I have searched all over the internet for the absolute best offer. So far the best I found was at http://moveto.ws/tpc0rg3pb Anyone know of a better deal? I have searched: Forex automoney http://moveto.ws/tpc0rg3pb accu rate accurate exchange accurate forex signals acm forex action forex auto forex trading automated forex automated forex signals automated forex software automated forex system automated forex systems automated forex trading automated forex trading software automated forex trading system automated forex trading systems automated trading automatic forex automatic forex cash automatic forex system automatic forex trading automatic forex trading software automatic forex trading system automatic forex trading systems automatic level automatic money automatic systems automatic tools automatic trading best forex best forex signals best forex trading best forex trading software broker forex trading canadian dollar forex canadian exchange rate canadian money canadian to exchange rate capital forex cfd cfd cmc cfd trading cmc market cms forex cms fx commodity trading conversion money converter money currency currency course trading currency exchange currency exchange forex currency forex market currency forex market trading currency forex system trading currency fx fx trading market overview currency overview currency trading market currency currency pairs currency rate currency rates currency trade currency trading currency trading basics currency trading signals currency trading strategies daily forex day forex day trading day trading forex day trading forex currency direct direct forex discount brokers discount stock brokerage easy forex ebook forex euro forex euro money exchange exchange rate exchange rate money exchange rates exchange rates money fibonacci forex fibonacci retracement forex fibonacci trading fibonnaci forex fibonnaci retracement forex financial software forex trading foreign currency trading foreign exchange foreign exchange market foreign exchange money foreign exchange rate foreign exchange system foreign exchange trading foreign money forex forex account forex accounts forex acm forex affiliate forex alerts forex analysis forex arbitrage forex auto forex auto money forex auto trade forex auto trading forex automated forex automoney forex automoney review forex automoney scam forex autotrading forex basics forex bastards forex blog forex book forex books forex broker forex broker no overnight interest forex broker review forex broker reviews forex brokers forex calendar forex capital forex capital market forex cargo forex chart forex charting forex charting software forex charts forex com forex contest forex course forex currencies forex currency forex currency converter forex currency exchange forex currency rates forex daily signals forex day trading forex day trading signals forex demo forex demo account forex directory forex dollar forex ebook forex education forex enterprises forex exchange forex exchange rate forex exchange rates forex financial forex forecast forex forecasts forex foreign exchange forex forum forex forums forex free training forex funds forex futures forex fx forex guide forex hedging forex indicator technical trading forex indicators forex info forex information forex investment forex investments forex killer forex learn forex leverage forex made easy forex managed account forex managed accounts forex margin forex market forex market forex trading currency overview forex market hours forex market trade forex market trading forex markets forex markets com forex mini forex mini account forex online signals forex online trade forex options forex pairs forex pip forex pips forex platform forex platform trading forex platforms forex predictions forex quotes forex rate forex rates forex review forex reviews forex robot forex scalping forex scam forex school forex se forex seminar forex seminars forex signal forex signal provider forex signal service forex signals forex signals software forex software forex solutions forex spot market forex spread forex stock forex stocks forex strategies forex strategy forex street forex system forex system trading forex systems forex taxes forex technical forex technical analysis forex tips forex trade forex trade alerts forex trade signals forex trader forex traders forex trades forex trading forex trading alerts forex trading basics forex trading charts forex trading course forex trading education forex trading forex forex trading forum forex trading guide forex trading hours forex trading info forex trading information forex trading news forex trading online software forex trading plan forex trading platforms forex trading programs forex trad
How do i deal with people like this---------->? I'm 21 & I'm really Hook (with the capital H) with increasing my knowledge towards Investing like stocks, mutual funds, index, forex, banking system etc. learning all of this is my passion (especially making money from it). So i hope i learn something and actually still learn all the things that I need to learn. But how am i going to deal with people (especially people that i knew) that I know for myself that they don't know what they're talking about & totally know nothing about the topic, & you can see in front of your face that they are TOTALLY WRONG & MISINFORMED. but they talk like a Hedge fund manager and think they know it all, and actually tell you to Do This and That. I want to tell them the things that I learn through my experience & painstaking learning but they look down to me as if I'm a trash 21 year old guy. I want to share my knowledge bec. despite d way dey talk they're deep drowned in depth, no investment, keep losing the most powerful resource & that is TIME
