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Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
Financial Pacific: CFDs Panama
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Financial Pacific: CFDs Panama

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Visit our website for more information: http://www.investingpacific.com/ …

Visit our website for more information: http://www.investingpacific.com/

WHY INVESTORS TRADE CFDS WITH FINANCIAL PACIFIC?
 Investors gain access to online CFDs trading in all major US, European and Asia – Pacific Stocks, as well as Index-tracking CFDs that follow major global indices. Financial Pacific does charge a spread and minimum commission that may vary between stocks. There is no minimum commission or threshold when trading CFD Index Trackers.
 Ability to go both “long” and “short” allows traders and investors to take advantage of both bull and bear markets. This means that traders can profit when prices are going down, not just up. CFDs are a versatile asset class that is simple to understand.
 Financial Pacific offers access to more than 7,000 CFDs, nearly 20 Index-tracking across over 20 exchanges worldwide. Also, once you have an investment account this asset class allows your investments to be leveraged up to 20 times, however, keep in mind that margin trading at the same time increase your risk.
 Investors have access on demand to real-time prices on FP Direct multi-asset trading platform. This online trading platform has been supporting a large number of global CFD markets and asset classes in one single investment account.

Financial Pacific: “The Right Wave to Invest”
In today’s global economy it is important to be fully aware of the intricacies of international investments and the opportunities that these have to offer. Financial Pacific offers proven overseas investment opportunities.
If you are interested in a reliable investment service look no further because Financial Pacific provides: Wealth Management, Online Trading, Institutional Services and Investment Banking. With cutting edge technology we are capable to support highly specialized derivatives instruments such as: CFDs, ETFs, ETCs, Futures and Options. In addition investors have access to a wide range of investment opportunities through: Structured Notes, Fixed Income, Reverse Convertibles, Preferred Stocks, and Institutional Hedge Funds.
Fully regulated by the National Securities and Exchange Commission since 2003; allow us to provide you with the necessary tools to take advantage of the global markets.

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  • FRAUD / SCAM / MISAPPROPRIATION FUNDS

    Fraud in Panama: Pacific Financial / Financial Forex - Account 'Omnibus'

    The “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity) ordered, this past Tuesday, October 16, 2012, and for a period of 30 days, the reorganization of the Broker “Finacial Pacific”, Inc., on the grounds that there were indications that the company confronted administrative problems.

    The ambitions of the Broker “Financial Pacific” aren’t ending in the accusations of the “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity), “Financial Pacific” apparently is involved in other possible violations, perpetrated by senior executives of the firm, who have orchestrated a sophisticated scheme fraud and scam to illegally misappropriation of client’s funds in the firm.

    The Broker “Financial Pacific” has damaged the credibility and security of its’ customers and investors, jeopardizing all client’s funds, with possible seizures in Panama, and seizures abroad, including the United States, for possible illegal activities in money laundering ('Anti-Money Laundering') and violations of regulations of Patriot Act. The Patriot Act, which amends the Bank Secrecy Act ('BSA'), was adopted in response to September 11, 2001 terrorist attacks on the World Trade Center in New York. The Patriot Act is intended to strengthen U.S. measures to prevent, detect and prosecute international money laundering and terrorist financing. These efforts include anti-money laundering (“AML”) tools that impact the banking, financial, and investment communities.

    “Financial Pacific” created a new legal entity in Panama, with the name “Financial Forex”, and opened several secret bank’s accounts in local and international banks, to managed funds of the customers secretly, without the proper supervision of the “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity), entity that regulates the activities of the Broker in the Republic of Panama.

