What Is Asset Management?

  1. What Is Asset Management?

    Asset management is the process of managing a company’s or individual’s investments to achieve specific financial goals while minimizing risk. 

    This includes a range of financial assets, such as stocks, bonds, real estate, and commodities.

    Asset management typically involves working with a professional asset manager, who uses a variety of techniques to analyze financial data, 

    identify opportunities for investment, and make informed decisions about how to allocate resources.

     These decisions may involve selecting individual securities or investment products, setting investment strategies,

     and monitoring the performance of the portfolio over time.

    Effective asset management requires a deep understanding of financial markets, investment products, and risk management techniques,

     as well as strong analytical and communication skills. It is an important tool for individuals and businesses looking to grow their wealth,

     manage their assets, and achieve their financial goals over the long term.

    Types Of Asset Managers

    There are several types of asset managers, each specializing in managing different types of assets and catering to different types of clients.

     Here are some of the most common types:

    Investment Managers: These asset managers manage investment portfolios on behalf of their clients.

     They are responsible for selecting individual securities and making investment decisions based on market analysis and their clients’ investment goals.

    Wealth Managers: Wealth managers provide comprehensive financial planning and investment management services to high-net-worth individuals and families.

     They help their clients manage their wealth by creating personalized investment strategies, tax planning, estate planning, and more.

    Hedge Fund Managers: Hedge fund managers manage funds that invest in a variety of financial instruments, including stocks, bonds, commodities, and derivatives. 

    They aim to generate high returns for their clients by using sophisticated investment strategies and taking on higher levels of risk.

    Private Equity Managers: Private equity managers manage funds that invest in privately held companies.

     They aim to generate high returns for their investors by buying and selling companies, restructuring businesses, and improving operational efficiency.

    Real Estate Asset Managers: Real estate asset managers manage portfolios of real estate investments on behalf of their clients.

     They are responsible for selecting properties, managing the properties, and maximizing their clients’ returns.

    Exchange-Traded Fund (ETF) Managers: ETF managers create and manage ETFs, which are investment funds traded on stock exchanges.

     They are responsible for selecting the underlying assets, managing the portfolio, and tracking the performance of the ETF.

    Mutual Fund Managers: Mutual fund managers manage mutual funds, which are investment vehicles that pool money from multiple investors to invest 

    in a diversified portfolio of assets. They are responsible for selecting the individual securities in the portfolio, managing the portfolio,

     and tracking the performance of the fund.

    These are just a few examples of the types of asset managers that exist. Each type of asset manager has its unique set of skills, expertise,

     and investment strategies that cater to different types of clients and investment goals.

    How Much Does Asset Management Cost?

    The cost of asset management can vary depending on a variety of factors, such as the type and size of assets being managed, the investment strategy employed, 

    the level of service provided by the asset manager, and the fee structure used.

    Typically, asset management fees are charged as a percentage of assets under management (AUM). 

    The average fee for asset management services is around 1% of AUM per year, but this can vary widely depending on the factors mentioned above.

    For example, some asset managers may charge a higher fee for actively managed portfolios that require more research and analysis,

     while others may charge a lower fee for passive or index-based strategies. Additionally, some asset managers may offer different levels of service, 

    such as personalized financial planning or tax advice, which can also affect the cost.

    It’s important to carefully review the fee structure and any other associated costs before choosing an asset manager. It’s also a good idea to consider

     the potential benefits of professional asset management, such as access to expertise and diversified investment portfolios, when evaluating the costs.

Silver CFD

Understanding Silver CFDs Trading: A Beginner's Guide

 

Silver is a popular precious metal that has been used for thousands of years as currency, jewelry, and industrial material. In recent years, it has also become a popular trading asset, thanks to the rise of Silver CFDs (Contracts for Difference). In this guide, we’ll explain what Silver CFDs are, how they work, and what you need to know to start trading them.

What are Silver CFDs?

A Silver CFD is a financial contract that allows you to speculate on the price movement of silver without actually owning the physical metal. Instead, you enter into an agreement with a broker to buy or sell a certain amount of silver at a certain price, with the difference between the buying and selling price being your profit or loss. CFDs are traded on margin, which means you only need to put up a fraction of the total trade value as collateral, making it possible to trade with higher leverage than you might be able to with physical silver.

How do Silver CFDs work?

