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What is Difference Between Metatrader 4 and 5? – Metatrader 4 vs. 5

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The Metatrader platform is a powerful and intuitive trading system that has become one of the most popular choices for traders. It has been developed by MetaQuotes Software Corporation, a software developer based in Russia, and is available for both desktop and mobile devices. The platform offers users access to various financial instruments, including stocks, options, futures, bonds, and commodities.

The Metatrader platform provides users with detailed analysis tools such as technical indicators, charting devices, and back-testing capabilities, allowing them to make informed trading decisions. It also offers real-time quotes and news alerts which can be customized according to user preferences. Traders also have access to an extensive library of automated trading systems (expert advisors) that can help automate the entire trading process.

 

In addition to its comprehensive suite of features, the Metatrader platform has an advanced security system that ensures users’ funds are kept secure at all times. Account information is encrypted using the latest SSL protocols, and private keys are stored on servers behind firewalls for added protection against cyber threats. All transactions are processed through trusted payment gateways meaning that users have peace of mind when transferring funds from one account to another.

The Metatrader platform also boasts an easy-to-use interface that allows even novice traders to get up to speed with their trading activity quickly. Users can customize their interface according to their individual needs and preferences, with various layout styles available for desktop and mobile versions of the platform. The highly customizable nature of the Metatrader platform makes it ideal for beginner traders who want to learn more about investing and experienced professionals who need a reliable, intuitive tool they can trust with their investments over time.

MetaTrader is one of the most popular trading platforms among forex traders and has been around for many years. It was first launched in 2005 with MetaTrader 4 (MT4) and has since evolved with the launch of MetaTrader 5 (MT5) in 2010. MT4 and MT5 offer a range of features to help traders take advantage of the foreign exchange markets, but there are some significant differences between them. Let’s take a closer look at how these two versions differ.

Metatrader is the most famous and most used platform for forex and CFDs trading. We will compare two versions of this platform: mt4 vs. mt5 forex platforms.

Is MetaTrader 5 legit?

Yes, MetaTrader 5 is a legit Metatrader platform created for trading all assets other than stocks. However, instead of removing MT4 from the market, traders still prefer MT4, and many brokers added stocks, indices, and cryptos in MT4, decreasing the popularity of MT5.

The main difference between MT4 and MT5 lies in the type of assets they allow you to trade; while MT4 is mainly used for forex trading (currencies), MT5 will enable you to trade all assets. This makes it an ideal platform for those who are looking for more diversified options when it comes to their investments.

However, despite the benefits of using a multi-asset trading platform like MT5, traders have still been reluctant to switch from MT4. Many brokers have decided to add stocks, indices, and cryptos into MT4 instead of offering them in separate platforms such as MT5. The fact that many brokers are not yet providing support for MT5 has had a significant impact on its overall popularity.

Why is designed MT5?

  • Metatrader 5 was designed to trade into a centralized trading exchange, markets such as stocks and commodities, and MT4 for trading forex.
  • Metatrader 5 automatically aggregates all positions and is intended for the USA market (accepting the FIFO rule).In simple words, MetaTrader 4 can deal with hedging, and Metatrader 5 can not deal with hedging.
  • MT5 is designed to attract non-Forex and USA markets, and Metatrader 4 specializes in Forex, Indices, and significant stocks.
  • The MT5 platform is based on a programming language called MQL5, and Metatrader 4 platform is based on the MQL4 language (different programming languages).

See in my video my personal opinion about MT4 vs. MT5:

What is the main Difference Between Metatrader 4 and 5?

The main difference between MT4 and MT5 is in the trading purpose because MT5 is designed for trading all kinds of assets while MT4 is mainly for trading foreign currencies. Additionally,  they have different programming languages (MT4 uses MQL4 while MT5 uses MQL5). MT5 has faster execution, HTML reports, six pending orders (instead MT4’s four pending orders), a better order fill policy, an economic calendar, etc.

Metatrader 4 and Metatrader 5 are both popular trading platforms used by traders of all levels around the world. They offer a wide range of features, but key differences should be considered when deciding which is suitable for your trading style. While both have advantages, depending on the type of trader you are, one may be better suited to your needs than the other.

You will have more timeframes on MT5:

MT5 time frames

The most notable difference between Metatrader 4 and Metatrader 5 lies in their respective trading purposes. MT4 was designed primarily for foreign currency trading, whereas MT5 has been specifically developed to facilitate trading on a broader array of assets, including stocks, commodities, and indices. This means that if you are a forex trader, then MT4 might be more suitable for you; however, if you’re looking for a platform that can allow you to trade in multiple asset classes, then MT5 would be the better option.

In addition to their different trading purposes, each platform uses another programming language: MQL4 for MT4 and MQL5 for MT5. The newer language is more potent than MQL4 and allows traders to create even more complex strategies with greater accuracy and speed. This gives users greater flexibility when developing strategy while still controlling their risks through algorithmic techniques such as Expert Advisors (EA).

Another significant difference between the two platforms lies in execution speed and order-filling policy: MT5 has faster order execution time than MT4 due to its advanced technology; this allows trades to close much quicker than they would on an older platform like MT4.

Additionally, it offers six pending orders instead of four on MT4, giving traders more control over their risk management strategy. Regarding order fill policy, it’s said that MT5 provides more accurate fills compared with its predecessor – allowing traders to minimize their losses from slippage or gaps in prices between orders being placed and executed on the markets.

pending orders in mt5

Finally, one feature that sets MT5 apart from other platforms is its economic calendar integration, allowing users to access live news updates directly from their terminal window. Not only does this help traders stay up-to-date with market developments, but it also gives them an edge over competitors who might not be using such tools.

Furthermore, HTML reports can be generated from within the platform so that trades can quickly analyze performance outcomes within minutes rather than hours or days – once again providing users with an edge over those who don’t have access to such resources or features available elsewhere.

Overall it’s clear that there are numerous differences between Metatrader 4 and Metatrader 5 platforms – ranging from purpose and programming language through to execution speed and order fill policy – all of which should carefully be taken into consideration before deciding which one is right for you as a trader. With its ability to trade multiple asset classes along with its advanced features such as economic calendar integration and HTML reports generation capabilities, it’s no surprise why so many consider Metatrader 5 as being superior when compared with Metatrader 4 – although ultimately, only individual preferences will decide what works best for each user’s specific needs.

