The following post is written by Anahit Stepanyan. She has good amount of knowledge about Forex trading, that’s why she’s been able to provide you with this great article. If you’re a Forex investor yourself, then this article could help you expand your knowledge about Forex investing.
Forex market being the greatest and most highly liquid financial market in the world day by day increases its potential by offering its clients new methods and new services. One of the innovations in this field that has aroused great interest not only in me but also in a large number of traders and investors is the appearance of GeWorko Method.
Before starting to explain the main ideology of this method firstly, I think it would be more reasonable to mention how it came into being. The company NetTradeX with the support of Forex brokerage company IFC Markets has developed this new method of portfolio trading which is applied by traders for trading and analysis purposes.
GeWorko Method as it is proved by a lot of traders and which I can say from my own experience makes trading much easier and meanwhile more profitable. Now, it’s possible to create asset portfolios containing different financial instruments and then determine the price of one portfolio versus another.
Here let’s note that the ideology is the same with that of traditional currency trading it is still based on the of B/Q relation where B (Base asset) is traded against Q (Quoted asset).
You can now create both simple as well as complex composite instruments using this. In the first case, each portfolio includes one asset and in the second case it includes a wide range of assets. One important thing for you to notice while using this method is that even if the prices are not expressed in US Dollars or USD the calculation is still made in US dollars. This helps to exactly compare both portfolios.
The most fantastic feature that I appreciated is the possibility of creating portfolios by immediately deciding the number and weights of assets as well as creating absolutely new asset portfolios that are already presented in the list of trading instruments.
Moreover, you can convert two baskets of assets into a separate trading instrument with its own price and history. The more such baskets you possess the easier you will access to numerous trading tools and opportunities.
The most interesting fact that I managed to learn is that this method is used not only buy traders but also by economists, analysts and portfolio managers. They discover and analyze the relationship between independent assets and their combinations.
How to use GeWorko Method?
Using this method is quite simple. You just need to open the list of assets available on NetTradeX trading terminal, choose the assets that you prefer, decide which asset will be in the base part and which in the quoted one. As a result the selected asset appears in the body of PCI GeWorko. Your next step will be to set volumes for each asset. To conclude the process of PCI creation what you need to do is to save your personal instrument and to give it a name. Remember that your PCI can be both simple and complex. To learn more about its usage and way of trading you can read the steps of using GeWorko Method here.
The perfection and expertise in any field requires profound knowledge and the ability to follow any new method appeared. As a good trader who tries succeeding in Forex or CFD trading you should be well aware of each new achievement in that sphere. Learn and open wide horizons for you to reach your goal.
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