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May 30, 2014

Time to resurrect the Shift-F9 button?

Filed under: Forex Strategies — Tags: , , , — admin @ 4:44 pm

Back in his original stint as this site’s author, Macro Man used to muse about writing a macro to auto-blog when the same themes cropped up day after day, which he could then activate with the trusty Shift-F9 buttons on his keyboard.

In contrast to the 2008 era, however, today’s Shift-F9 post would simply read “another new high in the SPX, eh?”  Markets correctly looked through  the weak Q1 GDP revision, which was almost exclusively a function of weaker inventories, as shown in the chart below.  Insofar as the inventory unwind will come to an end, markets are correct to expect a bounce in growth in the current quarter.   Barring an uptick in capex and residential  construction, however, it is difficult to see how the upbeat consensus for the remained of  the year will be realized.

However, as long as  corporates can eke out a smidgeon of profit growth and the Fed maintains financial repression, it seems as if stock operators are happy to keep expanding the P/E multiple of the index.  Well, perhaps “happy” is the wrong adjective here.  As Merrill’s Michael Hartnett noted in his latest missive, low risk levels and poor investor performance could be two catalysts for a melt-up over the summer, an outcome that would certainly be unwelcome to your author given his current positioning.

How about the rest of the market?  Macro Man performed a little study using the HFR strategy indices, which are flawed in many ways but at least provide high frequency updated.   He compared the SPX total return and vol to that of a variety of different hedge fund flavours; the results are set out in the table below.

The volatility figures of the HFR indices look unrealistically low, which is an obvious warning to question their construction.   However, we can control for this in part by simply looking at the return to risk ratio of each sub-index and comparing it with that of the SPX total return index.

What do we find?   Market neutral and event-driven strategies are beating the SPX, while merger arb comes close.   Macro and what your author assumes is 130/30 are scuffling mightily, however.   This is nevertheless a bit of a turnaround from last year, however, when most equity strategies more or less kept pace with the SPX (with the exception of market-neutral.)  If you wanted some evidence of the pain wrought by some of the rotation unwinds this year, the 2014 section of the table above is it.

While the negative performance for macro this year is certainly believable, Macro Man is fairly dubious that the street as a whole lost money in macro last year; almost all of the funds that Macro Man follows were up between low single digit and mid-teens percentages in 2013, depending on how much of an equity bias they tend to have.

As such, he is not really prepared to take the data for less familiar sectors completely at face value.   What is fairly evident, however, is that performance is much less robust than last year virtually across the board.   That fund vol is apparently higher than last year despite largely unchanged vol in the SPX might call into question the thesis that positioning is light; of course, it could also represent the ruptures caused by the sector rotations of April that were subsequently exited and never re-entered.

Of course, Mr. Hartnett is also accounting for things like mutual fund cash levels which are much more important and accurate than reverse-engineering hedge fund positioning from flawed performance indices.  The moral of the story, it appears, is that there is nothing here to disprove the notion that there’s a risk of a melt-up.

Well, that and the fact that Macro Man might need to learn something about event-driven investing (and directions towards a primer would be most welcome!)   Although “Event-driven Man” doesn’t have quite the same cachet as your author’s current sobriquet, by the looks of it, it might do a rather decent job of paying the bills!

May 29, 2014

Presented without comment

Filed under: Forex Strategies — Tags: , , — admin @ 4:42 pm

 

May 28, 2014

If the day ends in Y, make a new high

Filed under: Forex Strategies — Tags: , — admin @ 4:42 pm

Another day, another (yawn) new high in the SPX.  Yesterday’s data was solid, fixed income is very well behaved, and the internal gyrations in terms of sector rotation seem to have settled down, at least judging by the modest recovery in growth versus value (below.)

Super Tuesday made a reappearance, having ceased working more or less on schedule a couple of weeks ago.   While both the law of averages and last year’s precedent suggest that the ludicrous equity outperformance on Tuesdays should be over, there’s nothing that says that the market cannot rip off the occasional 12 point rally, a la yesterday.

What’s interesting is that despite the fact that Spooz are at their highs, the last available speculative positioning is quite the contrary; an aggregate speculative positioning indicator of Spooz and E-Minis shows that punters are the nearly the shortest they’ve been in two years.     Hmmmm…..

Suffice to say that “sell in May” has not yet gone according to plan.   Had Macro Man dramatically reduced length willy-nilly he’d be kicking himself right now; given that he followed his plan, he can be a little more philosophical about it while figuring out what to do next.