Metatrader 4 vs. 5 Comparison Table

FeaturesMT4MT5
Depth of marketNoYes
Economic CalendarNoYes
Email systemYes (no attachments)Yes (with attachments)
Exchange tradingNoYes
Fund transfer between accountsNoYes
Graphical objects3144
HedgingYesYes
MarketsMostly Forex and CFDs (but lately MT4 has stocks and commodities too)Forex, futures, stocks, bonds, and options market
NettingNoYes
Order fill policyFill or KillFill or Kill, Immediate or Cancel, Return
Partial order fill policyNoYes
Pending order types46
Programming languageMQL4MQL5
Technical indicators3038
Timeframes921

Is MetaTrader 4 or 5 better?

ITrader4 is better because of its simplicity, many free EAs, and free indicators, and because most brokers use this platform.

MT4 vs. MT5 Infographics

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mt4 vs. mt5

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MetaTrader 4 vs. five deals with the substance of acquaintance, simple or easy-to-use, and all MQL languages.

 

 

MQL4 vs. MQL5 programming language

MetaTrader 4 was introduced globally in 2005, whereas MetaTrader 5 was released in 2010. Language has similar syntax and noticeable and significant changes in keywords that distinguish both. It makes it hard for an MQL4 file to function in MT5 smoothly and vice-versa as it implements the MQL5 and MT4.

MQL4 and MQL5 have many similarities with the programming language C++. MQL4 has maintained its position or popularity in the industry even after the release of MQL5, which has helped distinguish the programming language.
However, this feature makes the MQL4 and MQL5 interesting. It offers a flat contest to everyone because the programming language is such as which requires updates to programming languages like Python or Ruby.

Variation in MQL4 and MQL5 gives a meaning of going beyond the marketing side from the MetaQoutes platform, which is the primary source of the promotion set it and forget it kind of tactics to make a trade with “robots” (Expert Advisors) and custom indicators. This kind of elevation creates hurdles for newcomers who just found out that their MT4 version has been updated or would find that their MT5 version will be updated. They seem like a victim of the never terminated Software Development Life Cycle.

There will be no updates in MQL4, but there shall be continuous variation in MQL5. Therefore, it will reduce the hurdles for newcomers entering MetaTrader 4. It deals with Relaxed and Comparative Limitations in Competence vs. Stimulating and Vigorous Aptitude.

In my personal opinion, both languages (MQL4 and MQL5) are similar to C++ and easy enough to program.

Pros and Cons of MetaTrader 4 vs. 5 (MQL4 vs. MQL5)

MetaTrader 4 Advantages over MT5

  • Easy design
  • A lot of free indicators
  • A lot of free Expert Advisors
  • A lot of MQL4 programmers
  • Each fx broker has an MT4 platform

MetaTrader 4 Disadvantages  over MT5

  • The smaller number of instruments
  • Slower execution
  • Slow backtesting

 

Standards of opening positions

MT4: hedging – a lot of the transactions can be made by the trader that comes under the umbrella of multidirectional for the same tool and simultaneously with the addition of the place, one-direction trades. Traders know well about this process because this method involves reducing risks.
MT5: netting – the trader can trade instruments in a single direction, while multidirectional positions are not permitted.
A trader can also open an account in MT5 and trade instruments, except for stock unavailability at this account.

Market Depth in MT4 and MT5

MetaTrader 5 delivers market depth by exchanging instruments that are being traded. At the same time, from the other perspective, MT4 only gives a chance to deal with the resources in the ECN system like OTC. Both allow traders to make a precise analysis of orders that how much they have to deliver and how much they have to buy, measure the capacities of the gadgets, and deal with two types of trading functions:
Sell/buy instruments with the exchange of money on the spot.

Place trading orders – remaining or pending orders to sell/buy a substituting tool at a fixed price.

Market trade seems best to scalpers, traders who desire to perform high but full-risk trading because market depth boosts many people’s presentation. Experts often use special trading tools to carry out the processes.
Tester of strategies
MT5 gains a multi-tasking and functional tester who can execute the function by testing a portfolio, which grabs traders’ attention dealing with the standard market equipment. Quotes history can be recovered or downloaded in the terminal.
Testing results appear as a chart.
MetaTrader 5 tester is given in MQL Cloud Network with the limitless contribution to calculate tens of thousands of compatible PCs. However, a trader can only get this function if a particular application strategy Tester is installed.

MQL4 vs. MQL5

MQL4 and MQL5 are distinguishable from each other on the level of the programming language platform. MQL4 is a language (MetaQoutes Language 4) used for machines, writings, and pointers in MetaTrader 4. This language has limited scope compared to the other languages, as it can be seen that it is used for primary-level calculations or simple commands.
MetaTrader 5 focuses significantly on the MQL5 language that is brand new, more significant, and much closer or similar to the object-oriented C++.

The syntax makes programming language easy for developers: a trader can write code or make changes in it, pointers, and vigorous interchange by using MQL5 under the platform of MetaEditor, as the language gives countless opportunities.

 

Conclusion

In terms of charting tools, both platforms provide approximately 80 technical indicators to help traders analyze market trends and make informed decisions. However, MT5 also offers more advanced charting tools, such as 21-time frames compared to 9 on MT4, along with a more extensive selection of graphical objects like lines and shapes that allow more detailed analysis.

Moving on to trading orders, both versions support the same types, such as stop-loss orders, limit orders, etc., but there are differences in functionality. For example, while MT4 only allows a single position per order type allowance per symbol, MT5 allows multiple positions and complex hedging strategies using netting mode or hedging mode, depending on the broker setup. Furthermore, when it comes to automated trading using Expert Advisors (EAs), both versions are supported by an extensive library of third-party EAs; however, only the latest versions can be used on MT5 due to the different programming language requirements.

Finally, when comparing user experience between these two versions, we can see that there is no significant difference since both platforms use similar menus and navigation systems, so switching from one to another should not be too difficult for experienced traders. However, it should be noted that some brokers may impose certain restrictions, such as not allowing scalping or limiting leverage on specific platforms, which could impact your trading strategy.

In conclusion, we can see that while there are many similarities between MetaTrader 4 and MetaTrader 5, they do have their strengths and weaknesses; therefore, each trader will need to choose which one best fits their individual needs based on their preferences regarding platform features like charting tools or automated trading capabilities etcetera before deciding which platform is right for them.