Let’s say you believe that the price of silver is going to rise in the near future. You decide to buy a Silver CFD for 100 ounces of silver at $25 per ounce. If the price of silver rises to $30 per ounce, you can sell your CFD and make a profit of $500 (100 ounces x ($30-$25)). Conversely, if the price of silver falls to $20 per ounce, you would sell your CFD and incur a loss of $500. It’s important to note that CFD trading involves significant risk, and losses can exceed your initial investment.

What are the benefits of trading Silver CFDs?

One of the main benefits of trading Silver CFDs is that you can profit from both rising and falling prices. In other words, you can short-sell silver if you believe its price is going to decrease. CFDs are also highly liquid, which means you can enter and exit trades quickly and easily. Additionally, CFDs can be traded 24/7, which allows you to take advantage of market movements around the clock.

What are the risks of trading Silver CFDs?

While Silver CFDs offer the potential for high profits, they also come with significant risks. Since CFDs are traded on margin, losses can exceed your initial investment. It’s important to understand the risks involved and to have a solid risk management strategy in place before trading CFDs. Additionally, CFDs are subject to overnight financing charges and other fees, which can eat into your profits.

Conclusion

Silver CFDs trading can be a lucrative and exciting way to speculate on the price movements of silver. However, it’s important to understand the risks involved and to approach trading with a sound strategy and risk management plan. By keeping these factors in mind and staying up-to-date on market news and trends, you can potentially profit from the dynamic and constantly-evolving world of Silver CFDs trading

Risk Management in Forex Market

Forex trading is an exciting and potentially lucrative venture. However, like any investment, it comes with risks. It’s important for traders to understand the risks associated with forex trading and to use appropriate risk management tools to mitigate those risks. In this article, we will discuss some of the most commonly used risk management tools in forex trading.

1. Stop Loss Orders

A stop loss order is an order placed with a broker to sell a currency pair at a specific price. This tool is used to limit a trader’s loss in a particular trade. For example, if a trader bought EUR/USD at 1.2000 and sets a stop loss order at 1.1900, the trade will be automatically closed if the price drops to 1.1900. Stop loss orders are an essential risk management tool for forex traders because they help protect against large losses in the event of unfavorable market movements.

2. Take Profit Orders

Take profit orders are the opposite of stop loss orders. They are used to close a trade at a specific price level, but in this case, it’s to lock in profits. For example, if a trader bought EUR/USD at 1.2000 and sets a take profit order at 1.2200, the trade will be automatically closed when the price reaches 1.2200, locking in a profit of 200 pips. Take profit orders are useful risk management tools because they help traders protect their profits and avoid greed-based trading decisions.

3. Trailing Stop Orders

Trailing stop orders are similar to stop loss orders, but the difference is that they are adjusted as the market moves in the trader’s favor. The trailing stop order is placed at a specific distance from the current market price, and as the market moves in the trader’s favor, the stop loss order moves along with it. This tool is helpful for maximizing profits while minimizing losses. For example, if a trader bought EUR/USD at 1.2000 and sets a trailing stop order at 100 pips, if the price moves up to 1.2050, the stop loss order will be moved up to 1.1950. This way, if the market reverses and moves against the trader, the trade will be automatically closed, locking in some of the profits.

4. Hedging

Hedging is a strategy that involves taking opposite positions in the same currency pair. For example, a trader may buy EUR/USD and simultaneously sell EUR/USD. This strategy is used to reduce the risk of adverse market movements. For instance, if a trader is long on EUR/USD and the market moves against them, they can open a short position to offset the loss. Hedging is a powerful risk management tool that allows traders to reduce their exposure to market volatility.

5. Position Sizing

Position sizing is a risk management technique that involves determining the appropriate size of a trade based on the trader’s risk tolerance and the size of their trading account. The size of a trade can be determined based on the percentage of the account balance that the trader is willing to risk. This tool is used to limit the potential losses of a trade, especially for new traders who may not be familiar with the market’s volatility.

In conclusion

forex trading can be a profitable venture, but it also comes with risks. Traders must use appropriate risk management tools to protect themselves against adverse market movements. Stop loss orders, take profit orders, trailing stop orders, hedging, and position sizing are some of the most commonly used risk management tools in forex trading. Understanding and using these tools appropriately is essential to long-term success in forex trading.

Stock Maket

Stock Market

Stock Market

The stock market is a collection of exchanges, where different equities from various companies get traded. 

