Businesses like consistency; it helps them plan for the future. To achieve consistency, businesses try to remove as many variables as possible. Currency risk is a major variable. If the value of the pound compared to the dollar goes down or the strength of the dollar compared to the pound increases then the value of the apartment building and the value of the rent goes down as well.

The apartment building generates £, in net income per year, or £16, If you wanted to hedge out your currency risk and have a consistent income in US dollars every month, you would short £16, If the value of the pound rose compared to the dollar, you would make additional money on the rents, but you would lose a corresponding amount on your hedge. Conversely, if the value of the pound fell compared to the dollar, you would lose money on the rents but gain a corresponding amount on the hedge.

As you raise your rents, you would just increase the amount of your hedge. Now, on to the real reason that most people look at Forex trading — speculation. Online trading is a great revolution see our article: What is Proprietary Trading?

for a more in-depth discussion. Online trading took what was once the domain of an exclusive club and democratized it. Online Forex trading opened up a world that was previously only the realm of inter-bank transfers and hedging vehicles for international businesses and gave the public a potential rocket ship for building wealth.

But like rockets, an online Forex account in uneducated hands can blow up, leaving a fiery pyre of destruction in its wake. The unfortunate fact is that most businesses offering Forex trading for beginners focus on getting a member of the public to open an account and then turn them loose create great wealth or unfortunately more often turn their accounts into blazing infernos.

Most companies that are offering online Forex trading entice people to open small Forex accounts, give them a Forex login and password to their new accounts, run them through a quick Forex trading tutorial, and then turn them loose with massive leverage, but no real training, coaching, mentoring, or supervision.

The Forex Market can be difficult for beginning Forex traders to understand. For one, there is no centralized foreign currency exchange as there is, for say, stocks and the New York Stock Exchange. The Forex market is truly distributed, using Electronic Communications Networks ECNs.

Because the earth rotates and Forex transactions are inter-bank transactions, the Forex Market is open ½ hours a day, five days a week. From closing time for US banks in Hawaii to the opening of banks in New Zealand is a half hour. Since the Forex markets are live ½ hours a day, your Forex broker will allow you to trade all ½ hours the markets are open. When reading Forex trading reviews, one thing becomes abundantly clear: the choice of your Forex broker is important.

This all boils down to the most important question: is Forex trading profitable? Done correctly, with proper training, support, mentoring, supervision, and capital, Forex trading can be very profitable.

Like trading any financial instrument, Forex trading takes education, support, and capital. The terminology and structure of Forex trading differs from everyday stock trading. Forex trading is pairs trading, where you are long one currency and short another currency at the same time. This can be difficult for beginning Forex traders to understand, especially if they are trading a currency pair or currency cross where one of the currencies is not their native currency. While stocks are priced in dollars and cents, Forex pairs are priced in PIPs, which stand for Point in Percentage.

Currency pairs rarely make the same percentage moves as stocks do in the short term, so they require more places after the decimal point to calculate price movement. Next, not all currency pairs have enough liquidity to trade consistently. Maverick Trading convinces unsuspecting clients that they will train them to become professional traders while requiring the client to pay exorbitant fees. Maverick also places conditions on the accounts and trades of their clients that do not allow a client to ever successfully withdraw any profits.

This confirms that they are a scam. Maverick FX does not hold a regulatory certificate from any government body. They are not required to do so as the company only allows trading with company funds. What Maverick Trading did do when they first opened up shop is register their company with the SEC, however as can be seen on the government website. Maverick Trading has not filed any forms with the SEC apart from their initial company registration in !

Is it a good program? We have not found and it will be hard to find that Maverick Trading is doing anything illegal. The purpose of this article is to help people from losing their money. There is no real value or justified product being offered by Maverick Trading. The goal of every forex scam is to present themselves as a company that is as legitimate on as many levels as possible.

This means that the salespeople and support agents are trained to speak the language and be knowledgeable of the industry similar to actual financial industry professionals.

The training that forex scam sales people receive is meant to do just that. It gives them the basic understanding of markets and trading terms so that they can fool the unsuspecting victims into thinking that they are dealing with a professional. This has been confirmed over and over online by Maverick Trading employees. Here are a few examples from Indeed. com and Glassdoor. Keep in mind there are LOADS of fake reviews and scheming employee reviews. This first example is very telling as it depicts a Forex scam to the extreme.

No interest in actual service or professionalism, just Wolf of Wallstreet style quota. However they are no different than the likes of EuropeFX and Itrader. Like these Forex companies who have paid for endorsements with local sports teams to help promote their reliability and convey popularity, Maverick has sought partnerships and sponsors. As recently as two days ago on February 9, Maverick posted job opportunities for a remote foreign currency position.

This post was found on an fintech recruiting website and is in addition to their website posts which are plentiful. This is even true for many regulated firms. They often have good reputations which are completely built and bolstered through their own manufacturing. Maverick Trading is a boiler room scam that convinces individuals that they will be trained to become professional traders and requires them to deposit large amounts of money. Maverick works very hard to make themselves check off all of the boxes to appear legit and makes tremendous PR efforts.

