A managed Forex Account is an account opened with a broker, where the trading is taken care of by a professional asset manager. However, the account holder will be the investor himself and the right to add and withdraw funds remain with him. Inorder to trade the account, the investor gives a Limited Power of Attorney to the asset manager.
Needless to say, Forex Managed accounts are increasing its popularity in the niche of Forex trading when compared to Hedge funds. In a layman’s language, Managed accounts is an account opened in the name of an investor, entrusted to a licensed broker to avail professional asset managers to trade the funds by submitting a Limited Power of Attorney. However, the investor holds all the rights to access his funds any time using his log id and password that is usually provided to him by the broker.
Forex trading, also known by the name of currency trading or FX trading, refers to buying a particular currency while selling another in exchange. Trading currencies always involves exchanging one currency for another. The forex trading market is today the world’s most liquid and most volatile market, with over $5 trillion traded daily.
Among the main participants of the forex trading market, one of the most growing segments of the total pool of participants of the marketplace, are retail foreign exchange traders (individuals) who participate in online forex trading for mainly speculative reasons with the ultimate goal of generating a profit from currency fluctuations (market changes), or hedging unwanted currency risk.
The forex trading marketplace is the world’s largest and most liquid market due to a number of factors which include, but are not limited to, ease of performing transactions over the internet, the modern development of travelling, ease of international communication and modern transportation, which have made our world a smaller place.
By making our world a smaller and more global place, this automatically means that people, goods and services can travel faster and more easily. This also means that a necessity of currencies to be traded against each other is needed in order for this to happen. All these factors have determined a growing forex trading marketplace, which will only continue to grow and become more dynamic, liquid and responsive.
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