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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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EURUSD Starts New Month From Consolidation

 

The world’s most popular currency pair starts October with consolidating within the scope of the 1.2570-1.2634 price range. The current trading week started from a move within the 1.2663-1.2714 range. The currency pair started moving to the bottom of the range, thereby narrowing it a bit. Later on, during yesterday’s European trading session, the currency pair went on declining and finally set a new 2-year low at 1.2570.

Publication date: 01 October 06:34 AM

Dollar Keeps On Rallying Amid Euro Weakness Forex Experts Report, Currency Prospects Defined

 

The dollar index, which is evaluating the USD value against a basket of 6 other major currencies, is still rallying actively. All in all, the USD index managed to gain 4,4% in September. This happened mainly at the expense of the common European currency, which accounts for the lion’s share of the index – some 50%. Apparently, the common European currency keeps on losing value amid disappointing economic figures coming from the Eurozone. At the same time, most traders and investors are anticipating another round of quantitative easing by the ECB in an effort to back the economic recovery in Europe, which is definitely going to exert some downward pressure on the common currency amid the fact that the Fed is about to taper QE3 to the end this month.

Publication date: 01 October 06:09 AM

RVD Markets Lunches Industry’s First Investment Portfolios

 

These days, investing in financial markets (including Forex) represents one of the most promising opportunities in terms of making money. Indeed, passive investing in Forex gives you a decent chance to generate really stellar profits regularly and without the necessity to be an expert in trading. This can actually be considered a win-win situation for everyone – the company, the managing trader and the investor. Those who dare invest in successful Forex traders eventually find themselves making the right choice since they can enjoy rewards while being relatively passive.
 

Publication date: 01 October 04:41 AM

Forex: Investors Anticipate Further Weakness of Euro and Yen

 

Investors are looking forward to a further long-term downtrend in the markets of EUR and JPY amid an economic slowdown seen in Japan and the Eurozone while the US economy seems to be strengthening at a pretty stable rate.

Publication date: 01 October 02:19 AM

Euro Drops To 1.2693

 

As you have already noticed, the common European currency is still losing value against the US Dollar. It happens day by day. Yesterday, on September 29th, the currency pair declined from the intraday high of 1.2714 down to the low of 1.2693. Previously, the recovery up to 1.2714 was caused by relatively stable data coming from the Eurozone earlier on that day.
 
Publication date: 30 September 05:20 AM

Forex: US Dollar Gains More Value VS Euro As Eurozone Cuts Lending

 

The Eurozone continued cutting its lending in August. The ECB is determined to reconsider its arsenal of measures used to reach the inflation target. With that said, the lending volume within the Eurozone's private sector shrank by 1,5% in August 2014 as opposed to August 2013. With that said, the pace of decline slowed down as compared to July's 1,6%. The lending decline has been seen for 28 months so far. This gives the ECB a signal to start stimulating it.

Publication date: 30 September 01:20 AM

US Dollar Gains Value 11 Weeks. This Week’s Key News

 

Investors and other market participants have already noticed that the US Dollar has been actively growing steadily against other major currencies for 11 weeks so far. According to Deutsche Bank, this is the first time in history. On Friday, September 26th, the USD index closed at the highest price level since 2010 close to 85,69. As of Monday, September 29th, the index managed to set another high at 85.80.
Publication date: 29 September 03:36 PM

Forex. US Dollar Index Gains 0,15% Amid Stock Sellout

 

Today, on September 26th, 2014, the USD index, reflecting the strength of the US Dollar against a basket of 6 other majors, seems to be continuing its rally. So far, the index has gained 0,15%. This happened after US stock indices closed the trading day in the red zone yesterday. The US Dollar and other safe-haven assets gained value amid higher concerns about the near-term future of the global economy as well as the existing geopolitical risks, including the situation in Ukraine.
Publication date: 26 September 05:17 AM

Forex Trend’s PAMM Indices Gain Stellar Weekly Profits - over 11,7%!

 

The year of 2014 seems to have projected the negative economic tendencies seen over the last few years following the global crisis. Indeed, these tendencies far from reassuring investors, financial experts and plain folks. Even though most of us have almost forgotten about the crisis in Greece, Spain and other Eurozone economies while the Fed is finally close to taper its QE3 to the end due to (seemingly) stronger economic performance in the USA, financial markets cannot still show relative stability while they are getting less and less predictable for an average person amid overall weakness of the global economy coupled with some geopolitical issues like the situation in Eastern Ukraine.
Publication date: 25 September 10:51 AM

EURUSD: Euro Trades Near 1.2715

 

Today’s European trading session was dominated by the bears. The currency pair started another downswing from 1.2768 at the beginning of the trading session. As the result of this move, the currency pair managed to go down to the local low of 1.2696. On top of that, this is a new 2-year low!

 

 

 
Publication date: 25 September 10:07 AM