AS AN ALTERNATIVE TO THE STOCK MARKET - WHAT IS FOREX ?
The Forex Market celebrated its 30th anniversary last year.
New LSE building Paternoster Square
major currency pairs are trading world-wide 24 hours a day: Euro EUR,
Japanese yen JPY, British
pound GBP, and Swiss franc CHF
against the US dollar USD.
The Canadian dollar CAD
should be considered as well.
forex market is well trended, the liquidity is the highest, there are
no insiders and transaction cost is the lowest. Buy and sell sides are
treated equally, as when you buy one currency you simultaneously sell
another. And you always stay in money, no illiquid investment
holdings. Even on September 11, 2001 when the US stock market became
blocked for more than one week, the forex market was trading
investments are perfect for diversification as performance does not
depend on the business cycle phase and correlation of annual returns
for major currencies and stock indices are negative and very small
(varies from -0.01 to -0.39).
Not everybody knows
Why the FOREX market is the perfect place for investments
General Information about FOREX
myths about the FOREX market
Why the FOREX market is the perfect place for investments ?
The foreign exchange (ForEx) market is cash inter-bank or inter-dealer market established in 1973 when floating exchange rates began to materialize. The simplest definition of foreign exchange is the changing of one currency to another. In comparison to the less than $10 billion exchanged in the U.S. stock markets and the daily trading volume averages of $300 billion in the U.S. Treasury Bond market, the Forex market is huge. The Bank for International Settlements estimates the FOREX market turnover at 1.2 trillion dollars per day.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Euro - new European currency, Swiss Frank, and Japanese Yen). Currency dealers can as easily sell any currency before they buy, as they can buy before they sell. A recent British survey shows 64% of foreign exchange business is for spot value.
Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers. Major international banks are always willing to provide both a bid (selling) and ask (buying) price. Commercial brokers conduct by far the largest volume of trading. Participants are not charged for commissions on trades. All prices quoted are inclusive of charges.
But Forex is not a "market" in the traditional sense. There is no centralized location for trading activity as there is in currency futures. Trading occurs over the telephone and through computer terminals at hundreds of locations world-wide. The most intensive currency trading goes on during European time and London brokers are considered to be the best.
In contrast to the futures market, the spot Forex market is a 24-hours continuous currency exchange that never closes. There are dealers in every major time zone, in every major dealing centre (i.e., London, New York, Tokyo, Frankfurt, Hong Kong, Sydney, etc.) willing to quote two-way markets. The size of this market, over one trillion dollars per day market gives you near perfect liquidity. Because of the advantages of sheer volume and daily volatility, the excitement of this market is unparalleled.
WHAT MOVES THE MARKET ?
The primary factors influencing exchange rates include the balance of payments, the state of the economy, implications drawn from chart analysis as well as political and psychological factors - news and rumours.
Any of broad-based economic conditions can cause sudden and dramatic currency price swing if such conditions are seen to be changing. This is a key concept because what drives the currency market in many cases is the anticipation of an economic condition rather than the condition itself.
WHY IS THE SPOT FOREX MARKET ATTRACTIVE FOR INVESTORS ?
Professional investors for individual accounts have dramatically increased their level of participation in the cash Forex markets in recent years. Add to this the growing use of cash Forex by individual investors and you have a rapidly growing investment arena. An appropriate way to close this short presentation and summarize what has been discussed is to touch on the many reasons professional investors have flocked to this market.
Liquidity This market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggests the freedom to open freedom to open or close a position at will.
Access A substantial attraction for participants in the Forex market are the 24-hours nature of the market. In Forex, a participant need not wait to react to an unfavourable event, as is the case in many markets.
Flexibility Settlement Many professional investment managers have a particular time horizon in mind when they establish a position. In the Forex market, a position can be established for a specific period of time, which the investor desires.
Execution Costs The cash Forex market traditionally has no brokerage charges, only a natural market bid/offer spread.
Execution Quality Because the market is highly liquid, most trades can be executed at a single market price. This avoids the problem of slippage found in futures and other exchange-traded instruments where limited quantities can be traded at one time at a given price.
Trending Over long historical periods currencies have shown substantial and identifiable trends. Each individual currency offers a unique historical pattern of trends providing investment managers diversification opportunities within the spot Forex market.
And the most attractive fact is that the Forex currency trader stays in cash at any time, no matter if he is "long", "short" or out of the market.
Please note that Forex Investing is not for everyone. By law, only sophisticated investors, who are capable of understanding the risks and rewards of a particular investment are allowed to invest in currencies. If in any doubt about the suitability of these investments, please consult your financial advisor. If you are willing to withstand above average risks in order to achieve outstanding returns, Forex speculation is an excellent investment option.
SOLAR COLA as an INVESTMENT OPPORTUNITY?
The soft drinks market is a tough place to do business, unless you have something different to offer and the marketing muscle to match.
For nearly 100 years Coca Cola and Pepsi Cola have dominated the marketplace with similar products. Each company spends around $600-800 million dollars a year to maintain its market position. The advertising centers around sport and music, with a scattering of irregular television campaigns. Each company launches (or attempts to launch) new brands every year. So far, they have not proved as successful as their regular cola brands.
Red Bull, although in a different drinks category, spends not quite as much on advertising , but has managed to acquire instant status and volume sales from sponsoring formula one, the Darpa Desert Challenge, and now the New Jersey MetroStars football team.
Solar Cola, apart from it's contemporary name, is a healthier cola based drink. Just as refreshing, it contains a unique blend of added ingredients as an aid to good health and energy levels. The company contributes to and sponsors alternative projects, to include this website, featuring movies, music and several thousand pages of general information, which generates in excess of 3 million visits a month already. Recent acquisitions include the rights to the Solar Navigator World Electric Challenge, and also the new Bluebird Electric land speed record car for 2007. The company may also sponsor the London to Brighton Solar Car Run in 2008 (dependent on the number of university entries received).
It is thought that this marketing strategy will equal several hundred thousand dollars of conventional Ad Agency spending. As an example of the kind of media coverage such nautical antics generate, you have only to look at the newspapers when Ellen Macarthur completed her world circumnavigation. The same holds true for Sir Francis Chichester and Sir Robin Knox-Johnston.
The design of the Solar Cola can is copyright protected, with trademark applications in the USA, Australia and Europe pending in Class 32 and granted rights in the UK. Introduction of the drink is held in abeyance pending official launch of one or other sponsored projects, which will be activated when the time is right, such activation to coincide with the market introduction of the drink.
Solar Cola PLC is shortly to be activated for online investment as their trading arm. The company is forecast to produce excellent results for investors, with sustained growth to be followed by an eventual flotation on the Stock Markets of the world in the next few years. At this point estimates suggest investors will reap substantial gains - in line with international Licensing expectations.
Solar Cola Ltd is managing the funding requirement for the trading company. They are looking for medium term or seed investment between £4-5 million to kick start phase two of the venture.
If you are a Business Angel, or Equity House, looking for an opportunity with the potential for good returns, please contact SOLAR COLA LTD for details. Please ask for the funding project manager: Nelson Kruschandl
+ 44 (0) 1323 831727
+44 (0) 7905 147709
Why Trade the Forex?
For small investors/speculators, the FOREX may well be the last great financial frontier - the place where, at last, the trader with the right tools can actually make money.
5 UNIQUE ADVANTAGES OF TRADING THE FOREX
Watch with Amazement and Ever-Increasing Confidence as Your New Forex Trading
Account Continues to Soar WEll BEYOND any Previously Realized Heights.
A taste for adventure capitalists
Solar Cola - a healthier alternative
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