You are currently browsing the monthly archive for July 2007.
The Sale of Put Options An individual (or a company) has $100,000, which he would invest in common stocks. He could buy these stocks in the market or he could sell Put options in an attempt to acquire the stocks a few points below the current market price or to earn […]
Original post by Jimmy Atkinson and software by Elliott Back
Most Dollar bulls cringe when they hear the word “diversification.”
Within the context of forex,
diversification usually refers to the shift towards non-Dollar denominated
assets among Central Banks. The thinking
is that with the declining Dollar, it probably makes sense to hold reserves in
non-US investments. However, analysts
have begun to realize that this only represents a small segment of entities
that could harm the Dollar by diversifying. The world’s Central Banks probably hold at
most $5 Trillion of reserves, whereas US institutional investment funds
probably have over $20 Trillion collectively invested in US assets. Thus, diversification in this segment probably
poses a much greater threat to the long term health of the USD. The Economist reports:
American mutual funds have gradually increased their
overseas allocation of equities since 2003 from 15% to 22.5% of assets. If this portfolio shift mirrors the behaviour
of all pension, insurance and mutual fund managers, it would imply an outflow
from dollar assets of $1.16 trillion since 2003.
Read More: Soft currency
Original post by Jimmy Atkinson and software by Elliott Back
Last week witnessed a sudden unwinding in the yen carry
trade, as a global market downturn affected investor sentiment towards
risk. Volatility is the only market
force that could seriously contend at collapsing the carry trade, and last week
produced significant volatility. All of
the world’s majors fell against the Yen, namely the New Zealand Kiwi, which
fell by 7.5%. The kiwi, you may recall,
has been one of the main currencies on the other end of the carry trade, due to
its high interest rates. However, analysts
are reluctant to proclaim an outright end to the popular carry trade,
preferring to wait and see how volatile the world’s capital markets appear in
the coming weeks. The Financial Times
reports:
The wave of risk reduction also prompted investors to take
profits in the Australian and New Zealand dollars, which have surged this year
from central bank credit tightening or expectations of more tightening to come.
Read More: Yen hits 3-month high versus euro
Original post by Jimmy Atkinson and software by Elliott Back
Selling a Strap The reverse of the Strip and, also, a cousin of the Straddle is the Strap. It is a form of option contract that was unknown a dozen years ago. It is merely a combination of a Put on 100 shares and Call on 200 shares. To make a […]
Original post by Jimmy Atkinson and software by Elliott Back
No other asset vehicle possesses the attributes of excellence, liquidity and diversification of a mutual fund offshore investment. If you’re looking for an opportunity to share in a diversified portfolio, a mutual fund offshore investment is at present one of the most well-liked options on hand, and is well worth the investment of time to be aware of its particulars. Want to find out more? Then read on
Original post by Jimmy Atkinson and software by Elliott Back
MetaStock Reference Function The Reference function is one of the most commonly used functions, as it allows us to refer to the value of any expression, or the selected `data array’, any number of periods back or subsequent periods into the future.
Original post by Jimmy Atkinson and software by Elliott Back
Nearly one year ago, Thailand’s military overthrew the
government in a bloodless coup, and commentators immediately began painting
doomsday scenarios around the country’s economy. Since then, the Thai economy has surged, and the Baht has
appreciated by over 20% and isn’t showing any signs of slowing. In response to concerns that the rising
currency would begin to hinder exports and economic growth, Thailand has
introduced a spate of measures designed to hold the currency in check. Namely, Thai businesses and citizens will be
afforded more flexibility in transferring money outside of the country and
keeping Thai currency in offshore accounts. MarketWatch reports:
“In the absence of a clear softening in the currency’s
upward momentum, we expect Thai authorities to continue to apply a variety of
measures — including further reductions in interest rates…”
Read More: Thailand relaxes currency rules to curb baht
Original post by Jimmy Atkinson and software by Elliott Back
The Euro’s rise against the USD over the last year has been
swift and unimpeded. Many commentators
have theorized that it is intense pessimism surrounding the US economy and
economic conditions-namely the burgeoning twin deficits-that is responsible for
the Dollar’s demise. Now, a new theory
is being batted around, one that is quickly gaining traction with analysts:
perhaps it is optimism directed towards the EU economy rather than pessimism
towards the US that is causing the Euro to spike. After
all, the European economy has rebounded nicely and boasts stable monetary and
trade statistics. However, this notion
of European optimism, if it in fact exists, has some analysts worried that the
markets are becoming too optimistic, and that if they are not careful,
they will end up wrecking the European economy by driving up the Euro too high.
