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The Most Important Details to Choose an Online Broker

The Forex market is very unique in many aspects, including its 24-hour schedule and its rapid growth. However, one feature really sets it apart from the rest of the world’s financial markets; It is by far the largest market in the world with about four trillion dollars traded daily.

“The decision of which broker to choose is crucial, and one that will strongly affect your future trading and your success or failure.”

As a result of its high volume of trades and its easy access to anyone, the Forex market and more specifically the number of Forex brokers is growing faster than ever.

A meticulous selection to choose from is always a good thing, however, the large number of Forex brokers available can make the choice much more difficult for a new trader. The decision of which broker to choose is crucial, and one that will strongly affect your future trading and your success or failure.

So to choose a broker wisely, here is a shortlist of features you should look for.

Regulation:

The most important aspect to check before choosing a broker is, if your company is regulated and by which of the regulatory authorities. If the broker’s signature is located in Europe, it must be regulated by Financial Conduct Authority (FCA). Is important that you choose one of this regulation across the world because are the most safety. FCA, CIMA, or National Futures Association (NFA).

Professional Web Site:

“Show me the website of a company and I will tell you who they are”. The way the site portrays the company can really give you a clear picture of who you are dealing with. Obviously, this is a subjective issue, but there are some very basic questions you can ask. Does it block a lot? Is it easy to navigate? Is he a professional? These are all the questions you need to ask when learning about any company, but it becomes much more crucial when you are about to invest your money in the company in question.

Spreads Competitive: 

This is a very important aspect to examine before signing with a broker. What spreads do they offer? Just to give a very basic explanation, the coins are traded in pairs. The difference between the sale price and the purchase price is called a spread. A good indicator is that the spread should not be more than 5 pips for the main currencies. The main ones include: EUR / USD, GBP / USD, USD / JPY, USD / CHF, AUD / USD and USD / CAD.

Customer Support: 

This is a more important feature in Forex than in other industries. In addition to the frustration caused by the lack of customer support, this can lead to large losses in real money. If, for example, your broker does not respond to your calls or emails in a timely manner, when you request to open or close a market-based position, it can take too much time and result in losses for you. Before signing up with a specific agent, test your customer support by sending an email, calling, or chatting with your online representative. If you do not get the answer you expected, think twice before opening an account with that broker.

Fast Response Time: 

This is connected to customer service but goes further. Even if the customer service is satisfactory, it is important to verify that when making a request to open or close a position, your request is met with a minimum delay. The most effective way to verify this is by opening a demo account with the broker, which you must do anyway to improve your trading skills. This is not a perfect method as very often, the speed of the demo account is, in fact, different from the real account, but it is the best way to check given the tools that are provided.

Reasonable Leverage:

Leverage, in general, is what gives the Forex market a strong attraction for retail traders. However, the risks of negotiating with high leverage are as great as the advantages. The most serious brokers offer leverage ratios that start at 100: 1 and go up to 400: 1. The higher the leverage, the greater the risk to the broker. If a broker offers leverage that seems too high for you, this could be a good indication of that broker’s future or lack of it. Now is important with the new ESMA select a broker with good leverage, that is why FCA brokers now are changing to CIMA

Competitive Platform:

This is one of the most basic and essential checks you need to do before choosing a broker. The trading platform is where everything will go down. If your platform is not easy to navigate and easy to use, your customer support may be the best in the world, and you will still fail as a trader. Like any interface you use in your life, the platform must have an interface that allows you to meet your goals with a minimum number of steps. Metatrader 4, Currenex, cTradersterling TWS.

That is why Tradeview has all of these important point to choose your best partner to invest your money with.

Check out what Tradeview customers have to say about us by checking out their Trust Pilot reviews.

Tradeview Markets Trust Pilot reviews

Borja Salvador
Business Development Manager
bsalvador@tvmarkets.com

GameStop-Tesla-A-famous-investor-looks-for-his-new-Big-Short

GameStop & Tesla: A famous investor looks for his new Big Short

As Scion Asset Management is once again in the news, this time for founder Dr. Michael Burry’s early position (2019) in GameStop (GME), it is worthwhile looking at what else Dr. Burry has been saying and trading.