To be sure, fixed income is offering a lot more support to stocks than seemed likely a few months ago, and that has got to enter the analytical equation.   It now seems reasonably probable that yields will stay well-behaved until we get closer to the end of summer (and QE.)

By the same token, looking at  US stocks through the prism of an international screener, the investment case is a little less robust.   For example, of the 26 indices in Macro Man’s still-being-developed screener, US stocks have the 24th lowest dividend yield.  Indeed, on current analysis American stocks look decidedly middle of the pack in terms of attraction.  So while getting out of stocks generally may have been somewhat premature, if and when Macro Man chooses to get back in, he may choose to look a bit further afield than Spooz or Q’s, to indices where the investment argument is a bit more compelling.

May 27, 2014

Euriborderline insane?

Filed under: Forex Strategies — Tags: , — admin @ 4:43 pm

What BTP sell-off?   Although the protest party (or, if you’re a member of the European political elite, the looney-bin party) vote was quite strong in much of Europe (viz. UKIP and le Front National), the Renzi government scored a convincing victory in the European elections, sending BTP futures up a full point and a half.

Euribor followed suit because hey, the new trading rule in that market is that you are only supposed to buy on days ending in ‘Y’ that do not begin with ‘S’.  The whites are now pricing a terminal rate as low as 0.18%; while it is true that spot euribor has settled there in the past, it’s equally the case that it didn’t enjoy it there very much.  Moreover, the familiar bugbear of excess liquidity continues to be an issue, with the current level of excess (88 billion) insufficient to keep EONIA pinned to the deposit rate.

The easiest way to solve this is via specifically targeting the quantity of excess reserves (i.e., QE!), though more LTROs may be somewhat problematic given that Eurozone banks are still trying to shrink their balance sheets and shore up their capital bases for the AQR.  Asset purchases therefore remain the obvious alternative, except for the fact that large scale sovereign bond buys will give the German “monetary financing hawks” a conniption and buying ABS remains like scheduling a holiday in El Dorado: attractive in principle but imaginary in practice.

It therefore seems probable that next week will see a reduction in the key ECB interest rates, including a move to a negative deposit rate.  Fortunately, we have something of a precedent in this regard, as Denmark ran a negative CD (e.g., deposit) rate from mid-2012 until this April.  And how did the market react?   Did CIBOR crash towards zero when the CD rate went to – 20 bps?  Err….not exactly.

Now, part of the reason for this is that Danish banks showed a marked aversion to paying for the privilege of depositing money, so the actual overnight OIS fixing was only negative on Thursdays, the one day of the week when banks were legally mandated to keep money with Danmarksbank.  On all other days it tended to trade slightly positive (1-3 bps.)  Macro Man would not be surprised to see a similar outcome in Europe.

Now, maybe this is what happens and spot euribor drifts down to the high teens.   Whoopee….that’s exactly what is priced from September onwards.   However, if the excess liquidity issue is not resolved the risk must be that EONIA and euribor trickle higher, just as CIBOR failed to match the CD rate cut beep for beep.

There are some moderately interesting option spreads that one can look at to play for disappointment, particularly if selling the 99.875 call is something that doesn’t frighten the socks off of you.   Funding a 99.75/99.625 put spread with that call will probably cost you half a tick in September, price flat in December, and may even earn you half a tick in March.

In fairness, although Macro Man expects eventual disappointment in the euro front end, it would probably be foolish to do anything like your full size before the announcement.   Assuming that the deposit rate is cut, as seems as close to certain as things ever get with the ECB, it seems reasonable to posit that there will be a (possibly short-lived) knee jerk rally in the whites, possibly to the mid-high 80’s.   THAT is the rally to properly lean against in size, at least in your author’s option.

And hey- there’s even a “cheap” hedge you can put on.  White euribor-euroswiss spreads look very cheap, even with the latter pricing negative rates.  Indeed, the generic 4th contract spread is in the 1st percentile in the SNB-peg era, and in the 0th percentile over longer time frames.   Moreover, it has basically never traded below 20 ticks, only 4 away from the current price of 24.

One could conceivably “hedge” the aforementioned euribor spreads with longs in euroswiss- the implicit stop is at 99.98, the general level of Swiss LIBOR.  If you don’t like selling euribor calls (perhaps understandable), the spread makes an attractive alternative way of fading ECB euphoria. 