Have you been scammed by Maverick Trading? The first time we tried using the software, they gave us an account at CMB CapMB , and the second time we were assigned to the broker StoxMarket. Both of these brokers are not licensed or regulated. See real brokers here.

There are a few things that make us believe that the Forex Maverick Software may be a just another scam to get you to use a bad forex broker. You probably saw the screenshot below when you first signed up to Forex Maverick. But for most people that is not the reality.

At Maverick Currencies, we have thousands of people a month inquire about Forex trading with us. You still have dollars in your wallet, but those pesky Brits insist you pay for goods and services in British Pounds. Forex trading is doing the same thing, with different people, on a much larger scale, and for different purposes. Rather than exchanging dollars for pounds to go to a pub in London, in Forex trading, your purpose is either speculation or hedging.

Between the two purposes, speculation or hedging, hedging is largely the domain of business ventures. Your tenants pay their rent in British pounds, but unless you and your investors want to fly to London to use those pounds, you need to convert them into dollars to use in the United States. Businesses like consistency; it helps them plan for the future. To achieve consistency, businesses try to remove as many variables as possible.

Currency risk is a major variable. If the value of the pound compared to the dollar goes down or the strength of the dollar compared to the pound increases then the value of the apartment building and the value of the rent goes down as well. The apartment building generates £, in net income per year, or £16, If you wanted to hedge out your currency risk and have a consistent income in US dollars every month, you would short £16, If the value of the pound rose compared to the dollar, you would make additional money on the rents, but you would lose a corresponding amount on your hedge.

Conversely, if the value of the pound fell compared to the dollar, you would lose money on the rents but gain a corresponding amount on the hedge. As you raise your rents, you would just increase the amount of your hedge. Now, on to the real reason that most people look at Forex trading — speculation. Online trading is a great revolution see our article: What is Proprietary Trading?

for a more in-depth discussion. Online trading took what was once the domain of an exclusive club and democratized it. Online Forex trading opened up a world that was previously only the realm of inter-bank transfers and hedging vehicles for international businesses and gave the public a potential rocket ship for building wealth.

But like rockets, an online Forex account in uneducated hands can blow up, leaving a fiery pyre of destruction in its wake. The unfortunate fact is that most businesses offering Forex trading for beginners focus on getting a member of the public to open an account and then turn them loose create great wealth or unfortunately more often turn their accounts into blazing infernos.

Most companies that are offering online Forex trading entice people to open small Forex accounts, give them a Forex login and password to their new accounts, run them through a quick Forex trading tutorial, and then turn them loose with massive leverage, but no real training, coaching, mentoring, or supervision. The Forex Market can be difficult for beginning Forex traders to understand. For one, there is no centralized foreign currency exchange as there is, for say, stocks and the New York Stock Exchange.

The Forex market is truly distributed, using Electronic Communications Networks ECNs. Because the earth rotates and Forex transactions are inter-bank transactions, the Forex Market is open ½ hours a day, five days a week. From closing time for US banks in Hawaii to the opening of banks in New Zealand is a half hour.

Since the Forex markets are live ½ hours a day, your Forex broker will allow you to trade all ½ hours the markets are open. When reading Forex trading reviews, one thing becomes abundantly clear: the choice of your Forex broker is important. This all boils down to the most important question: is Forex trading profitable? Done correctly, with proper training, support, mentoring, supervision, and capital, Forex trading can be very profitable. Like trading any financial instrument, Forex trading takes education, support, and capital.

The terminology and structure of Forex trading differs from everyday stock trading. Forex trading is pairs trading, where you are long one currency and short another currency at the same time. This can be difficult for beginning Forex traders to understand, especially if they are trading a currency pair or currency cross where one of the currencies is not their native currency. While stocks are priced in dollars and cents, Forex pairs are priced in PIPs, which stand for Point in Percentage.

Currency pairs rarely make the same percentage moves as stocks do in the short term, so they require more places after the decimal point to calculate price movement. Next, not all currency pairs have enough liquidity to trade consistently. The eight major currencies in Forex trading are:.

These eight currencies provide the most liquidity and the tightest spreads in trading, allowing you to concentrate on the trade itself and risk management rather than worrying about whether you got a good fill on your order. The dominant Forex pairs are listed in the following chart. The typical time horizon to trade Forex is intra-day to several days, but rarely longer than a week.

Because the time horizon is so short, most speculative Forex trading is completely technical. Learning technical analysis is a key to Forex trading.

Forex trading can also be event-driven, but even in conjunction with the fundamental reaction to the event, there is still an underpinning of technical analysis required to trade Forex. Anyone who wants to learn to trade Forex will absolutely need to learn technical analysis and proper order entry. At Maverick Currencies, we teach our proprietary traders the T.

system, which stands for Target, Entry, Stop, and Timeframe. Whether you are entering a position long or short, the procedures are the same. TARGET is a reasonable expectation of where a position could go, based on previous technical movement of the currency pair.

