Portfolio Quotation: Unlimited number of trading instruments
Portfolio Quoting (GeWorko) – An innovative method for studying financial markets and analyzing their dynamics. In fact the method is based on the concept of the Forex market, where one asset is represented by another. The Portfolio Quoting can be applied to a portfolio: 1 asset portfolio is the base part, and the other is the quotation part. In other words, one set of assets represents another set of assets.
Only at IFCM Group you can create new financial instruments, and analyze and trade new instruments.
The portfolio quotation method is developed by the IFCM Group group of companies, which is also the sole owner of this technology, which can only be used in the new generation of professional trading platform NetTradeX.
Important note: IFC Markets also provides trading services to customers through the MetaTrader platform, including in the foreign exchange market, stocks, commodities, and index markets, and the portfolio quotation method do not support the platform. This is mainly because of the internal structure and limitations of MetaTrader.
Advantages of Portfolio Quotation Method:
Personal synthesis tools are created by the way of portfolio quotes to analyze financial markets and learn complex relationships between assets and their combinations. Not only that, but you can also trade tools created.
- Create and trade your personal instruments to stabilize market volatility
- Construct portfolio positions (both long and short), trade them and perform chart analysis
- Simplified portfolio rebalancing: analysis and rebalancing built into the trading platform
- Perform in-depth analysis of built tools, or analyze any other asset or portfolio of assets
- Create simple, or complex tools with a dozen assets
- The value of one asset portfolio is represented by another asset
Users of the trading analysis software NetTradeX have access to innovative technology that creates a unique Personal Composite Instrument (PCI).
- Use different trading strategies – spread betting, hedging, arbitrage, etc.
- A great opportunity to see market trends from a different perspective, with the help of effective analytical tools to analyze different market segments and their relationships
- Scalability, flexibility and versatility open up new opportunities for analysis and trading
What is the Portfolio Quotation Method?
Portfolio Quotation Method – This method can create and trade a new class of instruments, which is called Personal Integrated Instrument (PCI) on the NetTradex platform. This synthetic instrument is implemented by existing instruments. Its principle is similar to Forex trading, and the instrument has a foundation Section and Quote Section.
But the important difference between the new instrument class is: that the base part and the quote part are composed of one or several assets. The portfolio can contain different kinds – currencies, stocks, indices, commodities, etc. This means that the base part and the quote part can be Contains more than one asset and can be multiple assets from different markets.
Of course, traders can create personal instruments, each part value contains a currency. This PCI instrument is a normal currency pair (new cross-currency).
The formula PCI=P1/P2 is that the exchange rate of one asset portfolio is expressed by another asset portfolio.
Use of the method
This method is mainly used in financial markets to study the complex relationship between assets and their combinations. The method is a very convenient technique for the technical analysis of complex asset combinations. Its absolute flexibility and the practical operability of the trading platform NetTradeX make it possible for Each constituent asset to be weighted can be long or short, and hundreds of assets can be used to create personal tools.
This method enables traders to quickly realize their own trading ideas and strategies, use historical data to test their tools, and find the best ratio of profit and risk.
The practical application of the portfolio quotation method allows you to quickly convert your own counter to the trading analysis system, and test the trading strategy based on historical data. To understand the application of trading, you can read personal tools. In fact, traders are not affected by tools. This method turns a combination of two assets into a new trading instrument, and in this way, a trader can create an infinite number of new instruments, all of which can be analyzed and traded.
Why do you need additional trading tools?
The question may be, why to create an infinite number of trading instruments if the trader trades one instrument. Short answer – the ability to create an infinite number of instruments allows traders to analyze and implement their own trading strategies. This method is mainly aimed at professional traders, who have their own trading strategies.
However, the interface of the method is so simple that anyone can easily learn it. However, it is highly recommended that you first open a demo account with IFC Markets, this account type is free and is an ideal entry aid for traders who do not want to take risks.
IFC Markets does not require every trader to have their own personal tools and trade them. IFC Markets mainly shows you the advantages, which is what differentiates IFC Markets from other brokers. The methods and tools provided by IFC Markets are transparent, taking into account Every trader’s needs.
Unlimited trading tools
Need to figure out «Analyze and trade an infinite number of trading tools».
Let’s analyze 10 different assets (from different categories, including currency pairs, stocks, commodities, indices, etc.) and set a variable weight of 100 for each asset. The number of such combinations reaches 10 100. Now IFC Markets has 100 an instrument, then how many combinations will there be? Don’t forget that IFC Markets’ assets can act as both the base part and the quote part, so IFC Markets can say that the number of combinations of assets is infinite.
The portfolio quotation method is integrated into the professional trading platform NetTradeX. It not only allows you to create an infinite number of trading tools, but also analyzes market trends, and just clicks on the chart to trade.
The created tools do not have any restrictions, and traders can perform charting and mathematical analysis through the created tools.
Theory of IFC Markets’ Portfolio Quotations
Portfolio quotations are actually similar to exchange rates, where one currency is expressed in another currency, but the currency is replaced by the portfolio. The total value of all assets is in absolute dollar value (considering the weighting factor). When comparing the base part and the quotation Part of the asset value, the method will calculate their ratio, as the «price» of the new instrument, where all assets are in USD (or converted to USD).
Create Personal Integrated Instruments (PCI) using Portfolio Quotation. Implement this technology on the trading platform NetTradeX to create, analyze and trade new instruments.
When creating a personal instrument, it is necessary to create portfolios B (basic part) and Q (quote part)::
- Ai – the ith asset of Portfolio B
- Vi – the quantity, the quantity of the ith asset of Portfolio B
- K – the quantity of the assets of Portfolio B
- Аj – the jth asset of the portfolio Q
- Vj – the quantity, the quantity of the jth asset of the portfolio Q.
- N – the quantity of the assets of the portfolio Q
The PCI created by the Portfolio Quote method can be formulated as:
Symbol ” / ” for “quote”
In order to calculate the value of PCI at a certain time, it needs to be calculated according to the following formula:
- At time T, the value of the i-th asset in Portfolio B (USD)
- At time T, the value of the j-th asset in portfolio Q (USD)