How and where to set up a hedge fund? - page 3

 
Igor Yeremenko:

Just make a website with a .fund domain and call it a hedge fund "name of the fund", post the results, photos, etc.

register an office on some islands (where many forex brokers register)

rent an office in a well-known business centre, so you can wear a suit and tie.

how to receive and pay out the money is a shamanism of accounting.

Yes, you should register your company in Bermuda. And if something goes wrong, you should tell your customers: "You understand that planes disappear in the Bermuda Triangle, and you talk about paperwork".

Respectfully.
 
Renat Akhtyamov:

I'll look it up for you.

Can I at least get a lead or a link in a private message?


You search for jobs as an algotrader.

 

In many hedge funds, the entrance is from millions of dollars and clients are usually known by sight as clients of the managers.

Some, once they have a pool of investors, do not accept any more money for management.

 

When working without leverage there is nothing to do below 1 mn, it's only 10 lots.
You have to keep in mind that the market has not noticed your money in trading and as a consequence, it hasn't changed its direction. This is about 100-1000 lots. It means that if you have 1 trader trading in profit, taking more than 100 million is not very reasonable, the overall fund profitability will decrease, and this is a capital outflow with a low percentage of profitability.

Sincerely.

 
Andrey Kisselyov:

There's nothing to do there below 1mil when working with no leverage, it's only 10 lots.
You have to keep in mind that the market has not noticed your money in trading and therefore does not change its direction. it's about 100-1000 lots. It means that if you have 1 trader that trades in profit, taking more than 100 million is not very reasonable, the total profitability of the fund will decrease, which means a capital outflow with a low percentage of profitability.

With respect.


I don't think they have any leverage limits at all, they are offshore)

And they trade all currencies, stocks, derivatives anything. They became hedge funds offshore to get around the restrictions.

 
forexman77:

I don't think they have any leverage limits at all, they are offshore)

And they trade all currencies, stocks, derivatives anything. They became hedge funds offshore to circumvent restrictions.

Any fund trades on the stock exchange directly (or through a bank). The leverage is given by the bank because it holds the capital and can deposit the required amount of margin for the position you open, in the very name you understand that it is a loan that the bank gives you to work in the stock exchange itself. As for the brokers, the brokers are of the same opinion when it comes to the question of whether a broker should buy or not.

Regards.
 
Andrey Kisselyov:
The bank provides leverage because it owns capital and may deposit a necessary amount of margin for the position you open, in the very name you understand that it is a loan that the bank gives you to work in the stock market itself. As for the brokers, the bank may not give them any profit unless you have a super profitable strategy with deep drawdowns.

Regards.

In futures, the collateral is 5-20% of the value of the asset. Yes, in stocks the leverage is maximum 3, but there is a completely different market and there is more movement.

But I cannot say anything about forex, how do institutional participants trade (what kind of leverage they give)?

 
forexman77:

In futures, the collateral is 5-20% of the value of the asset. Yes, in stocks the leverage is maximum 3, but there is a completely different market and there is more movement.

But I cannot say anything about forex, as for institutional participants (what kind of leverage they have)

The more you breach the limit, the tighter the deposit and the lower the volatility of equity on your deposit. Even with 1:1 leverage (the $1,000 deposit has 0.01 lots), trading should be profitable.

Best regards

 
Igor Yeremenko:

They just make a website with a .fund domain and call it a hedge fund "Fund Name", post their results, photos, etc.

register an office in some islands (where many forex brokers are registered)

rent an office in a famous business centre, so you can wear a suit and tie.

how to receive and pay out the money is a shamanism of accounting.


And by the way, why do they have to be called hedge funds? Do they really hedge everything? Of course, I don't mean locking on forex, I, for example, read about hedging options on futures.

What are they trading anyway, it's a lot of money.

 
Andrey Kisselyov:

The more leverage you have, the tighter the deposit and the less volatile the equity on your deposit. even with 1:1 leverage (for a $1000 depo it is 0.01 lots) you should make a profitable trade, otherwise there is no point in trading.

Best regards


In forex, my investor was given 1:100 leverage on a $10000 depo, on a larger depo the leverage decreased.

Reason: