GLOBAL ADVISORY SERVICES PRO TRADING FACILITIES 3MTEAM SECURITY SERVICES

Posted by Soniya Roy
3
Jul 16, 2015
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Why  Global  Market…..

The markets all around are growing over the time. Though BSE is one of the oldest market in the world but it could not grow in volume like the developed markets. Indian markets have the risk of gap up and gap down opening on the basis of fundamental outlook change in global financial markets. The US Markets offer a great opportunity to traders from all around the world. We need to explore such markets for the following reasons:

1.      These markets virtually never sleeps when it opens on Monday 3.30 am (IST) till 2.30 am (IST) on Friday. Thus giving an opportunity for traders from all around the world to trade depending on their availability to manage global risk/ hedging the portfolio.

2.       Adding future markets to a balanced portfolio has the potential to decrease portfolio volatility and reduce risk as traders can trade across a wide range of global markets.

3.       The leverage availability in future trading allows you to maximize your buying power resulting in a more diversified capital efficient portfolio.

4.       Due to large size and large number of participants, future markets are extremely liquid. This means that under normal market condition, with the click of a mouse you can instantly buy and sell at will.

5.       Cutting edge technology available in the global markets are unavailable in Indian market. On these platform, we can enter the trade with the pre-defined risk management with just a click of mouse.

There are many products from US market are available on NSE but there is no cue why the price of DOW future is rising and falling. When we trade the US markets we will be able to hedge this position with same future in US markets for any unknown volatility. Price of many commodity gets discovered after taking the cue from CME. (Gold Future fell from $2000 to $1146, but people in India could not optimize the gain due to sudden rise in Dollar index). People look for some cue from DOW, S&P 500, NASDAQ before Indian markets open. When one trades the CME products (all the products discussed above), they will be equipped with the input, before the market opens in India.

There are few products available in US, are not at all available in Indian markets which are traded globally like currency pair EUR/USD ($4 trillion a day).

 

Our Services :

 

We will initiate coverage on EUR/USD currency pair, S&P 500 Index Future ,  Gold / Silver  Future  The intention will be focused on providing 200-500 dollars per day to investors/traders and there will be a weekly call to big trades. There is merit and demerit with both the profile as the price behavior in both the profiled traders. The traders who aim to trade on weekly basis should be able to absorb bigger risk in order to arrest big profit, where as the daily traders can minimize the risk reward and accumulate small profit and bear smaller losses over the period and may take multiple trades with the trade set up.

 

There is a demerit in the weekly trade as those traders who does not have the 24 hours monitoring capability will get caught the other day. Therefore it is advised to trade intraday with multiple quantity and trades and remain liquid at all the time for opportunity. We shall recommend the trade and will be following the trade till the exit plan is executed. 

 

EUR/USD Currency Pair

The contract size of this pair is $125,000 and the price fluctuation is 0.0001(called tik or PIP)  which translates to $ 12.5. Average daily range is 115 tiks. This translates to .9% of the price. The quantum of loss or profit depends on the leverage used for the trade. If we  assume the leverage available to me is 50 times, then there is the probability of price move (.9 %* 50 = 45%) daily which is quite risky specially when the trade moves against.  The power of leverage and liquidity attracts more and more traders to this pair and the volume is growing every day. There are four contracts available to trade which expires every quarter (Mar, June, Sep and Dec.

 

CME GOLD/Silver  Future

 

This market is considered to be main source of cue for price discovery globally. The contract traded in this market is of $100000. The minimum price fluctuation is of $0.1 and translates to $10. Good market for positional traders and short term scalpers. A good scalper can make 100-2000 dollars a day with just single contract

 

S&P 500 Index Fuure

 

World knows this market is most consistent market. The Index moves with 0.25 points and the value is $12.5 . It is good to end the day with four points on profit side with $200 per day and it is gettable. One can easily make $4000 a month with ease.

 

Proprietary Trading

 

This part of business is started when the broking industry stopped giving benefits to brokers as the brokerage became very thin on competition. The brokers hired the traders, gave them the sub accounts and fund to trade. This has the advantage of reaping good benefits, with less expense as the traders are paid on sharing basis, the brokers do not pay fee to exchange and thus the expense is only on the infrastructure and up keeping of traders thus taking the risk and keeping all the probable reward.

 

In Global markets this can be planned in a manner that one pool account is opened with a broker of choice to trade on the CME. The sub accounts can be given to as many as traders deemed fit to trade according to the capability. A floor manager can be deployed who takes the responsibility of profitability of the floor and allows the traders to trade according to their expertise. A proper risk management can be set so that no one loses more than the authorized limit and his account is frozen for the day.

 

In our  view an account with $100,000 can suffice a trade floor. The safe side return will be 10-20% per month from this business model. In some cases it can be 40-50% also depends on the traders expertise and nature of product and trading style. If we  presume an account with $100,000, and the floor earns $20,000, with 4 traders,  the expense will be another $3000 for software’s. Compensation can be worked out how to pay the traders and the rest is to the account owners. The fund can be own, it can be of any investor with a deal on profit sharing

 

 

Fund Value in $

Indicative return pm

10000

1000 to 1500

20000

2000 to 2000

50000

5000 to 10000

100000

10000 to 15000


 

Rakesh Sethi

Founder & CEO

3mteam.in 

SEBI Registered Investment Advisory Company - Since 15 years

Advisory Services :- Stock, Commodity, MCX,  NCDEX, Forex Market &Proprietary Trading

Global Commodity Services :-  Gold +Silver+Metal+Energy

Global Forex Services :-  EUR/USD, USD/JPY, GBP/USD| , EUR/GBP etc. 

__________________________

E Mail  : rakesh.1962@3mteam.in , rakesh01962@gmail.com

URL :www.3mteam.in

Our Offices :  Mumbai, Karnal, Irvine CA (USA)

Corporate Office (India)

325  Milinda Manure, RNT Marg,   Opp. Central Mall,    Indore (M.P.), 452006, INDIA
Cell No.: +91- 9302102732, +91-9630466296  (Also  Whatsapp) Landline No.: +91-731-4098347

Skype Address :  rakesh01962

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