Liquidity and the Forex Forecast

By James Pynn

Financial markets are always concerned with liquidity. If we take all the financial markets at work in the world today, none of them can compare to the size and liquidity of the foreign exchange market. That's right, the forex market now accounts for more than over $4 trillion a day in profits. You read that right: $4 trillion a day.

The center of this monolithic market is the city of London. In fact, London accounts for about 35% of all the forex trading in the world, every day. Now, this doesn't mean you have to move to jolly old England to get a piece of the proverbial pie. No, all you need a little know-how and access to the markets.

The know-how is the easy part. It's not hard to enroll in a reputable forex course that can show all the ins and outs of the process. But, please, not matter who you sign up with -- sign up with somebody. The last thing you want to do is jump into the water and not know how to swim.

Don't be intimidated. Trading foreign currencies is not too dissimilar from other kinds of trading. If you have successfully day traded in the past you won't have a hard time catching one. With the right training, you can plunge headlong into this most liquid of the liquid markets. The key, is staying above water.

Though the current economic climate is far from nurturing, the forex markets aren't expected to plummet. Indeed, as long as there are world currencies, there will be a future for forex trading. So, even though the death of dollar has been heralded, there are plenty of other kinds of dollars you can choose from, including the Canadian and Australian. Furthermore, you can slip into the burgeoning bills from China, India and Brazil as well. As these countries emerge from the abyss of the Third World, they are projected to be the dominant world currencies and economies. Take heed. - 23208

About the Author:

If you want to delve into this lucrative field, you have to arm yourself with the right information. Enroll in an accredited forex course before you begin your journey to London.

Master Limited Partnership (Part I)

By Ahmad Hassam

Many analysts are of the opinion that commodity investing maybe the best investments in the early part of the 21st century. Take the name of oil, oil is the most heavily traded commodity in the world right now. Gold is another commodity that is reaching record price levels. Gold prices for the first time have breached the unheard of $1000 per ounce barrier. Investing in commodities may be the something that investors thought of boring and dull only a few decades back but not anymore now. If you are interested in investing in companies that are involved in the production, transformation and distribution of commodities, than one of the best ways to do so is through investing in the Master Limited Partnership (MLP).

So how do you go about investing in an MLP? The shares that an MLP issues are called Units and the investors who own them are known as Unit Holders. MLPs are public entities that trade on public exchanges. An MLP issues shares that trade on an exchange just like a company stocks that trades on an exchange. You can invest in an MLP by buying its shares on an exchange. You can instruct your broker to buy the units of an MLP that you are interested in investing.

Right now there are not many MLPs in the market. You will only find 3-4 dozen MLPs listed in the different stock exchanges. When you invest in an MLP, you are essentially investing in public partnership. There are tax advantages to investing in MLP. Unlike regular corporations, an MLP is only taxed once. Now most of the MLPs trade on the New York Stock Exchange. A few MLPs also trade on the NASDAQ and the AMEX. Tax exemption on MLPs gives them certain benefits that other companies in the same industry lack. There is a tax exemption on MLPs. You must be curious how this tax advantage works out. Because of

There is a tax exemption on MLPs. You must be curious how this tax advantage works out. Because of Congressional Legislation, any MLP that derives 90% or more of its income from the production, distribution and transformation of commodities qualifies for this tax exempt scheme.

Since an MLP has got the tax exempt status it will only have to generate only $1.54 for each dollar that you invest in it. Suppose you invest $1 in the stocks of a regular corporation and you are in the 35% tax bracket. Corporate tax is 30% of its before tax income. This means that for each dollar that you invest you need to get at least $1/ (1-0.35) =$1.54 just in order to breakeven. So the corporation will have to generate $1.54/ (1-0.3) =$2.2 for each dollar that you invest in order to return you $1 after tax profit. In most cases, the majority of these GPs in MLPs are other corporate entities setup with the specific purpose of running an MLP. This tax advantage gives an MLP competitive advantage as compared to other corporations when competing for assets. This means a huge advantage for an MLP. Now an MLP is run by a General Partner (GP).

