Learning Center

We offer You to learn the facts and features of the dynamic world of portfolio theory and spread trading, as well as show you the optimal way of making an efficient investment through a completely new method of portfolio analysis and management - GeWorko Method.

  • Trading Basics
    • Trading Types

      There are various types of trading and a novice trader should experiment to determine which type is suitable specifically for him/her. After finding, your own niche depending on your investing knowledge and trading experience you can start perfecting your technique to get the most out of the chosen type of trading. We provide expertise into such trading types as high frequency trading, day trading, automated trading systems etc.

    • Trading Strategy

      Effective trading is not possible without a well developed strategy. Thus, it is important to develop a trading strategy base on trader’s initial financial capacities, expected profits as well as level of knowledge and proficiency. In this section we are providing articles on various popular trading strategies, recommendations, trading tips that help and provide guidance for a trader.

    • CFD Trading

      CFDs are a financial derivative trading instruments: they derive their pricing from an underlying asset. CFDs allow investors to obtain a profit of prices moving up (long positions) or of prices moving down (short positions) on underlying financial instruments and are frequently used to speculate on those markets.

    • Short Selling

      Short selling is a trading strategy, when an investor anticipates a decrease in share price and gets profit only when a shorted security falls in value. Short selling is another trading tool, which provides a sizable opportunity with high dose of risk. Traders can use it in their trading portfolio if it fits their investing style and risk tolerance.

    • Scalping strategy

      Scalping is a simple strategy that is easy to implement once you learn the basic principles. One does not need large investment to implement it: only time, patience and a correct strategy. Here it is important to determine the time of market entry and exist and manage the risks. When implementing this strategy please, take into consideration the level of your trading skills, trading experience.

    • Trading Instruments

      Trading instruments are items traded on financial markets including stocks, commodities, currencies, indices as well as PCI (Personal Composite Instruments). While choosing instruments to trade it is necessary to conduct a thorough research. Although liquidity and profit potential are important factors to consider, however, other aspects should be considered in this respect.

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  • Portfolio Investment
    • Portfolio Investment

      Portfolio investment is investment in a selection of securities with the purpose of earning financial gains without acquiring management control of the enterprises. Unlike direct investments, when investors intend to acquire foreign enterprises and participate in their management, the sole purpose of portfolio investment is earning highest possible returns from purchased securities.

    • What is Portfolio

      Financial Portfolio is a collection of assets including stocks, commodities, cash equivalents, futures, to name a few. Portfolio may be built and managed by an investment company, financial institution or an individual. A portfolio can be pictured as a pie chart comprised of various asset classes of appropriate value that depends on risk-return ratio chosen by the investor.

    • What is Investment Portfolio

      Investment portfolio is a combination of different assets such as stocks, bonds, mutual funds, etc., owned by an individual or an organization. An investment portfolio is designed to achieve a specific investment objective based on different factors such as risk tolerance, time frame, asset preference and liquidity needs. Portfolios are usually created with a mix of assets that have the potential to achieve the desired returns, while minimizing risk and volatility through proper diversification and balance.

    • Stock Portfolio

      Stock Portfolio is a collection of holdings on the stock market, owned by the same individual or organization. Although stocks may seem to be a risky investment, wisely built and diversified stock portfolio, over time, does better than other investments. Before creating an appropriate stock portfolio, one needs to research on different kinds of stocks, as well as on companies and individuals that hold them.

    • Portfolio Analysis

      Portfolio Analysis is a financial term which can be defined as a study and/or observance of the performance of a certain portfolio regarding the level of its return and the possible risks. The essence of the study is to find solutions for minimizing risks and increasing returns.The term refers to various financial instruments such as currencies, stocks, commodities, indices, and many more.

    • Low Risk Investments

      Investment risks are an inherent factor to any investment. Investing in low risk assets with low volatility and low rate of return is a safer choice for risk averse. However,one should take into consideration that a low risk investment has a low return expectation accrdingly. Another trade off for low risk investment is that it requires less time for gathering information on the assets to invest in as well as on progress monitoring. Thus, overall portfolio construction and maintenance takes less time and effort.