 

How Does the Relative Strength Index work ?

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Relative Strength Index – RSI

What is the Relative Strength Index?

Relative Strength Index or RSI represents a chart indicator that measures speed and change of price movement. RSI is an oscillator because its values oscillate between zero and 100. The asset is considered overbought when RSI values are above 70 and oversold when RSI values are below 30.

Short note on relative strength index: Relative strength index is a technical indicator that compares current and historical gains and losses to define if the asset’s value is overpriced or underpriced. The formula for calculating RSI is:

RSI = 100 – 100/(1 + RS*)
RS = Average of x days’ up closes / Average of x days’ down closes
The formula for the RSI indicator is below:
relative strenght equation

Understanding the Relative Strength Index
The primary role of this indicator is to remove noise in price movement representation. High relative strength index success rate we can see in application very often.
What is the Relative Strength Index in forex? In the forex, the Relative Strength Index or RSI is a momentum indicator that measures the magnitude of recent price changes, price strength, analyzes overbought or oversold conditions, price divergence.
Example of GBPUSD chart – RSI indicator is red:
RSI indicator example

How to read the Relative Strength Index

What does the relative strength index tell you? Interval in which RSI ranges from 0 to 100 shows if the asset is overvalued or undervalued (relative strength index law). As the RSI closes to level 70, the asset can be considered overvalued and has a significant chance of being overbought. On the other hand, when RSI reaches level 30, the asset is deemed to be oversold. The best way to use this index is to add additional information to other stock-picking tools because using only RSI traders can create false buy and sell signals, which can mislead the observer.

History of relative strength index

J. Welles Wilder rsi
The relative strength index was developed by J. Welles Wilder and published in a 1978 book, New Concepts in Technical Trading Systems, and Commodities magazine (now Futures magazine) in the June 1978 issue. It has become one of the most popular oscillator indices. The RSI compares bullish and bearish price momentum plotted against the graph of an asset’s price. Wilder developed the Average True Range, the Relative Strength Index (RSI), the Average Directional Index, and the Parabolic SAR.

Relative strength index calculation example

How to calculate RSI in excel?

To calculate 14 days RSI in Excel, you need to form these columns:

  1. For example, “Column E” has all closing prices.
  2. “Column F” calculates the change in price by subtracting the current row from the previous row.
  3. If the “Column F” value is greater than zero, the value will be copied to Column G. If the value is less than zero, the value will be copied to “Column H.”
  4. “Column I” calculates the average Gain over the specified period, for example, 14.
  5. “Column J” calculates the average Losses over the specified period, for example, 14.
  6. “Column K” calculates the value of Relative Strength (RS).
  7. “Column L” calculates the value of the Relative Strength Index(RSI).

Please visit the website and download the relative strength index in the excel tool: Download the relative strength index formula excels.

How can we trade using this RSI indicator – advantages of using relative strength index?

How to use the relative strength index? First, we can use RSI directly to define overbought and oversold price levels, trend strength, and draw trendlines and analyze trends. Then, at last, we can use RSI to analyze divergence.
How does the relative strength index work? We can use RSI to determine overbought and oversold moments in trading. Below 30 is oversold, and above 70 is overbought. There are some rules for traders :
– The market can be oversold or overbought for a very long time. Therefore, it is not smart to trade orders above 70 and buy orders below 30 without deep analysis.
– Do not buy in the oversold market or sell in the overbought market without some confirmation in your direction (for example, some big move, bullish solid or bearish candle, etc.)
– The best strategy is – buy or sell after a pullback and respect the primary trend. For example, if the trend is bullish on a daily or H4 chart, the price is above 50 RSI in the strong bullish direction you can buy if the price goes in the oversold area on 5 minute or 30 minutes chart. See images below :
gbpusd overbought 30 minute chart
On the daily chart, we see a bearish trend. Next seven days price will fall 300 pips down :
GBPUSD daily profit

2) We can use the RSI indicator to find divergence and predict the change of the trend. For example, on the image below, we can see relative strength index bullish divergence (relative strength index when to buy) :
relative strength index bullish divergence

On this image below, we have relative strength index bearish divergence (relative strength index weakness) example:
relative strength index bearish divergence example

Using RSI trend lines, we can avoid false breakout in trading or Market Has Hit an Extreme. How vital are levels 30 and 70 (relative strength index Bloomberg example), we can see in lovely highest RSI table? In this article, we can see the opinion “Many technical traders view anything above 70 as a sign that the dollar is overbought and due for a correction.”

3) My favorite way to use RSI – draw trend lines on the RSI chart and use it for trading!
Traders can draw trend lines below and above the RSI line. Trading RSI trend lines are the most productive way to use the RSI indicator. If the price breaks the trendline, then the trend will change. See example :
RSI trendlines
This example shows a bullish trend on 30 min chart. I can make buy orders above the trendline, but if the price breaks the RSI trendline, then the direction is changed. Of course, on the 30-minute chart, we can see 25% from ATR bearish trend in price breaks this line (around 20 pips) if price breaks daily trendline RSI that can give a few hundred pips profit.

Questions and answers from email messages:

1) How to find a relative strength index indicator in Metatrader?
RSI is a significant indicator. It is in the indicator section in group oscillators.
how to find relative strength index

2. What is an excellent relative strength index number
Each number in RSI is “good.” It is just a strength index. For example, if the price is above 70 or below 30, it can be an excellent trend to profit in the future. Price around 50 can be in a range market, but it can be a substantial trend decline or rise if we have a substantial divergence at that moment.

3. Should I set RSI settings differently? For example, is it better to RSI 8 or 14, RSI 7 vs. RSI 14?
My advice is to use default settings. All major world traders use (mostly) the same settings to make the decision based on default parameters. Summary, default settings are relative strength index best settings.

4. What are the relative strength index disadvantages and the advantages of using the relative strength index?
The most significant advantage is simplicity, easy reading, and relative strength index works in the chapter. However, one of the most important disadvantages is that RSI is a very fast indicator, and sometimes we need to wait for a higher time frame price closed conformation.

Commodities Are Most Volatile Assets

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What is the difference between an asset and a commodity?

Answer: All commodities are assets, but not all assets are commodities because assets are wide term.