The role of a GP is very important in an MLP. You as an investor in the assets of MLP might have a very limited role or say in its running. You can think of yourself as a sleeping partner in the MLP. In most cases, the majority of these GPs in MLPs are other corporate entities setup with the specific purpose of running an MLP. This tax advantage gives an MLP competitive advantage as compared to other corporations when competing for assets. This means a huge advantage for an MLP. Now an MLP is run by a General Partner (GP). But you don't have to worry much about the GP. Most GPs do a good job of running the MLP as it is in their financial interests. GPs know that if they don't make sound management and investment decisions, most of the investors my eventually deicide to divest themselves from the units of the MLP. Now you must know as a limited partner in an MLP, you have limited voting rights. This means when you invest in an MLP, you are giving away the keys of ownership to the GP. This means you are out of the decision making in an MLP.

An MLP is obligated to distribute all available cash back to its unit holders on a quarterly basis, so you will be getting a quarterly income from your units. Secondly as the MLP expands and grows overtime, its units may give you capital gain as well. Investing in MLP units can give you quarterly cash flows as well as appreciation of the unit price. However, always do your due diligence when you want to invest in an MLP. - 23208

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Trade Dow Futures . Learn Commodity Trading !

Trade Options with Insurance

By Donald Scott

NEW OPTIONS TRADING SYSTEM I have always considered my option strategies to be very safe, but recently, I developed a new twist on things that has given me a way to trade with risk-free insurance. I'm very excited about my new trading system, and I would like to tell you about it.

RISK FREE INSURANCE I have recently developed a new trading system with options which my colleagues say is "really amazing." In short, I have developed a way to trade options with the risk-free insurance. This means that I can invest more safely but still maintain a nice level of return on a monthly basis. My new trading system is something very unique that I have never heard of or seen before.

REAL LIFE TRADING EXAMPLE A common way that an option trader might use my new trading system is with the popular option spread called the Iron Condor. The well-known downfall to the Iron Condor is that if the market moves to the upside or downside in extreme, then the Condor can suffer a large loss. However, if one could trade the Iron Condor with insurance, then this strategy would be a simple way to cash flow the markets on a monthly basis. My new trading system allows me to trade the Iron Condor more safely than ever before because I have developed a way to protect it with insurance that doesn't eat up the return potential on the trade. The once feared Iron Condor now welcomes the market in all of its forms, whether it's calm or highly volatile, it doesn't matter, because my Iron Condor is surrounded with risk free-insurance.

TRADING RESULTS I have just started using this strategy, and this first month might just turn out to be a big winner. If the market makes just a small move to the downside over the next week, I am looking at a 50% possible gainer, and best of all, my trade is risk-free. It's hard to explain, but if I could show you the risk graph, then you would understand. I am extremely excited to introduce this trading system to my personal portfolio. I am already putting it to use, and I love the new dimension it brings to the Iron Condor as a monthly income strategy.

Before I leave I would just like to say that if you really want to learn how to trade options, then you should consider talking to me about my latest strategies. Visit my website, and I'll send you a free video to get you started on the right path. - 23208

About the Author:

Learn Risk Free Insurance Option Trading System that will teach you how to trade options with Risk Free Insurance. Learn Low-Drawdown Strategies at San Jose Options Mentoring Course

Commodity Exchange Traded Funds

By Ahmad Hassam

Commodity investing may become the hottest investment in the first decades of the 21st century. Right now gold prices have broken the $1000 per ounce barrier for the first time in history. It is predicted that this upward trend in gold prices will continue for the foreseeable future. Oil prices have also started reaching $80 per barrel and it is expected that oil price will soon be above the $100 per barrel mark. It may eventually reach the $200 per barrel barrier. If you are interested in investing in commodities than you can invest in a commodity mutual fund! Many people are not aware that commodities as an asset class has a lot of potential especially in the 21st century. It is being predicted that the 21st century belongs to the commodities.