    • The Optimal Way of Risk Reduction

      Portfolio diversification can be defined as an inclusion of multiple assets in a portfolio, so that going down of one asset and the resulting losses can be compensated by other assets. Thus, it can be claimed, that portfolio diversification is aimed at reducing the risks. As well as that the aim of risk diversification strategy is to reach the optimal risk return-ratio of an investment.

    • Types of Investment Risks

      The key of reducing the risk is to avoid a portfolio where all the securities are strictly correlated with each other. If the correlation among the security returns is positive, meaning that the security returns move up and down in perfect unison, diversification is powerless when it comes to risk reduction. By mixing up diverse assets in your portfolio, you are less likely to experience major drops as they do not move and up down at the same rate and at the same time.

    • Investment Portfolio Management

      Portfolio management encompasses construction of portfolios and their evolution so that it’s possible to achieve the expected return. Nowadays fund management methods range from quantitative investment originated in Modern Portfolio Theory to rather traditional methods of financial analysis. However, the former is among the most popular in the portfolio management process.

    • Portfolio Management Strategies

      Portfolio management strategies are classified in two groups: active and passive. Active management refers to mutual funds and passive management concerns index funds.

    • The Efficient Frontier

      Efficient Frontier presents a set of optimal portfolios offering the highest expected return for a given level of risk or the lowest risk for a given level of expected return. The efficient portfolios have the optimal risk return balance and can be considered optimal for given risk-return ratio.

    • Advantages of Diversification

      Investors and financial professionals well acknowledge that investments with high returns are accompanied by high risks. Minimizing losses while maximizing returns is often challenging and requires well-developed diversification strategy.

    • Alternative Investment

      An alternative investment is defined as any type of investment that is out of the frame of traditional investment. The traditional investment includes the following three types of investment: stock, bond and cash, whereas alternative investment includes real estate, hedge funds, commodities, financial derivatives and private equity. Alternative investments have become quite popular in the last years and this is due to the particular benefits alternative investments can bring to a portfolio.

    • Diversification Strategy

      With the financial markets all the time bouncing up and down, investors have a great need for safety. One of the most popular ways which can prevent the entire portfolio from losing value is the diversification strategy, a term which is well known among investors, traders, analysts and portfolio managers.

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  • Modern Portfolio Theory
    • How Markowitz Put Forward the Idea of Portfolio Theory

      The groundwork of MPT laid by Harry Markowitz is at the core of newly developed GeWorko Method. The theory of portfolio allocation under uncertainty appeared to be crucial one when it comes to investment diversification. It won him Nobel Memorial Prize and John von Neumann Theory Prize from the Operations Research Society of America. Currently, Mr. Markowitz is teaching at the University of California and is a practicing consultant in Investment Management, Business Management and Practice Development.

    • Modern Portfolio Theory (MPT) Definition

      The concept of Portfolio Theory did not appear from a vacuum. It is based on the notion of statistical methods which roots go back to the 17th and 18th centuries. In that period a number of works on the theory of probability appeared which served as a basis for further development of portfolio theory. In 1657 the work on the calculus of probabilities, which was based on the thoughts of French mathematicians Blaise Pascal and Pierre de Fermat, was published by Christian Huygens.

    • The Harry Markowitz Model & MPT Assumptions

      MPT stands for risk diversification in investing. The core of MPT is selecting a group of assets with lower collective risk than any of the single assets. Therefore, MPT allows to construct a maximum return portfolio for a given risk as well as to create portfolio with minimum risk for given return. Therefore, Modern Portfolio Theory is a strategic tool to diversify Your investments.

    • The Basics of Sharpe Ratio

      The Sharpie Ratio is the “reward-to-variability ratio” written by Professor William F. Sharpe. It has proven to be one of the most effective and advanced risk/return estimation tools in finance that measures risk-adjusted performance. Through applying this ratio it is feasible to estimate if portfolio's returns are due to smart investment decisions or an outcome of excess risk. This becomes extremely useful for estimation of one’s strategy and fine-tuning of Your investment decisions.

    • Limitations of Modern Portfolio Theory (MPT)

      Even though Modern Portfolio Theory is widely accepted and applied by investment institutions, it has been criticized as well. Particularly, the representatives of behavioral economics, behavioral finance challenge the MPT assumptions on investor rationality and return expectations. However, regardless the criticism MPT is a working investment diversification strategy that is implemented by risk managers, portfolio and investment institutions.

