Volatility the Carry Trade and The Macro Trader

By Ben Summers

If you are a global macro trader you trade anything and everything as long as you can find an exploitable edge. The majority of your trades are across asset classes trading stocks, bonds, commodities, and currencies. You are looking for uncorrelated returns from multiple asset classes.

They trade not only different asset classes but multiple strategies within each asset class. For instance in stocks they will trade outright long and short positions, merger arbitrage deals, asset class arbitrage where you trade the equity against debt, and even pairs trading. They do much of the same in commodities and currencies as well. Essentially they are looking for sources of return wherever they can find it.

Macro traders have one strategy that most traders never use and that is the currency markets. Long the playground of only banks, currency trading is now available to the masses and is getting better and better. One of the best strategies in currency trading is that of the carry trade.

To utilize the carry trade you go long a high yielding currency and go short the lower yielding currency. You can make money in one or two of two different ways. If the currencies remain flat you will earn the interest rate differential. You can also make money by being right on the directional part of the trade, that being if they move in your direction.

Using leverage you can really juice your returns in the carry trade. For instance if you are earning a three percent yield from the differential then you can earn thirty by being levered up ten times. If you lever up twenty times you will earn sixty percent. While these gains sound great they do come with great risk. You knew this couldn't be that easy.

Nope, simply put juicing things on the way up will kill you on the way down. If volatility is anything but low you will get killed with excessive leverage. Instead you need a good way to track volatility and measure when is a good and a bad time to be in the carry trade.

There are a gazillion ways to measure volatility but some of the best ones are by using an actual volatility index. We have the VIX on the SP500 which is a surprisingly good measure of financial volatility and is suitable for currencies as well. But these days we have some volatility indexes from many of the investment banks which make it far easier to measure currency volatility and back test ideas.

If you are global macro trader trading the currency carry trade then you need to be paying attention to volatility or eventually you will lose a lot of money. By focusing on the risk you will be in a far better position for the rewards. - 23309

About the Author:

If you need actionable trading ideas then check out The Macro Trader It is a weekly global macro trading advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

Gold Bullion At Your Rescue.

By Jennifer Davis

Ever since 1920, the gold bullion system has undergone change in the way gold is traded. In this present decade, almost every wealthy nation has taken up this system for business purposes. This system has made a significant entry in individual businesses as well. Following the long history of this system, the reserve and central banks still trade gold under this system.

Recently, this trade gold system has been proved useful in determining the status of individual business. Regardless of how rich a country is , the central and reserve banks store the savings in gold form.

Gold bullion system can give enormous potential to your business, as gold provides more strength and better durability as an asset. The economic fluctuation followed by recession in year 2008 left many countries in economic crisis. It is more than enough to prove how safe and beneficial it is to invest in gold as an asset than in a volatile stock market.

Businesses profit greatly from gold investments, as gold in the global market is now highly regulated and controlled. Due to the strength service that it provides and also the high value in the world market, gold is the most trusted means of savings. As a result of the global recession in 2008, many business organizations have started to trade gold.

Investments in the form of paper money always has a greater amount risk. However, purchasing gold bullions and selling them later gives an added return value, as the price of gold keeps increasing. This can improve your business standards in many ways. In fact, the history of gold prices states that the price of gold either remains constant or shoots up, but never undergoes a steep fall.

This system was started in 1944 Brenton Wood and is existent ever since then. This proves the importance of this system and bears a significance to all the above stated reasons and to trade gold.

History gives an insight on what is good and what involves risk for your business. So make up your mind now and invest in gold to keep yourself safe from unpredictable circumstances in the near future

Thus, investing in gold in the form of gold bullion is an effective and safe way to strengthen your business and can help you to save your business empire from future monetary losses. - 23309

About the Author:

To obtain more information on gold bullion investment for your business, you may research investment guides on how to buy gold.

Finding A Builder In Costa Rica If On A Budget

By Randy Berg

Right now, the properties in Costa Rica are hot. Many investors are making a beeline to this mainland and buying large areas as the going rate is a steal. You can reach this beautiful mainland in less than three hours by air. When you buy property, consider finding a builder in Cost Rica who is both knowledgeable about the climatic conditions of the place as well as someone who can hand over your finished project on time.

Apart from finding a builder in Costa Rica who can fit into your budget, you have to ensure that the person in question is capable of getting the necessary permits and documents for building on your premises. He should be up to date with the current policies and regulations. He has to reckon with the climatic conditions, including the heavy rainstorms, when building for you. Most of the houses use cement and iron unlike other areas in North America.

If you are on a tight budget, chalk out your requirements and make out a plan before finding a builder in Costa Rica. You can download and research all the information on line or get professional help from a lawyer friend. This way, you learn to work around the loopholes and gain contacts, which you can incorporate into your budgeting.

When you invest your money into any property for investment, consider the following points. Will you decide to settle down here one day or just keep the property until you are able to make a profit and then move on? Is this where you would like to come for your annual holidays with family and friends? Check online about finding a builder in Costa Rica who can work for you within the specified budget.

There are a lot of developers working on large properties in Costa Rica and they often hand out smaller assignments to other builders. See if you can get one of these who are not as rich and famous as the big builders and less expensive to do your job for you. You can search on the internet while you are finding a builder in Costa Rica and do some research on their reputation before you finally hire them

Finding a builder in Costa Rica is not difficult. A local builder who is not too expensive, capable of handling building permits and is up to date regarding the regulations is what is important. He should be able to procure the documents and have the right contact so that there is no time delay. Be prepared for a little delay, when the unexpected happens, as this is something beyond anyone's control.

Some builders import their materials from America whereas others make their own wood work etc. in Costa Rica. Discuss the cost of building your home or refurbishing it before you settle for a builder after finding a builder in Costa Rica. - 23309

About the Author:

Let Randy Berg help you find stunning and gorgeous properties at Costa Rica Real Estate. Interact with us through our forum.

Get Grant Money For Free!

By John Holden

It requires effort, time as well as proper research in order to find out which government organization offer grants that fulfill specific purpose in particular area. Reading this, one will definitely get all necessary information regarding government grants and will be helpful to one in research and study. If a person is really keen to start his own business such grants may be helpful and he may face many troubles in getting a grant. It is a fact that government funds are the best choice for all non profit organizations as well as for programs and services that are helpful to common public.

Finding government funds

If one wants to gather information from official website of US government, it is the right place from where all the necessary information can be gathered by an interested individual. Further, this website will be an electronic media through which all necessary information can be gathered. It also helps one in applying for various grants. Moreover, one can also gather important and useful information concerning various kinds of funds. Information on various government organizations that are granting funds in different areas can also be gathered at a click of the button. However, one can also see CFDA -Catalog of federal domestic assistance, which has listing of different types of grants given by government along with assistance. One can make the use of keyword method which helps one in finding their required grant quickly and easily. The most important thing is to study whether the particular fund which one is looking for meets one's eligibility criteria. Only after thorough study one should think of applying.

Most of the grants can not be accessible throughout the year, therefore people should go for them only when proclaimed by any recognized government agency. Whenever, the government determines some amount for a particular grant, it adds these announcements in "Federal Register". The individuals can keep themselves updated regarding latest grants by having a look of this register. In addition, they can also opt for browsing official websites of government organizations in order to know about the recent announcements.

These government agencies grant funds to individuals who want it for education purpose. Grant of funds is also done for scientific research. Apart from this there are numerous government agencies who grant funds for many other reasons.

Receiving government grants

To get government grant is not a child's play. There is a lot of competition in it and if one wants to come off successful, one should give a proposal in writing wherein all the necessary details are mentioned. One needs to be alert as there are many organizations which are not trustworthy and are doing illegal work. One should be aware of these organizations as they may charge fee also.

Government grants are taken as absolutely free which means that individuals are not required to repay the awarded fund back to the government. However, in case of bigger funds, people can be asked to make available certain evidence of periodic progression, financial statements and business evolution to government or government agencies.

So, for the individuals who believe in themselves and want to acquire well qualified for a specific category of grant, it is the right time to do more research work or establish contact with a professional to aid in complete procedure of getting loan. - 23309

About the Author:

To read more about US grants, check out Gov Grants Direct. Also, check out the Gov Grant Direct review now!

Make Gold Work For Your Business.

By Noam Perez

As far as investment is concerned, gold can be the best option to invest in. Gold can yield good returns, when sold. Gold investment started many years ago, which was called gold bullion system. Since then, gold became the most preferred mode of investment to secure the reserves and surplus of a business enterprise. Companies can trade gold under this system. Small, medium and large scale industries can buy as well as sell gold to earn profits.

Nowadays, many of the western countries trade gold on a huge scale. In fact, Asian nations also also liberalized markets for gold trading these days. The gold trade between the Asian and Western nations plays a key role with respect to global economy.

Companies can easily trade in gold these days, as they have many opportunities under the gold bullion system to sell gold in the open market that will earn them a substantial amount of profit.

Gold is an invaluable asset, that can flourish your business to a great extent. In the current market scenario, often gold is directly or indirectly affected by the stock markets. The fluctuations in stocks have a significant effect to the pricing as well as to trade gold.

It is a known fact that gold prices do not fluctuate to a great extent. The gold that companies purchase is later made available to the consumers in the form of wafers, bars or gold bullion coins.

As compared to the prices of stocks and commodities, gold prices do not fluctuate frequently. The decrease in value of gold is very nominal, but it increases on a faster pace. Companies usually trade gold in the form of bars and bullions or coins.

Many companies also purchase gold from individual sellers rather than gold merchants. Gold is perhaps the most secured asset for investment purpose in times of financial crisis such as recession and political instability.

Many companies are ready to buy gold bullions from individual sellers as well. With frequent fluctuations in the security and stock market, gold is undoubtedly the best option for investment. It helps the business against future uncertainties, political instability and other associated risks. Investment in gold is an ideal way to make your business stable in the days of financial crisis. - 23309

About the Author:

Before deciding to buy gold, make sure to receive expert suggestion on profitable investment in gold bullion business.