The Times Online reports:
If the euro keeps rising without limit, Europe’s export
industries will be decimated, as they were not only in Britain, but also in America in the mid-1980s and also in Japan after 1995.
Read More: The euro’s rise and rise is unsustainable
Original post by Jimmy Atkinson and software by Elliott Back
Have you found that it’s difficult to gain access to an offshore account without a whole lot of interference from various parties? If so, and you want an easier way to increase access to offshore investments without raising too many queries from funds, then this editorial is for you.
Original post by Jimmy Atkinson and software by Elliott Back
Do you know what an offshore trust can do for you? More than a simple bank, offshore trusts allow you to place your money in safe hands and let somebody else do the job for you - all under your control. It’s the best of both worlds for many investors! We’ll define the two major types of offshore trusts accessible to you as an investor, providing benefits and weaknesses for you to make the most advantageous decisions regarding your capital.
Original post by Jimmy Atkinson and software by Elliott Back
The story behind the Dollar’s decline contains two threads:
narrowing interest rate differentials and growing concerns surrounding the US
economy. With most of the
industrialized world’s Central banks not scheduled to meet again for a few
weeks, the interest rate story can temporarily be placed on hold in favor of
the economic story, which is becoming uglier every day. The centerpiece remains the US housing
market, which many analysts believe will soon slide into a major rut. There is a great deal of uncertainty over
whether homes can retain their value and if borrowers will be able to pay off
their mortgages. Rising rates have
squeezed many low-income, high-risk borrowers, causing a crisis of growing
proportions in the market for mortgage-backed securities, which is at risk for
spreading to other areas of securities markets. Forbes reports:
“Credit concerns, rating reviews, yields tumbling; it has
been one-way traffic against the dollar in recent minutes and euro/dollar has
rallied up a fresh all-time high.”
Read More: Dollar slump sends euro
to record high
Original post by Jimmy Atkinson and software by Elliott Back
Years Ago in the Options Market It might be interesting to the reader at this point, after reading so much of the techniques of the option business, to know something of years ago. When I first came into the option business forty years ago, and up until about the time of […]
Original post by Jimmy Atkinson and software by Elliott Back
MetaStock Inside Day Function An inside day refers to a two-period pattern that suggests a potential reversal or deceleration of the current trend. It occurs when the current period’s high is less than or equal to the high for the previous period and the current period’s low is greater than or […]
Original post by Jimmy Atkinson and software by Elliott Back
Do you know who’s managing your money? Knowing who is managing your fund is tantamount to knowing where your money is: it’s absolutely vital, and you should have no qualms about asking as many questions as you need to in order to feel comfortable with your assets. This piece of writing will provide you with some of the information you’ll want to discover out about offshore investment management prior to making any investment decisions, and help you navigate the sometimes dangerous waters of fund management.
