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Thread: I gotta question for y'all ;-)

  1. #1
    God/dess GoldCoastGirl's Avatar
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    Default I gotta question for y'all ;-)

    http://www.triumphantevents.com.au/?...rrency.trading

    Is it true what is said on the above page? ???

    What is your opinion about this company .. they sound good enough. I ask because I'll be attending a "FREE" Seminar of theirs about educating us to be smarter investors etc on Thurs. July 17. Will keep you informed of how THAT goes.



    enter: E3167322D9 for your 10% discount

  2. #2
    Senior Member m's Avatar
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    Default Re: I gotta question for y'all ;-)

    any trading is risky...I've never considered currency trading, figured I'd get better at the debt and equities before straying off. Found a link that might help you avoid some pitfalls though, good luck... http://www.cftc.gov/opa/enf98/opaforexa15.htm

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    Banned Melonie's Avatar
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    Default Re: I gotta question for y'all ;-)

    Hoo Boy - you're talking about some extremely risky arrangements with 100:1 margin accounts (boobs shaking in fear).

    For starters, I essentially trade currencies myself but in a much different form. I have multiple accounts in a Swiss bank which allows me to transfer balances between accounts denominated in US$, Euros, and Swiss Francs. If you check out you'll see that they offer the same sort of arrangement both with money market type accounts and with CD's denominated in different currencies. However, these bank account setups involve actual investments - you put in real money in one currency, you collect interest, you change one denomination of real money for another denomination of real money. If the exchange rate between the Euro and the US$ goes up by 10%, when you exchange back to US$ you realize a 10% gain. However, if the exchange rate between the Euro and the US$ goes down 10% instead you can either stay in Euros and wait for a brighter tommorrow or exchange back to US$ at a 10% loss.

    What this outfit is talking about are not bank accounts or real money - they are futures contracts. Futures contracts exist for virtually every commodity, stock exchange indexes, as well as currency exchange rates, interest rates in the same currency etc. The contracts basically say that by buying this contract today at a given price you are buying the right to purchase (or sell) a certain currency at a certain exchange rate at a certain date in the future. If the actual exchange rate is better for purchasing (or worse for selling) than the contract exchange rate, you make out like a bandit because you have multiplied the amount of money exchange you control by a factor of 100:1. In other words, if the exchange rate has moved in the right direction by 1% you double your money (less commissions). But if the contract expiration date rolls around and the exchange rate has moved in the wrong direction by 1% or more, your contracts are worthless and 100% of the money you invested has disappeared entirely. IMHO, dabbling in highly leveraged 100:1 futures contracts has odds of success on the same order as buying lottery tickets. This is great if you look upon the money you'll be investing as "mad money" which you can afford to lose, but it certainly doesn't qualify as a real investment.

    The futures market is also manipulated to a significant degree - i.e. everybody in the world knows when the contract expiration dates all occur, and bankers/hedge fund managers/financial pros will often make a bunch of otherwise needless transactions around the expiration date to force otherwise profitable contracts to expire worthless (while they bought opposite contracts). Then one day later they reverse the transactions, the exchange rate goes back to where it was and they cash in on their profitable opposing contracts.

    Futures and options work on the "golden rule" - he who has the gold makes the rules! A small investor can't really compete with an investment banker or hedge fund manager who can buy opposite futures contracts in a commodity or exchange rate, and then have billions of dollars at their disposal to make transactions in the actual commodity or currency which they know will change the commodity price or exchange rate on the open market, which in turn affects the value of all futures contracts and option contracts written on that commodity or exchange rate. This manipulation is generally referred to as "shaking out the weak hands", because the 1% drop results in a "margin call" from brokers looking for you to either pay more money to hang onto the contract you previously bought or not pay more money but have the contract cancelled and 100% of your previous investment disappear.

  4. #4
    Pamela
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    Default Re: I gotta question for y'all ;-)

    A free seminar never hurts, but remember they are designed to get you involved. Keep a level head, and don't jump in. Period.
    I have money here and in Sweden. The US knows. And i have been questioned about money overseas.
    Talk wiith a good investor, one who is involved with currency trading.
    There are many downsides to this.
    Pamela

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