Burry, is perhaps best known for being one of the protagonists of the book and the movie The Big Short, and he is apparently determined to go against Elon Musk’s company, just as he did with the US real estate market in 2007.   Once again, he is being called crazy, but his trade against U.S. housing as well as his GameStop trade did extraordinarily well.

‘The Big short”

In 2010, Michael Lewis described Burry’s epic trade in his book ‘The Big short” which was made into a movie in 2015, with Christian Bale portraying Dr. Burry in the film.  The famous investor earned his M.D. from Vanderbilt and went on to start but not finish a residency in neurology at Stanford University Medical Center before becoming a full-time fund-manager.

A self-described value investor, Burry sensed the housing crisis looming over the US before many others and began to invest against the housing market to the chagrin of his fund’s investors. Mainly through ‘swaps’ or credit default swaps on mortgage bonds, Burry maintained a bearish position for several years that, despite the revolt of some of his investors the premiums to be paid were increasingly high, paid off handsomely when the 2007 the collapse came and defaults soared. The fund closed in 2008 with a yield of nearly 500% and a profit of more than $ 700 million.

After starting a new fund in 2013, Dr. Burry now has another short in mind.

Bearish position in Tesla

At the beginning of December, with Tesla culminating a spectacular 2020, in which it rose by more than 700%, Burry confirmed a bearish position in Tesla by his Twitter account.  Within a month, as Tesla stock continued to rise, Musk had become the richest man in the world from his ownership of close to 20% of TSLA.  Undiscouraged Burry made public comments in early January indicating that he will stay the course on the short position in Tesla as he continues to theorize that the electric car company will suffer a major correction.

Justifying his position and the risks involved in holding a short position, Burry referred to his bet against housing prior to the Great Financial Crisis: “Well, my last big short got bigger and bigger and BIGGER too. ” “Enjoy it while it lasts,” he also tweeted in what seemed like a message towards those who defend long positions at Tesla.

This was followed by comments last week where Burry pointed out that Tesla’s $270 million net income from last quarter was only made possible by the Company’s sale of over $400 million of regulatory credits to other carmakers.

Given that Scion has realized profits on it’s GME trade along the way and was at last count holding 1.7 million shares that had risen in value from $17 million at the end of September to almost $600 million last week it might be worth considering the good doctor’s investment thesis on Tesla.  It seems that once again Scion is knocking on the door of another potential “Big short”.

Borja Salvador

Sales Account Manager
bsalvador@tvmarkets.com

The Digital Wallet: A New Era for Payment

Over the last 10 years, the digital and mobile wallet has become a popular payment method for many people worldwide. More than 64% of Millennials have used a digital payment solution in the past year and the highest number of digital wallet users in the world are in Asia. Judging by these overwhelming statistics, it makes sense that many businesses are now accepting digital payment options.

What is a Digital Wallet?

A digital wallet allows consumers to securely make purchases and money transfers without having to provide their financial details to the merchant. Digital wallets store the consumers’ financial information and act as a “middle-man” between the consumer and merchant.

Some examples of digital wallet services are Skrill, Neteller, Sticpay, and Uphold.

Advantages of the Digital Wallet

There are many advantages to using a digital wallet to make purchases and transfers both online and in local retail locations:

1. Convenience

Digital wallets allow consumers to easily make purchases and transfers without ever opening their wallets. Financial information is stored in the digital wallet making checkouts a breeze and alleviating any lengthy billing and shipping forms.

2. Fewer Fees

Sending money to loved ones, friends, and merchants can often be quite costly. The average bank wire transfer fee can run up to $50, and most money transfer services charge up to 10% of the transfer value depending on the receiver’s location. Digital wallets offer a far more economical way to make transfers and purchases with most entities charging between 1-5% of the transfer value.

