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Friday, 30 September 17:54 (GMT -05:00)



Foreign exchange market

Investor's Offer - Who Does the Final Word Rest With?


The forex market has long attracted many investors with a high return on investment in a relatively short period of time. However, only a few experienced financiers can work in the market demonstrating good results as one has to possess outstanding expertise in the area of technical and fundamental analysis, money management and have iron discipline. Even if the trader manages to enter positive territory, the profitability of his or her trading system may appear scanty compared to that of more experienced colleagues. In this event it may be more beneficial to invest in a professional who is prepared to increase the balance of your account for a percentage of profits.
 
The time comes when the investor delivers their investment portfolio for management to a professional manager (trader). This is where the name comes from - Asset Management (AM). It should be noted that the manager has no responsibility whatsoever for a possible drawdown or ruin of the account, and all risks are fully assumed by the investor. Platforms offering PAMM services and widely implemented by broking companies has become a new stage in the development of asset management.
 
A PAMM account is a more flexible, convenient and reliable type of asset management where the manager works with an aggregate capital of different investors through a single account. This technology optimizes processes of allocation of funds and limits non-trading risks for both parties.
 
An offer is an integral component of each PAMM platform. An offer is a public agreement between the trader and the investor that stipulates all aspects of cooperation. The offer also includes the term for investment, the percentage in which profits are distributed between the investor and the manager, penalties for early withdrawal of money and distribution of profits or possible losses among members of the PAMM account. The offer's terms and conditions are set by the manager, while the investor accepts them by getting linked to the PAMM account. It should be noted that only professional managers can assume responsibility, especially in significant volumes.
 
It's quite obvious that a demanding investor may carefully study the rating and fail to find managers whose conditions he or she is fully happy with. What should one do in this event?
 
A unique service comes handy - the investor's offer. It is the same public offer whose terms and conditions, however, are set by the owner of the investment portfolio rather than the manager. In turn, the manager may accept conditions of the investor's offer if he or she finds them acceptable, and the company that owns the PAMM platform provides the mechanism for meeting all terms and conditions.
 
Regardless of the trading PAMM platform, a standard offer of the investor should provide for the following main aspects:
 
• the trading period - the period of time during which the manager makes trades to generate profits and following which profits will be divided among members of the PAMM account.
• the volume of investment - the amount the investor plans to fund the PAMM account.
• a penalty for early withdrawal of funds from the account - the amount of the penalty for the investor's withdrawal of funds before expiry of the trading period.
• the fee - the amount of the manager's commission for work he or she has performed.
• the profit distribution principle - the percentage of how profits are distributed among PAMM members.
 
Each investor is very likely to want and add their own special conditions, and requirements tend to become tougher with larger invested volumes. This should be the ideal case: he who invests calls the tune.
 
Implementation of a service like the investor's offer surely has a positive influence on development of investments in that it helps the investor to more flexibly approach formation of their investment portfolio. Investors and managers on forums have had a difference of opinion on this matter, but most of them have definitely recognized this tool is necessary and practical.
 
The majority also believes that the service will be useful to both parties only in case of large investments. There's no point in creating an offer for small amounts. The manager sees no point in agreeing to it because he or she calls the tune and others invest in him or her anyway.
 
Investors who objected to the offer argue that they would have to entrust their money to a person they don't know because any manager, even outside the TOP rating, can agree to conditions of the investor's offer. This is why they prefer a careful old-fashioned selection of managers even if they had to give in on some points.
 
It should be noted that Forex Trend has become among the first brokers to offer this tool to its investors. It left all its competitors behind by developing the investor's offer bundled with PAMM 2.0, a risk management system. The PAMM technology helped managers and investors avoid non-trading risks, but the investor still bears the risk of account ruin exclusively. As many investors were unhappy about this situation, Forex Trend developed the PAMM 2.0 system. Now the manager has a level of liability stipulated in the offer, and his or her own capital (which should be in the account before trading starts) serves as a guarantee of return.
 
From the Editor's Office:
Forex Trend was founded in 2009. It is headquartered in Dnepropetrovsk, a major financial center of Ukraine.
 