Are commodities financial assets? Generally, commodities are financial assets and can be defined as any good or service bought and sold purely on price. Usually, when we say commodity, we think of raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Volatility and high returns go hand in hand. Assets are property or something that is of value. There are different types of intangible and tangible things that are assets. However, in the trading and investing world, there are different classes of assets. The volatility of an asset is a huge concern for those that trade or invest capital. The prime variance of the asset is volatility over time. The higher the volatility, the wider the price ranges in terms of the long term period. There are more volatile assets than others, and what makes a market attractive or unattractive is the variance of the market as different investors have a different risk profile.
One of the most important factors for considering which asset to trade or invest in is the asset variance.

Just about everyone has heard of commodities. They are a unique type of asset, which provides returns entirely independent of bond and stock returns. Adding various types of commodities will help one diversify its portfolio of bonds and stocks, lowering the portfolio’s risk significantly and increasing returns. Commodities are a rare type of asset that can hedge from inflation due to their impact on goods’ price.

So what’re Commodities?

To understand commodities, one needs to understand what they entail. They can be thought of as raw materials used to create consumer goods such as aluminum, silver, gold, natural gas, oil, wheat, and cattle. They are available in just about every single industry, so they are referred to as commodities. One can also find soft commodities stored for a shorter period of time, such as coffee, cocoa, cotton, or sugar.
commodities
From the beginning of time, the commodity market had evolved greatly when there used to be a time that farmers would store apples and sell in the market if the prices went up. Then, during the 19th century, the demand grew for standardized contracts to ensure that the commodity prices could be fixed or agreed upon. Therefore, the development began of the commodity futures exchange. These days, options and futures contracts are easily traded on different exchanges in various parts of the glove and deal in a huge variety of energy, metal, and agricultural products and soft commodities. The price risk is offloaded to the end-users due to the standardized contracts, and it helps the commodities producers significantly.
Since the last end of the 20th century, commodities have undergone rapid change as an asset class. The commodity futures indexes were developed as well as the benchmark of the indices with the investment vehicles. Now, investors have the opportunity to select from a range of vehicles to invest in the futures market of commodities, from notes to mutual funds or exchange-traded funds, which cover the vast spectrum from broad-based commodity exposures to single based and even sector-based commodity exposures.

Why Should One Invest in Commodities?

The commodity market is huge, and it offers some of the best risk-free returns due to its nature. It is used as a hedging tool when the inflation rate is unpredictable and increasing by the day. There are three main benefits for investors if they invest in commodities: return potential, diversification, and inflation protection. These three are vital for a powerful portfolio.

As commodities are just like real assets, they would reach different economic changes than bonds and stocks, or financial assets as they are referred to. For example, we know that commodities tend to profit from the rise in inflation and are only rare asset classes. Furthermore, the price of the services and goods increases as their demand increases, and so will the price of the commodities, almost in unison with the changes in demand. Since the commodity price rises as inflation accelerate, it may be best for one to invest in commodities to hedge from inflation.
On the other hand, bonds and stocks perform better when inflation is slowing or stable. When the rate of inflation rises fast, it leads to the lowering of future cash flows value that is paid by bonds and stocks as the future cash would only be able to buy fewer services and goods than today.

Commodities and Volatility

Active traders are attracted to those assets that have a much higher degree of volatility than investors. More short-term and speculative trading activity is attracted when the price of the asset is highly volatile. Therefore, the markets that experience high price variance are a trader’s paradise as they yield opportunities for the immediate future. On the other hand, they can be an investor’s nightmare as they seek steady earnings.
There are different classes to choose from when it comes to the more popular markets that attract different participants. Commodities, currencies, bonds, and stocks are the four most popular classes which provide a different range of volatility.

What are the most volatile futures?

Some of the most volatile futures in the last 10 years based on standard deviation volatility are:

  1. Bitcoin futures (thousands of percents)
  2. Crude and WTI Oil: 29.9%
  3. Copper 20%
  4. Cotton 18%
  5. Gold 15%

 

Commodities are the most volatile assets.

Volatility measures how much the price of a commodity fluctuates. Based on several decades of analysis, commodities are the most volatile assets because the price of commodities fluctuates in a bigger range in the last several decades than the price of forex, equities, and bonds.

Let us see the market analysis. The commodity index of Goldman Sachs, Credit Suisse, and Bloomberg has been independent largely from bond and stock returns in the past and only correlated positively to inflation.
If we look at the period from 1970 to 2015, the annual returns had a low correlation with the U.S. equities on the Bloomberg Commodity Index, and there was a correlation that was close to zero with the global bonds. They were, however, positively correlated to the US CPI.
Even though the correlation of equities to commodities experienced a pickup after the global financial crisis, it resulted from the decrease in total demand, which impacted many asset classes and resulted in a higher correlation between the two. However, since the period, commodities are responding once again to supply factors. Due to the geopolitical instability, the weather impacts the price of grains and even natural gas and has influenced mining or crude oil strikes, which impact metals. The factors don’t affect bond or stock market returns more importantly to a similar degree, and the correlation between other asset classes and commodities has come down.
The low correlation of commodities to bonds and stocks shows the main advantage of broad exposure: diversification. For a diversified portfolio, the asset classes’ movement would be in sync with one another; this leads to a reduction in the overall portfolio’s volatility. The consistency of the returns would be improved over time due to the lower volatility reducing the portfolio risk. Losses can’t occur even with diversification.

Let us compare commodities, equities, bonds, and forex volatility :

Here is the little test for the last 30 days. Let us take the ADX indicator to measure volatility. Let us pick the 10 most volatile assets in the last 30 days.
Here is my small test :

 

