Category Archives: General Forex

Capital Protected Forex Products How Safe Are They

An increasing number of investors looking to play the highly volatile forex market are choosing to invest in capital protected schemes, which at least protect the original capital invested. With the forex market see-sawing in wild swings, making money is becoming more and more difficult. There are also groups of investors such as pension funds, life insurance companies and pensioners who can ill-afford to bear capital losses but still wish to have some kind of exposure to risky assets in commodities, forex, and stock indices.

That is why an increasing number of forex investment firms, forex hedge funds or even forex startups are offering capital protected products to attract investors. Here is how the scheme works.

The bulk of the money raised from investors, about 92-95% is placed in zero coupon bonds, with the objective that at the end of the period, the total will amount to at least 100 or equal to the original sum invested.

The remaining 5-8% is then invested in purchasing options so that in the event that the underlying asset appreciates or depreciates in line with the investment objective of the fund, the investors will receive the percentage gain of that particular market moving in their direction. In such a positive return, the investor will get the proceeds of the maturing bonds, 100, plus the positive return earned on the profit generated on the options.

If on the other hand, the market goes against the underlying investment, the options expire worthless and there is no additional loss on the investment. This means the investors get back their money as the maturing bonds expire.

The main risk is for the bond issuer defaulting. As with all capital protected schemes, the issuer does not take responsibility if the company whose bonds have been purchased goes bust. The risk is always with the investor.

For this reason, investors are strongly recommended to diversify their investments and select a variety of investments, so that even if the underlying bonds in a capital protected scheme default, the rest of their investments will be safe.

Unfortunately, the investor cannot instruct his forex broker or forex fund manager to apply stop loss protection since the capital protected products are tailor made for specific periods and will benefit if the underlying asset moves in the direction stated when the original investment is made.

Forex Trading Courses

If you’re looking to cash in on day trading on the foreign exchange market, also known as the Forex or FX, Forex training is a great place to start. Understanding day trading and developing a trading strategy is difficult, so don’t try to go it alone. Whether you’re completely new to trading, or you’re an established trader that’s struggling with the market, a course in Forex trading can help you increase your earning potential. Day trading courses are available to help you get into this great career or hobby today!

Forex training will teach you the ins and outs of the foreign exchange market. You’ll learn how to interpret FX currencies trading information to spot which currencies are trending up or down. You won’t have to go it alone – day trading courses offer guidance and feedback. Forex courses are taught by professionals that are experts in the field of day trading. These are people that have made a career out of day trading, and they’re ready to show you how to do the same. If you’re having trouble spotting profitable currencies, an instructor will work with you, explain in detail what you’re looking for, and make suggestions to improve your trading strategy.

Learn real trading skills that will make you money:

– How to get into forex trading, including information on investment needed to get started
– How to spot profitable trends on the foreign exchange market
– How and why to buy and sell currencies
– Managing profits and losses
– Balancing your investment portfolio for optimum performance

You’ll learn how to utilise computer applications to keep constant track of currencies that are trending up and down, on a daily, monthly, and yearly basis.

Forex trading is a proven money-maker, but you have to have the skills and the know-how to become a successful day trader. Trying to figure out the foreign exchange market on your own is nearly impossible unless you’re already well-versed in the field of finance. Don’t spend a penny of your hard-earned cash on foreign exchange trading before you learn how to do it right. Courses are available in person and online, and can have you day trading in a matter of weeks! If you’d like to start a money-making hobby or begin a lucrative career as a Forex day trader, sign up for a traders’ skills course today to make your financial dreams come true!

Becoming a Millionaire With Forex Trading

Many people are looking for ways to make millions within days. At the end of the day, only a few make reasonable income from their ventures.

Forex trading is often misunderstood as one of the methods to make quick money. Before you enter this market, you should clear these misconceptions off your head. The foreign exchange is just like any other business where you are rewarded for your hard work and intelligence. If you are thinking about making millions from foreign exchange, you should be ready to work for that.

If you are looking for a get-rich-over-night scheme, then foreign exchange is not your destination. The foreign exchange traders have to put in a lot of effort to learn everything. Once they have learned things, they can use that to increase their profits. Eventually, some of these traders become millionaires. However, this takes time. The traders have to stay patient and have to keep working at the same time.

In order to become a millionaire by trading currencies, you have to develop certain habits and skills. You should study the other traders and find the things that they are doing right. Once you have made a note of these things, you can use them to boost your own trade experience. With time, you will be able to reach a position where money will just flow.