Insane Returns? Impossible? Maybe? Yes? Banks offer about 5.0 percent return annually. Average Mutual Funds about 15 percent return annually. Bonds offer 4.8 percent return. Hedge Funds can yield over 30 percent return with insane risk and luck. All these numbers are wonderful, but is it that difficult or impossible to outperform all of these things, which are presumed to be nice investment tools (excluding hedge funds). Anyone heard of foreign exchange or Forex? It allows you to play with margins of 1:1 up to 400:1, meaning for everyone dollar you put in there, they are willing to back that up with 400x of that amount. Nobody who trades with 400:1 really gets that far, because of the insane downside risk. However, trading with 50:1 have got me really far. Over the past 5 months, I have made consistent gains of Approximately 8 percent a week as a position daytrader. I follow a guided strategy. Based on this, if I invest $2500 over 104 wks, I have: 2500 x 1.08^104 I will have $7,481,877. Unrealistic? Impossible? 5 months Chinese sell-off. The only week that dented my account by 5 percent. That is as much of a DD as I allow. Whenever I lose 5 percent due to fundamentals. I wait out the fundamentals before I enter the market again. Only scenario where my strategy fail is breaking news and breakouts. I don't have to trade breakouts but sometimes I do if I know how it'll go. I do plan to accept clients, but not through Y! Answers. I won't be accepting clients til 2008, since I need 1 year to prove my strategy. Anyways, based on my analysis, I make good money in an uptrend, less money in a downtrend, and tons of money in a trading range.
Who thinks Iran trading oil in Euros is going to work? Let me explain why it is not. Here are some basic facts about what a "bourse" is: •it's a place for sellers and buyers for a given product to meet. So, as a seller, you want a place where buyers come and, as a buyer, you want a place where sellers come. It's a meeting point. A meeting point is a form of conventional information, and one that is highly stable once established. People come to the market because they know that others will be there as well, and these are there for the same reason. Once players have agreed to come to one place, it is simpler to come to that place than to try and organise a new place, which everybody must agree to and which all occasional players need to be informed of. Just like DKos is now THE main meeting place for the progressives, the existing oil bourses have an massive advantage over any new one in that they already exist. London has remained the main trading place for a surprising number of commodities despite the British Empire being long gone and the US having replaced it as the largest economy - simply because the infrastructure was there, and the people with the competences to play there were still around. Windows is unassailable on desktops despite being obviously inferior in quality to some alternatives, simply because there is a real advantage for everybody to use a common standard, even if it imperfect. A bourse is a standard on where and how to trade. There is no compelling reason to move from London or New-York to Iran to trade oil. Iran only has 5% of world production and is in no position to impose anything. Network effects paly massively against a switch. •it's a place that allows a price to be set for the transaction. That means that you want many buyers if you're a seller, and many sellers, if you are a buyer. It provides liquidity. This is linked to the above point: liquidity exists when you have a deep market, i.e. many buyers and many sellers. That comes from having a place where everybody comes, and a place that everybody trusts because it works. "Don't fix it if it ain't broke" applies here. Again, this is a compelling argument against Iran. Iran can potentially act as a seller, but would will ensure that there are buyers on that particular market? •the other item related to price is that a bourse needs to provide a single price to act as a universal reference for everybody - a market standard, both in terms of the quality of the product, and the currency it is expressed in. This allows for historical data to be expressed consistently, and for market players to have useful references and background to do their trades. For oil, that currency is and has always been dollar, as a widely stable, universally accepted monetary unit. There is no market and no liquidity in any other currency. It is at least conceivable that the euro could be used as it is similarly stable and acceptable to all, but it has no history as an oil trading currency, and thus market players would naturally convert any price in euro into a price in dollars to see what it means (try switching from degrees Celsius to Farhenheit or from centimeters to inches to know why this matters). Again, there would need to be an overwhelming reason to force all market players to make the switch (and to do it all at the same time), which Iran does not provide. •a bourse is a place that provides security for the transactions. Buyers know that they will get their purchase delivered, and sellers know that they will get paid in a timely fashion. It provides clearing mechanisms. Do you expect other producers to rely on Iran to ensure timely payment of their sales? Do you intent to rely on Iran, an untested bourse, to be responsible for delivery by other parties? •it's a place that provides rules and enforcement of these rules for the proper functioning of the market, i.e all the above: who can participate, how prices are formed, how the clearing is organised, and how disputes are settled. It needs to be a neutral arbiter, uninvolved in the actual trading. Again, this plays against Iran, who is too small a player to impose rules to all, but too big to be seen as a neutral player by other sellers. And do you really want to take the risk that the religious authorities in the background or any other Iranian politician come and start meddling with the ongoing trades? •as rules will ultimately be set by public authorities overseeing the bourse, and disputes will ultimately be decided by courts of that place, it needs a consistent regulatory and legal framework. There's a