3. Security

Digital wallets keep your financial information safe by keeping a barrier between you and the merchant. For example, if you make an online purchase with your credit card, the merchant now has all your personal and financial information. By using a digital wallet like Skrill or Uphold, the merchant never sees your financial information. The digital wallet transfers the funds to the merchant and charges you accordingly, never revealing your information to the merchant and your purchase or transfer is completed without having transmitted your financial information over the web.

4. Innovation

By using Uphold, individuals can fund their accounts with Bitcoin using blockchain technology. Blockchain represents a digitized, decentralized ledger of all cryptocurrency transactions. This technology can verify transactions, and the record’s authenticity can be verified by an entire community of users instead of one centralized authority.

Tradeview Digital Wallet Solutions

Tradeview is always striving to improve the services we provide to our clients. Digital wallets are accessible to our clients worldwide, making funding your trading account convenient and secure.

Since Tradeview opened its doors in 2004, our goal has been to find innovative, cutting-edge technology to provide our clients with the best possible trading conditions. With the dawn of the digital era, Tradeview implemented several digital wallet payment processors to meet the needs of our clients worldwide.

Over the years, Tradeview has developed relationships with Digital Wallet providers such as Skrill, Neteller, MyBitWallet, Uphold, and Sticpay to give clients several options to fund their trading accounts in a secure and cost-effective manner.

Fund Safety

Nothing is more important to Tradeview than the safety of our client’s fund, which is why we have selected to only work with the best financial institutions that provide secure transactions for all our clients.

For more information on Fund Safety, please visit Tradeview’s fund safety page Click Here.

Andrea Lafleche
Account Manager
alafleche@tvmarkets.com

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Learn the differences between trading with MT4 and MT5 with Tradeview Forex

MT4​ ​VS​ ​MT5

What Is A Trading Platform?

trading platform is a software that connects a trader with a broker. traders can place orders via the interface of the trading platform, which is then executed by the brokers. trading platforms offer valuable benefits such as providing information in the form of quotes and charts.

If you are trading in the forex market it is easy to get confused as to which trading platform to use, MT4 or MT5. both MetaTrader 4 and MetaTrader 5 are developed by metaquotes.

Related: MetaTrader Tips

The following graphics highlight the notable differences between MT4 and MT5 which will help you choose the correct platform that suits your trading style.

sr. n o

MT4

MT5

1 -introduced in 2005. -easy to install. -introduced in 2010. -easy to install.
2 -uses meta quotes language 4 (mql4)

 

-mql4 is used for developing trading programs based on the order system

-uses metaquotes language 5 (mql5)

 

-mql5 is utilized to implement a positional system.

3 in mql4, different functions such as order sent, order close, order closeby, order modify and order delete were initially incorporated mql5 is comprised of an expanded list of trading functions for work with open orders, a list of open positions as well as order and deal history.
  for performing each trade operation.  
4 MetaTrader 4 offers almost all types of trading methods – hedging and lifo MetaTrader 5 does not support hedging and implements FIFO by default
5 MetaTrader 4 offers only 9 timeframes. MetaTrader 5 offers 21 timeframes
6 mt4 offers forex products and only a few CFDs. mt5 offers forex, CFD’s, options, and stocks.
7    
8 a limited number of charts can be opened on mt4. mt5 offers an unlimited number of charts, out of which 100 can be open at a time.
9 MetaTrader 4 does not have a built-in calendar MetaTrader 5 user gets the

 

the benefit of an inbuilt forex calendar. features like news, schedules, expected impacts, and market forecasts are also included in the calendar

10 MetaTrader 4 offers 30 built-in indicators and 33 analytical objects. MetaTrader 5 offers 38 built-in indicators, 22 analytical tools, and 46 graphic objects
12 MetaTrader 4 allows a trader to send 2 market orders,4 pending orders, 2 execution modes,2 stop orders, and a trailing stop. MetaTrader 5 allows traders t0 send 2 market orders,6 pending orders, and 2 stop orders.