You should remain determined while investing your money in this business. Without determination and consistency, you are going to end up nowhere. If you have developed these habits along with the habit to research things, you are going to be successful in this business. Over time, you will be able to make a lot of money from this business. You will finally become a millionaire as you had wished. The route to becoming millionaire might be a little tough, however, you have to stay determined and the success will be yours.

Tips For Forex Managed Accounts

Forex accounts are becoming better known over the last ten years. It is one of the ways to make that money which brings in those extra comforts that salary cannot afford. People have tried more ways by investing in banks, insurance, bonds, mutual funds and stock markets. Different from these has evolved the foreign exchange market for currency trading.

The first and foremost thing that the investor should remember is that Forex market has a liquid nature. The money invested may not come back. Hence losing money is a major part of such trading. There are certain steps, rules and strategies one must learn before investing the money. But mostly the small time investors do not have so much time to track the recent news or track the ups and downs of currency rates.

With Forex managed accounts the investors can sweep away the fear or hesitance in investing with the big market of money. However, the investor should remember certain things before any investment and understand the pros and cons of this market.

When the investor opens a managed account with the brokering company, the sum needed is much higher than the normal account opening amount. It is because the trader of the company needs to profit from that money. With small amounts this profit percentage will be so less that it cannot make up the fees as well as the huge percentage of gained amount to be returned to the account holder.

The trader of the brokering company is generally a very experienced and knowledgeable person. This person can analyze the market and knows the ins and outs of it. These traders use many software, charts prepared by experts on statistical reports and other tools to understand when to buy and when to sell.

Since the foreign exchange market has a global nature and operates for 24 hours, these traders keep track of the changes in currency rates. Keeping an eye all the time on the market may not be possible for the small time investor. Moreover these traders can interpret signals and manage them for the benefit of the holder’s account.

The charge of managing the account of the investor depends upon the profit made. If there is no profit there is no necessity of paying any fees. However, once the account gets into profit, money is deducted from the profit percentage. The brokering company takes away some percentage and adds the rest percentage to the initially invested money. So with this account there is no loss but only gain.

All said, it is also mentioned here that there are no dearth of cheaters and imposters in this line. So the account opener should be very careful and cautious about where he is investing. It is advisable to keep a low sum or minimum sum required to maintain such an account initially. The loss of this money should not affect the investor. Moreover, after opening this account the investor should thoroughly check and confirm as well as be satisfied with the ways the brokering trader will risk the money. In the end, the investor’s decision matters.

Forex Bulletproof Robot – Capable of Re-adjusting to The Changing Market Conditions.

Forex BulletProof has been engineered to preserve, secure and then increase your capital for years to come, no matter if the political or financial world situation changes…

Crisis proof. – the robot is capable of re-adjusting to the changing market conditions. Should the market suddenly become too volatile (and therefore, too risky to trade), the volatility filter will intervene and take the robot to an early exit. The bot also adjusts automatically to the conditions of a specific brokerage, being compatible with both the instant execution brokers and the market execution ones.

Low Initial Investment Required. – The current minimum to start trading with the robot on the EUR/USD pair is as low as $450. Only if the user wishes to trade on both EUR/USD and USD/JPY, will he/she need to have a minimum of $4,000 in the trading account. Yet most profits are generated on EUR/USD, so a minimum of $450 will be perfectly sufficient.

Important: If somebody tells you that you can trade a forex robot with $100 or even $50, he is full of B.S. because he’s after your hard-earned money. Of course, you CAN technically trade even with as low as 1 buck, but it will result in an instant margin call and put you out of business faster than you can hit the stop trading button. $450 here means that you can safely increase your capital and that all security filters have enough room to kick into action to preserve your money and your gains.

Easy setup. – Forex BulletProof is an easy to utilize “set and forget” robot. No complex lists of settings to be entered, no multitude of files to be placed into various folders, no need to watch the robot during its trading. Even completely inexperienced computer users can successfully set up this bot on their computer or VPS and have it trade for them!

No liquidity issues. – Forex BulletProof trades DURING the market hours and not between them, like many other Forex robots. This aspect ensures sufficient liquidity at all times, no matter what the situation on the market is and how many people are using the robot. The liquidity during the forex market hours totals in the trillions of dollars. Therefore, even if we had millions of people using the bot at the same time, it would not affect the currency market in any way (especially, if your broker is STP).

No margin calls! – The seldom drawbacks in the process of trading are minuscule and quickly recovered because the robot will NEVER produce a margin call. If things in the market get out of hand or a strong unexpected trend suddenly emerges, the subsequent trades in the robot’s trading cycle will re-hedge the initial ones and the cycle will be closed immediately.

Careful & and safe trading environment. – The robot’s trading hours and days are carefully selected based on the time zone differences between the closing and opening times of stock exchanges in different parts of the world.