    'Omnibus accounts” is an account between two futures merchants (Brokers). It involves the transaction of individual accounts which are combined in this type of account, allowing for easier management by the futures merchant. These accounts they termed as 'omnibus account', received millions of dollars from hundreds of individuals and entities worldwide. “Financial Pacific” offered to its customers the service to send and receive payments from third parties directly in this special account 'omnibus account', and they customers will be charged a service fee for each banking transaction, purported a licensed Bank within banking activities. “Financial Pacific”, through “Financial Forex”, offered this service to small International Banks, whereas “Financial Forex” received deposits from customers of the Bank (third party deposit), and notified to the Banks their client’s deposits, and these deposits are credited to a special investment account at the Broker (“Financial Pacific”). Subsequently, “Financial Pacific” selling to their customers banking instruments called 'certificates of deposit' (or “plazo fijo'), and “Financial Pacific” represented there selves with legal authorization of the Panamanian Laws, on this way “Financial Pacific” could managed client’s funds without any supervision, restriction or regulation, and the money was used for personal interests of the owners behind “Financial Pacific”, Mr. Ivan Clare Arias and Mr. West Valdés.

    These activities of Financial Pacific and Financial Forex are created great concern about the reliability, integrity and transparency of Panamanian regulatory agencies, such as the “Superintendencia del Mercado de Valores SMV” (Panamanian Brokers Regulatory Entity) and the Superintendencia de Bancos de Panamá (Panamanian Banks Regulatory Entity), about the possibility that a Broker orchestrated a sophisticated fraudulent scheme apparent for several years, in violation of Panamanian Laws, and other laws such as the Banking Act, and others international laws of money laundering ('AML'), especially with correspondent banks in the United States and Europe. Federal Agencies of the United States have been informed of the apparent activities and possible violations of money laundering ('AML') of “Financial Pacific” and “Financial Forex”, and these top executives of these entities, Mr. Ivan Clare Arias and Mr. West Valdes.
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  • 1. a quiCk guiDe to CfD strategies for everY level of experienCe properly explaining the almost endless uses of Contracts for Difference would take a rather large book. however, in this guide you’ll find a quick overview of the most common basic and advanced CfD trading strategies. in these pages, you will learn about: • Speculate Breaking News Economic Data Company Reports Index Additions/Deletions Mergers & Acquisitions (M&A) • Hedge Single Stock Index Diversification • Market Neutral Pair Trade use this guide to spark ideas, or inspire further reading. 2
  • 2. speCulate Trading CFDs as a means of speculation is very common. One of the biggest advantages of using a CFD is the leverage associated with the instruments. It allows you to increase your exposure whilst minimising your investment in a trade. Trading a CFD to speculate is generally over a short to medium timeframe and typically surrounds a market event. Trading this instrument should always be combined with appropriate risk-management techniques such as the use of trailing stops. 3
  • 3. speCulate - breaking news sCenario how to exeCute this strategY RYANAIR WARNS OF PROFIT “STORM” opening trade: Sell 10,000 RYA:xlon @ €3.77. Budget airline Ryanair announced that profits will [Alternatively sell at market] be severely impacted by the rising costs of fuel. The profit target: Place Limit Buy order for 10,000 high cost of crude oil has clear knock-on effects for RYA:xlon @ €3.10. airline operators. stop loss: Place trailing stop to Buy 10,000 strategY RYA:xlon Distance to Market €0.10, The effect of this news should send the price of trailing step €0.02. Ryanair down. Our strategy would be to sell Ryanair CFDs with a profit target below the current share If either order to close is triggered then ensure you price and also cover the position with a trailing cancel the other remaining order! stop. Costs We sell 10,000 RYA:xlon CFDs @ €3.77 