Orders of Forex clients are directly forwarded by Skopalino trading limited to Integral, an international electronic system.
 
Skopalino trading limited and Forex Trend have entered into a cooperation agreement. It made it possible for clients to invest in stock markets.

 

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Masterforex-V Investors Take Profit In «PrivateFX №1» Portfolio Once Again

It’s been 12 weeks since Masterforex-V Club investors started the «PrivateFX №1» investment portfolio. The other day, the decided to take profit once again. All in all, they withdrew $860 for the first time. This time, they withdrew $650+ a couple of days ag while the remaining capital (over $15K - $15349,76 to be more exact) kept on making money for them.

 

 
Publication date: 28 September 07:01 AM

U.S. Dollar Gets Stronger Against Major Currencies Amid U.S. Labor Market Stats

According to the recent stats published by the U.S. Department of Labor, initial jobless claims showed some decline and dropped by as much as 8000 claims over the reporting period. This brought the figures all the way down to 252000 claims total. Masterforex-V Academy experts remind us that this is the lowest level since July 2016.

 

 
Publication date: 27 September 03:16 PM

Alpari Gold on Peculiarities of Investing in Gold Coins

For those of you who don’t know, gold prices have gone up by 160% in USD over the last decade. Since 2015, the precious metal has appreciated by roughly 27%. At this point, the price of an ounce of gold is well above $1300. At the same time, experts predict the prices to go all the way up to $1500/oz in 2017.

 

 
Publication date: 27 September 07:20 AM

Masterforex-V Investors Take Profit In «PrivateFX №1»  Portfolio

Why do people invest money in businesses? They do it for profit, don’t they? It’s been 11 weeks since Masterforex-V Club investors started the «PrivateFX №1» investment portfolio. The other day, the decided to take profit with 2 out of 3 investments in the portfolio. All in all, they withdrew $860 while the remaining capital (over $15K) keep on making money for them.

 

 
Publication date: 26 September 05:54 PM

HYCM Launches New Online Trading Website For FX Traders

In order to trade Forex successfully these days, you should obviously possess the corresponding knowledge and skills, which need to be put into practice effectively. Still, your knowledge base itself without a decent platform to put them into practice is the same as a car without an engine. You can see it shine in the sun, but without an engine it won’t start and move at all.

Publication date: 26 September 09:28 AM

Eurozone: Growth Versus Employment

The Eurozone economy is reported to be slowing down the pace of its growth. More and more economic indicators are confirming this statement. The Eurozone’s Composite PMI, which reflects the situation in both the manufacturing and service sector of the Eurozone, is reported to have lost roughly 3% in September 2016. To be more specific, the index shrank all the way down to 52,6 points. This is the worst result over the last 18 months.
 
Publication date: 25 September 06:35 PM

Masterforex-V Club Investors' Profit Since Day One Reaches 285%

Masterforex-V Club investors and traders have been successfully cooperating since early 2016.
Since then they have managed to score big and prove that knowledge plus skills and expertise equals stunning results over time.
 
Publication date: 24 September 03:39 PM

Forex. USDJPY: Dollar Drops Versus Yen

According to the latest official report published by Japan's official statistical office, the Japanese GDP gained 0.7% in quarter 2 2016. We remind you that the GDP growth has been accelerating for the 2nd consecutive quarter. At the same time, experts had anticipated a more moderate pace of GDP growth.
 
Publication date: 19 September 03:42 PM

Forex. US Dollar Raises Versus Major Currencies Amid Labor Market Figures

The U.S. Department of Labor has recently published another report on unemployment claims. Over the past week, the amount of unemployed Americans who applied for unemployment benefits reached 259 000 claims. The figures dropped down by 4000 claims over the reporting period. This led the index to a new 7-week low.
 
Publication date: 19 September 02:54 PM

Forex. USDCNY. Dollar Loses Value Against Renminbi Amid Chinese Inflation Figures

According to the latest consumer inflation report released by China’s official statistical office, the rate of consumer inflation slowed down in August 2016. This slowdown has already been going on for 4 months. The key reason for this slowdown is lower food prices.
 
Publication date: 19 September 01:58 PM