Some Other Noticeable Upgrades

 

MT4

MT5

Exchange Trading
Support for exchange markets, offering stock, futures, bond, and option trading

no

yes

Symbols
The number of financial instruments that can be traded in the platform
1024 unlimited
Netting
Support for the netting accounting system, which only allows for one open position of a financial instrument
no yes
Multilingual Unicode
Support for the Unicode character encoding standard that ensures the correct display of characters and symbols in any language
no yes
Strategy Tester

Trading robot testing and optimization modes supported by the built-in strategy tester
single-threaded multi-thread ed
Embedded mql5.community Chat
Possibility to chat with other traders directly through the platform
no yes
Exchange Data
Ability to receive data on time & sales from the exchange
no yes
Depth of Market
The market depth option, which features bids and offers for financial security at different prices depending on the volume
no yes
Pending Order Types
Types of pending orders requesting a broker to buy or sell a financial security under pre-defined conditions in the future
4 6
Order Fill Policy
order fill policy — you can set additional order execution conditions
fill or kill fill or kill immediately or cancel return
Partial Order Filling Policies
Availability of the partial order filling option, in which a trade with the maximum volume that is available in the market is executed, not exceeding the volume requested in the order, while unfilled volume is canceled.
no yes
Report API
Access to the reporting API allowing for the enhancement of the functionality of trade server reports.
yes yes
Gateway API
Support for gateway API which enables platform integration with trading systems
no yes
Manager API
Supports programming languages for manager API, which enables integration of the platform with broker system
c++ c++, asp.net, PHP
SQL Export
Native real-time export to a SQL database
limited (MySQL) native (MySQL, MySQL, oracle)
Built-in Order Routing
The native routing option, which allows managing trade request processing rules
no yes
Account Groups
The number of trader account groups that can be created in the platform
512 unlimited
64 Bit Version
Native support for the 64-bit architecture
no yes
Execution Modes

Number of order execution modes supported in the platform
3 4

To develop programs in MQL4 and MQL5, a meta editor – a compiler embedded in the development environment – was created. it is integrated with the MetaTrader 4 / MetaTrader 5 trading terminals. meta editor allows convenient editing of program source code, automatically generating projects by a template, profiling code, and remotely developing joint applications in conjunction with others.

Apart from their differences MT4 and MT5 have some similar capabilities such as :

Expert Advisors:

Automatic systems trading through specified parameters and following a coded algorithm. the occurrence of a previously specified event like receiving a new tick, an alert about a new trading operation, or even pressing a button or clicking a mouse, triggers the expert advisor to perform a programmed action.

Custom Indicators:

Written by users, they are used alongside the ready-made indicators integrated with the terminals. their function is purely analytical. indicators do not perform trading nor carry out operations that slow down the interface stream such as sending emails or performing a random delay. the main task of indicators is to monitor a situation, reflect and interpret it, and then submit it to a trader for analysis.

Scripts:

 A script is a program intended for a single execution of an action. the start event is the only event type processed by the script.

Custom Function Libraries:

In addition, there is an opportunity to create include files (#include). include files that allow you to include the most frequently used functions and classes without directly pasting their source code into its program. using functions and classes simplifies creating, debugging, and compiling because when using dynamic libraries, functions load only when they are called directly.

All common operations – arithmetic, bool, binary, etc. are present in mql4/mql5. the precedence of operations corresponds to that which is adopted in с++.

Ashutosh Gedamkar

Account Manager India
agedamkar@tvmarkets.com

Trading Platform MT4 cTrader

Which Trading Platform is right for me: cTrader or MT4?

Tradeview Markets has recently integrated cTrader into its trading infrastructure, giving clients access to new trading spreads and functionality. I am familiar with various trading platforms. I also was involved in the development of in-house trading software. I took cTrader for a test drive and I liked it very much. The cTrader is a powerful platform and it is as good as MT4 or even better. Still which trading platform to choose when trading FX, MetaTrader 4, or cTrader? The answer is “it depends”!

Many articles are comparing the two platforms. Some of them suggest MT4 is a better choice than cTrader, they argue about the reliability, security of MT4. On the other hand, some others argue that cTrader is better. Because cTrader has better technical charting options and is faster in terms of execution. In my opinion, all of those arguments can be valid. I believe it is not a question of which platforms the other. Preference should be based on the trading needs and behavior of the trader (End-user).