upon hearing the news. RYA is margined at 10%. We contribute €3,770 as Margin Requirement and receive interest of €1.36* per day as we are short. Nominal value of the trade is €37,700*. Profit target is set at €3.10 where we buy the CFDs back. A trailing stop is placed to protect our position set at distance to market of €0.10, trailing step €0.02. risk/rewarD If Ryanair doesn’t go down at all then our trailing stop would buy back the CFDs @ €3.87 realising a loss of €1,000 or €0.10 per CFD. The trailing stop is set close to the market as we are not interested in holding this position if the news has no negative impact on its price. If our profit target is reached then we buy back the CFDs at €3.10 realising a profit of €6,700 or €0.67 per CFD. 4
  • 4. speCulate - CoMpanY reports sCenario MARKS & SPENCER (UK) REPORTS LOWER risk/rewarD CHRISTMAS SALES If Marks & Spencer doesn’t continue to go down then our trailing stop would buy back the CFDs @ The UK Retailer Marks & Spencer reported on £4.60 realising a loss of £1,500 or £0.15 per CFD. 9 January its sales figures for the December Christmas If our profit target is reached then we buy back the period. Market consensus predicted a 1.5% drop CFDs at £4.00 realising a profit of £4,500 or £0.45 and some of this was already factored into the share per CFD. price. If the result is worse than this, you believe there is further for the stock to fall. how to exeCute this strategY opening trade: Sell 10,000 MKS:xlon on a STOP The result on the 9th is worse than expected and @ £5.02. comes in at -2.2% for December and -3.2% for the profit target: Place Limit Buy order for 10,000 quarter. MKS:xlon @ £4.00. stop loss: Place trailing stop to buy 10,000 strategY MKS:xlon Distance to Market The stock had already factored in some of this ahead £0.15, trailing step £0.05. of the result. Our strategy is to sell if the result is worse than expected. The company will report The Profit and Stop Loss orders are only placed if our ahead of the opening on the 9th. If it’s a worse than Stop entry order is triggered and filled! expected result the stock will open lower than the previous close. Therefore we will sell if the opening price is lower than the previous close. If we trade, we look to take profits below the entry and of course we cover the position with a stop loss. Costs Our stop is triggered and we sell 10,000 MKS:xlon CFDs at market as the open is lower than the previous close. In this example we trade at £4.45. MKS is margined at 10%. We contribute £4,450 as margin requirement and receive interest of £3.17* per day as we are short. Nominal value of the trade is £44,500. Profit target is set at £4.00 where we buy the CFDs back. A trailing stop is placed to protect our position set at distance to market of £0.15, trailing step £0.05. 5
  • 5. speCulate - eConoMiC Data sCenario how to exeCute this strategY CONSTRUCTION SPENDING SLOWS IN 2007 opening trade: Sell 1,000 RYL:xnys @ $33.00. Ryland Group is a US home building company that is profit target: Place Limit Buy order for 1,000 sensitive to housing and construction data released RYL:xnys @ $31.50. in the US. With the economy slowing, it is predicted stop loss: Place trailing stop to Buy 1,000 that official construction spending for 2007 will RYL:xnys distance to market show a decrease year on year. $0.50, trailing step $0.10. The Land Department released the figure that showed a decrease of -2.6% for 2007. strategY If Ryland Group is sensitive to this data then a negative Economic Indicator will send the stock down in the short term. The actual result is negative so then we sell the CFD. We set a profit target below the market and cover our position with a trailing stop. Costs We sell 1,000 RYL:xnys CFDs @ $33.00 upon seeing the release of data. RYL is margined at 10%. We contribute $3,300 as margin requirement. Nominal value of the trade is $33,000. Profit target is set at $31.50 where we buy the CFDs back. A trailing stop is placed to protect our position set at distance to market of $0.50, trailing step $0.10 risk/rewarD If Ryland Group doesn’t go down at all then our trailing stop would buy back the CFDs @ $33.50 realising a loss of $500 or $0.50 per CFD. If our profit target is reached then we buy back the CFDs at $31.50 realising a profit of $1,500 or $1.50 per CFD. 6
