Professional investors are forecasting increased volatility and trading across the foreign exchange markets, new global research from blockchain-based derivatives trading platform CloseCross shows.
Anticipating Strong Volatility In FX Markets
Its study among professional investors around the world responsible for around $380 billion in assets under management found 28% are predicting a dramatic increase in volatility on currency markets over the next six months with nearly half (47%) predicting a slight increase. Less than one in 10 (9%) believe volatility will ease.
The increased volatility will be accompanied by an increase in trading with 76% expecting the level of trading to increase over the next 12 months. Around 23% are predicting a significant rise in trading. Around 17% expect the level of trading to stay the same while just 7% believe it will drop.
The study for CloseCross, which enables traders to generate profits through a simplified three clicks process of selecting an asset, predicting price-bracket(s), and committing funds to these predictions, for a variety of asset classes including forex pairings, crypto, stocks, indexes and commodities, reveals a wide range of views on currency movements (see the tables below for views on the Euro and Dollar). which is regulated under MIFID II, rules
For example, 37% of the professional investors surveyed, who include hedge funds, wealth managers, institutional investors, fund managers and IFAs, expect the Euro to strengthen against the Swiss Franc over the next 12 months while 47% expect it to stay the same and 16% expect it to weaken.
Platform To Reduce Risks In Trading
CloseCross CEO, Vaibhav Kadikar, said: “Traders on the FX markets are in for a tough six months with increasing volatility making it more difficult to correctly predict market movements and making trading riskier.
“Professional investors are clearly split on what will happen to the prices of major currencies which inevitably makes it harder for retail traders. CloseCross enables traders to generate returns based on their asset price predictions in any direction, including predicting stability of prices.
“The platform also offers CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.”
CloseCross is regulated under MIFID II rules offering increased protection and transparency for customers. Unlike other trading platforms, there are no participation fees for using CloseCross, and its patented multiparty model ensures that leverage is not needed to achieve potentially outsized returns. Money placed on incorrect predictions is lost, but you never lose more than what you put in as there is no leverage needed or possible on the platform. Users pay facilitation fees, only on their winning trades, giving them significant savings when compared to traditional trading platforms.
Real-time Data Predictions
The platform also provides real-time data on the predictions of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.
Investors can try a demo and subject to appropriateness assessment process, investors can sign-up at www.closecross.com, and trade by selecting an asset class and making a forecast over a time frame of a few hours or over months.
The tables below show the views of professional investors on Euro and Dollar performance against key currencies over the next 12 months.
|EURO||STRENGTHEN||STAY THE SAME||WEAKEN|
|AGAINST SWISS FRANC||37%||47%||16%|
|AGAINST CANADIAN DOLLAR||49%||34%||17%|
|AGAINST AUSTRALIAN DOLLAR||45%||39%||13%|
|DOLLAR||STRENGTHEN||STAY THE SAME||WEAKEN|
|AGAINST SWISS FRANC||35%||44%||21%|
|AGAINST CANADIAN DOLLAR||47%||35%||18%|
|AGAINST AUSTRALIAN DOLLAR||51%||34%||5%|
CloseCross (Malta) Ltd is licensed in terms of the Investment Services Act (Cap 370) as a Category 2 and is regulated by the Malta Financial Services Authority (Licence number IS/92480). The Company’s registration number is C92480. The platform will operate under the MFSA FinTech Regulatory Sandbox for a period of 12 months starting from February 2021. Close Cross (Malta) Ltd has passported in Europe under MiFID II in Financial Instruments Directive to France, Germany. Italy, The Netherlands and Spain.