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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 Outlook

 

EURUSD spent yesterday under bearish pressure. Within the scope of yesterday’s European trading session, the currency pair formed a price range - 1.2825-1.2867. The downward pressure intensified after Italy published a weak report on manufacturing orders.

 

 

So, the currency spent the most of the trading day within the scope of the mentioned price range. During the American trading session, the pressure intensified amid Mario Draghi’s speech.
Publication date: 23 September 08:06 AM

FBS Recognized Best Asian Broker 2014 4 Times In A Row

 

What makes the industry’s best representatives stand out from the crowd of other average counterparts? Yes, you are right! It is all about progress, professionalism, stability, efficiency and flexibility.

These are to cornerstones of success in almost any business, including Forex brokerage. Today we want to share with you the outstanding achievement made by some o the best Forex broking companies out there. Its name is FBS. The thing is that FBS won another prestigious Forex award last month, which came as true recognition the company’s policies and approach to the client. Let’s have a closer look at it…

Publication date: 19 September 03:39 PM

GBPUSD: British Pound Gains Value versus US Dollar as Scotland Remains a Part of Great Britain

 

Today, on September 19th, the British Pound is gaining value against its American counterpart. The tendency started this morning after Scotland revealed the results of the latest independence referendum. As a result, Scotland decided to stay a part of the United Kingdom.  Apparently, this triggered a bullish wave.
Publication date: 19 September 06:22 AM

US Dollar Gains Value And Sets New Local High At 84,81 After Fed Meeting Results

 

Today, on September 18th, the US Dollar index, which indicates the strength of the American currency against a basket of 6 other currencies, continues its way up to new local highs. The thing is that this morning, the index managed to gain 0,38% to set the new high of the year at 84,81. The rally resumed as a response to the results of the latest Fed meeting. In particular, the Fed left all of its policies unchanged. However, the central bankers warned the world about the likelihood of monetary toughening in longer-term perspective.
Publication date: 18 September 06:10 AM

Masterforex-V Academy: Who Cannot Enter Masterforex-V Expo’s Ultimate League of Forex Brokers and Why?

 

Sooner or later, any Forex trader has to face the challenge of choosing a reliable broker, which will help him/her to succeed in Forex trading in the long run. The thing is that depositing is easy with any broker, both a scam and a truly reputable one. However, when it comes to withdrawing funds, only reputable brokers can withdraw money without delays and questions and lame excuses, which is certainly not the case with minor brokers and scam brokers.  
 
Publication date: 17 September 03:33 PM

EURUSD Still Trades Around 1.2960

 

The currency pair managed set another local high at 1.2994 yesterday. This thing happened closer to the end of the American trading session. EUR/USD managed to go up to set another local high after overcoming to resistance in the form of the top of the range between 1.2858 and 1.2962. It should be noted that the currency pair used to be consolidating within the scope of the mentioned range for 5-6 days. Therefore, yesterday’s European and American trading sessions were mostly dominated by the buyers. Surprisingly, the common currency managed to gain some value amid weaker-than-expected figures coming from the Eurozone.
Publication date: 17 September 01:11 PM

EURUSD Trades Close To 1.2960

 

The currency pair has been bullish since the beginning of today’s European trading session on September 17th.  
 

 

The currency pair managed set another local high at 1.2994 yesterday. This thing happened closer to the end of the American trading session. EUR/USD managed to go up to set another local high after overcoming to resistance in the form of the top of the range between 1.2858 and 1.2962. It should be noted that the currency pair used to be consolidating within the scope of the mentioned range for 5-6 days. Therefore, yesterday’s European and American trading sessions were mostly dominated by the buyers. Surprisingly, the common currency managed to gain some value amid weaker-than-expected figures coming from the Eurozone.
Publication date: 17 September 07:11 AM

EURUSD: Euro Keeps Regaining Value Against Dollar

Yesterday, the currency pair set another local high at 1.2994. This occurred during the American trading session. EUR/USD rallied up to the local high after breaking above the top of the 1.2858-1.2962 price range, which was a pretty wide one. The price used to consolidate within the price range for almost a week. So, yesterday’s trading session were mostly won by the bulls. Strange as it may seem, but the currency pair gained value amid weak stats from the Eurozone.
 
Publication date: 17 September 06:55 AM

Forex. USDCHF: Dollar Rallies Against Franc

 

Switzerland’s producer prices and import prices continued their way down in August 2014, as reported by the Swiss Federal Statistical Office. At the same time, the Swiss National Bank expects the period of low inflation to continue longer than expected.
Year over year, the PPI and import price decline reached 1,2% in August after July’s decline of 0,8%. As we can see the downward tendency accelerated over the reporting period.
 
Publication date: 16 September 04:15 PM

EURUSD Goes Up to 1.2966

 

The key currency pair, which is EURUSD, is still trading within the scope of the 1.2858-1.2962 price range. The current trading range has been underway since the middle of last week.
 
Publication date: 16 September 09:30 AM