Equity Volatility
Shares in companies are included in the equity asset class. So are indices that reflect the stock market’s overall volatility or other sectors within each equity class. Trading or investing in the equity market is the most popular option among investors.
Major indices such as the S & P 500 or the Dow Jones Industrial Average normally experience a similar variance over time, unlike most stocks that do not experience such a degree of volatility. Stock prices do make significant moves in certain periods. Examples in which stocks were dramatically lowered include the recent global financial crisis in 2008, the stock market crash of 1987, and 1929.
The US is the most stable economy globally, and the US stocks are definitely much less volatile than their counterparts worldwide. The market has ranged from highs of 27.23 % and lows of 5.35 % since the financial crisis of 2008.
Bond Volatility
A bond is a debt instrument that provides a coupon or yield to the holder of the instrument. Governments around the globe offer bonds just like companies. Bonds help finance businesses and countries by borrowing from the public. The different periods along the yield curve are looked at in the bond market by traders and investors active. Short-term bonds are much more valuable than long-term ones, which investors only look at for a steady income flow.
It is the Federal Reserve or the Central Bank, which controls the short end of the yield curve in the United States. The interest rate is the Fed Funds rate, which credit unions and banks would lend to reserve balances on an overnight basis. The Fed Funds rate is dictated and controlled by the US Federal Reserve. The minimum interest rate is the discount rate that is set by the Fed Reserve in the United States for lending to different banks. Market forces influence the prices of debt instruments and bonds that have further maturities, and the Central Bank, on the other hand, controls the Federal Funds as well as the Discount rate.
The short-term rates can influence the long-term and medium rates, but there would be divergences. Short or long positions can be taken by bond traders, depending on how they view interest rates. A short position believes that the rates would move higher, while a long bond position would bet that the rates would decline. Most bond traders position themselves just along the long and shore one maturity and the yield curve to take spread out and benefit from pricing anomalies. A consistent and safe yield is what investors in the bond market look for in their investment nest eggs. Since the wake of the financial crisis in 2008, volatility has moved higher.

Currency Volatility
Since the United States is the most stable and richest economy globally, the dollar is the world’s reserve currency. As compared to most other asset classes, currency volatility is normally lower due to the government controls on money supply and printing into the monetary system. To a large extent, governments control the money supply. The stability of a government is what the volatility of currencies is dependent upon. Therefore, the Pakistani Rupee has higher volatility as compared to the dollar, for example. Other foreign exchange instruments can also be less likely to be reserve currencies as they are less liquid. Normally, the dollar index has shown a reading of below the 10 % level.

Commodities Volatility
Coming to commodity volatility, it is the asset class that tends to be highly volatile. Looking at just the volatility of crude oil, since 1983, it has ranged from over 90 % to 12.63 %. A similar metric is seen for natural gas. If we look at the natural gas variance on a shorter-term basis, the range has been over 100% on many occasions, which shows just how volatile the commodity market can be for certain commodities.
According to the quarterly historical data, the volatility in soybeans has ranged from 10 % to over 75 % since the 1970s. There has been a similar trend for corn and even the sugar futures market and coffee futures. Silver has experienced the range from 10 % to more than 100 %. On the other hand, gold is a hybrid commodity since central banks worldwide hold gold as a reserve asset. The yellow metal has a dual role, which is of a financial asset and a metal commodity.
The gold prices’ hybrid nature has been reflected since the middle of the 70s, wherein the quarterly volatility has been from 4 % to more than 40 %. This shows us that commodity volatility is high over time due to various reasons, and some commodities and more volatile as compared to others.

5 Reasons behind Commodities Being More Volatile

So, where is the secret? Let us figure out why commodities are volatile?

Commodities attract investor interest through the years due to the bull market periods. There has been an increase in choice for participants in the market over the years because of the emergence of new market vehicles that trade on ETN and ETF products and traditional equity exchanges. Before their introduction, investors could only invest in commodities that did not have a futures account and could be done through physical commodity ownership.
When traders look at the short-term advantages of commodities, they are keen on investing in commodities. Here are the five core reasons for commodities being more volatile than other asset classes.
1. Liquidity
There is much less liquidity that is offered by commodities on the futures exchanges. Even though gold and oil can be the most liquidly traded commodities, they can also be highly volatile due to various reasons.
2. Mother Nature
Mother Nature determines the weather, and so are natural disasters that occur from time to time on our planet. A spike in the red metal price will cause an earthquake in Chile, as it is the largest producer of copper in the world. The prices of soybeans and corn would skyrocket due to a drought in the US. While the recent cold winters have led to an increase in the demand for natural gas, which has led to the energy commodity of the futures contracts skyrocketing.
3. Demand and Supply
At the end of the day, commodity prices are greatly influenced by demand and supply. Demand can be considered constant, while commodities production varies due to various reasons such as the climate, soil, and other factors. The demand is ubiquitous, and the supply changing from time to time has led to the asset become highly volatile.
4. Geopolitics
It is almost impossible to leave out geopolitics from commodity variance. When countries go to war or place an embargo on a country that is a major producer, it leads to the prices of the commodity skyrocketing. An example of this can be the sanctions on Russia, Iran, and the Iraq-Kuwait war. Wars impact production and affect or even close off logistical routes, making it impossible or highly costly to transport the goods.
5. Leverage
Finally, leverage is something that needs to be looked at. Futures provide a high level of leverage compared to others, impacting the commodities’ volatility.

How Can One Invest in Commodities?

It might have been challenging to capture all of the advantages of commodity exposure in the past. Investors have been provided with another option due to investment vehicles benchmarking with commodity futures indexes and gaining exposure. Commodity exposure helps manage against a diversified index. Asset allocation has been done since the beginning of time, which shows that it is beneficial.

Are there any Risks?
Although diversified commodity exposure does offer investors with various advantages, there are risks to commodities investment. During cyclical downturns, commodities might not perform well, and if the industrial and consumer demand slows, other things could impact it, such as politics, natural conditions, and the market.

One more thing. We see in this text that commodities are Volatile Assets. A lot of people think that volatility is a bad thing, something like a huge risk. No risk and volatility are different things, and volatility can be a huge advantage in trading. Just try!

George Soros Biography

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Introduction – George Soros Bio

George Soros quotes:
My success in the financial markets has given me a greater degree of independence than most other people
george soros
George Soros was born in the year 1930, August 12, in Budapest, Hungary. Who is George Soros? Soros is an American-Hungarian author, political activist, philanthropist, business magnate, and investor. He is among the most successful investors in the world. He had a $7.6 billion network as of 2017 February after donating $17 billion to the Open Society Foundations, his philanthropic agency. George Soros Net worth was $25.2 billion as of Mar 22, 2017. In 2018., George Soros’s net worth is 8 billion USD.
George Soros became popular in the year 1992, during the time that he made $10 billion from one bet against the British pound (George Soros crashing the pound). The currency speculation gave the investor profits that added up to $1 billion on the first day and more than $2 billion afterward. He even was given the “the man that broke the Bank of England” nickname.