ENTRY is the point at which your order was filled, whether it be a from a market order, limit order, or stop order. STOP is a protective stop-loss order to limit risk. This, too, is based on a reasonable expectation of at which point a trade would be proven broken, again based on sound technical analysis. TIMEFRAME is simply the timeframe you anticipate holding the position until your TARGET price is reached. This could be an hour, several hours, a day, or several days. The timeframe helps determine what a reasonable price movement for both TARGET and STOP would be as well.

A currency pair that you could reasonably expect to move 40 pips in an hour may take a week to make a pip movement. The leverage in Forex trading is massive. Before Dodd-Frank and currently in other countries, the leverage is even higher, often or even greater. This leverage is great when a trade is going your way, but it is the kiss of death when the trade is not going your way. A common mistake among beginning Forex traders is to trade for dollars rather than trading for pips.

At first, this sounds counterintuitive because any movement of any amount of pips in a position will have a direct correlation to the profit and loss on the position.

By concentrating on trading for pips, traders are able to concentrate on the technical aspects of the trade itself, entering the trade correctly, taking profits when the trade has run its course, and stopping the trade out for a small, manageable loss when the trade goes against them. This type of risk management relates directly to position-sizing. The trade will be proven wrong if it goes against the trader a total of 40 pips, but there is also a reasonable expectation that the trade could be profitable for a total of pips.

The trader calculates the position size for that specific position based on those metrics. The position size for this trade would be half the size of the trade that only needs 40 pips in potential risk.

If the trader put the same dollar amount into each trade, the risk in the second trade is actually twice the risk of the first trade. Trading this way provides no consistency in risk management and actually makes long-term profitability more difficult for the new trader. Forex trading is a great way to create wealth, but the inherent leverage in Forex makes ill-educated or unprepared trading a recipe for disaster. If you want to know more about trading foreign currencies, there are many books that treat the subject with the respect it deserves.

You can tell which ones are worth reading by the amount of time they devote to risk management and position sizing rather than the mechanics of trading. If you are serious about trading Forex as a consistent source of income and a way to build wealth, we recommend exploring proprietary trading firms that specialize in Forex Trading.

The training program should be robust and support should be extensive and continuous. The firm should provide supervision to its traders and have a dedicated Risk Manager to guide traders through rough times.

In the end, with proper risk management, trading Forex is an exciting and fulfilling market to learn and trade. Darren Fischer is the CEO of the proprietary trading firm Maverick Trading. Maverick Trading has two divisions. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Post comment. Skip to content. Media Trade Our Money Trading The Maverick Way Firm Capital Access The Application Process Frequently Asked Questions Jobs Continuing Education Contact Us Reviews.

Apr 14 Hedging v. Speculation in Forex Trading Between the two purposes, speculation or hedging, hedging is largely the domain of business ventures. Online Forex Trading Online trading is a great revolution see our article: What is Proprietary Trading? The Forex Market The Forex Market can be difficult for beginning Forex traders to understand.

Forex Brokers and Trading Platforms When reading Forex trading reviews, one thing becomes abundantly clear: the choice of your Forex broker is important. Major Eight Currencies and Dominant Pairs Next, not all currency pairs have enough liquidity to trade consistently.

The eight major currencies in Forex trading are: US Dollar USD British Pound GBP Eurodollar EUR Canadian Dollar CAD Australian Dollar AUD New Zealand Dollar NZD Japanese Yen JPY Swiss Franc CHF These eight currencies provide the most liquidity and the tightest spreads in trading, allowing you to concentrate on the trade itself and risk management rather than worrying about whether you got a good fill on your order.

Yen Crosses Pound Crosses Euro Crosses Dollar Crosses USDJPY GBPUSD EURUSD USDCAD EURJPY GBPCHF EURGBP USDCHF GBPJPY GBPCAD EURCHF Aussie Crosses CHFJPY GBPAUD EURCAD AUDCAD CADJPY GBPNZD EURAUD AUDNZD AUDJPY Canadian Cross EURNZD AUDCHF NZDJPY CADCHF New Zealand Cross AUDUSD NZDUSD Technical Trading and Forex The typical time horizon to trade Forex is intra-day to several days, but rarely longer than a week. Leverage and Risk Management The leverage in Forex trading is massive.

The Next Step to Trading Forex Forex trading is a great way to create wealth, but the inherent leverage in Forex makes ill-educated or unprepared trading a recipe for disaster.

Category: Uncategorized By cmarquez April 14, Leave a comment. Share on Facebook Share on Facebook Tweet Share on Twitter Pin it Share on Pinterest Share on LinkedIn Share on LinkedIn. Previous Previous post: High Percentage Trading Next Next post: Stock Portfolio Management. Related Posts.

EURCAD SHORT. Leverage and Risk Management The leverage in Forex trading is massive. STATEGY TESTING Liquidity Grabs RR MOVE STOP LOSS TO BE AT 2R. Avapartner forex affiliate program — avapartner review What is Money in Economics? Search for:. The Forex Market can be difficult for beginning Forex traders to understand. As the trader becomes more skilled, they get more profit.

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