The United Kingdomâ€™s recent exit from the European Union is a huge opportunity for those using one of the many platforms for trading forex and contracts for difference (CFDs) like XTrade. While world events always influence the prices of traded commodities like oil, gold, and currency, and Brexit sent shockwaves through the worldwide economy.
The announcement of the countryâ€™s exit sent the price of the pound plummeting, and quickly changed the relationship between the currency and other powerful currencies like the U.S. dollar and the Euro. The decision by the UK had an immediate impact on forex trading, and gave traders the opportunity to reap big profits.
â€œIt was one of the busiest days in FX trading in our history,â€ said James Bindler, global head of foreign exchange at Citigroup.
Currency Volatility Led to Profit Opportunities
As investors were looking to make short-term profits on the Brexit election results, the number of contracts for the British pound skyrocketed to over 500,000, many of which were done via. Yet, despite the rapid increase in British pound contracts, it seems that contract levels on XTrade are falling back to their values pre-Brexit.
“While there may not be another movement in the market as significant as the actual Brexit vote, there will be times of volatility that retails traders need to be prepared for,” said J.B. Mackenzie, director of futures and forex of TD Ameritrade. “Having the ability to trade futures as this information and how the markets react will allow the retail trader to hedge their portfolios.”
Investors and traders should keep their eyes and ears open for other current events that may influence currency volatility. Events like Turkeyâ€™s recent failed coup, can send markets tumbling, or soaring, which can provide huge profit opportunities for investors.
XTrade Traders Can Profit Off Instability
Those trading with XTrade can take advantage of market volatility to make smart investments on currencies that are likely to change in value. The best bet is to keep an eye on current events and then make an informed decision to trade on the currencies affected.
The company offers its traders a powerful platform to help them hedge their trades and make the most of all of the information available on the market. The forex firm has one of the best CFD trading platforms, giving its traders a leg up on the competition and other traders using competing platforms.
There are many other events to keep an eye on that may impact those trading forex. The instability in South Sudan is a major event in Africa that could have widespread consequences in a variety of markets. Similarly, the conflict in Syria, which has been going on for years, is another possible influencer, especially on the prices of commodities like oil.
Overall, forex and CFD traders, like those trading with XTrade, have huge opportunities to profit from current events. Brexit was just one example of how instability and uncertainty can play into a forex traders hand and help them make a profit off of changing markets.