“MT4 has all the means for professional traders”

“MetaTrader 4” is known for being a widely used forex trading platform in the industry. MT4 has all the means for professional traders, and it is very reliable. It has the resemblance to the Toyota corolla including all the basics, so all it needs is gas and water to run for a long time. Because of its popularity, there are a variety of custom scripts written for this platform. There are a big number of developers, who have developed many free and paid plugins to help traders.MetaTrader software from tradeview

MT4 is a ticket-based platform. This means each trade (Buy or Sell) is registered individually. So you might have as many open trades on the buy-side or the sell-side. You will need to go and close each trade separately for your position to be squared. There is a unique feature on MT4 called the “Close-by” option. You can close an open “Buy ticket” with another “Sell ticket” and square off your position.

MetaTrader 4” and all of its supporting programs including MAM, Trade copier, and other programs, are very light and fast to load. However, one of the fair critics of MT4 is its age. MT4 was developed in 2005 and has not been up-to-date with market changes.

“cTrader was designed to deliver fast execution”

On the other hand, cTrader is a state-of-art trading platform. You cannot ignore the charting feature if you are a trader and use technical analysis for your trades. The cTrader can be described as a higher-end, luxurious Lexus compared to MT4. Trading execution is as fast as MT4. I like the fact that cTrader can be Ticket based or a position-based platform.

The cTrader employs the Direct Market Access (DMA) that enables the trader to submit buy or sell orders to the exchange without going through an intermediary. It is obvious that the cTrader trading platform is more advanced in view of the Level 2 market depth it offers compared to MT4 which does not have this feature at all.

cTrader Software on TradeviewAs mentioned, cTrader was designed to deliver fast execution and a professional charting experience. The visual interface of the software is eye-catching and neat. Well, to be honest, if you are a trader and you have to stare at your screen for long hours you rather do it with software that is appealing to the eye.

Comparatively, there are not many plugins and programs that have been developed for this platform, but you can still employ a programmer who is familiar with C# (C Sharp) to create a custom bot to cTrader. The cTrader is accessible in a web browser, which makes it convenient for traders who are on the move to access their accounts anywhere in the world. The cTrader has introduced cMirror as an added feature. The cMirror allows mirror trading which continues to gain popularity within the investment and trading community.

One of the disadvantages I noted about cTrader is that “Stop Orders” can’t be placed as easily as when performed on the MT4 platform.

The Bottom Line

When choosing a trading platform, consider your trading behavior and needs. Today, all brokers offer demo versions of these platforms. Do not be shy to download and test-drive the platforms. In the table below I have compared the two platforms in a quick overview.

Developer Spotware Systems MetaQuotes Sofware
Release Date 2011 2005
Smartphone/Tablet version Yes Yes
EA/Automated Trading support Yes Yes
Strategy Back Testing Yes Yes
Professional charting and analysis Yes Limited
Depth of Market functionality Yes No
Resourcefulness Limited Yes
Custom background Yes No
Access historical Data Yes Very limited
Cloud Hosted profiles, templates & passwords Yes No

Tradeview Forex
For More Information Contact us at Tradeview

Is trading in Crypto currency legal in India?

Investment in crypto currency is neither explicitly legalized nor prohibited in India.

An RBI ban on crypto payments in 2018 was overturned by the Supreme Court in March.

Media reports said a draft bill banning all crypto currencies was in the works in 2019, but has yet to be tabled in the Parliament.

The Central Economic Intelligence Bureau (CEIB), an arm of the union finance ministry has put forward a proposal to impose 18 per cent GST on Bitcoin transactions. The CEIB told the Central Board of Indirect Taxes & Customs (CBIC) that Government could potentially gain Rs 7,200 Cr annually on Bitcoin trading.

Bitcoins created by mining

Are self-generated capital assets. Subsequent sale of such Bitcoins would, in the ordinary course of business, give rise to capital gains. However, one may note that the cost of acquisition of a Bitcoin cannot be readily determined as it is a self-generated asset.

