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Wednesday, 23 July 11:51 (GMT -05:00)


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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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Winner of Trader Contest “Larson and Holz” Tells about Secrets of his Success at Forex

 

There exists a great number of different contests for traders at Forex market. But by no means are all of them equally effective. Moreover, some of them, held by “kitchens”, promise great money prizes, chic SUVs, and keys from apartments, but in fact draw participants into real market, where the former happily empty the deposits of the latter.
 
Publication date: 22 July 06:47 PM

EURUSD: Euro Goes Down to 1.3458 Against US Dollar

 

During today's American trading session, the common European currency is still going down, thereby following the tendency seen last week. During the European trading session the bears managed to make the common currency devalue against its American counterpart down to the 5-month low, which used to be 1.3476. At the second part of the trading day, the price made another low. This time it was 1.3458.
Publication date: 22 July 11:09 AM

EURUSD: Euro Keeps Going Down

 

Yesterday, trading session was subject to low volatility, which is not typical of such a major as EURUSD. The currency pair spent entire trading day fluctuating within the scope of a pretty tight price range between 1.3512 and 1.3548.
 
Publication date: 22 July 07:31 AM

EURUSD Stays Flattish

 

After hitting today's high at 1.3524, the common currency declined down to 1.3518 at the beginning of the European trading session. The decline was caused by weaker-than-expected economic data from Germany published a couple of hours ago by Destatis.
 
Publication date: 21 July 11:51 AM

EURUSD Trades Close To 1.3519

 

After hitting today's high at 1.3524, the common currency  declined down to 1.3518 at the beginning of the European trading session. The decline was caused by weaker-than-expected economic data from Germany published a couple of hours ago by Destatis.

 

Publication date: 21 July 07:55 AM

Forex Trend and Forbes Start First World Contest of PAMM Managers

At the times of rather tense economic situation in Russia and CIS countries more and more citizens are obliged to look for alternative ways of earning.  Once popular bank deposits have become meaningless as a source of passive additional profit – 7-8% per annum does not cover inflation. Therefore, many people “go to” Forex – the world’s largest financial, owing to innovative technologies of which even beginners can get stable and high profit from every deal.

 

Publication date: 21 July 12:43 AM

Forex Traders: It Is Possible To Benefit From Inflation

 

According to many sociological surveys, many people all around the world still prefer to keep their hard-earned savings at home. Still, they are unaware of the fact that it is impossible to keep their money safe at home anyway as inflation gradually devalues the money and deprives it of its purchasing power day by day, month by month.
 
How to secure your savings against inflation? Let’s ask several Masterforex-V Academy, a reputable expert in everything that concerns money, trading and investment.
Publication date: 18 July 10:30 AM

EURUSD Goes Flattish

 

The 3-day range  of the common European currency suspended a little bit during today's European trading session. After the currency pair set another local low at 1,3512, the price started trading within the scope of a pretty narrow range between 1.3512 and 1.3539.
 
Publication date: 18 July 09:23 AM

Forex Trend Opens “Summer Money Boom” at Forex

 
Everyone of us would like to get such source of profit that would never run out; consequently, there would be no threat of financial collapse. However, in the conditions of non-stop inflation growth instead of increasing their capitals more and more citizens are obliged to record predominance of expenses over their earnings.
Publication date: 18 July 08:09 AM

EURUSD Goes Up To 1.3539

 

The common European currency is still recovering a bit against the American currency on Thursday, July 17th, At the beginning of the European trading session, the common currency started gaining value against the US Dollar after a major 2-day-long decline triggered by Janet Yellen’s speech. She is currently presiding over the US Federal Reserve, also known as the Fed.
 
Publication date: 17 July 08:20 AM