Sterling Gent Trading Ltd (SGT), the BVI-incorporated specialist FX firm, has seen a dramatic increase in online trading turnover in the wake of the ongoing global financial crisis.
“Many industry pundits were not sure how the volatility in the capital markets would shake out globally. We’ve seen a few years of a ‘risk on, risk off’ mentality in the capital markets with trading positions becoming increasingly short-term. Some market participants predicted that trading volumes would be crushed by heightened risk aversion, arguing that the spikes we’ve seen in the VIX are here to stay. In contrast, others suggested that speculators would be drawn to the volatility and seek alpha through new breakout systems.” Mr Rebelo reports.
SGT has seen a 21% increase in FX dealing since the emergence of the global financial crisis, and a corresponding 37% increase in CFD trading activity during the same time frame.
“As central banks have shown the global markets a bid – and done so in an increasingly concerted fashion – it’s clear that many have decided to ride their monetary coattails with bids of their own. We’re pleased that this has resulted in significant increases in trading activity at SGT. Our FX book is as robust as ever, with many clients having sold the Euro from a $1.5 handle – good for them. Our CFD book has realised record-smashing volume increases as well, with a lot of Gold punting around key levels such as $710, 780, and $885. We hope these longs work out for them,” adds Mr Rebelo.
SGT Trader offers trading in dozens of spot FX pairs, Gold, Silver, equity indices, energy products, and other commodities 24-hours per day.
“We’ve also seen a dramatic increase in trading activity in equity index CFDs this year. When one considers that the Dow printed above 13,000 earlier this year and looks like it wants to break 8,000 this month, it’s easy to understand why traders have reduced exposure to CFD products like the US 30 over the past several months,” reports Mr Rebelo.