{"id":14801,"date":"2010-11-02T12:30:19","date_gmt":"2010-11-02T16:30:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14801"},"modified":"2010-11-02T12:30:19","modified_gmt":"2010-11-02T16:30:19","slug":"how-to-make-money-from-both-sides-of-a-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/02\/how-to-make-money-from-both-sides-of-a-trade\/","title":{"rendered":"How to Make Money From Both Sides of a Trade"},"content":{"rendered":"<p><strong>By Sara Nunnally, Editor, Smart Investing Daily, <a href=\"http:\/\/TaipanPublishingGroup.com\" target=\"_blank\"><span style=\"text-decoration: underline;\">TaipanPublishingGroup.com<\/span><\/a><\/strong><\/p>\n<p>About a month ago, I was speaking in a conference room at the Venetian in Las Vegas. We were presenting our <a title=\"Pre-order Taipan Publishing Group's 2010 Annual Conference LIVE Audio Recording Reservation Form\" href=\"https:\/\/orders.taipanpublishinggroup.com\/500SCHEML\/E500LA14\/\" target=\"_blank\">2010 Global Summit<\/a>, and I was introducing the book I co-authored with our executive publisher Sandy Franks.<\/p>\n<p>It&#8217;s called <em><a title=\"Pre-order Barbarians of Wealth\" href=\"http:\/\/www.amazon.com\/gp\/product\/0470768142?ie=UTF8&amp;tag=taipanpublishinggroup-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0470768142\" target=\"_blank\">Barbarians of Wealth: Protecting Yourself from Today&#8217;s Financial Attilas<\/a><\/em>, and in it we outline four defensive strategies to help you protect your wealth from modern-day financial barbarians.<\/p>\n<p>I told our conference attendees that defensive strategies aren&#8217;t the  only ways to play the market &#8212; even in these tumultuous times.<\/p>\n<p>I gave out three new ways in my presentation last month. One was to  play the market itself. In a way, that means making money from both  sides of a trade.<\/p>\n<p>For example, we could be talking about exchanges&#8230;<\/p>\n<p>You see, money flows through these companies. Exchanges make money  from each and every trade that&#8217;s made on them&#8230; and they charge  companies fees to list &#8212; kind of like dues.<\/p>\n<p>Consider the volume of trades just on the <a title=\"Go to article: How to Ensure You Never Overpay for Stock: Part 1\" href=\"http:\/\/www.taipanpublishinggroup.com\/tpg\/investment-market-reports\/buy-cheap-stocks.html\" target=\"_self\">New York Stock Exchange<\/a> on Friday alone: 3.538 BILLION!<\/p>\n<p>The <strong>NYSE Euronext, Inc. (<a title=\"Google Finance: NYSE Euronext, Inc.\" href=\"http:\/\/www.google.com\/finance?q=NYX%3ANYSE\" target=\"_blank\">NYX:NYSE<\/a><\/strong>), the company that owns the NYSE, makes a cut off of every single one of those trades.<\/p>\n<div>\n<div>\n<blockquote><p><strong>Stop Buying Physical Gold!<\/strong><\/p>\n<p>In 2012, you could see your ability to freely and quietly buy  physical gold severely limited. If you buy this one \u201csafe\u201d investment,  you could make as much as 12 times more than physical gold.<\/p>\n<p><strong>Learn about this <a title=\"Learn more about New Growth Investor\" href=\"https:\/\/orders.taipanpublishinggroup.com\/TAI\/WTAILA14\/\" target=\"_blank\">gold investment<\/a>.<\/strong><\/p><\/blockquote>\n<\/div>\n<\/div>\n<p>Today, there are a number of exchanges that are publicly traded:<\/p>\n<ul>\n<li><strong>IntercontinentalExchange<\/strong><strong>, Inc. (<a title=\"Google Finance: IntercontinentalExchange, Inc.\" href=\"http:\/\/www.google.com\/finance?q=ICE%3ANYSE\" target=\"_blank\">ICE:NYSE<\/a>)<\/strong><\/li>\n<li><strong>Deutsche Boerse AG (DB1:XETRA)<\/strong><\/li>\n<li><strong>Singapore Exchange LTD (S68:Singapore)<\/strong><\/li>\n<li><strong>NYSE Euronext, Inc. (<a title=\"Google Finance: NYSE Euronext, Inc.\" href=\"http:\/\/www.google.com\/finance?q=NYX%3ANYSE\" target=\"_blank\">NYX:NYSE<\/a>)<\/strong><\/li>\n<li><strong>Nasdaq<\/strong><strong> OMX Group Inc. (<a title=\"Nasdaq OMX Group Inc.\" href=\"http:\/\/www.google.com\/finance?q=NDAQ%3ANASDAQ\" target=\"_blank\">NDAQ:NASDAQ<\/a>)<\/strong><\/li>\n<li><strong>CME Group, Inc. (<a title=\"Google Finance: CMS Group, Inc\" href=\"http:\/\/www.google.com\/finance?q=CME%3ANASDAQ\" target=\"_blank\">CME:NASDAQ<\/a>)<\/strong><\/li>\n<\/ul>\n<p>(By the way, investing doesn&#8217;t have to be complicated. Let me and my fellow editor Jared Levy simplify the market with out <a title=\"Sign up for Smart Investing Daily\" href=\"http:\/\/www.taipanpublishinggroup.com\/free-signups\/splash\/sid-video-su2.html\" target=\"_self\">easy-to-understand articles<\/a>.)