| Foreign Exchange Brokerage |
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Foreign Exchange Brokerage is a part of the financial service industry. The Foreign Exchange market is also referred to as the "Forex" or "FX" market. Our target market is high net worth sophisticated individuals or corporations that are seeking to diversify their portfolio into a market that is not correlated to the Equity market. Diversifying into the Foreign Exchange markets offers the potential to reduce the overall portfolio risk.
An investment in the FX market is designed to be incorporated into the growth or aggressive growth portion of the portfolio. The currency markets are driven by politics, interest rates, and economic cycles of major world countries. They typically trend over long periods of time, a pattern on which trend-following trading systems exploit with precision. Anyone who has traveled in a foreign country or purchased imported goods has experienced the effects of constantly changing currency valuation. Changes in the values of currencies relative to one another take place constantly; minute to minute, hour to hour and day to day, 24 hours a day seven days per week. There are three main reasons to participate in the FX market. One is to facilitate an actual transaction, whereby international corporations convert profits made in foreign currencies into their domestic currency. Secondly, corporate treasurers and money managers also enter the FX market in order to hedge against unwanted exposure to future price movements in the currency market. The third and the most popular reason is speculation for profit. In fact, today it is estimated that less than 5% of all trading on the FX market is actually facilitating a true commercial transaction. Our primary focus is investing in the foreign currencies of Japan, Great Britain, Europe (Euro), Switzerland and Canada. An important characteristic of the currency markets is that they typically trend over long periods of time. Our dynamic strategies are designed to make it possible to take long positions (in a rising market) or short positions (in a declining market) and can profit from either. |
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