Original post by Jimmy Atkinson and software by Elliott Back
The Economist just released its an updated iteration
of its famous Big Mac Index, underscoring growing disparities in currency
valuations. For those of you that
aren’t familiar, the Big Mac Index uses the price of a McDonald’s Big Mac
sandwich in different countries as a proxy for measuring purchasing power
parity (ppp), that perennial staple of economics that theorizes a country’s
currency and its inflation rate should move in opposite directions. Thus, where a Big Mac is observed to be more
expensive than in the US, it would suggest that country’s currency is
overvalued relative to the USD. Of course there are numerous other factors in
the local price of a Big Mac, including raw materials and taxes, but the index still
packs a pretty profound punch. Unsurprisingly, the most undervalued currencies can be found in Asia-
notably the currencies of Japan, China, Thailand, Indonesia, etc. The most comparatively expensive Big Macs
(and hence most overvalued currencies) can be found in Europe, especially in
Scandinavia and Northern Europe.
Read More: The Big Mac Index
Original post by Jimmy Atkinson and software by Elliott Back
The Norwegian Krone is certainly not a very popular currency
among participants in the forex markets. Nonetheless, the currency has enjoyed a strong
year, having moved away from clinging to the coattails of the Euro and has actually
surpassed the common currency by a considerable margin. In fact, the Krone recently touched a 10-month
high against the Euro, and a multi-year high against the USD, spurred on by a
rate increase by the Central Bank of Norway. In addition, the consensus among analysts is
that the Central Bank will hike rates several more times over the next year,
bringing the benchmark rate to 5.75% by 2008. Surely, the most opportunistic among us has
already begun searching for a broker that facilitates trading in Krone!
Read More: Norwegian krone jumps as central bank hikes
interest rates
Original post by Jimmy Atkinson and software by Elliott Back
With the Euro handily outperforming the USD, Japanese Yen
and certain other major currencies, many EU leaders have begun lamenting the
impact they foresee on the EU economy. As most amateur economists are doubtlessly aware, however, there is a
tradeoff between control over one’s currency and control over one’s domestic
economy. In other words, if the EU acted
in concert to hold down the value of the Euro, the ability of the European
Central Bank to conduct monetary policy would be severely constrained. Accordingly, Jean-Calude Trichet, President
of the ECB, is insisting that any efforts directed towards holding down the
Euro be political, rather than economic in nature. Surprisingly, he is not opposed to EU
political leaders holding talks with their Japanese and possibly American counterparts
to discuss the growing perceived “misalignment” between the Euro and the
Dollar. The Financial Times reports:
Mr Trichet had made it very clear in his comments to the
European Parliament last week that there should be a dialogue between European
countries and their partners over currency matters.
Read More: View of the day: Currency misalignment
Original post by Jimmy Atkinson and software by Elliott Back
How Option Orders Originate Before going into the further explanation and application of options, it might be interesting to explain how orders for options originate and are executed. An interested party perhaps in Detroit will ask his stockbroker to ascertain on what terms a Call option can be had on a […]
Original post by Jimmy Atkinson and software by Elliott Back
Whether you’re new to investing or an experienced player, offshore brokers can play an important part in your financial decisions. This critique aims to help you recognize what precisely an offshore broker does, and how he or she can help - or hinder - you with your fiscal affairs.
Original post by Jimmy Atkinson and software by Elliott Back
vThe Renewal of Options Options can very often be extended. Suppose you own a Call contract at 54 on a stock which has risen before the expiration of the option to 65. You feel that if you had more time, the stock could go higher—to 75, 80, or more—in another 60 […]
Original post by Jimmy Atkinson and software by Elliott Back
What are the top two risks involved in choosing a Cayman Island offshore bank account? Bookmark this article and we’ll give you some tips on how to successfully invest in these markets. The first risk you face in choosing the right bank for your Cayman Island offshore bank account is finding one that will keep your money safe. You’ll need to choose a large well-known bank - preferably one that does not have any direct contacts back to your own country.