<\/p>\n<p>And here&#8217;s some interesting news: On Oct. 24, the Singapore Exchange Ltd. bid $8.3 billion for the <strong>ASX Ltd. (<a title=\"Google Finance: ASX Ltd.\" href=\"http:\/\/www.google.com\/finance?q=ASX%3AASX\" target=\"_blank\">ASX:ASX<\/a>).<\/strong><\/p>\n<p>The deal constituted 3.473 shares of the Singapore Exchange and 22  Australian dollars per share in cash. This combined for an ASX share  value of A$48.00, a 37% premium to what shares were trading for on  Friday, Oct. 22.<\/p>\n<p>In response, ASX shares skyrocketed 25% on Monday, Oct. 25. Combined, the companies would make the <a title=\"Go to article: Australia, Singapore PMs Discuss Stock Markets Merger\" href=\"http:\/\/uk.biz.yahoo.com\/31102010\/323\/australia-singapore-pms-discuss-stock-markets-merger.html\" target=\"_blank\">world&#8217;s fifth largest exchange<\/a>.<\/p>\n<p>The deal still needs to be approved by both sides, but this type of consolidation will actually make markets more accessible.<\/p>\n<p>And Singapore is at the heart of making other investment areas more accessible, too.<\/p>\n<p>Last week, the Singapore Exchange started trading 19 Chinese ADRs,  and will soon be adding Indian, South Korean and Taiwanese ADRs to its  lineup. This move is the third ADR partnership it&#8217;s made with the Nasdaq  OMX Group. The two exchange companies share technology and are working  on getting companies to <a title=\"Go to article: Singapore Exchange to Trade ADRs for India, Taiwan, South Korea Companies\" href=\"http:\/\/www.bloomberg.com\/news\/2010-10-29\/singapore-exchange-to-trade-adrs-for-india-taiwan-south-korea-companies.html\" target=\"_blank\">dually list on both exchanges<\/a>.<\/p>\n<p>Singapore is on the move&#8230; It has to be in order to compete with the  likes of Tokyo and Hong Kong. That&#8217;s why it&#8217;s adding all these  listings, because &#8212; as I noted earlier &#8212; exchanges make money from  each and every trade.<\/p>\n<p>Even if it&#8217;s a losing one.<\/p>\n<p>On Friday, the Singapore exchange saw 1.085 billion trades.<\/p>\n<p>And Singapore is a fully developed exchange, offering a complete range of securities and derivatives &#8212; including commodities.<\/p>\n<p>The company is only listed on its own exchange, so to buy this  exchange, you&#8217;d have to do so on the Singapore Exchange or as a pink  sheet that has relatively low volume. But it is also included in the <strong>iShares<\/strong><strong> MSCI Singapore Index ETF (<a title=\"Google Finance: iShares MSCI Singapore Index ETF\" href=\"http:\/\/www.google.com\/finance?q=EWS%3ANYSE\" target=\"_blank\">EWS:NYSE<\/a>)<\/strong>.<\/p>\n<p>And take a look at what the EWS has been up to over the past year:<\/p>\n<p><a title=\"View larger chart\" href=\"http:\/\/www.taipanpublishinggroup.com\/images\/web\/smart-investing-daily\/1101-LG-Im.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.taipanpublishinggroup.com\/images\/web\/smart-investing-daily\/1101-SM.jpg\" border=\"0\" alt=\"Chart foriShares MSCI Singapore Index (EWS)\" width=\"450\" height=\"267\" \/><br \/>\nView Larger Chart<\/a><\/p>\n<p>This rise is half again more than what the <strong>iShares<\/strong><strong> MSCI Hong Kong Index ETF <\/strong>has done in the last 52 weeks.<\/p>\n<p>That shows you just how much Singapore is pushing higher&#8230; and the  changes at the Singapore Exchange (which is 23% owned by the  state-controlled Financial Sector Development Fund) are just going to  amplify this leap forward.<\/p>\n<p>In the first quarter of 2011, the company will be instituting a  faster trading system, and the company&#8217;s CEO Magnus Bocker, who has also  worked for the Nasdaq OMX Group, is really pushing a lot of new  initiatives that will help the Singapore Exchange compete with Hong Kong  and Tokyo.<\/p>\n<p>The latest bid for the Australian exchange would be mutually  beneficial, even if some think the bid was too high, and others are  concerned about the state-controlled aspect of the Singapore Exchange.<\/p>\n<p>If you can, it might be more worth it to grab some shares of the  exchange itself, rather than take a position in EWS, of which the  exchange represents less than 3.25% of its holdings.