The auction of orders with a fixed price is a relatively new direction in investing, the essence of which is to invest in unprofitable, undervalued assets that have the prospect of future growth. The asset that has fallen in price is bought out from the intermediary company and sold after its value has increased. In the professional environment, such a technique was called the “Field 51”. As practice shows, this way of investing does not apply to risky ones: a possible loss in the long term can reach only 1-2% of the invested funds, and the profit is at the level of 3% and higher.
The mechanism of the auction of orders with a fixed price
Exchange trading carries certain risks. It is not uncommon for a trader to lack financial capacity to hold an asset in case of a negative change in quotations. As a result, the broker forcibly closes the transaction to protect its own funds provided to traders as leverage. In the future, brokers face a choice: either to close the transaction altogether, or to sell the asset to another interested investor.
Closing a transaction entails a fairly high risk of losses, especially if the asset seems to be unpromising in the short term. For this reason, many brokers prefer the resale of a “fallen” asset to another interested investor, using the “System 51” mentioned above applies. The broker not only avoids losses, but also receives a certain profit due to the spread from the new trader.
This practice led to the formation of an auction of orders with a fixed price, the very “Field 51”. To date, companies have been established that specialize in work as part of the auction, they select promising assets for investment and take all the trouble associated with changing the owner of the investment object.
The selection of promising assets at auction of orders with a fixed price (like this) is carried out on special auction sites, where brokers transmit data on such types of orders. Also, if companies are in partnership, information about orders with a fixed price can come directly from a broker directly to a specializing company, bypassing the public platform.
Further, the most promising ones are selected from the total mass of orders that can bring profit in the medium term. To do this, apply the entire array of the most advanced tools, both technical and fundamental analysis. After that, the list of selected assets is transferred to customers, who decide which ones they want to invest. Thanks to the use of the best equipment and innovative information technologies, the whole process takes no more than ten seconds, which allows investors to respond with lightning speed to the appearance of new orders.
What traders get
Orders that are offered to traders strictly correspond to the set of required parameters.
First of all, the risks associated with the asset are taken into account. According to the established practice, the maximum possible risk level is 3%. Often, a company that has offered to invest in an asset that has caused a loss above this mark will compensate the investor for the difference.
The next important parameter is the maximum profit. Depending on the result of the analysis of the asset, it is limited for the investor at around 3% to 5%. All profits above this mark are received by the company that provided information about the asset.
The next important factor is the period of investment. According to the norms now adopted, it is limited to fifteen days, but if the profit is received earlier, the transaction is immediately closed.
“Field 51” is great for beginners, as well as for traders who do not have the ability or desire to delve into the specifics of the asset. All analytics is carried out by experts whose earnings directly depend on the quality of forecasting and the success of clients.
Advantages of “Field 51”
One of the most important advantages of auctioning orders with a fixed price is the safety of investment. While margin trading is fraught with the risk of losing a whole fortune as a result of an unsuccessful investment, here the maximum losses do not exceed 3%, and most often they are at the level of 1% -1.5%.
In addition, an important advantage of the auction of orders with a fixed price is low qualification requirements and investor involvement. All the work is done by professionals who themselves carry out market monitoring, analysis and selection of assets.
With all of the above auction orders with a fixed price has a fairly good yield. The transaction can bring the investor up to 5% of the profits and do not forget that you will not have to deduct from this amount swaps, spreads or commissions.
Despite the fact that the auction of orders with a fixed price appeared relatively recently, a few years ago, in this area also appeared a number of scammers. If you decide to work on a fixed-price auction of orders, make sure that you cooperate with a reliable company and in any case enter into an agreement before parting with your own money. Remember that a frivolous approach can cost you money.