Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal into forex trading... deck chairs not provided



Royal into forex trading... deck chairs not provided

Royal into forex trading... deck chairs not provided

C AMBODIA'S Royal Group, with 50 percent private Malaysian partners, have moved

into the potentially rich market of foreign exchange (Forex)

trading.

Royal Cambodian Trusts and Investments will accept $2,000

minimum deposits from people wanting to speculate on fluctuations between the

dollar to the yen, deutchmark, franc and pound.

The company, which begun

trading on April 18, also offers dealing in gold and silver.

General

manager Bert Lim said many local companies now in the forex market allowed

investors to trade "based on their feelings."

"Those companies provide no

market forecasts. They don't teach proper trading techniques nor offer any data

on which to base rational decisions... people begin to play the markets like

they would a casino, and there are heavy losses being made," he

said.

"Companies allow speculators to lie around in deck chairs on their

premises, sleeping with blankets and pillows. While they sleep they lose their

money."

"We are not going to encourage that. We will have banks of

monitors where investors can watch their investments and talk with our marketing

executives, and take calculated risks based on solid information," he

said.

Forex trading has become increasingly popular as satellite dishes

allow "real time" trading, and more business people invest in forex markets to

hedge against damaging currency fluctuations.

However, for every 10

people wanting hedging facilities, there are as many as 90 more speculators who

"play" the forex market for thrills and profit.

"You would be surprised

how much money is around," Mr Lim replied to doubts expressed whether people

with money would bother with sophisticated forex markets.

He produced a

list of 30 or so individuals' running balances that together totaled more than

$1.7 million -"loose change" belonging to local speculators now playing the

forex market, though not yet with the Royal Group.

"I would say there is

anything from $2 million to $5 million now in margin accounts in Phnom Penh," he

said. A "margin account" where the minimum $2,000 deposit is kept; and that can

be used to trade in speculative "contracts" starting from $100,000.

"Each

person makes his or her own decision... we are not fund managers. But we can

give advise, trading plans and technical data on markets for informed

decisions," Mr Lim said.

He said even streetside money changers could

have enough cash and market savvy to be expected to invest on forex

markets.

Royal Investments are training 35 Khmer as advisors. The company

is targetting a margin base of $2 million from investors within six months of

its opening.

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