Remember: when Draghi has brought the hammer down, it has been reflected in peripheral rates, not front end cash.  In the grand scheme of things, it really is irrelevant whether EONIA fixes at 3 bps at 18: either banks are willing to lend or they aren’t.  Indeed, while the ECB has consistently over-delivered on driving peripheral yields lower since August 2012, a survey of the market’s cumulative euribor P/L over the same period would suggest that they have massively under-delivered in that department, largely because they don’t care about the same types of moves that a holder of 150,000 call spreads does.

It’s a cliche that the definition of insanity is doing the same thing over and over and expecting a different result….and yet here we are yet again, with the market pricing and positioned for a a big drop in euribor with low levels of excess liquidity.   It might not mean punters are insane…but it does suggest that they may be (euri)borderline.

May 23, 2014

An explanation for the BTP sell-off

Filed under: Forex Strategies — Tags: , — admin @ 4:42 pm

At last, it becomes clear why BTPs have sold off over the last week or so.  Istat, the national statistics agency, will now include prostitution, smuggling, and sales of illegal drugs in the their calculation of Italian GDP.   

In a related technical note, Istat confirmed that it is changing the classic expenditure formula for calculating the national income and product accounts to C + I + G + X – M + BB, wherein

C = Consumption
I = investment
G = Government
X = Exports
M = Imports
and
BB = Bunga-bunga

It is believed that this change represents Silvio Berlusconi’s greatest contribution to spurring Italian growth in his long career.  Have a good long weekend.

May 22, 2014

I Like Sports

Filed under: Forex Strategies — Tags: , — admin @ 4:42 pm

In the end, the Fed minutes were pretty anodyne, acknowledging a few of the issues noted in this space yesterday while stopping well short of offering any specific recommendations.  The BOE was perhaps a little more spicy, with yesterday’s minutes confirming that a few MPC members are inching a little closer to wanting to raise bank rate (why does the BOE never prefix this with a definite article?)

Nevertheless, short sterling is still residing on the Island of Misfit Trades; the June 15 contract, for example, is more or less smack dab in the middle of the six month range, and above the starting point for the year:

On the other hand EUR/GBP, mentioned in this space last week, has broken down to its lowest level in more than a year.   It’s pretty rare these days to hear the phrase “the FX trade looks like the best one”, but in this case it might be true.

Of course, the whole concept of the “best trade” is looking a bit specious these days, such is the difficulty than many punters are having.    It’s not the worst time in the world to be out of a professional trading seat, as for various reasons it’s a lot easier to ignore the screens and go cycling when the only investor you have to answer to is yourself.  How long the novelty lasts remains to be seen, of course; indeed, Macro Man can imagine other punters looking at the market and having a George Costanza-style instrosepction:

Apparently, though, George wasn’t the only one who like sports.   A little-known part of the Abenomics revival plan includes a proposal to increase the number of pro baseball teams by 33%.  Apparently, the gist of the idea is to make peripheral towns more appealing and to boost their economies with the success of the local team.   Hey, how’s that working out for Jacksonville?

In any event, Macro Man wondered if sports could address the ills of some other economies:

Canada wants higher inflation and a weak exchange rate.   Encourage local teams to employ only foreign stars, who will spend lavishly to entertain themselves and then send the bulk of their paychecks back home, thus weakening the CAD.    It’s not like Canadian teams have won anything in the last couple of decades by employing…errr……Canadians.

Italy should do the opposite, encouraging all Serie A teams to sell their fancy foreign players to Man City and PSG.   The proceeds will help the country’s balance of payments and more spots for local players might put a dent in that 12.7% unemployment rate.

China should develop an interest in cricket and start a multi-tiered league across the country.   Lacking local talent to play, perhaps they could import swathes of players from India (America has already started this with baseball.)  Best of all, these thousands of players would require accommodation; fortunately, China has blocks of empty apartment buildings just waiting to house them!

Australia wants a weaker exchange rate.  Perhaps the government could institute an industrial policy of bidding for American sports franchises whenever they come up for sale.  If the LA Clippers, the NBA’s worst franchise facing a forced sale, could fetch $1 billion, just imagine how many AUD would need to be sold to purchase a proper team.  Given that Australia has produced players for the NBA, Major League Baseball, and even the NFL, why not do a little covert intervention and give the folks down under yet more sports to follow?

Russia should consider holding a glamorous international sporting event, say the Olympics, to convince the world that they’re really good chaps after all, and while the assembled grandees are still traveling back home make a land grab from one of its neighbours.  Hmmm….on second thought, this one’s too outlandish.  It would never work.

May 21, 2014

Exodus: a few thoughts

Filed under: Forex Strategies — Tags: , — admin @ 4:43 pm

If market consensus is correct, today’s FOMC minutes should start clarifying the committee’s views on its exit strategy and the shape of monetary policy moving forwards.  As discerning students of the financial plumbing are no doubt already aware, a solid roadmap to the new policy regime was  published in February under the auspices of the Peterson Institute.

Although the PI is obviously not an official organ of policy, that Brian Sack put his name to the above-linked piece gives it an imprimatur of legitimacy that could only be exceeded by an Eccles building dateline.   Simply put, here are some of the issues:

* The current size of bank reserves in the system make it problematic to drain them

* The current size of the Treasury and MBS holdings at the Federal Reserve make it problematic to sell them, especially when the issue of market impact is taken into account

*  Non-bank participants in the Federal funds market (i.e., the GSEs) have been heavy lenders into that market, creating a wedge between the effective funds rate and the ostensible target

* Banks are unable to arbitrage the difference (i.e., borrowing in the funds market and lending back to the Fed via IOER) because of the regulatory and financial (FDIC levy) of doing so

* Therefore, Fed funds can no longer serve as the policy target rate

* The Fed has already tested a reverse repo facility (in which it lends securities to the market and takes in cash, paying a fixed interest rate.)   This is likely to be the new policy rate, conducted on a full-allotment basis (unlike the current tests.)  The PI paper suggests that the RRP rate would be set at the same level as IOER

* Because the GSEs and money market funds can participate in the RRP program, the RRP/IOER rate would effectively floor most short term interest rates

* The Fed will also offer a term deposit facility to banking institutions, offering a higher interest for longer-than-overnight money.  The most recent test was a 7 day tender at 0.26%

So essentially, RRP becomes both the policy rate and floor, and Fed funds likely withers away due to lack of transactions.  There are a few questions we need to ask ourselves:

Can any rates trade below the RRP rate?   Sure.  Pension funds, bond managers, hedge funds, and dentists are all denied access to the RRP facility, and thus will buy securities like T Bills under the target rate.   This already happens- the current 3 month T Bill offers a princely 2.5 bp yield.

What about bank commercial paper?  Well, that’s an interesting question.   CP has a duration, unlike overnight money, so if, say, 90 day paper discounts an expected move lower in the RRP rate, then it can trade below the spot RRP rate.   We say this in the early Noughties vis-a-vis the Fed funds target rate:

Of course, if the CP market exactly discounts an expected move lower in the RRP rate, money market funds (the target purchasers) would be completely indifferent between the RRP facility and the CP from a rate perspective while exhibiting a 100% preference for the RRP from a credit and liquidity perspective.   The conclusion, therefore, is that bank CP should always require a yield premium to the expected path of the policy rate based on these credit and liquidity factors.

What does that say about LIBOR?  The chart above shows the CP rate for top-tier, A1/P1 credits.  Sadly, the current LIBOR panel contains some names that are less than pristine, including 3 French banks, 3 Japanese banks, a nationalized UK bank, etc.  LIBOR is currently setting 7 bps above the top-tier CP rate denoted above.   However, even that is low by the broad standards of history.   As you can see, in times of normalcy LIBOR tended to trade between 10 and 20 bps over CP.   The LIE-BOR phenomenon is clearly visible on the chart; readers can judge for themselves whether the current low spread is symptomatic more of the absolute low level of yields or the authorities’ greater interest in levying fines than fixing the system properly.

To be sure, spot LIBOR can conceivably trade below the spot RRP rate, for the same reasons that CP can.   However, LIBOR will obviously be impacted by the same credit and liquidity risk premia that affect CP, only more so (hence the traditional spread between LIBOR and CP.)  As a rough target, Macro Man assumes that 90 day CP will trade something like 10 bps over the RRP rate whilst the latter is on hold.  This is more or less where it traded in the first half of 2004, when the Fed was slowly gearing up for the previous rate hike cycle.   Being charitable, we’ll assume that the current LIBOR/CP spread is the new normal, and tack on another 7 bps.   That would put LIBOR 17 bps above the RRP rate, or at 0.42% if and when the RRP-as-policy is implemented at a rate of 0.25%.   (There is in fact a school of thought that it will be rolled out at a lower rate to give markets time to adjust.)

Of course, Macro Man would submit that there will be a tremendous asymmetry to these calculations, insofar as there are really no plausible circumstances where bank CP trades below the expected RRP path, and plenty where the liquidity preference for the RRP over CP widens quite a bit.

Comments and feedback from informed readers on this section are particularly welcome.   Also, if anyone has a time series of bank CP rates of the dollar LIBOR panel that they’d be willing to share, Macro Man would be particularly grateful.   He’s denied access in the Bloomberg account he’s currently using.

What about OIS?  Another good question.   If the Fed funds market withers, it kind of leaves the OIS market up the creek sans paddle, because there won’t be a mechanism to trade the RRP rate interbank.  The PI paper above acknowledges a potential problem but suggests that the RRP transition is made early enough to allow existing contracts to be replaced by ones referencing RRP.  All well and good, but what if you have a a 30 year swap on the books that uses OIS discounting, and you don’t plan on taking it off for ten years?  Will there be a mandated switch?  There doesn’t appear to be an obvious and easy answer here, and a potential threat from the law of unintended consequences looms large.

What about the Fed’s securities portfolio?   When will they start selling?   There are two hopes that the Fed ever sells anything currently on its books:  Bob Hope and no hope.

The Best Forex Platform Hand Truck

Filed under: Currency Charts — Tags: , , , , — admin @ 2:45 am

A folding sack truck is basically a sack truck that is foldable. This fold ability provides an extra bonus to the already useful sack truck. Folding sack trucks are used to transport large or bulky items without difficulty or injury while having the luxury of small space storing. Folding sack trucks are commonly used in industrial facilities and most types of transportation trades.

Two pneumatic wheels can be found at a folding sack trucks base that provides greater stability on uneven ground, with telescopic handles at its top. A small platform- commonly known as a toe plate- is also located at the very base and folds up to minimize storage space requirements. When foldable sack trucks are in their upright position their toe plate is laid flat against the ground so that goods can be placed on top of the sack trucks platform with ease. Once it’s loaded, the folding sack trucks are tilted back in order to move goods by balancing on its two wheels.

You might be a bit confused by having heard alternate names in reference to the foldable sack trucks but they are often used interchangeably and the most common names are; dollies, two-wheel dollies, hand trucks, stack trucks, hand carts and bag barrows.Foldable Sack trucks are a key piece of equipment for the workplace or home. So often we find tools and other equipment to be too heavy to carry freely, a foldable sack truck is perfect for those times. In commercial use, foldable sack trucks can help move heavy or awkward shaped goods with ease. These trucks can save time, injury and money from the lack of manually carrying such items.

Some places where you may have seen foldable sack trucks used would be as follows:

1. Furniture stores2. Large warehouse wholesale clubs3. Any form of transportation of goods – like beverages to bars and retail stores, etc. 4. Train stations and airports utilize foldable sack trucks for assisting customers with their luggage & other items. 5. Storage facilities

Lots of different materials are used to make foldable sack trucks. This includes polystyrene, tube steel, aluminum steel, and aluminum excursion. A powder-coated steel construction also can help improve the quality of the frame, making it less susceptible to wear and tear.

It’s hard picture a moving and transport company without the use of foldable sack trucks; how would the movers get all the furniture into the buildings and houses? Picture a huge warehouse without the use of foldable sack trucks; perhaps the goods could be pushed around on skateboards.

What about the Coca Cola man trying to make his deliveries without his foldable sack truck; would he use a wheelbarrow?

As you can see there are a number of reasons to own a foldable sack truck and once you own one, you won’t be able to live without it.

For more information on foldable sack trucks and other trucks log onto www.sacktrucks4sale.co.uk



the best forex platform hand truck

May 20, 2014

Go Fish

Filed under: Forex Strategies — Tags: — admin @ 4:43 pm

Although tomorrow’s Fed minutes will likely attempt to elucidate some semblance of a revamped exit strategy, what’s the point of wasting time thinking?  Many hedge funds, particularly in macro, are languishing this year because, well, it’s been pretty difficult.   Meanwhile, the risk parity “own a bit of everything” crowd, whose travails attracted broad scrutiny last year, have performed very nicely indeed, thank you very much.

But hey- picking the right risk parity strategy might require some thinking as well.    Even better is an equally weighted “Spooz and Blues” portfolio, as popularized by Jefferies’ David Zervos.  An equally vol-weighted portfolio of E-mini S&P futures and the 14th eurodollar contract has generated cumulative profits of $90 million per 1000 Spooz, including carry, since the beginning of 2009.  Moreover, the returns have been pretty consistent, with the “trade once a quarter” strategy delivering an information ratio (i.e., annualized return to risk) of 1.20 over that time period.

Macro Man has struggled a bit for inspiration on occasion and judging by how quiet the comments have been, so has the readership of this space.   Given that Ben Bernanke will tell you that Fed rates will stay low for a long, long time for the bargain price of $250k, maybe the best thing to do is slap on some Spooz and blues and go fishing?

Honest Forex Signals Raj

Filed under: Currency Charts — Tags: , , — admin @ 2:45 am

What is VoIP?

Simply put, VoIP refers to carry voice signals over the Internet. VoIP Phone PC connected to your Internet connected computer in the usual phone calls around the world. Whereas traditional telephone calls through a fixed line ‘circuit switched’ networks, VoIP calls are routed over the Internet using a much more efficient method, known as “packet switching”. Ensuring that the voice data more efficiently use the Internet, the main advantage is that VoIP is a cost. For example, a typical PC into a phone from anywhere in the world of VoIP telephone calls in the United States usually takes just a few cents per minute. Keep in mind, clarity / quality of PC to phone calls are usually so good, and in many cases better than another phone Phone.

How can it be so cheap?

Therein lies the beauty of PC to phone calls. Using the Internet to route phone calls, long distance charges, the largest telecommunications companies (Bell, Sprint, AT & T and others.) All but eliminated. In addition, many government fees and taxes associated with the highly regulated ‘traditional’ telephone networks, and avoid them. The result? very low-cost, long-distance calling to conventional telephones around the world with little or no loss of call quality.

So, how does it work?

A typical PC Phone, your computer receives your voice input via a microphone and then translates your voice into data packets. This data packet is transmitted over the Internet, the closer you’re calling the physical destination. Your voice ‘data packet’ and then switched to the conventional telephone network and routed to the phone that you are calling. All of this data transmission, translation and switching takes place transparently and extremely quickly. There is a chance that the person you’re calling does not have the idea that you talk to them using a computer.

So what do you need?

In order to start making long distance phone calls using a computer, you need a computer with an Internet connection, a microphone and speakers (headset with boom microphone is ideal). It is worth noting that although there are several companies that support for Linux and Macintosh platforms (eg, http://www.skype.com), the vast majority of the PC to the phone’s software is designed to use a Windows-compatible of computers. How many of your Internet connection, the faster the better (eg, high-speed cable or ADSL). However, PC phone also has a dial-up Internet connection (as I use the Internet).

The next thing to do is select your phone from your service provider. These are the companies that provide software and infrastructure necessary for you to call traditional telephone line. There are many service providers and each has its advantages and limits, so it’s a good idea to shop around. Almost all of them allows the pay as you go usage (ie, per minute), but some also offer unlimited calling plans to certain destinations for a low monthly fee. Some of the better known suppliers

When you select a service provider, you need to open an account and deposit funds into this account. If you do not want to use your credit card online, many PC Phone companies offer alternative forms of payment (eg PayPal direct deposit, bank transfer, etc.). Next, you will need to download the softphone from your service provider. Softphone is the only interface program through which you are calling collect, person number, and usually it only takes a few minutes to load even the slowest dial-up Internet connection. Softphones are generally similar to conventional telephone keypad and work much the same way. Depending on your service provider, in a way which “collect” will be different. A softphone is usually taken into account where you are in the world and adjust the dialing settings. In other words, you need to collect the same serial numbers on the softphone, that you would if you were using a conventional telephone.

After making several calls to friends and family around the world using a computer, you will soon implement a fantastic cost advantages of making phone calls on the PC compared to the “Phone” Phone calls.

So what is the catch?

Although the PC to the phone is terrible, it is not perfect. There are a few drawbacks that you need to know and include the following:

a) Quality: If you connect to the Internet via dial-up connection (ie, a normal telephone line), you may experience call quality degradation if you are surfing the Internet and talking to someone over the phone to the PC at the same time. In other words, bandwidth “or” your internet connection capabilities may be limited and this could affect the ability of your phone.

b) Echo: If you use your computer speakers to hear the person you are saying that a person can hear the echo of your voice. “This happens, for reasons similar to conventional telephone with speakerphone feature is encountered. At the same time as you hear that the human voice through the computer speakers, microphone, as well as to detect voice and re-transmit the signal back to the person you are talking to. This “echo” can be easily avoided by using either a computer headset or turn your speaker volume to minimize the possibility of picking up his microphone and retransmitting incoming voice signals.


honest forex signals raj

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