Investing in Foreign Exchange is the smarter alternative to achieving higher absolute returns on your hard earned capital. Doing this safely entails minimizing trading risk elements which are invariably human in nature, to achieve superior investment performance.
WizardsFXFunds offers genuine forex fund management and trading techniques based on successfully tested trading strategies developed by experienced traders and developers. These high yield income strategies utilising controlled leverage provide balance to your investment portfolio to reach your financial goals.
You can now manage your own alternative investments (Spot FX) portfolio according to your risk profile and risk capital available. Applying different strategies to your investment funds will enable a more diversified portfolio whilst achieving above average absolute returns.
Forex, or Foreign Exchange, is the simultaneous exchange of one country’s currency for that of another. The investor wishes to purchase or sell one currency for another to ascertain a profit when the value of the currencies change in the investor’s favour. The forex market displays strong price trending characteristics.
Buying… or… Selling
In this market you may buy or sell currencies. The objective is to earn a profit from your position. If you have bought a currency and the price appreciates in value, then you will earn a profit by closing your position. When you close your position, you are selling the currency back in order to lock in the profit and buying the counter currency in the pair.
Largest Market Liquidity
The Forex market is enormous being the most liquid. It’s average daily global turnover was up to $1.9 trillion in 2004. It’s quickly becoming an asset class alternative to equities and fixed income in investment portfolios. Being very liquid, spot forex positions can be liquidated and stops executed without slippage.
Market-makers charge no commission or additional transactions fees to trade currencies online or over the phone. Combined with the tight, consistent, and fully transparent spread, forex trading costs are lower than those any other market. Market-makers are compensated for its services through the bid-ask spread.
Direct participation, difficult to manipulate or influence
Forex trading operates in a decentralised online electronic market for its participants: Banks, FCMs, hedge funds, governments, retail currency conversion houses and high worth net individuals. There is no middleman between the trader and buyer/seller. Investors can interact directly with the market maker for pricing on a currency pair. Access is quicker and costs are lower than other in other markets.
Large market liquidity makes it very difficult for any one participant to manipulate or influence it.
Easier market analysis, increased access – 24 hours a day
Countries are more often stable than companies making it easier to predict their economic direction. Primary factors affecting demand and supply for forex investment are interest rates and economic indicators such as GDP, trade balances and foreign investment. This and other economic data released regularly determines demand and supply for currency pairs.
Approximately 8000 stocks trade on the NYSE and NASDAQ exchanges. In the spot forex market, there are 4 major markets, trading 24 hours, 5.5 days of the week.
Technology frontiers and investing
Technology is enabling the retail investor the ability to make better investment decisions through ready access to economic and political news events, to technical charting software and electronic trading platforms. They also have transparent and safe access to their investment funds in segregated accounts so that the safety of their funds is guaranteed.
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