reason why most commodity bourses are in Western countries. They provide the rule of law, a predictable set of rules, and a capacity to enforce these rules in an effective and market-neutral way. and they have a long track record of doing so. Iran? Not so much. •in today's world, a bourse is essentially a big IT operation, with systems able to provide complete market information to all participants in real times, treat operations as they are decided, and provide an unambiguous audit trail to all interested parties to a transaction. Again, that requires a lot of specialised competences on the ground: programmers, developpers, consultants to install them, the specialist hardware providers, etc... all people that need some (or a lot) of understanding of what's going on in the market. That's highly specialised knowledge, which is, naturally concentrated in the few places that carry bourses, i.e. a few large cities in the West. Iran will be hard pressed to attract such people to Tehran or thereabouts. •finally, the oil bourse is only a small part of the trading that goes on around oil. Most of what takes place are financial transactions: spot sales, forward sales, swaps, various hedging instruments, short term financing, long term financings. All these transactions rely on the underlying oil market, and significantly expand it. If you take out the oil market, or change its rules, standards, references, clearing mechanisms and enforcers, you kill the associated financial markets, which are vital to the world economy and underpin a large chunk of our industrial activity and energy needs. Do you really expect the financial markets to move to Tehran, which has neither the infrastructure, the competences, the legal framework or the stability to host them? Even a switch to the euro would need a massive reorganisation of the financial markets, which are exclusively geared to dollar transactions. This only amplifies the arguments made above about the sole oil market with respect to liquidity, standards and the like. And the legal and regulatory questions are even more important. Do you really want billions of euros of daily financial flows to be ultimately controlled by the Iranian Central Bank? It would basically take the outright destruction of the existing markets to provide any incentive to try to rebuild them differently, and Tehran would not be their first pick to do it... :: :: So, say that Iran decides to sell its oil in euros. Fine. Both the Iranians and their clients will determine the price for the transaction in dollars, on one of the established markets, and will trade these dollars for euros for the actual payment operation. It will give banks active on the forex markets a little bit of income, but will change nothing to how oil is traded. If they open a bourse, who will come? The answer is, no one, unless it is nothing more than the new place to buy oil from them and the transaction, whether in euros or in any other currency, will be negotiated in dollars, using existing market standards expressed in dollars, because there is no way that anybody will be able to express and clear the transaction in any other way. :: :: So please, let's stop the fantasies, or the conspiracy theories about a switch to euros or a new bourse. If any transaction, whether by Saddam, the Iranians or anyone else is expressed in euros, it is purely cosmetic. The underlying market is in dollars, and will remain that way. Those who poste these stories or push them are badly undermining their credibility and engaging in silly scaremongering. Article taken from energy bullitin magazine. Jerome a Paris is an energy banker in Paris and has a regular column at Daily Kos. Open your eyes: 83000000 bpd worldwide production, 4000000 bpd, Iran production, do the math. 4.8% share, but we call it 5%. They want to increase to 7million bpd by 2015. So if monkey twaddle means the numbers are right I guess it's monkey twaddle. Mental mickey, Iraq switched your right, did the economy crumble, no if fact it was in excellent shape, it was nothing more than a blip. He changed it back, wouldn't you, especially after the european oil for food scandal. "IF" OPEC, that's the linch pin word, of the 12 OPEC countries 10 are allies, 2 are enemies. China has little interest in seeing the dollar collapse, they have billions of dollars in reserve, why would they want to lose out. Paul D, no they don't, Canada has the 2nd largest oil reserves, Iran is 4th, unless you mean natural gas, then yes they are second. But very little of that is tapped, and they don't have any infrastructure or foreign investment, due to imbargos and lack of stable government. misty, 3 years is quick is it. openyoureyes: seeing as you are on here by noon everyday I would say you probably don't even have a job, I've been in the business for 20 years, how about you, have you even been alive that long. Paul D. I won't say it won't have any impact, but although the sum seems large, it's really just a drop in the bucket, not to mention if the oil price goes down, they lose out, Currently Iran spends over 4 billion a year on refined fuel imports, and even that is not enough, they need more, to keep the fuel ration rioters at bay. This will only increase in the future, so are they going to shoot themselves in the foot by having to buy back refined fuel in Euro's or will they wish to trade in the weak dollar then. Jack, they already trade outside the US dollar, but the price still fluctuates based on the dollar. How anyone thinks that moving trillion of any currency into an unstable ICB with a poor economic record, no infrastructure, and run by religious zealots is a smart move, is bewildering. James, the US economy has been in recession before. This is no different, a few months does not give an accurate forecast of things to come. Openyoureyes: Petty insults, invalid statements, and droll clichea's do not equate deconstruction of an argument, the just illustrate your limited intellect.
