Managed Accounts - Why Managed Funds?

On this page:
Why Managed Funds?
Advantages of Managed Funds
Note of Caution
Investment Range

Managed Account Contact
managed@fxplatinum.com

Self-trading in the currency markets is at best a difficult proposition. To be successful a currency trader must follow market movements 24 hours a day, six days a week. Many Forex investors do not have the time, experience or desire to trade with this intensity themselves. Forex Managed Accounts were created for investors with risk capital who do not necessarily want to trade on their own. In a Forex Managed Account the positions belong to your portfolio alone. Unlike mutual funds or hedge funds which commingle your funds with other investors, a Forex Managed Account is in your name and all or part of your funds can be redeemed within one day. There is no lock up period.

The managed account only holds your positions and allows you to follow a cost-basis for each of the currencies in your account. Based on your long-term goals, risk tolerance and time horizon, you can select a FX Platinum currency professional with your trading outlook to actively manage your portfolio. Whether you're interested in a conservative or aggressive program, you will find the trader who will suit your risk parameters.

Ability to Profit in Rising or Declining Markets:   Unlike equity and fixed income managers, a currency hedge fund manager employs both long and short positions with equal facility. In currency trading there is no difference in profit potential between a long and short position. Because of this characteristic a currency portfolio is not 'biased long' but able to profit under any market conditions.

Global Diversification:   The performance of equity and fixed income investments in one country is often highly correlated with the performance of equity and fixed income investments in other countries. As a result, global portfolios composed solely of equity and fixed income investments lack full diversification, even if they are geographically dispersed. Investing in currencies gives investors access to markets beyond equity and fixed income investments, providing more complete diversification and a reduction in portfolio risk.

Reduce Portfolio Risk While Enhancing Returns:   When combined with an investor's existing portfolio of equity and fixed income instruments, the Forex Managed Account Program reduces the volatility and risk of that portfolio while enhancing long-term returns.

Risk Control:   Investing in currencies incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investors' account value. Leverage is an acceptable and useful tool when used judiciously and with strict risk management techniques. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional "buy and hold" investments. Although returns are far from guaranteed, professional hedge fund managers tend to out perform individual speculators by their deployment of disciplined money management techniques and a system trading approach. Professional hedge funds also tend to use their leverage more judiciously thus avoiding sudden catastrophic losses.

*Transactions in forex carry a high degree of risk. The amount of initial margin is small relative to the value of the currency so that transactions are 'leveraged' or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss, and you will be liable for any resulting deficit.

Currency trading involves risk of loss and is not suitable for all investors. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by or from FX Platinum that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

The minimum investment in our funds varies from US$10,000 to $250,000. Investors who are interested in having their funds managed by professionals should contact FX Platinum at managed@fxplatinum.com or at 1-866-464-6966. Please specify investment size and its place in your overall portfolio.