The more shares in a company you purchase, the higher your ownership stake.

A dividend is a sum of money, the greater your ownership, the more money you will receive.

The stock market is open for 8 hours, from 9:30 a.m. to 4 p.m. Eastern time (on weekdays). Unlike Forex, which operates 24 hours a day on weekdays.

The volume traded per day is $200 billion.

Shares can be bought and sold to others via this network of exchanges (similar to buying and selling currencies.)

The main value from stocks is what’s known as “capital gains.” This guarantees you a profit from selling the stock.

US Options Market

US Options Market

A professional investment strategy to maximize your profits, only using a small deposit.

Who said you need a huge fund to start a successful investment? There is a reason why the US Options Market is better than other financial products, seeing how you can make strong financial leverage with only a small amount of money.

Contracts known as options give their holder the choice to buy or sell a specified amount of an underlying asset, at a predetermined price at or before the contract expiration date. Options can be purchased with brokerage investing accounts, just like the majority of other asset classes.

Winning is guaranteed when you know the rules of the game by heart! Below, Mubasher Capital will enlighten you with the rules.

Options have great power because they can improve a person’s portfolio. They accomplish this through leverage, protection, and even more income. There is usually an option scenario suitable for an investor’s goal, depending on the circumstances. An example that is frequently used is hedging against a declining stock market with options to prevent further losses.

Quick Facts:

  1. 1.Options give traders the right to buy or sell shares at a fixed price by pre-scheduled expiration date
  2. 2. Contract Buyer has the option to buy or sell a specific stock at a certain price during a specific period.
  3. 3. Contract seller/contract issuer is obligated to implement the agreement, by selling the shares to the contract buyer or buying the shares from the contract buyer.
  4. 4. Each option contract consists of 100 stocks, giving each stock a paid deposit. For example: When the contract price is $1.50, you will pay $150 to own one contract.

Futures Trading

  1. Futures contracts are a type of financial instrument that allows traders to speculate on the future price of an asset. Futures contracts can be used for a variety of purposes, including hedging and speculation. In this article, we will discuss futures contract speculation.

    Futures contracts are agreements between a buyer and a seller to exchange a specific asset at a predetermined price and date in the future. Futures contracts are traded on regulated exchanges and are standardized in terms of the size, expiration date, and quality of the underlying asset. This standardization makes futures contracts highly liquid and easily tradable.

    Futures contract speculation involves taking a position in a futures contract with the expectation of profiting from price movements in the underlying asset. Traders who engage in futures contract speculation believe that they can accurately predict the future price of the underlying asset and profit from their predictions.

    For example, a trader may speculate on the price of crude oil futures contracts. If the trader believes that the price of crude oil will increase in the future, they may buy crude oil futures contracts at the current market price. If the price of crude oil futures contracts increases in the future, the trader can sell the contracts at a higher price and realize a profit.

    Futures contract speculation can be highly profitable but also comes with significant risks. Futures contracts are highly leveraged financial instruments, meaning that traders can control a large amount of an underlying asset with a relatively small amount of capital. However, leverage also magnifies the potential losses of a trade.

    Additionally, futures contract speculation requires a significant amount of knowledge and experience in the underlying asset’s market. Traders must be able to analyze market data, economic indicators, and news events to accurately predict future price movements. Without proper knowledge and experience, traders can easily make incorrect predictions and suffer significant losses.

    In conclusion, 
  2. futures contract speculation is a popular trading strategy among experienced traders who have a deep understanding of the underlying asset’s market. It involves taking a position in a futures contract with the expectation of profiting from price movements in the underlying asset. While highly profitable, futures contract speculation also comes with significant risks, and traders must exercise caution and use appropriate risk management strategies to minimize losses.

Forex Trading Strategies

  1. The foreign exchange (Forex) market is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion. Trading in the Forex market involves buying and selling currencies with the aim of making a profit from the fluctuations in exchange rates. In this article, we will discuss some of the most popular trading strategies used by traders in the currency market.

1. Trend Following Strategy

The trend following strategy is based on the idea that a currency pair’s price tends to move in a particular direction over a period of time. Traders using this strategy look for trends in the market and buy or sell accordingly. The strategy involves identifying the direction of the trend, entering a trade in the direction of the trend, and exiting the trade when the trend starts to reverse.