    • CAPM (Capital Asset Pricing Model)

      According to Modern Portfolio Theory it is possible to eliminate the unsystematic or, as it is also called, the “specific risk” through diversification. However, no matter how diversified the investments are, the problem of systematic risk still remains unsolved. This is what excites most investors while calculating the expected return.

    • Low Risk High Return

      All investments carry a certain level of risk and it would be unwise to assure the traders and investors that they can find completely risk-free investments. It is even unnecessary to stress that we invest to earn the highest returns preferably with the lowest possible risk. Yet, the truth is that our desires and reality are often incompatible. The higher the returns we want, the higher the risks we should take to achieve them. .

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  • Portfolio Trading & Analysis
    • New Trading Approach

      Growing requirements for modern trading technologies and complex interrelations between financial assets drive the development of new approaches to analysis and trading. Such a new approach has been developed and is offered by trading technologies development company NetTradeX with the support of financial company IFC Markets. The joint product is called "Composite portfolio trading method GeWorko."

    • New Ways for Analysis of Financial Markets

      IFC Markets and NetTradeX Corp. present a new method of portfolio analysis that makes constructing, analyzing and managing asset portfolios simple and manageable for everyone. GeWorko is a unique method that allows to create balanced portfolios from multitude of assets, diversify Your investments, avoid risks and multiply Your chances for profit.

    • Expanding the Range of Financial Instruments

      Geworko Method is for traders who value the availability of large number of trading instruments: investors, who have a vast experience on the market, and have worked out a trading system (mechanical or visual, based on the recognition of some iterative graphical images). The more instruments are available, the more opportunities to enter the market arise. Therefore, the ability to create your own instruments granted by Geworko Method becomes priceless.

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  • Spread Trading | Pair Trading
    • Spread Trading: Introduction

      Spread Trading represents the simultaneous buying and selling of two related securities/contracts based on the expectation that their relative prices will converge. One can trade E-mini S&P with E-mini Dow – both are Stock indices and, henceforth, are correlated, as well as such pairs as Corn and Soy, Gold and Oil. Each position in the spread is called a leg. While trading the related assets one trades the difference or spread price between the two legs, simultaneously going long on one leg and short on the other.

    • Spread Trading: Explained

      Spread Trading as we have already mentioned, helps to reduce market volatility and balances the relation between risks and profit. In order to identify the traded contracts, one has to create a chart and analyze it accordingly, and here is where GeWorko Method comes into play. It grants a unique opportunity for spread traders to effectively develop spread trading strategies, by constricting corresponding charts quickly and easily and use extensive arsenal of technical analysis tools.

    • Spread Trading Strategy

      It is the dream of every trader to find a strategy, producing consistent profits by escaping great drawdowns, and spread trading may just come close to fulfilling it. Spread trading, that evolved together with market creation and traditionally has been applied to futures, is considered a powerful trading strategy.

    • Pair Trade

      Pair Trade, also known as statistical arbitrage or spread trading, is a strategy that allows a trader to profit from anomalies as well as strong fundamental differences between two currency rates or asset portfolios while allowing for neutral market position. The key to this strategy is identifying correlated assets and using periods of price divergence while following the simple rules of entering and exiting the markets as well as being careful while managing ones capital.

    • Pair Trade

      Pair Trade, also known as statistical arbitrage or spread trading, is a strategy that allows a trader to profit from anomalies as well as strong fundamental differences between two currency rates or asset portfolios while allowing for neutral market position. The key to this strategy is identifying correlated assets and using periods of price divergence while following the simple rules of entering and exiting the markets as well as being careful while managing ones capital.

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  • Hedging
    • A Certain Method of Risk Reduction

      Hedging is a method of reducing the risk of loss under any eventuality. It includes nearly a simultaneous sale or purchase of equal quantities of identical commodities in two distinct markets, hoping that a negative change of price in one market is compensated by a positive change in another. Its main objective is to offset potential losses; gains may not be as high as a result of risk reduction.

    • How To Hedge

      There are several distinct ways and investment hedging methods for investors. It is of great use to learn certain methods and strategies in order to achieve a perfect hedge - reduce all the underlying risks, except for the premium costs.

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