Copyright © 2003-2007 Mako Fund Management Group - Site hosted and maintained offshore - All Rights Reserved
"Member Secret Society FOREX Sharks since 2003"
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Mako Fund Management Group
Welcomes You to our Global Currency Market
MakoForex
This market is totally unregulated. There is no effective way to regulate it. It is a loose network of banks and brokers operating an off exchange market. Its true that some Brokers are regulated, but the Market as a whole is not. There are often discrepancies in quoted prices between banks and dealing systems offering arbitrage opportunities for the quick acting traders out there. Now the greatest thing about this market, is that all of the things the SEC and other securities and futures regulators have deemed "unfair market practices" are perfectly legal and considered just plain smart business. Forex is pretty much an anything goes market.
"Insider Trading" is just using common sense in our market. We talk to friends at banks and large brokers every day to see what most of their clients are doing. "Front Running" is considered a bank or brokers right and is perfectly acceptable. This opens the door to many tactics developed to take advantage of bank dealing desks front running a big client order. A Mega Fund might call several of the biggest banks with the same order and watch them all stumble over each other to get in front of the orders, which drives the price the Funds way. Try this stuff on Wall Street and you'd get prosecuted for not being "FAIR" which we beg to ask, since when is life ever FAIR? In our Market, if you have the guts to try to manipulate the market, more power to you. Be aware though, of the many other predatory FX Traders out there that will eat your lunch if you make even the slightest miscalculation!
The Forex Market is a 24 hour market. There are no opening or closing bells. The market begins showing signs of life when our New Zealand banking friends get to the office on Monday morning, which happens to still be Sunday afternoon for an American. And the market runs 24 hours a day non-stop until our banking friends in New York enthusiastically declare "Beer Thirty" on Friday afternoon (or morning). There are lulls in the activity and liquidity between the time the New York guys get back from lunch and our Japanese banker friends hit their offices every day.
In the Forex Market, we can short sell at will. In fact the best trades around are always going to be a short sell because for some reason, markets claw their way up slowly but rapidly collapse on the way back down. There is no difference in margin requirements to short sell in our market. No waiting for an uptick that may never come, no restrictions at all. In fact there is no difference in cost either, other than the difference between the short term interest rates of the currencies in the transaction. So if we short a currency against one that has a lower interest rate, than we end up paying the difference every day at 5:00EST if the trade is not covered, and if it is the other way around, we collect the rate difference as a bonus profit.
The interest rate differential also brings into play what you may have heard called "the carry trade". This is when we sell short a currency that has a low interest rate, and use the proceeds to buy currencies with higher interest rates. Right now, the ultimate carry trade (using non 3rd world currencies) would be to borrow the Japanese Yen and buy the New Zealand Dollar with it (buy NZD/JPY). But, markets are not always going to allow that easy $$$$ to be made. If the exchange rate of NZD/JPY starts heading south (falling) any profits made on the interest rate arbitrage can quickly be overtaken by larger losses in the exchange rate movement. Hedge Fund traders fantasize (see "short selling" explained above) about the days when all those "carry traders" panic and head to the exits at the same time. Often times Carry Traders are deliberately set-up and trapped like hogs for slaughter by their Market Makers.
To sum this all up, the FOREX Market allows the most trading opportunities of any financial market in the WORLD. And the more trading opportunities, the more potential for YOU to make a PROFIT.
If you are confused, don't feel badly, sometimes I myself stare at the LCD screens mumbling "What the *&*#&$^#* is going on?!" If you want more information on the Forex Market in general, please Email us and we will do our best to enlighten you.
Copyright © 2003-2007
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Massive, Consistent Market Liquidity
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Largest Financial Market in the Solar System
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Trade
24 hours a day, 6 days a week if so inclined
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Totally
Unregulated Global Financial Market
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No SEC insider trading crap to worry about
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No minimum account size or "Day Trader" rules
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Sell Short at will
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Leverage as high as you dare
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Need only track a handful of trading instruments
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The noblest of lifes three oldest Professions
Marcus Locke rediscovered Spot Currency Trading in 2002, after several years absence from the Markets.
The following is a unique and updated essay on what makes the FOREX Market so alluring.
Lets start at the beginning. It used to be that the value of a currency was actually tied to something deemed valuable, Silver or Gold. Therefore the exchange rates between rival nation currencies were pretty much fixed at a set rate common to Silver or Gold. Speculation would have been a complete waste of time.
Out of the blue, God smiled and gave us Richard Nixon, the 37th President of The United States of America. With the stroke of a pen, the U$D (US Dollar) became nothing more than an IOU note, which could only be redeemed for similar IOU notes of dubious value. Now right or wrong, that is a matter for a whole different page. But President Nixon bless his soul, unleashed this beast popularly known as Forex Speculation upon the World.
So now, the values of rival nation currencies often fluctuate wildly at the markets whim. We simply anticipate and react to fluctuations in the perceived values of these basically worthless paper IOU notes called "money".
Since President Nixon's action, the Forex Market has become the largest financial market in the WORLD. We are approaching a daily volume of $2 TRILLION in daily turnover. We are bigger than all other financial markets combined! This market has become so monstrous it is nearly impossible for one or more entities to corner it, or influence it for more than a very short period of time. Even the Central Banks are having a hard time controlling the markets movement when they try.
Why You should get into Currencies
MakoForex.com August 2003
By Marcus Locke