  • 6. speCulate - inDex aDDitions/Deletions sCenario how to exeCute this strategY WASHINGTON POST ADDED TO S&P 500 opening trade: Buy 100 WPO:xnys @ $769. On December 19, 2007 Standard and Poor’s an- profit target: Place Limit Sell order for 100 nounced that Washington Post will join the S&P 500 WPO:xnys @ $810. on December 28. stop loss: Place trailing stop to Sell 100 WPO:xnys distance to market $20, strategY trailing step $2. Typically when a stock joins an index fund, managers that track the various indices will need to rebalance their portfolio. This often means that from the date of announcement to the date of official inclusion there will be buying seen in the stock leading up to the inclusion date. Our strategy is to buy on the date of announcement and sell on the date of inclusion. Costs We buy 100 WPO:xnys CFDs @ $769 upon the release of the news. WPO is margined at 25%. We contribute $19,225 as margin requirement and pay interest of $11.76* per day as we are long. Nominal value of the trade is $76,900. Profit target is set at $810 where we sell the CFDs. A trailing stop is placed to protect our position set at distance to market of $20.00, trailing step $2.00. risk/rewarD If the Washington Post doesn’t go up at all then our trailing stop would sell the CFDs @ $749 realising a loss of $2,000 or $20 per CFD. If our profit target is reached then we sell the CFDs at $810 realising a profit of$4,100 or $41 per CFD. 7
  • 7. speCulate - Mergers & aCquisitions sCenario risk/rewarD MICROSOFT BIDS $44.6Bn ($31per share) FOR If there are no further bids and the Microsoft YAHOO. takeover is approved then we will close our position On February 1, Microsoft proposed a takeover of at $31 realising a profit of $25,000 or $2.50 per Yahoo for $44.6bn. This equates to $31 per share. share. Should the bid not be approved or Microsoft withdraw their offer then our trailing stop would Often with such large takeovers there can be rival sell the CFDs @ $28.20 realising a loss of $3000 or bids. The press is talking of potential rival bids from $0.30 per CFD. News Corp, Time Warner or even AT&T. Finally, if there are any further bids then they will strategY need to be in excess of $31, therefore further Whilst Yahoo CFDs trade at a reasonable discount increasing your profit. to the proposed $31 per share bid then we buy. If there are no rival bids then we get the difference how to exeCute this strategY between where we buy the CFD and $31. If a rival opening trade: Buy 10,000 YHOO:xnas @ $28.50. bid is placed on the table then who knows what the stop loss: Place trailing stop to Sell 10,000 upside will be. However, like all M&A activity the YHOO:xnas distance to market regulator may not approve the takeover. Therefore $0.30, trailing step $0.05. any position is still a risk and should be covered appropriately. Our strategy is to buy on the date of announcement and hold until further information is released. Costs We buy 10,000 YHOO:xnas CFD’s @ $28.50 upon the release of the news. YHOO is margined at 10%. We contribute $28,500 as margin requirement and pay interest of $43.59* per day as we are long. Nominal value of the trade is $285,000. We do not set a profit target at this stage. A trailing stop is placed to protect our position set at distance to market of $0.30, trailing step $0.05. 8
  • 8. heDge A CFD can be used as part of a hedging strategy to help protect existing stock positions and portfolios. As a CFD is a margined product, you can use its leverage to protect the total value of a stock position without contributing to the total cost. As the remaining amount is financed, you will then be subject to finance costs that you pay for long positions and receive for short positions. 9
  • 9. heDge - single stoCk sCenario If ABC does go down as we originally thought, we Imagine you are currently long 10,000 ABC Bank then similarly close out the CFD for a profit equal to shares. Its now November 2007 and you expect the what we lost on the share position. For example, if bank to have some short-term issues due to the ABC went down to $6.00 then our profit on the CFD credit squeeze from problems in the US housing is $14,000 which is equal to the loss on the share market. However, you believe it´s only a short-term position from its level where we created the hedge. weakness and ABC Bank is a sound long-term investment. The outcome from the hedge is that we will maintain