February 5th, 2010
Hard money lending investing aimes to profit from asset-backed financing in real estate, where the loan is given against low loan to value (of the property) or LTV value to guarantee profitability.
In addition to low LTV value, another typical character of a hard money loan is that these types are often issued at much higher interest rates than conventional property loans and are almost never issued by a commercial bank.
In determining an LTV, “value” is often defined as “today’s purchase price”, which the lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be sold quickly.
The hard money value thus differs from a typical market value appraisal, which assumes a situation where buyer nor seller is acting under duress for a quick sale.
For the lender, there are several obvious risks.
For one, as an asset backed loan, the value of the house against which the loan is given is the biggest of those risks and a lender needs to have familiarity and certainty in getting the price estimated.
In a fast declining real estate market, a portfolio of hard money loans may fast lead to significant losses to the lender.
A lender also does typically not rely on bank loan rates as a guideline for her rates, but rather, the hard money rates are often more dependent on demand and supply for this specific loan type and on the market condition for the underlying asset, the properties against which the loan is given.
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February 5th, 2010
Investing money market loan market is often overlooked in unprofessional portfolios due to investing heavily in stocks.
Professional portfolio managers, however, do invest in money market funds, representing nearly 23 percent of total fund market.
The money market funds are not FDIC-insured deposits. However, historically, money market funds have low variance of returns, making them the safest of all mutual fund categories.
This is why many (including companies) consider investing them a better inflation cover than keeping money in deposited in accounts with standard bank interest rates.
Unlike bonds, money market funds have low maturity, and a money market fund’s price is often stated in terms of its simple or compounded yield.
There are several types of money market funds available, both taxable or tax-exempt funds.
Taxable money market funds invest in securities whose income is exempt from federal income taxes, including Treasury securities.
However, the majority of funds invested in money market funds are in taxable types.
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February 5th, 2010
Broker forex online option trading is possible with several brokers that have their trading platforms web based.
The main types of doing forex option trades nowadays are via phone and via web based platform, of which the latter is gaining rapidly in popularity.
Typically, the brokerages, independent of how you trade, require minimum account sizes, of which can range from thousands dollars upwards.
Especially to options, however, you may have additional rules regarding the minimum notional value of the option contracts that you trade in.
Many consider forex options and derivatives in general to be financial instruments for the sophisticated investors. Some brokers may require that you have additional features of sophisticated investor, such as association with an institutional investment company.
Broker FX Online Option – Types of Options
The two types of options available for trading are plain vanilla forex options, which are simple puts and calls on currency pair.
These are also referred to as standard, or generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse.
The other type of forex options are the exotic forex options, which may refer to forex options on individual currencies that are less traded.
The more common reference, however, is to a forex option contract that is a derivative of a standard vanilla forex option contract and typically tailor made for the client, and not traded OTC.
Exotic forex options are more typically traded by commercial and institutional investors rather than retail forex traders
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February 5th, 2010
Forex trading signal software is a way to trade the market based on somebody else’s trading system, many times for free.
You can get these signals in many ways.
If the underlying trading system is based on long term, or “trend” trading system, daily emails are often enough.
However, the shorter the trading perspective and horizon, the faster you need the trading signals to your trading desk.
The faster ways include mobile text messages, actual phone calls, instant messages over the net, and alerts to your beeber.
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February 5th, 2010
Forex trading signal software is a way to trade the market based on somebody else’s trading system, many times for free.
You can get these signals in many ways.
If the underlying trading system is based on long term, or “trend” trading system, daily emails are often enough.
However, the shorter the trading perspective and horizon, the faster you need the trading signals to your trading desk.
The faster ways include mobile text messages, actual phone calls, instant messages over the net, and alerts to your beeber.
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February 5th, 2010
Forex online option trading is done via forex brokerages that also have options trading function.
Most of the forex online brokers don’t offer options trading, simply because most of the retail forex traders don’t normally trade in options for forex.
In addition, if these brokerages do trade in forex options, there are normally trading minimums, meaning minimum positions in options as well as minimum account sizes.
The forex options are basically of two types, either plain vanilla options or exotic options.
Of these plain vanilla or general options are the basic put or call options, sold OTC (over the counter).
The other type, exotic options, are normally tailor made to the customer, with specific strike prices and features. These options are normally not sold OTC.
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February 5th, 2010
Forex course trading are offered from several trading houses and online brokerages.
If you’re willing to go beyond the free courses, there are a lot of forex courses that offer complete trading basics and specific systems to get you started.
Before you sign up for any of the for-fee courses, make sure you are up to date on the types of trading strategies available, as well as on the types of trading markets, beyond plain spot trading.
You can trade forex via spot markets, CFDs, options, and futures, for example.
Also, make sure the course goes as deep as offering you the framework for money management, which is basically risk management, including position sizing and portfolio management.
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February 5th, 2010
Once you have a trading strategy in place, learning about trading techniques will show you how to place actual intraday trading calls, how to use market stops and other orders and how to choose the best forex dealer.
What techniques you use in placing trades can make a difference in your trading results. This is particularly true for day trading, where slippage (difference between intended trade price and actual price) can easily make otherwise feasible system useless.
You can learn techniques from trading books, seminars, and mentoring. In fact, mentoring is probably the best way to learn how to effectively make trades. However, mentoring is also the most expensive of the trading solutions to learn techniques.
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February 5th, 2010
Forex trading systems are turnkey forex trading solutions. The system gives signals for the selected currency pairs and the profits and losses are made by following these signals.
There are many ways to purchase or subscribe to systems. Some companies offer subscriptions to trading signals via emails based on their system. Others let you buy their software, which is used with selected currency pair’s data to get the trading signals.
Some systems are sold with all of the trading rules revealed. Others will be sold as black box systems, where you just get trading signals, but no detailed information what triggers the signals.
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February 5th, 2010
When purchasing a solution for forex trading, one of the first things you have to think about is the strategy that you want the system to use.
The major strategies in forex trading have to do with fundamental analysis and technical analysis.
With fundamental analysis, you make your own view as to where the markets are headed based on economic and other indicators. Or, you rely on fundamental analysis of a third party. Based on this view, you then make your trading calls.
As for technical analysis, you make your trading decisions on historical data (price, volatility etc.) of the forex currency pair. Technical analysis gives you signals whether you should be short or long of the currency pair or stay in the sidelines.
Fundamental analysis is much harder to teach of these two because it can place extraordinary weight on appearances and interpretation of situations. To assist in the analysis, many use a variety of econometric tools.
Some traders use a mix of the two, with fundamental analysis sometimes overruling the signals given by technical analysis.
You can purchase solutions for both of these approaches. There are many technical analysis solutions sold as PC software, books and taught in seminars and classes. As for fundamental analysis, possibilities are to look for good books on the subject or enroll in a mentoring program that teaches you to analyze the fundamental information.
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