Main facts about George Soros

Father: Tivadar Schwartz
Mother: Erzebet Szucs
Brother: Paul
Ex-spouse: Annaliese Witschak and Susan Weber
George Soros children are: Alexander, Andrea, Gregory, Jonathan, Robert
George Soros is married to Tamiko Bolton, who’s 42 years younger than him from 2018.
Where is George Soros? – He lives in New York, Katonah, USA
Education and Career

He attended the School of Economics in London, where he earned a bachelor of science in philosophy and a Master of Science in philosophy in 1951 and 1954, respectively (“George Soros,” 2018). Soros could not find any jobs after he graduated. Therefore he decided to settle for employment as a traveling salesman for wholesalers f of fancy gods sold to retailers in the resort’s seaside. The individual described this moment as one of the lowest in his life. He wrote interview letters to many banks that ignored him and humiliated him in the interview process (Soros, 2010). He worked as a clear at Singer and Friedlander, a bank in London. He was also employed as an arbitrage trader in the years 1956 to 1969 at F.M Mayer. Here he was specializing in European stocks popular with the United States investors because of the steel community’s formation that later transformed to the common market. Thereafter, he worked in an investment bank in the place. He later left for the US in 1956, where he was employed as an investment manager and an analyst for various firms.


Soros’s Philosophy of Investment – How did George Soros get his wealth

George Soros had the ability to synchronize world economic trends with the leveraged and highly detailed strategy in currencies and bonds. He operated as a speculator shortly and was able to make bets on the trends of financial markets. He believed that the financial markets tended to depend on amateur and professional traders and the people who purchase or sell assets on the market. Soros aimed to capitalize on the emotional or human capacity of the influencers’ influencers to transform others’ investment decisions and opinions. The man was always looking to stand out or be unique from the crowd as he followed investment trends. This was one of the greatest paydays. He trusted his reaction regarding busing and selling, and this made his strategy hard to emulate.

How did George Soros make his money?
He left work in 1973 to look for his personal hedge fund, the Soros Management Fund. The fund turned to the Quantum Fund, and eventually, Soros was able to develop the company into a highly successful and aggressive hedge fund, which made annual returns of 30% annually. There are two occasions when the fund posted profits that exceeded 100%. In the early 1990s, Soros was declared among the richest individuals on earth.

Market and Major Trades
Soros was contacted by Georges Pebereau, a financier in France in 1988 that wanted him to assembling a team of investors to buy many shares in a French bank, which was part of a privatization program. However, Soros decided not to participate in the effort and personally put shares in four companies in France, including Paribas, Suez, and Societe Generale. In 1989, a French regulatory authority of the stock exchange performed an investigation to know if Soros’ transaction in Societe Generale was inside trading. Soros got no information from the company and had no information on the business insider, but he knew that a group of investors was planning a takeover. The first investigation proved that Soros was innocent, and there were no charges against him. The case was later reopened after a few years, and he was convicted in the year 2006 by the French Supreme court. Soros, however, declined the charges and said that the takeover news was public knowledge. The document said that the individual’s intent to have the company shares showed that he was aware of the takeover.

How Did George Soros Get Rich in one day?

How did George Soros break the Bank of England?
Soros is remembered by the “the man that broke the Bank of England” nickname. He is also a known speculator of currency and does not limit his efforts to a specific area geographically but considers the whole world when looking for opportunities. The man borrowed billions of dollars in 192, worth the British pound, then changed them to German Marks. When the pound crashed, George Soros had to repay his lenders based on the lower new pound value. He pocketed around $1 billion, which is the difference between the pound value and the mark value in one-day trading.

Watch our video: How Did George Soros Break the Bank of England?:

George Soros made the same move with the Asian currency during the Asian Financial Crisis of the year 1997. He took part in a frenzy, which led to the collapse of the Thailand currency. The trades became so effective since those national currencies that speculators bet against mostly got pegged to other currencies. This means that there were agreements to prop up those currencies to ensure that they could trade in a particular ratio against that currency which they got pegged.
As the speculators placed bets, the issuers of currency were forced to maintain the ratio by purchasing their currency on the open market. The government later ran out of money and was pushed to abandon the effort, making the currency’s value plummet. The governments feared that George Soros would start having an interest in their currency. The other speculators could ion in the fray; this was described as a group of wolves on a group of elk (“George Soros,” 2018). The big amounts of money that those speculators borrowed and leveraged made it hard for the governments to handle the assault or withstand it.

Despite the success of George Soros, it is not every Bet that he placed worked in his favor. For instance, in the year 1988, he predicted that the United States markets would rise continuously. As a result, his fund lost $300 million in the crash process even though fewer double digits delivered returns that year. In 1999, Soros took a $2 billion hit in the Russian debt crisis and lost $750 million during a technology bubble where he placed a decline bet (“Investopedia, n.d.”). He was stung by this loss and, as a result, bought anticipation big in of a rise and lost about $2.9 million when the market crashed finally.
Soros’s family office has trimmed the stake in the Broadband Corp. during the first quarter, the management fund holdings of Broadband Corp reduced by seventy-four thousand shares to around 8000 million. The filing also shows the disclosed Soros’s stake of around 22 million in Vice Properties Inc., which the second-biggest holding of the firm. George Soros also increased the stake by 330 00 in Aetna and made Baxter International holdings by around 340,000.
Recently, regulators have begun paying special attention to cryptocurrencies, which has scared investors (“George Soros,” 2018). A member of the office family got internal permission to trade on cryptocurrencies, an asset that several money managers avoid because of the sector’s track record, which is limited and lacks volatility and regulation. The Soros Management Fund head of macro investing, Adam Fisher, got the approval but has not made any bets yet on cryptocurrencies. According to the recent news, the billionaire is weighing moves into cryptocurrencies. The green light of the fund for cryptocurrencies came after the Bitcoin price, which served as a signal to several other cryptocurrencies. The interest in bitcoin is beginning to wan with the amounts of searches falling slowly since this year.
If you are interested in what stocks George Soros owns, you can see his portfolio.

Where does George Soros live now?

George Soros is the Founder/Co-Founder of Quantum Fund. He lives in a large estate located in the Bedford Hills suburb of New York, Katonah, USA.

