Suspicious forex scheme

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Legacy_user
Legacy_user Posts: 0 Newbie
in Savings & investments
One of my assistants told me today he's looking into and preparing to invest in forex using software called 4x-dat. He reckons he can avoid losses completely by 'hedging' - but that doesn't make sense to me as if you completely hedged your position you'd make no profit. I asked him if its through use of future contracts, he said no, so I'm not sure how he's actually planning to hedge it. He wasn't great at explaining it and I felt quite bamboozled

Like a scammer would he told me great stories of profits so I asked him if there were mutual funds doing this, because I said there would be a great incentive for them to manage other peoples cash if what they do really is profitable, and he said not for what he's looking at

Does anyone know if it is a scam? 4x-dat? My instinct thinks it is

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  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    You have assistants?
  • System
    System Posts: 178,094 Community Admin
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    Yea assistants/minions :p
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Taylor Swift making tentative steps into finance:

    "~X@//$! That's coming out of your wages, you utter moron!"

    I want Nock Broomfield to make the documentary.
  • Malthusian
    Malthusian Posts: 10,944 Forumite
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    No, not a scam. It's gambling and the house always wins. Your assistant is a mug.

    Hedging in this context most likely means that when you place a bet on red you place another one on black. Which means you can't lose! What do you mean, "there's a zero"?

    That's one possibility but quite frankly it could mean anything as your assistant has no idea what he's talking about.
  • badger09
    badger09 Posts: 11,211 Forumite
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    Malthusian wrote: »
    No, not a scam. It's gambling and the house always wins. Your assistant is a mug.

    Hedging in this context most likely means that when you place a bet on red you place another one on black. Which means you can't lose! What do you mean, "there's a zero"?

    That's one possibility but quite frankly it could mean anything as your assistant has no idea what he's talking about.

    Wonder who they work for:cool:
  • System
    System Posts: 178,094 Community Admin
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    I definitely won't be touching forex, like commodities i can't see where an amatuer would really expect to make money without dividends

    I suppose you could have a cash account abroad if its a good rate but it wouldn't beat equities anyway
  • System
    System Posts: 178,094 Community Admin
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    I have peers and we share the same pool of assistants, I used to be one till recently when my boss retired
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