L / C in the futures market ? Hi , I need to know the procedure for selling an L /C or B / A in the futures market. There are Banker's acceptance futures contracts traded ( BAX ) in Montreal's Canadian Derivative Market. Also, I need to know why an export would resort to buying or selling a B / A future to hedge the currency exchange rate risk whereas he could simply sell his Accounts Receivable to a bank or buy FOREX derivatives separately?
Is the options/futures hedging such a good thing? OK...I spent more than 6 months reading on complex mathematical economical models, but because of that I totally lack the terminology behind the microecomics. One such thing is the futures/options hedging.... So, as far as I understand it - it sounds too good to be true, but do I miss something??? I understand it...like this example: An investor buys 100,000 eur/usd units. The price is 1.4000. However, the investor fears of lower price of 1.3900 and hence she puts call option on that price...or a future contract. If the price reaches 1.3900 she(the investor) exercises the option and hence she is insured and doesn't lose anything. If the price goes up - she gains money. Now, I read about delta hedging and this doesn't sound that complex too, thuogh I need an hour or 2 to completely understand it. I also see that you can get advantage from options/futures in many instruments. Such as: Options, CFD (illegal in USA) Forex But not commodities??? Pls. explain in 1-2 sentences your view... Thanks alot in advance!
(Forex) MULTI- CURRENCY ACCOUNT? Is it true when you have a multi currency account , to hold foreign currencies in, that the interest rate on that account HEDGES currency fluctuations? How?
a forex question? how does a person make money by hedging when they go long and short on the same currency pair, what is the rational behind this. Also what's a good honest broker that provides leverage up to 400
A day in the life of a buy-side (equity) analyst?? Hi, I currently work as a corporate financial analyst (budgets, forecasts, etc...), but this is not the career path I would like to take. The investment side of finance always interested me more, and currently I'm thinking of taking my level 1 CFA. Since I never worked an investment job before; can somebody explain to me what a day in the life of a buy-side (equity) analyst consits of? I guess from the moment I get there until it's time to go home? Responsibilities? Or any other investment type job if you are not a buy-side analyst? (hedge fund, forex, fixed income analyts, investor relations, etc...) I always liked analyzing the market so I think being a buy-side (equity) analyst is more my style, but I guess it would be nice to see what other investment jobs have to offer as well. Thank you!!
I found a website www.freedominforex.com. Has anyone heard of it and what do you think? The site has 2 videos one for the product and one for the business. The company is FreedomRocks.com The product is a program that will help you trade in the forex market and show you how to hedge your trade and make daily interest on the money at better than market rates for banks and mutual funds. The business video talks about a MLM plan with the business. More interested in the product than the business. Would like to know peoples thoughts on the product or information you might have. I tried the 15 day free trial and was making over 30% annual interest on my money. They showed how I could make more but also had to take bigger risk trading. I was able to swing some trades for positive return of 10% in 15 days trading conservatively with a demo account. I have only been in the forex market for a short time but found it very intriguing. Thanks for your responses in advance.
