Conference Calls | FAQ | President's Letter

INTEREST ON YOUR POSITIONS

The FREEDOMROCKS system provides a unique opportunity to take advantage of the interest spread on the currencies you trade in your account and this can be a significant portion of your returns:

Assume you buy a 1K lot of USD/CHF at 1.3000.

You place that order with a broker, and the broker finds a seller. Because of the MASSIVE volume in the Forex market, there are always buyers and sellers.

Remember: Buying is simultaneously buying and selling, so you're both BUYING 1,000 USD and SELLING 1,300 CHF.

Because we now own 1,000 USD, we are entitled to DAILY INTEREST on our money! At 5pm EST every day, this interest is deducted from the seller's account and put into your account.

At the same time, you OWE interest on 1,300 CHF. This DAILY INTEREST is deducted from your broker's account and placed in the SELLER's account.

EARNING THE DIFFERENCE

Just as the Federal Reserve sets the prime rate for the U.S. Dollar, each country or union sets the interest rate for its own currency. The rates below are an example and may be different from today's rates:

Notice the difference in interest rate between currencies in the currency pair USD/CHF. The USD interest rate is 4.50%, while the CHF interest rate is 1.00%, giving a difference of 3.50%.

As a result, the interest we receive on our U.S. Dollars (base currency) is higher than the interest we will need to pay on the Swiss Franc (cross currency)! As long as the interest rate for the USD remains above the interest rate on the Swiss Franc, we earn interest each and every day we own that lot!

It is important to realize that you may also incur interest on currency pairs where the base currency pays less interest than the cross currency. Your overall strategy will be to choose currencies with a good correlation for reduced risk but for which the interest you will earn on the one is greater than the interest you will pay on the other. (Don't worry, FreedomRocks basically tells you what to do and will always start you at the lowest risk setting. Your practice account will help you learn the concept thoroughly before you begin investing actual money.)

The interest amounts to a few pennies per day for each lot you own, but you may own hundreds, or even thousands, of lots.

You decide how much interest you desire, and by experimenting with different strategies in the FREEDOMROCKS Portfolio Allocator, you will be told exactly how many lots to purchase based on your chosen margin and leverage. (Note that higher interest always entails higher risk.)

Because the structured trading approach of FREEDOMROCKS that takes advantage of movements in the market in both direction as well as the interest spread among the currency pairs we are holding, our prospects for returns for the year are very appealing.

There is, quite frankly, nothing like this in the entire financial world. Incredible Power — RIGHT AT YOUR FINGERTIPS!

Now that you understand how it works, click here to get started with the FREEDOMROCKS software and experience it now!

Watch the Movie

Click the movie graphic to watch the full video presentation on the FREEDOMROCKS system.