our profit from the point at which the hedge is Initially you bought 10,000 ABC Bank shares at established whatever way the market moves. When $5.82 back in November 2005 costing a total of you are comfortable with the market again, simply $58,200. Currently ABC is trading between $7.20 and unwind the hedge. $7.40 but with the credit crisis looming you expect to see a significant short-term loss, perhaps as low as where you entered the trade. But afterwards you expect to see support and the share price to rise again. So what can we do? So far we have made around $16k or approx 27% on our initial investment... strategY Because we don’t know for sure that the market will go up or down, we then decide to hedge our position rather than selling out. To hedge we will sell an equal number of CFDs at the current market price to create the hedge. When we are comfortable that the market has turned, we then close out the CFD position realising a profit equal to the loss on the share position. Costs We sell 10,000 ABC CFDs @ $7.40. ABC is margined at 10%. We contribute $7,400 as margin requirement and receive interest of $5.27* per day as we are short. Nominal value of the trade is $74,000. We do not set a profit target at this stage. A trailing stop is placed to protect our position set at distance to market of 0.50, trailing step 0.10. risk/rewarD If ABC does not go down then our trailing stop buys back the CFD at $7.90 realising a loss of $5,000 or $0.50 per CFD. However, we also realise a gain of $5,000 on our share position. Our only cost is the small commission incorporated into the CFD price. 10
  • 10. heDge - single stoCk how to exeCute this strategY opening trade: Sell 10,000 ABC CFDs @ $7.40. stop loss: Place trailing stop to Buy 10,000 ABC CFDs, distance to market 0.50, trailing step 0.10. 11
  • 11. heDge – inDex DiversifiCation Trading an Index CFD is not strictly only a hedging tool. It is equally used as a tool to speculate on a particular index, market or even region. An index CFD tracks the underlying index on which it is created. Currently there are 16 index tracking CFDs available to trade based on major stock indices from around the world. Diversification is an effective way to spread your risk across many instruments. Using an index tracker CFD is an easy way to achieve this, especially for markets that you do not know well. 12
  • 12. heDge – inDex DiversifiCation the sCenario the Costs It’s the end of December 2007. You predominantly We will roughly trade approximately €10,000 for trade stocks on the German market. Your portfolio is each position. For this example the following trades made of up 12 large-cap German stocks and worth were executed on the December 28th and then approximately €60,000. Again, with the uncertainty revaluated on the February 5th: around global equities markets, you would like to potentially profit from any downside movements but at the same time you really don’t want to sell your shares because you believe that long term they are all still good investments. the strategY You believe that over the short term most global stock markets will fall. However, as you don’t regularly trade markets outside of Germany you don’t know which stocks to pick. Plus you cannot short-sell stocks. So the strategy is to sell a number of Index Tracking CFDs. You decide to sell FTSE100, NASDAQ, S&P500, Dow Jones and DAX® Index Tracking CFDs. Margin Re q. Price 0 5 Curre nt Ope ning TTrade Opening rade Volume Currency Volume Curre ncy Price Price Margin ReReq. Nom. Value Margin q. Nom. Value Margin Req. Nom Val € ¤ Nom Val Price 05 Current Profit / L oss ¤ Profit/Loss € % Change % Change € ¤ F e b 22008 Value € ¤ Feb. 0 0 8 Value Se ll FT SE100. I 1 G BP 6469 323 6, 469 433 8, 668 5884 7, 885 784 9% Se ll NAS100. I 6 U SD 2106 632 12, 636 439 8, 775 1775 7, 396 1, 379 16% Se ll SP500. I 8 U SD 1477 591 11, 816 410 8, 206 1337 7, 428 778 9% Se ll DJ I. I 1 U SD 13354 668 13, 354 464 9, 274 12270 8, 521 753 8% Se ll DAX. I 1 EU R 8058 403 8, 058 403 8, 058 6706 6, 706 1, 352 17% 2, 149 42, 981 5, 046 Index Tracking CFDs are margined at 5%. The margin requirement is what you contribute towards the trades. This is the total market value of the trades in euro. Your profit on february 5th 13