Original post by Jimmy Atkinson and software by Elliott Back
MetaStock Trough Bars Ago Function The Trough Bars Ago function returns the number of bars that have passed since a specified trough occurred. This function is based on the Trough function. Technically speaking, a trough is the lowest point reached between a short term down trend and a short term up […]
Original post by Jimmy Atkinson and software by Elliott Back
Do you know what your offshore financial advisor is doing with your money? Don’t consider that’s a rhetorical inquiry: a little over a year ago, an aged couple came to see me. They had $100,000, which they had entrusted to their offshore financial advisor over the past three years. When asked how their money had made out, the couple laughingly told me that they still had the original amount
Original post by Jimmy Atkinson and software by Elliott Back
Initially, it should be noted that tax havens are an essential part of offshore investing. Many countries that set themselves up as tax havens did so because they had very little infrastructure or industry that could have been utilized to sustain the country. These countries generally have exceptional confidentiality and privacy regulations, and in countless cases, some of the world’s top banks reside upon their shores. In Vanuatu for instance, the ANZ and Westpac Banks may be found, while the Bahamas boasts more than 600 banks.
Original post by Jimmy Atkinson and software by Elliott Back
MetaStock Peak Function The Peak function allows you to refer to a peak (i.e. distinct highs) in any selected `data array’. Technically speaking, a peak is the highest point reached between a short term up trend and a short term down trend. The way this function identifies a peak is based […]
Original post by Jimmy Atkinson and software by Elliott Back
Prestigious Forex trading service has become open to new public: traders with small sums. Through effective leverage mechanisms these people can get $100,000 trading lot, only depositing $1,000 on the account - all that is needed is to trade on world currency exchange!
Investors have a great variety of Forex trading tools to choose from. They subscribe to professional Forex trading service, get professional and detailed trading instructions in form of trading signals http://www.ForexSignalSystem.com or trading systems. In such a way, small money gets access to trading great Forex market money, and makes it professionally with high-class trading services.
Original post by Forex Signals System and software by Elliott Back
Online has become a meeting place for most advantageous financial and Internet technologies. One can make money from good Forex trading service, and need no handling of bank wire payments. The scheme is legal and simple. A person registers as affiliate to well-known professional Forex trading service (trading system, strategy, trading signals, etc.). Among other benefits affiliate partnership with Forex services is rewarded with free debit card issue for affiliates (example http://www.ForexSignalSystem.com/affiliate- program/index.html). When affiliate gets debit card, the problem is solved. This affiliate already has personal online account, can withdraw the earned commissions from costly Forex trading services in thousands of ATMs worldwide, and know nothing about bank wire routine. Purely online profit handling.
Original post by Forex Signals System and software by Elliott Back
When a Forex market trader starts looking for a professional trading service, the prices for these products and services are frustrating - they are high. A safe way to save money and get the service is to become an affiliate for this service. Most often affiliate pay nothing for registration like indicated on http://www.ForexSignalSystem.com/affiliate-program/index.html
Professional Forex service always attracts online Forex traders, and affiliates get good commissions form fees paid by the traders. Thus, affiliates soon get enough money to buy the service. Successful affiliates can both combine their affiliate activity and using affiliated Forex service for real trading on currency market. Lately it has become a safe two-income scheme for many online users.