Furthermore, it does not fall under the provisions of Section 55 of the Income-tax Act, 1961, which specifically defines the cost of acquisition of certain self-generated assets. Therefore, the capital gains computation mechanism fails, following the Supreme Court decision in the case of B.C.Srinivasa Shetty.

Currently this leads to no capital gains tax arising on the mining of bitcoins.

If Bitcoins, which are capital assets

Have been held as an investment and are transferred in exchange for real currency, the appreciation in value would give rise to a long term capital gain or a short term capital gain depending on the period of holding of the bitcoin. Further, long term gains would be taxed at a flat rate of 20% while short term gains would be taxed at the individual slab rate. The cost of acquisition for arriving at long term capital gains will be determined after giving the benefit of indexation.

Bitcoins being received

Shall be treated on par with receipt of money. It would constitute income in the hands of the recipient. Further, since the recipient received this income out of a business or profession, he would be taxed, normally, under the head profits or gains from business or profession. 

Bitcoins held as stock-in-trade

Being transferred in exchange for real currency. The income arising out of Bitcoins trading activity would give rise to income from business and accordingly, the profits arising out of such business would be subject to tax as per the individual slab rates.

Ashutosh Gedamkar

Account Manager India
agedamkar@tvmarkets.com

US Treasuries down as Biden expected to spend big

The benchmark 10-year U.S. Treasury bonds eased as its yield rose two basis points to 1.1105% after reports were released on the possibility of President-elect Biden could spend $2 trillion to boost the Covid-19 hit US economy. Analysts commented that this figure is much higher than what the market expected, and it had a corresponding effect on the 10-year treasury yields.

The US dollar has been strengthening recently with the dollar index moving up from a sub-90 level to nearly 91 presently as investors who are short dollars are expecting eventual stimulus tapering which might limit the greenback’s decline.

However, with the expected announcement from the President-elect that another $2 trillion will be injected into the economy, dollar bears who have been waiting in the sidelines will probably continue to short the USD in expectation of further weakening in the greenback.

In the meanwhile gold, which does not offer any yield, has declined due to higher Treasury yields. It is trading at $1840/oz presently, which is well below a two-month peak of $1,959/oz achieved a week ago.

Jin Yau

Country Manager
jyau@tvmarkets.com

Bitcoin

Bitcoin down again: what to expect in the coming weeks?

The equivalent of $150 billion in the cryptocurrency market was lost in two days. Is there hope for the future of Bitcoin?

It is well known that bitcoin is a very volatile asset. How far this volatility can go, however, remains to be discovered. The last few weeks have given it a new, extraordinary taste. It took years to break through the $20,000 threshold (and when it happened, just at the end of November, it seemed to be a historic event), it then took only a few weeks to double its value and break through the $41,000 threshold, Friday 8 January. It took little time for the leap forward of a highly risky asset to make regulators prick up their ears. “Prepare to lose all your money” was the warning launched by the UK Financial Conduct Authority. The warning comes within hours of the rally.  Over the weekend Bitcoin began to plummet, losing over 25% of its value between Sunday and Monday and burning about $150 billion off of the cryptocurrency market.


What is happening to Bitcoin?

In recent days, the most famous digital currency has experienced unprecedented leaps forward. For experts, the strong movements we witnessed were in the air: on the one hand, the increase in interest from large financial institutions (which in recent times have begun to consider Bitcoin for their hedging strategies) , on the other hand, the market players (the introduction of Bitcoin payments by PayPal could have made history) and, again, the “halving” of last May (a sort of “inflationary” correction, which halved the volume of digital currency in circulation): all factors that have contributed to creating high expectations on Bitcoin. Expectations so high that, just last week, JP Morgan came to predict an increase of up to $146,000 in the long term: a colossal figure considering that, up to three months ago, Bitcoin prices were around ten thousand dollars. At the moment, however, Bitcoin is pricing around $34,334, down by 1.28% compared to Monday January 11th – when, it fell by more than 10% in a single day.


What is the future for Bitcoin?