Interesting facts:

One of the famous youtube videos is George Soros 60 minutes interview.
George Soros interview :

Conclusion

Trading like Soros is not for those with a light wallet or the faint-hearted. The drawbacks of winning big and betting big are that betting big means losing big. If one cannot afford the loss, then definitely they can’t afford to resemble George Soros. While the macro hedge traders are quiet and avoid the spotlight as they earn a fortune, George Soros is taking. He has been taking public stances on several political and economic issues. His success as a speculator and public stance has put Soros in a unique personal class. During a period of more than four decades, he made the correct moves almost every time. He generated many fans among investors and traders, and detractors to lose his speculative activities.

George Soros FAQ

How old is George Soros?

He was born in 1930. George Soros is 91 years old.

Who is George Soros’s spouse?

Tamiko Bolton is George Soros’ third wife. She is a Japanese-American entrepreneur and a licensed pharmacist of Japanese descent.

Who is Annaliese Witschak?

Annaliese Witschak is the former wife of George Soros and they have three children together: Robert Daniel Soros, Andrea Soros Colombel, and Jonathan Tivadar Soros. Annaliese Witschak was born 1934. and she was 23. years married to George Soros.

 What is the official George Soros Twitter account?

George Soros Twitter account is https://twitter.com/georgesoros.

What religion is George Soros?

As we can see in the interview, George Soros is an atheist. He doesn’t Believe In God.

Did George Soros Say His Life’s Mission Is to Destroy the United States?

No. George Soros didn’t say this. Claim (from Newsweek 1979 fake news article about George Soros) “I’ve made my life’s mission to destroy the United States. I hate this country, and I hate all of the people in it.” is false news. David Emery is an excellent San Francisco-based writer, and he wrote several articles about fake news related to Soros.

Is George Soros ‘Grooming’ a Pro-Muslim Brotherhood Gubernatorial Candidate in Michigan?
Another fake news about Abdul el-Sayed George Soros’s relationship.

Is Chelsea Clinton Married to George Soros’ Nephew Marc Mezvinsky?

Another fake news. Based on Snopes.com, Baio didn’t provide any evidence that Marc Mezvinsky, Chelsea Clinton’s husband, was related in any way to George Soros.

Is Marc Mezvinsky related to George Soros?

No, Marc Mezvinsky is not related to George Soros. George Soros has nephews Peter and Jeffrey Soros, while Marc Mezvinsky is not related to Soros’s family.

Is Eve Sanderson related to George Soros?

No, Eve Sanderson is not related to George Soros. While it is true that Robert Soros is the son of George Soros, and that Robert Soros was married to Melissa Schiff, Melissa Schiff is not Adam Schiff’s sister.

 


Are 16 States Using Voting Machines from a ‘Soros-Controlled Company’?

George Soros voting machines were another fake news in media last several years. George Soros has no hand in the management or ownership of Smartmatic.

Is adam Schiff’s sister married to George Soros’s son?

No, George Soros’s son isn’t married to Adam Schiff’s sister.

Was George Soros part of the SS?

No, this is not true! George Soros was not a German soldier.

Does George Soros own Disney?

No, George Soros does not own Disney. However, his investment company had a large stake in Disney in 2020. However, today less than 1% of George Soros’s portfolio is Disney stocks.

 

Google Will Ban Online Ads of Cryptocurrencies in June 2018

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Google Crypto Ban
Google Will Ban Online Ads of Cryptocurrencies
Recently, claims have emerged that the advertisement of cryptocurrency ventures is becoming difficult on Google. This follows a move by Facebook to ban all the cryptocurrency ads. People are wondering if Google wants to follow a similar route. There are sources saying Google has not announced any official changes concerning its policies for ICOs and cryptocurrencies. The worried voices that are coming from the marketing industry of cryptocurrencies, however, paint a different picture . Google is the chief of internet and looks like it wants to go after the fast-growing and prominent cryptocurrency industry.
Advertisers are already reporting challenges and difficulties in advertising products that are blockchain and cryptocurrency-oriented.In April 2018., Google bans all cryptocurrency mining extensions from Chrome Store. The channels which showcase content that is crypto-related are reporting that they have been banned from the platform of YouTube. The changes of policy by Google have not yet become official but many firms and PR agencies have reported a drop in the performance of customers who provide cryptocurrency services. There are even cases where the advertisers get their ads rejected and even suspension of their accounts. Some companies have also reported that they have witnessed a drop in AdWords performance by thousands in a day. The drop in the numbers coincided with the adverts that crypto-currency related being regarded as limited during submission.
The recent approach to cryptocurrency is not however limited to the realm of advertisement only. Some bloggers of cryptocurrency and shows have also reported that they have found out that their channels have been restricted or even suspended. Some of the restriction includes cancellation of the feature of Live Video and demonetizing. People are still trying to understand why it is all happening when Google has not made any official announcement of a change of its policies. People have come up with several theories whereby some are contradictory and overlapping at the same time.
One such theory is that this is an overreach by the policy of Google against malicious ads, crypto scams, and fake news. The other common interpretation is that Google is being meticulous in regard to advertisements that are coming from the cryptocurrency advertisers. There are claims that the policy of advertising is very clear by Google but when it comes to cryptocurrency firms, the approach gets a bit stricter and unforgiving as compared to the other industries.
The Prospects of a Ban
Brokers will be allowed to advertise forex and CFDsonly after receiving certification from Google
The other explanation being given by reliable sources and other forums of professionals is that it is an the intention and effort of Google to restrict advertisements related to cryptocurrency and even go to an extent of blocking them. According to a reliable source, the move of banning the cryptocurrency ads was raised by a Jason Roy, a Canadian regulator four months ago. The senior investigator said they were pleased by the move by Facebook to ban the ads and he hoped that Google enacted the same policy. The move was rejected at first by Google claiming that it did not want to prevent the whole industry from advertising as much as it was already dealing with fraudulent and misleading ads. However, it looks like it eventually changed its mind.
Sources have confirmed that Google is really intending to ban the ads which are related to cryptocurrency. Google is banning any advertising related to cryptocurrency. The update is said to go into effect starting June 2018 . The company is updating the ad policies that are related to finance to ban advertisements regarding content related to cryptocurrency including trading advice, wallets and the initial coin offerings. This means that even those firms with legit offerings of cryptocurrency will not be able to advertise through Google advertisements products. The company claims that they can’t know the future of cryptocurrencies but they have already seen potential harm and hurt to consumers that the business is causing and they want the matter to be approached with caution. As much as the boom of cryptocurrency has offered big wealth and excitement, it is a space that is still unregulated and this has given out numerous scams of high profile.
This comes after social media platforms like Facebook banned advertisements which are related to cryptocurrency so as to protect its viewers from Ponzi schemes, fraudulent sale of tokens and ICO scams. The move came with the report of “bad ads”, a review of the controversial, deceptive, malicious advertisements that Google scrubbed from its massive video, display and search network. However, this is contradictory to what the leaders of such platforms like Facebook think. The people who are responsible for creating platforms of social media like Facebook have praised cryptocurrency and the technology of blockchain underlying it. It somehow creates juxtaposition since the companies which they are responsible for have enacted policies which stifle the development and adoption of blockchain.
A representative of Facebook has said that the policy is broad intentionally as they work to detect the misleading and deceptive advertisements better. It is likely possible an advertisement from a cryptocurrency related company or business might not be allowed on Facebook even when it is not related to any aspect of cryptocurrency. Facebook is however committed to refining and revisiting the ban policy as the signals are enhanced to allow for the advertisement of services and products that are not related to cryptocurrency even from the crypto related companies. The innovative startups might have to go elsewhere if the financial watchdogs in the United States and other parts of the world do not develop clear rules for the market of cryptocurrency.
Also, there is an irony to the move of Google. As much as the adverts regarding cryptocurrency will end, Google might be stiffing the development of companies that it has actually invested in which use cryptocurrencies directly. There are companies such as Storj, blockchain-based cloud storage and the platform of payment Veem that Google has financially backed which will be unable to make advertisements on the search engine as soon as the ban is brought into effect. The move of banning cryptocurrency advertisements comes less than a year later after Alphabet; the parent company of Google put investments in Blockchain.info online wallet which is based in London. It also remains a mystery how services like this will be in a position to advertise after the ban is brought into effect.