Just buy the shares of the commodity mutual fund and let its NAV appreciate before you can sell for a capital gain. This is the simplest way for you to get involved in investing in commodities as the mutual fund portfolio management will be done by a professional manager and you have to do nothing.

There is another investment vehicle that is really hot right now with the public. ETFs started off some three decades back but became highly popular as investment vehicles in such a short time. Now, you must have heard about the Exchange Traded Funds (ETFs). ETFs are really hot investments these days. There are a number of ETFs that invest in commodities.

ETFs have many benefits. They trade like stocks but have the diversification advantages of a mutual fund. Now the good thing about investing in ETFs is that they give you the diversification benefits of a mutual fund with very low fees something like 0.7% as compared to 2-4% of the mutual fund. Driven by the growing demand of commodities by the investors many financial institutions are now offering Commodity ETFs.

So how about investing in commodity ETFs? Unlike a mutual fund whose net asset value is calculated at the end of the day and the shares of mutual fund cannot be traded during the day, you can go both long or short on ETFs all the time. Something you cannot do with a mutual fund! ETFs have the added benefit of being able to trade like stocks giving you the powerful combination of diversification and liquidity. Trade your ETF shares just like you trade your stock shares. Anytime go long or short!

ETFs are mostly constructed to mimic some market sector index. Sector ETFs are a hot investment right now. Now, you can find thousands of ETFs in the market on different market sectors, stock indexes, currencies, commodities and so on. This diversification plus liquidity benefit makes an ETF a better investment tool as compared to the mutual fund and the stocks.

The Deutsche Bank Commodity Index Tracking Fund is listed on AMEX and tracks the Deutsche Bank Liquid Commodity Index. This index is based on a basket of six commodities: light sweet crude oil, heating oil, gold, aluminum, corn and wheat. The first Commodity ETF in US was launched by Deutsche Bank in the start of 2006.

As always what you need is an ETF that tracks an individual commodity. Now, every month a new ETF gets launched. There are a number of Commodity ETFs that track individual commodities like crude oil, gold and silver. Do your research on Commodity ETFs, you may find a good investment. Now the ETF of our example invests directly in the commodity futures contract. If you have trade futures than you must know that futures are highly volatile. Now one of the downsides of investing in this Commodity ETFs is that it can be fairly volatile as it is based on commodity futures contracts that get rolled monthly. Another downside to this Commodity ETF is that it is based on a basket of six commodities only. - 23208

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Trade Dow Futures . Learn Commodity Trading !

Find Out How To Get A Low Interest Loan With Bad Credit

By Chantal Jacinth

If you are an average working class American and have had some financial difficulties in the past and now you have constantly been told "No" over and over again whenever you are applying for a new auto loan; then you have come to the right place. You will want to read this entire article as we are going to provide you some valuable information on this growing topic.

A car provides us with convenience and ease from getting from one place to another. After all who really wants to spend their morning walking to work; I do not know anyone who would prefer to do that. Well there is no reason to that once you realize that it is possible to get a low interest loan even if you have bad credit.

Finding a low interest auto loan for people who have bad credit is going to be different than someone who has good credit. After all we all know that most lenders are not going to want to lend money to someone who has had some financial difficulties in the past.

This is one of the main reason that you should never try to get financing through a dealership; most likely you will always get turned down. If you do happen to get that much needed loan for your new vehicle; do not expect it to be a low interest loan. People who do happen to get these loans face paying a huge price on it.

Most people are upset about not being able to qualify for a low interest loan at the beginning of the loan. However you should know that as long as you stay current on your payments and keep in good standing then in about 6 months you should be able to refinance to a lower interest rate.

One of the main things that you should keep an eye out when trying to get a bad credit loan is to find a company that understands your situation and is willing to work with you. Do not give up because there are some companies that will offer you that low interest rate loan; and is willing to work with you all you have to do is find them.

Be sure to visit our site below to find out how people have been able to get car loans for people with bad credit without a a lot of hassle. Stop putting up and listening to people tell you that you do not deserve that second chance. - 23208

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Auto Loan For People With Bad Credit You Can Get A Loan! Bad Credit Loans For People With Bad Credit