2. Range Trading Strategy

The range trading strategy is based on the concept that currency prices tend to trade within a specific range over a period of time. Traders using this strategy identify support and resistance levels, which are the price levels where the market tends to bounce off repeatedly. The strategy involves buying at the support level and selling at the resistance level. Traders can also sell at the support level and buy at the resistance level if the market is in a downtrend.

3. Breakout Trading Strategy

The breakout trading strategy involves buying or selling when the market breaks out of a trading range. Traders using this strategy identify key levels of support and resistance and enter a trade when the price breaks above or below these levels. The strategy involves placing a stop-loss order below the breakout level to limit potential losses in case the market reverses.

4. Carry Trade Strategy

The carry trade strategy involves buying a currency with a high interest rate and selling a currency with a low interest rate. The strategy is based on the idea that traders can earn a profit from the interest rate differential between the two currencies. Traders can hold the position for an extended period of time to earn interest on the higher-yielding currency.

5. News Trading Strategy

The news trading strategy involves taking positions based on economic news releases and events that can affect currency prices. Traders using this strategy monitor economic indicators such as inflation, interest rates, and GDP to identify potential market-moving events. The strategy involves entering a trade before the news release and exiting the trade after the news has been released.

In conclusion, 

trading strategies in the currency market vary depending on a trader’s preference and risk appetite. However, traders should always use proper risk management techniques and have a solid understanding of market conditions and trading principles. Trading in the Forex market can be highly profitable, but it also involves significant risks, and traders must exercise caution and discipline to succeed.

Eliminate the Inflation

Eliminate the Inflation crisis

Inflation challenges have become inevitable, it’s time for us to face them with smart investment solutions. Mubasher Capital offers you countless investment channels, which will offer you an optimum investment solution to face Global economic challenges.
Safeguarding and maximizing your capital, and channeling Cash funds into investment products is your best course of action; That not only going to guarantee a reliable source of income, to face the high inflation rates and different economic crises but additionally going to preserve the Value of money over time.

A- Hard commodities:

Metals: Gold – Silver -Platinum-Palladium-Copper

Energy: Crude oil-Brent Oil- Natural Gas

 

B- Soft Commodities:

Agriculture: Cocoa – Coffee – Corn – Cotton – Sugar – Soybeans – Wheat

Types of Fixed Income

Types of fixed income

Primary Market Benefits:

  1. 1. Companies can raise their capital at minimal costs.
  2. 2. An excellent approach to reduce risk with diversification.
  3. 3. Lack of market fluctuations.
  4. 4. Primary market is highly liquid because securities can be sold immediately.
  5. 5. This market has the potential to attract direct foreign investors.
  6. 6. Lower price manipulation.

Secondary Market Benefits:

 

  1. 1. Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.
  2. 2. Analyzing a company’s relevance and performance is easy, by simply evaluating stock prices.
  3. 3. This market offers consumers informative insights about the company’s financial health.
  4. 4. victors can sell and buy stocks easily, ensuring liquidity.
  5. 5. Investors can generate an incredible profit in a shorter time.

 

Make great profits effortlessly.

Make great profits effortlessly.

EFTs are ideal for those who are just starting their investment journey, thanks to their low expense ratios, high liquidity, a wide selection of investment options, diversification, low investment threshold, and more.

This makes ETFs a great investment solution, one that allows investors to buy many stocks or bonds at once. ETFs, which combine multiple broad indices or industry sectors into a single investment, is a product that traders and investors are quite interested in.

ETFs provide exposure to a variety of stocks, bonds, and other assets, usually at a small expense. ETFs also are more liquid, it’s easier to buy and sell, than mutual funds and they can make the fixed-income portion of your portfolio quite easy.

Quick Facts

  1. 1. If the investor buys an S&P 500 ETFs, the money will be invested in the 500 companies in that index.
  2. 2. Throughout the trading day, ETFs prices shift regularly and you can purchase shares of ETFs whenever the stock market is open.
  3. 3. ETFs trade just like stocks on major exchanges, such as the NYSE and Nasdaq.
  4. 4. The key difference between ETFs and Mutual Funds is the way of buying and selling them
  5. 5. ETFs don’t have minimum investment requirements.
  6. 6. Minimum volatility ETFs are designed to help reduce risk and keep you invested.
  7. 7. ETFs can help generate income through bonds, dividend-paying stocks, and preferred stocks.
  8. 8. Core ETFs are diversified, low-cost funds, designed to help build a strong foundation for your portfolio.