As long as the support at $30,000 holds, the reversal is only psychological and the goal remains to hit $41,000 and the formation of new highs. The trend of the digital currency would therefore be following its natural course. On the other hand, the recent and sudden movements lead to questions about the future of Bitcoin as an asset: pure speculative tool? According to some CoinDesk experts, until now only the so-called “miners” have benefited from Bitcoin as a currency, i.e. those who “extract” Bitcoins (just as if it were a natural resource) from “mines” which are the very expensive server farms capable of completing the operations necessary to “create” new digital currencies. They are the miners who then resell the Bitcoins on the market, with profits that follow the trend of the prices in the market. But if the idea of ​​Satoshi Nakamoto (the secret identity under which the creator of Bitcoin is hiding) was to create a real currency, capable of acting as an alternative to national currencies, the road is still long. On the other hand, the fact that caution on the part of financial institutions still reigns around Bitcoin does not mean that the basic idea is to be discarded. Quite the contrary: there are already several projects in the pipeline for the creation of their own digital currency and, in 2020, 80% of central banks were studying solutions in this regard. Central bank digital currencies (CBDC) programs differ from Nakamoto’s Bitcoins because would be issued by a central authority, which would act as guarantor, as is the case with traditional banknotes, creating a crypto-fiat currency.  The future role of central banks in relation to cryptocurrency was further highlighted on January 13th when ECB President Christine Lagarde said this about Bitcoin, “For those who had assumed that it might turn into a currency — terribly sorry, but this is an asset and it’s a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity.”

Michele Morgante

Account Manager
mmorgante@tvmarkets.com

Top 5 Markets to Watch in 2021

With 2020 finally over, many have already started looking towards the next 12 months in search of new storylines and trading opportunities.

Although storylines such as Brexit, and the U.S. Election will be left behind in 2020, the main storyline which captivated markets last year was the global pandemic (COVID-19) and the economic impact this health crisis had on the world. As it stands, even as several vaccines have now been authorized and made available for distribution, cases of the coronavirus have now surpassed the original peak, forcing many nations to consider re-imposing tough lockdown measures.

Taking this into account, and not yet factoring in any unforeseen major fundamental shifts, here are the top 5 markets to watch in 2021.

Gold

For the first 8 months of 2020, XAUUSD was without doubt one of the most traded markets on anyone’s dashboard. With markets falling as the outbreak of COVID-19 worsened, traders ran for shelter, finding this mainly in gold.

As such, XAUUSD climbed to above $2,000, setting multiple record highs and in turn breaking its highest point since 2011. Since then, markets have mainly consolidated between $1,860 and $1,965. With a vaccine now ready for distribution, could we see safe havens begin to fall back down to pre-pandemic levels?

Bitcoin

In March of 2020, BTCUSD fell by 50% in just over 24 hours, and reached a low at the time of close to $3,500. Last week prices of the Cryptocurrency rallied to over $34,000 as Bitcoin continued to make believers of previous doubters.

Many who previously wrote off the digital currency, have now doubled down on their investments, seeing value in cashless and digitized transactions in the midst of the health crisis. However, unlike 2017/18 when we saw a similar rally in Crypto, traders now have the benefit of hindsight in the ways this market moves.

A huge sell-off took place at the beginning of 2018, and the brief 17% drop in Bitcoin prices to start 2021 may act as a reminder, that what goes up, will at some point come down, however given the quick rebound after the initial drop in 2021 it is likely that we may see further highs first, before we see a sustained bear run in BTCUSD.

GBPUSD

Outside of the coronavirus pandemic, 2020 was one of the most volatile years in recent memory for traders of GBPUSD. This was due to the fact that both the UK and United States were embroiled in political uncertainty, unlike anything ever before seen in History.

In the UK, Brexit was the talking point, with Sterling traders fully fixed on if there would be a trade deal with the EU, before the December 31st deadline. Even though a deal was eventually reached, it went down to the wire, causing great shifts in pound strength.

Across the pond, the U.S. elections took precedence in USD trading, as Joe Biden and Donald Trump contested one of the most controversial elections in history, leading to the highest voter turnout in recent memory.

