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Saturday, 29 August 08:35 (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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NordFX Introduces New Bonuses For Forex Traders

As you probably know, Forex is the worlds’ biggest financial market. Therefore, the money is more then enough for the average trader to get rich. On top of that, immense financial flows (several trillion dollars a day) stimulate innovation in trading,  which leads us to believe that contemporary FX brokers create a more favorable environment for retail traders to make money consistently.

Publication date: 28 August 09:58 AM

FxPro Offers Forex Traders New Opportunities to Succeed in FX Trading

Without any doubt, these are hard times for the entire global trading and investment community. As the financial and economic uncertainty keeps building up, financial markets go volatile and and uncertain as well.  Under such circumstances, Forex traders are forced to seek truly reliable FX brokers, especially after several big-scale FX brokers went bankrupt following the SNB’s decision to unpeg the Swiss Franc from the Euro earlier this year.

 
FxPro is one of those major FX brokers who remain stable and reliable at all times while their popularity grows. According to Forex Magnates, FxPro is among the TOP 10 retail FX brokers with clients from over 150 countries of the world. The representatives of this Forex broker say that this is the result of big efforts to back the guarantees of security, safety of client funds and excellent trading conditions along with transparency and flexibility.
Publication date: 27 August 08:29 AM

Bankers Predict EURUSD Parity As 2015 Ends

 

More and more experts representing some the most notorious financial institutions in the world like Goldman Sachs and Bank of America confirm their predictions regarding the future of EURUSD. In particular, the expect the U.S. Dollar to reach parity with the common European currency by the end of 2015 despite the fact that USD has been relatively week so far.
Publication date: 27 August 05:11 AM

Masterforex-V Expo Reveals Best FX PAMM Services in August 2015

 

If you want to get from rags to riches these days, working for someone else is not enough. Apparently, investing is an excellent opportunity to generate extra passive income. However, a lot of people don’t actually know how to invest so that this activity could generate stable income. Luckily, today’s Forex industry offers you a great opportunity to make money even if you know little or completely nothing about investing or trading….
 
Publication date: 21 August 06:28 AM

China’s Central Bank Will Have to Spend $40 Billion a Month to Support the Renminbi

The stability of the currently weakening Chinese Yuan seems to depend on the frequency and intensity of all those currency interventions made by the People’s Bank of China. Masterforex-V Academy experts say that this is going to shrink China’s currency reserves by as much as 40 billion dollars a month. This is the results of the survey conducted by Bloomberg. With that said, the Chinese authorities are expected to take urgent and tough steps to curb the devaluation of the national currency and stabilize the financial situation in the country.

 
Publication date: 21 August 06:21 AM

Chinese Stock Market Goes Down Again, This Time By 6,1%

 

Asian stock indexes saw another plunge on Tuesday following an overall Chinese market crash, Market Leader reports. For instance, MSCI Asia Pacific dropped by 0,6% down to 137,07 points over the reporting period. At the same time, Shanghai Composite and Hang Seng (Hong Kong ) lost 6,15% and 1,4% respectively. Nikkei 225 (Japan) was down by 0,3%.
 
According to Masterforex-V Academy, the Chinese stock market plunged amid investors’ concerns that the Chinese authorities are going to cut down on backing the market. It should be noted that last week the local Chinese regulator announced that CSF (China Securities Finance Corp.) had got funds from the People’s Bank of China and was backing the liquidity in the local stock market but it was going to cut down on investments due to lower volatility.
Publication date: 20 August 09:09 AM

HiWayFX Tells What Speed of Execution is Needed for Successful Trade at Forex

 

When choosing a Forex broker, one of most significant parameters is the speed of order execution. The quicker the company processes clients’ orders, the higher the chances are that the trader will enter the market with the posted price. And some hedge funds have staff members that specialize on execution of orders, i. e., bring them to the market at the price, claimed by the client.
 
Publication date: 19 August 09:38 AM

Forex. GBPUSD Outlook. August 19th, 2015

 

The UK construction sector saw positive changes in June, the official report confirms. Analysts assume that the revised UK GDP figures for Q2 2015 are not going to change the preliminary ones.
Publication date: 19 August 05:46 AM

Fort Financial Services on Benefits of Trading Binary Options

 

These days, binary options are some of the world’s most popular financial instruments designed to make money in financial markets. Most experts share the same opinion that binary options are so popular thanks to relative simplicity along with increase profitability coupled with fixed risk. In other words, you can generate up to 80% of the invested sum and even more if your prediction happens to be correct and the purchased binary option expires in the money.
 
Publication date: 18 August 10:43 AM

Chinese Yuan Devaluation: Cui Prodest?

Last Tuesday, the People’s Bank of China made an unprecedented step by devaluing the Chinese Yuan by as much as 1,86%. The Chinese authorities assured everyone that this is a one-time step. However, over the next 2 days, the Renminbi lost 1,62% and 1,12% against the U.S. Dollar respectively. As the result, the Chinese currency was devalued down to 6,4 CNY per 1 USD. This is the lowest CNY rate since 2011, Market Leader reports.

Publication date: 17 August 08:31 AM