  • 13. pair traDing Originally pair trading was developed by a group of quantitative analysts working for Morgan Stanley in the 1980s. Pair trading has the potential to achieve profits through simple and relatively low-risk positions. The pair trade is Market-Neutral, meaning that the direction of the overall market does not affect its performance. The idea is to pick price ratio diverges between two highly correlated stocks. These stocks are usually the same type of business, industry or sub-sector. Plotting the two stocks on a comparative chart shows you everything you need. Lets look at BP and Shell. 14
  • 14. pair traDing - the entrY the sCenario the Costs & how to exeCute We can see both BP and Shell plotted on a We buy 17,482 BP:xlon CFDs @ £5.72. comparative chart. Most of the time the two stocks We sell 4,911 RDSb:xlon CFDs @ £20.36. trade in a relatively similar pattern. However, for varying reasons, time to time they diverge. History BP is margined at 5%. We contribute £5,000 as will tell us that on most occasions the two stocks margin and pay interest of £21.99* per day as we will return to trading in a close range. are long. the strategY RDSb is margined at 10%. We contribute £9,998 Upon seeing such a divergence as in the example as margin requirement and receive interest of given here, we will buy BP CFDs and sell Shell CFDs. £6.49* per day as we are short. We will close the positions when we see the two stocks return to their normal pattern of similar Nominal value of the BP position is £99,997.04. trading. Nominal value of the Shell position is £99,987.96. By also trading the CFD we gain the benefits of leverage that give us greater exposure. As the CFD is margined, we are only required to contribute the margin amount to establish and maintain the positions. Our strategy will take a £100,000 nominal stake in each CFD. 15
  • 15. pair traDing - the exit risk/rewarD The risk in this strategy is in both stocks moving against us. This is generally not the case. However, your analysis of the pair will determine your risk appetite for the trade. the exit As you can see in the chart, 14 trading days later the two stocks converged marking the exit to this strategy. There is no automated way to monitor the convergence therefore you will need to monitor your positions. We sell 17,482 BP:xlon CFDs @ £5.735. We buy 4,911 RDSb:xlon CFDs @ £19.52. The profit on the BP position is 0.015 per CFD or £262. The profit on the Shell position is £0.84 per CFD or £4,125. the result Therefore the total profit after 14 trading days with relatively low risk is £4,387. 16
  • 16. stop loss orDers There are two widely used types of order called a Stop Loss. They are used as a form of protection when trading all kinds of instruments and as the name suggests, they help to stop the loss. It is important to know the difference between the two and how you can use the order types as part of your regular trading activity. Throughout the CFD trading strategies, trailing stops are almost always used to protect the positions entered into. 17
  • 17. stop loss orDers stop loss S im p le S to p L o s s The simple stop loss is straight forward. You place a regular order to buy or sell with an extra parameter 8 known as the stop level. The order is then called a 7 .5 S to c k p ric e stop order. The stop level is like a trigger. When it triggers, your order is executed for you at market. 7 Below is an example of stop order written out in a 6 .5 logical format: 6 if the last priCe is less than or equal to S t o p L o s s L e ve l 5 .5 $5.50 then sell 5,000 at Market 5 In this example, the stop level is $5.50 which we m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12 m13 m14 m15 m16 m17 m18 m19 m20 specify when creating the order. If this was an order to close, ie. to protect an existing position, then we could manually move our stop level up as the price moved along. The chart shows how a stop loss order looks in relation to the price movement of the underlying instrument. We opened a position at $5.80 and set our stop $0.30 below the entry at $5.50. Unless we manually move the stop level, should the price start to move down, we could then potentially give up all that profit back to the market. Whilst this may protect our initial investment it does not effectively protect any profit that we have made. To manage your stop loss more efficiently you could use a trailing stop loss. 18

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