Cable fell to as low as $1.13, and reached as high as $1.37 last year, however many now are looking for some form of consolidation from the pair, with a range of $1.26 – $1.34 being what many traders are targeting for 2021.

Crude Oil

As the world shut down in the first half of 2020, demand for crude oil was non-existent, leading to prices of the energy going below ZERO for the first time in history.

However, this was short lived, and as demand slowly picked up, so did prices, leading to WTI trading in a range of $36 – $49 for the second half of the year.

Now that vaccines have been put into circulation, many believe that we may soon see some form of normality, which could bode well for energy prices, with some targeting the $64 pre-pandemic resistance as the next key price point.

S&P 500

The S&P 500, like many markets moved by historical amounts between March-April last year, however quick and decisive action from the Fed, as well as strong performances from U.S. tech stocks, helped the benchmark index not only recover, but set several new highs in the process.

The main question for 2021, is how long will this continue? Indices are currently on their longest bull run in history, and like every good trader knows, what goes up, will come down, but when?

Bulls do still remain in this market, however could there be further setbacks on an economic recovery, will we see an even bigger drop than what we saw last year?

Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com

Last days for Brexit deal

Brexit: last days for a deal

There are less than two holiday filled weeks to reach an agreement on Britain’s exit from the European Union. The transition, in fact, expires on 31 December but the negotiations remain ‘bogged down’ on the issues of fishing and competition rules.

On December 16th there was a phone call between the President of the European Commission, Ursula von der Leyen and British Prime Minister Boris Johnson, which ended with the EU’s chief negotiator raising hope of a weekend deal.  However, the Prime Minister claimed the talks were in a serious situation with a no deal “very likely” with fisheries being a major issue.

The two sides have alternated between hope and despair but are trying to maintain the possibility of a deal.  “We think it is responsible to go an extra mile”, said the two sides in a joint statement, read by the president of the Community Executive, explaining that they “mandated our negotiators to go ahead and see if an agreement can be reached”.

The negotiations

This week, Michel Barnier met with the 27 ambassadors to update on the latest news, trying to spread optimism. According to the EU negotiator, it is still possible to reach a new trade deal with the UK. “Two conditions are still not met. Free and fair competition and an agreement that guarantees mutual access to markets and waters. And it is on these points that we have not found the right balance with the British. Therefore, we are still working”, Barnier explained.

On the other hand, Johnson had defined the two sides as still “very distant” on the crucial issues, insisting on the greater possibility of a No Deal.

From London, British Affairs Minister Alok Sharma said the parties were still a long way off in trade negotiations but noted that Prime Minister Boris Johnson still wants to continue negotiations.

“We will continue to discuss, we are obviously distant on some issues, but as the prime minister said, we do not want to leave these talks,” Sharma told Sky television. Adding that “both people and companies are waiting for us to make an extra effort in the UK and that’s what we’re doing”.

The minister, however, reiterated that “any agreement we obtain with the EU must respect the fact that we are a sovereign country, an independent country and this is the basis on which we will make an agreement if there is an agreement to be done”, said Sharma.

The Royal Navy deployed

As fishing remains a major stumbling point, a warning has been sent from London. The Royal Navy, in fact, has been mobilized and four ships have been placed to protect the territorial waters starting from January 1st in the event of a No Deal.

“The no deal is one step away, let’s get ready”, Johnson had warned in recent days, hinting that he had some moves in mind.

The London move was seen as a possible British response to the emergency plans developed by the European Commission which aim to “mitigate some of the most significant disruptions” that could occur from January 1, 2021, in the event of a no deal.

In particular, the plans concern air and road connections, for flight safety and fishing, with proposals to create rules and legal frameworks.

The first floor allows for the continuation of air routes, road transport of people and goods, between the European Union and Great Britain. Another plan concerns the continuation of safety certificates always in air transport.

The last plan provides for the possibility for the parties of reciprocal access to fishing in their own waters until 31 December as is currently the case.

Michele Morgante

Account Manager
mmorgante@tvmarkets.com

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