Original post by Forex Signals System and software by Elliott Back
You can venture to trade on your own risk, but this is a blind driving on a highway. Forex gives great profits, but losses can be also “great” and absolutely unexpected. Those who do not have Forex trading experience of 2-3 years of real Forex market trading, are open to attacks and losses. To survive in this war, traders equip themselves with highly professional Forex trading tools. These tools protect them from possible trading risks and help harvest more money from Forex trading. If you personally are not well-prepared to Forex trading war, better step aside - you can lose all money. A better way is to search the online market for professional Forex trading services, tools, systems, trading signals/alerts, etc. These tools are designed by groups of experienced traders. For a fee or single payment every trader can get a working Forex trading system and trade according to its strategies. Try out the tools before buying. Test trials, open demo accounts for testing them, learn how to calculate the profits due to system rules on profit calculators. To test calculator, click http://www.ForexSignalSystem.com/performance/index.html
Original post by Forex Signals System and software by Elliott Back
Real trading on Forex is a hard job: it needs making a detailed trading strategy: it includes technical or fundamental analysis of Forex market, possible risk calculation, applying various trading systems and techniques for more effectivity and many other crucial issues. So, only qualified Forex trading professionals can try to trade on real market, relying upon their personal opinion. Those, who cannot hire qualified staff for trading, use Forex trading solutions that help automate the whole process of taking trading decisions, save time and money. Traders purchase or subscribe on monthly basis to a Forex trading system/strategy/technique, or purchase the trading signal service. The choice is wide: most important is always to ask for real trading data. Any web site with Forex trading system can write - “We made 342 pips yesterday!” or “The system generated 200 pips in first two weeks in February” Reasonable traders ask for real proof - detailed trading data info, where it is possible to see whether the strategy or system really works or just boasts good income figures. Usually real trading data is saved in files called “Trade Lists” (example of trade list file: http://www.ForexSignalSystem.com/performance/index.html
Before making the purchase, ask for real trading information. This will save you from risks. Once you found good trading system, you nearly automated all Forex trading for you. Execute professional trading rules and you immediately become a professional Forex trader.
Original post by Forex Signals System and software by Elliott Back
Why don’t ask - is it possible to play good song on violin without learning to play? Imagine what sounds you could hear from a newbie player. Forex is bound with risk - it is a risky market with immense profit and loss opportunities. One of the keys to success on Forex is risk handling. And professional Forex traders are very good not only in making trading profits, but also in managing possible risk. Remember the example with violin, professional players can make it cry, or laugh, or sing. Professional Forex traders are as good in handling risks. They professionally plan their trading activity for better profits and risk handling. This is a job for highly qualified Forex personnel. Other Forex traders can buy ready-made Forex trading solutions: Forex trading systems, strategies, techniques, Forex signals (or Forex alerts). Make sure to test Forex trading service, before making final purchase. Usually professional services give their clients a trial version for pre- testing the service itself. Example of trial (and its conditions) for real Forex service here: http://www.ForexSignalSystem.com/trial/index.html
Original post by Forex Signals System and software by Elliott Back
Do you know who’s managing your money? Knowing who is managing your fund is tantamount to knowing where your money is: it’s absolutely vital, and you should have no qualms about asking as many questions as you need to in order to feel comfortable with your assets. This piece of writing will provide you with some of the information you’ll want to discover out about offshore investment management prior to making any investment decisions, and help you navigate the sometimes dangerous waters of fund management.
Original post by Jimmy Atkinson and software by Elliott Back
Since it was freed from its fixed exchange rate regime two
years ago, the Chinese Yuan has appreciated nearly 9% against the USD. While the Yuan’s exchange rate is clearly
managed by the Chinese government, many commentators agree that its rise has
given off the aura of a floating currency. One economist thinks China will cement this perception the conclusion of
the Beijing Olympics-to be held in 2008-and allow the currency to float freely,
at which point it could surge by as much as 10% against the USD. Evidently, China is growing tired of the
lack of control it has over its domestic economy due to its exchange rate
policy and is clearly overwhelmed by the need to continue growing its forex reserves
(which now stand at $1.33 trillion) in order to control the Yuan. Bloomberg News reports:
“They have to adopt a free-float system; it’s not a question
of whether they will, but a question of when. After the Olympics, the new
leadership will be firmly in place.”
Read More: Yuan May Trade Freely
After Olympics, UOB’s Suan Says
Original post by Jimmy Atkinson and software by Elliott Back
MetaStock Zig Zag Function The Relative Strength Index (RSI) is a very popular oscillator and is widely used. The RSI measures the internal strength of a security rather than measuring the strength of a security relative to something else as the name would suggest. Just a word of caution when […]
Original post by Jimmy Atkinson and software by Elliott Back