1. Direct Investments Are Old Fashion
Equities can have high returns but are risky and investors may lose capital in a direct investment. (only
investing on one side of market expecting price to increase). These direct investments such as real estate, futures, commodities, mutual funds, equities, etc. are now exposing investors to much greater risk because of lack of liquidity and NOT being able to participate on both sides of market with same equality whether long or short. We believe because of globalization’s capital flows with every market interconnected thru technology that “Direct” investments will have to tolerate much more volatility due to limited capitalization (Only so many shares issued) and limited participants (share or contract holders creating the liquidity). Forex Hybrids are a totally new asset class for structured products, such as algorithmic trading strategies developed internally, quantitative analysis, hedging, and dynamic strategies driven by external expert advisers. Managing the risks in so called “risky investments” to participate in either side of market equally.
2. Liquidity or Execution is a MUST
Wall St. will sell you anything you want and all you can buy without any doubt. It’s the participants of the asset class whom create the market and liquidity for the investment being traded or purchased. The greater the capital, volume, and number of participants that control the market the greater the chance of realizing a profit on exit. The most important factor for investing is getting out, to turn your profits into cash for a realized percentage gain. There are plenty of pink sheet, Nasdaq, bulletin board, options, futures, commodities, etc. that do NOT have the daily volume required to give an investor or trader the option of cashing in because the lack of participants in the investment, nobody willing to buy the other side of trade. When investing or trading to have execution to exit investment is something most do not think of when purchasing but is paramount for any type or return. If you can’t get out it is worthless. Investments are only good if someone is willing to buy other side.