Nearly a quarter of forex traders took advantage of a facility that allows them to jump out of a losing trade at no cost.
2016 saw forex market-maker easyMarkets attempted to take some of the risk out of trading by offering a deal cancellation service.
As we approach the turn of the year we can report has become a runaway hit with traders, especially as the looming threat of Brexit makes predicting market direction ever more daunting.
According to recent figures from easyMarkets, 22% of customers are now taking such precautions by trading with Deal Cancellation.
This allows forex traders to cancel trades up to one hour after opening with the cost being the relatively small deposit put down during the deal’s open.
Launched just before the referendum, the dealCancellation service proved popular following the shock result.
“easyMarkets stood out from other brokers during the Brexit referendum, and the more recent US elections, in that they did not change trading conditions. The company felt it was important for their traders to be able to take advantage of exciting market events like these without being penalised,” says Nicolas Shamtanis, Chief Client Relationships Officer at easyMarkets.
The Brexit referendum was a time of heightened volatililty in the markets which saw many retail trading providers hike margins to protect themselves against the prospect of outlandish moves in the market.
“dealCancellation is a unique product which was developed by our experienced in-house team and it cannot be copied easily. easyMarkets are known as the innovators of the industry and pride ourselves on being the first to introduce many game changing tools.”
It was a facility utilised again by many traders when the government was taken to the High Court earlier in November over whether MPs should have a say in when Article 50 is triggered.
Sterling made a 300+ pip recovery against the USD after Britain’s High Court ruled that the government cannot begin the Brexit process without a vote from Parliament.
The ruling deepened the United Kingdom’s division over EU membership and boosted the pro-EU camp’s morale about the future of Brexit negotiations. Without parliamentary approval, Prime Minister Theresa May could face roadblocks implementing a “hard Brexit.
It is this volatility that keeps punters betting on FX moves.
“In our industry it’s not about good news or bad news, right or wrong, it’s about volatility. Where there is uncertainty there is volatility in the markets and that could throw up some opportunities for traders,” says Shamantis.