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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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Fort Financial Services: Christmas Gifts to Forex Trades

Christmas is coming. Everyone seems to get ready for the celebration. It is the time when various companies start making pleasant gifts to their clients and customers. Some Forex brokers are not an exception. They improve trading conditions and offer loyalty bonuses and promos to make their client feel better in advance of Christmas.

Publication date: 16 December 08:19 AM

GBPUSD: Pound Gains Value Against Dollar Amid UK Economic Forecasts

 

The UK authorities are reported to have improved their predictions for the national economic growth in 2014 and 2015. In particular, Market Leader reports that this info was revealed by George Osborne, the UK Minister of Finance. The statement was made within the scope of his speech made in front of the Parliament.

Publication date: 15 December 06:11 AM

Forex Trend, TeleTRADE, and Alpari Named Most Popular Brokers in November 2014

 

Sooner or later any beginning trader faces the question of choosing a reliable Forex broker. Yes, exactly reliable, but not a famous or a popular one, for this parameter fully accounts for safety and accumulation of trader’s capital in future. Nevertheless, many traders base their choice only on two factors – low spreads and size of credit leverage. At the same time, there are brokers that prefer attracting clients to the company by means of additional PR, as well as popularity in the Internet; however, for this they simply need to be a household word.
Publication date: 14 December 07:16 PM

Forex. EURUSD

 

The European Central Bank keeps on seeing its balance sheet shrining. This is confirmed by the monthly reports released by the central bank. The ECB governors keep on retreating the necessity and determination of expanding the bank’s balance. However, the ways and means as well as the terms are not specified, Market Leader reports.

Publication date: 14 December 01:13 PM

Forex. USDJPY: Dollar Goes Down Against Yen Amid Labor Power Deficit in Japan

 

At this point, Japan lacks highly-skilled labor power amid such problems as the aging and contraction of the Japanese nation. the local authorities are desperately trying do resolve the problem by attracting more of foreign skilled labor power. Still, this is currently happening amid the fact the Japanese Yen is currently devaluing pretty fast, which certainly distracts foreign workers, Market Leader reports.

Publication date: 14 December 12:48 PM

Forex. GBPUSD: Pound Recovers Against Dollar Amid Slower UK Housing Prices

 

The housing prices in the UK are reported to have dropped in November 2014, according to the RICS research conducted recently. Amid the slowdown, the experts predict that the tax reform is going to end up with higher sales in the UK housing market. The expected increase is somewhere between 2% and 5%.

Publication date: 14 December 12:02 PM

RVD Championship – New Forex Contest by RVD Markets

More often than not, when chasing quick profits, we cannot see that the way to big success is somewhere nearby. When following the crowd, we fall into the same traps and make the same mistakes most people do, thereby falling prey to wishful thinking. At the same time the contrarian minority of smart traders and investors are capable of repeating their success time and time again.

Publication date: 13 December 05:56 PM

Alpari Launches New Bonus Program

 

Most Forex companies operating in the contemporary trading industry offer various bonuses and promos to show their loyalty to clients. As a matter of fact, these projects are of short-term nature and subject to rather tough terms and conditions. More often than not, those bonuses need a lot of time and effort to clear, not to mention other limitations regarding withdrawal etc.

Publication date: 13 December 12:05 PM

LG Will Release Smartphone Powered by Firefox OS by Mozilla

 

LG, the world-famous South Korean manufacturer of computer electronics, is reported to be going to release a smartphone powered by Firefox OS, an open source operating system by Mozilla. According to the Hi-Tech Department of Masterforex-V Academy, the mentioned operating system have been available for several years. Still, it keeps on failing to gain popularity among manufacturers of mobile devices.

Publication date: 11 December 01:59 PM

Forex: RVD Markets Launches Test Live Accounts

It is not a secret that many Forex traders are capable of making stable profits thanks to their high level of expertise and valuable skills. Some rookies want to follow their footsteps. Still,  most of them do a serious mistake when they think they can copy Forex professionals right of the bat or after a relatively short amount of time. Ultimately, 90% of them lose their funds and get disappointed, thereby giving birth to multiple rumors about Forex being the world’s largest scam or casino gambling, which is certainly not the case for those who approach Forex professionally and eventually manage to make a lot of money.

Publication date: 11 December 12:55 PM