At that time, the partner of Alphabet Hulme Tom said that the company’s investment raised almost 72 million and the overall funding was necessary since the innovation pace in the space of digital currency is unmatched. Yet the wallet providers of cryptocurrency will not have access to the biggest internet search engine in the world in less than one month – New restricted financial products policy (June 2018).
Google said last year it took down over 3.4 billion advertisements which violated its standards and regulations and this was almost double the 1.8 billion ads that were taken down the year 2016. Alphabet, the parent company of Google makes almost 80 % of its revenue from ads and there it is important to convince advertisers the company’s ecosystem is effective and safe.
The Impact of the Ban
There are a few individuals who might mourn the advertisements barrage for the shady initial coin offerings which promise a return of 10 times and more. However, the space of cryptocurrency is a new economy that is booming and such a general ban may end up hurting other cryptocurrency businesses that are legitimate. Blockchain looks like the next financial big thing and Airbnb and Uber that are blockchain-based are being envisioned already. Actually, it is hard to get an industry that the startups related to blockchain are not threatening to disrupt. In the real sense, not all the crypto businesses are scams. So is the move to ban advertising from all these businesses on the major internet platforms good?
A Cryptocurrency Company’s CEO, Trevor Gerszt said he is not afraid of the move but he does not welcome it. It is a frustration for a legitimate business like Coin IRA which has done everything to comply with policies and offer legit investment products to be punished together with the scum ICO schemes (“Exclusive: Is Google Quietly Purging Cryptocurrency Ads and Content? | Finance Magnates,” 2018). However, the ban on ads may not affect the more reputable and established businesses of cryptocurrency as more as they are bound to impact the small businesses that want to use advertisements to gain brand recognition. For the startups, this means the ban will make it harder to get funds through an ICO. For the cryptocurrency related businesses like wallets and crypto exchanges, the move to ban such ads is definitely bad news. The startups which are blockchain based will be allowed to post their ads on Google as long as they do not include the aspects of crypto in them like wallets, tokens, ICOs, and others. The policy does not apply to technologies related to blockchain which do not have a relation with ICOs and cryptocurrency but the advertisements have to adhere to the company’s other policies.
The famous biggest digital currency in the world, Bitcoin has dropped to month low after this incident. The company slumped to its lowest level in a period of less than a month after the claims banning online advertisements that promote initial coin offerings and cryptocurrency. The industrial officials have said that these regulators are required to give greater clarity of the regulations. Bitcoin dropped by 9 % to $8367 which is the lowest it has reached since January when the company announced that the restriction will start working in June (“Google bans cryptocurrency advertising,”2018).
Some of the CEOs of crypto-related business have said that they do welcome the ban and the people that might be disappointed by the move are the con artists and the scammers. The large amounts of money which are earned in ICOs are based on relationships and most issuers who are legitimate have a good connection with blockchain and crypto funds. Some CEOs argue that the ban will bring a positive transformation to the industry and will assist in cleaning garbage (“Exclusive: Is Google Quietly Purging Cryptocurrency Ads and Content? | Finance Magnates,” 2018). The CEOs of Delta and CrowdfundX are not worried either. They say Google wants a better experience of advertisements for the viewers and the cryptocurrency community as a financial market also wants legitimacy. The restrictions are definitely part of the steps to filter the illicit businesses and activities from those which are genuine and have innovative products.
The market will become stable eventually and the activities which mislead will be removed. The companies that are going through ICOS should concentrate on showing their value through evidence and creating innovative and great products. In a way, it is not strange that the legit startups which are blockchain-based are not worried about the ban. Several startups have to fend off investors like Gems and Theta that have canceled ICOs recently because they raise too much revenue in the private pre-sales . As much as some startups that are unlucky though will be hurt by being unable to advertise their sales of tokens, it looks like the blockchain space has become so hot that even the general ban will not kill or even hinder it. It may just make it slow for some time.Some experts see The Cryptocurrency Industry Might Actually Benefit From an Ad Ban
Where To ?
This is a question that cannot be answered for some time. The entire world is waiting for regulatory rules and guidelines that are clear on ICOs and cryptocurrency. As much as the likes of SEC are pioneers in this space, we might experience constant apathy towards promoting cryptocurrencies and ICOs on several online platforms for a period of time. Unless there are guidelines and firm rules that will protect may viewers and users from misleading opportunities of investments and ICO scams, the extreme sanctions will still remain. Otherwise, the efforts to ban these advertisements will go to waste if the guidelines are not very clear and strict.

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