<\/p>\n<p>A warning: Near-term dips are nearly a given with the Singapore  Exchange as it&#8217;s going through the acquisition process. Traditionally,  the company doing the acquiring takes a hit in share prices, but this  deal will bring more investors and more fees to the exchange &#8212; and  that&#8217;s good for the long-term bottom line.<\/p>\n<div>\n<div>\n<blockquote><p><strong>Start your million-dollar winning streak right NOW!<\/strong><\/p>\n<p>The currency market is poised for unprecedented gains in the coming  year but you must get in position now to make the profits of a lifetime.  The trades of the decade are lining up to make monstrous payoffs.<\/p>\n<p><strong>Learn how to secure your own financial future in the <a title=\"Learn more about Currency Profits Trader\" href=\"https:\/\/orders.taipanpublishinggroup.com\/WCT\/WWCTLA04\/\" target=\"_blank\">Forex currency market<\/a>.<\/strong><\/p><\/blockquote>\n<\/div>\n<\/div>\n<p><strong>P.S.<\/strong> Now, this news is just a week old, so I didn&#8217;t  get to talk about Singapore in this detail at the 2010 Global Summit we  held for our subscribers in Las Vegas.<\/p>\n<p>But I did tell folks about three other ways to play the market that  make money from both sides of the aisle, just like the Singapore  Exchange. Taipan Publishing Group recorded my presentation &#8212; along with  all our other editors&#8217; presentations that weekend.<\/p>\n<p>These recordings are now available to all those who couldn&#8217;t make it  to Las Vegas. And even if you did, and you weren&#8217;t able to make it to  every editor&#8217;s speech, or you missed that key bit of information,  everything is &#8220;caught on tape&#8221; so to speak&#8230; every presentation, and  both panel discussions, which generated some really good questions and  investment ideas.<\/p>\n<p>If you&#8217;d like to pick up a copy of our 2010 Global Summit in Las Vegas, <span style=\"text-decoration: underline;\"><a title=\"Pre-order Taipan Publishing Group's 2010 Annual Conference LIVE Audio Recording Reservation Form\" href=\"https:\/\/orders.taipanpublishinggroup.com\/500SCHEML\/E500LA14\/\" target=\"_blank\">follow this link<\/a>.<\/span><\/p>\n<p>Don&#8217;t forget to follow us on <a title=\"Become a fan of Taipan Publishing Group on Facebook\" href=\"http:\/\/www.facebook.com\/pages\/Baltimore-MD\/Taipan-Publishing-Group\/220337511074\" target=\"_blank\">Facebook<\/a> and <a title=\"Follow Taipan_Trader on Twitter\" href=\"http:\/\/twitter.com\/taipan_trader\" target=\"_blank\">Twitter<\/a> for the latest in financial market news, investment commentary and exclusive special promotions.<\/p>\n<p><strong><em>About the Author<\/em><\/strong><\/p>\n<p>Sara is Co-Editor of <strong><em><a title=\"Sign up for Smart Investing Daily\" href=\"http:\/\/www.taipanpublishinggroup.com\/free-signups\/splash\/smart-investing-su.html\" target=\"_blank\">Smart Investing Daily<\/a><\/em><\/strong><em><strong>.<\/strong> <\/em>As  Senior Research Director and global correspondent, Sara Nunnally&#8217;s  diverse resume includes studies in art history, computer science and  financial research. She has appeared on news media such as <em>Forbes on Fox, Fox News Live, <\/em>and CNBC&#8217;s <em>Squawk Box,<\/em> as well as numerous radio shows around the country.<\/p>\n<p>As Senior Research Director, global correspondent and co-editor of  Smart Investing Daily, Sara has traveled all over the world in search of  the best investment opportunities to recommend to her readers, be they  in developed economies like France and Italy, in emerging markets like  the Czech Republic and Poland, or in frontier terrain like Vietnam and  Morocco. Her unique &#8220;holistic&#8221; approach of boots-on-the-ground research  has given her an edge in today&#8217;s financial marketplace as she searches  for the next investment opportunities in hot sectors like alternative  energy, currency markets and commodities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>About a month ago, I was speaking in a conference room at the Venetian in Las Vegas. We were presenting our 2010 Global Summit, and I was introducing the book I co-authored with our executive publisher Sandy Franks. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14801","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14801"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14801\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}