Jump to content

When will Crypto be able to be traded by all accounts?


Recommended Posts

It would be highly unusual for the FCA to do a U-turn. They think they are "protecting" the little guy from the sharks, but this leads them to do ridiculous things e.g. with option margin whereby a retail investor gets charged the full futures margin on a short option position irrespective of how far out of the money it is and, even worse, gets charged the same margin again even on an opposite position which could not possibly lose at expiration if the first leg were losing.

For example a roughly at-the-money Put  sells for a premium of P and is margined at an initial M (plus there is daily variation margin if the trade goes in the wrong direction) . A conservative trader thinks the market is slowly grinding down and wants to sell a Put 10% below the market for a much smaller premium p, but is still margined for the full amount M, so his ROI is considerably less - this tempts him to take the arguably riskier position of selling the higher premium position instead. 

However, being a conservative trader he decides to play it safe by selling the out of the money put anyway, not minding if he ends up having to buy the underlying at the lower price,  but he then figures to  increase his potential return by also selling a 10% out-of-the-money call. He would normally not expect to have to fully margin both sides of the trade as it would be impossible to lose money on both legs at expiry and volatility would have to increase drastically for the premiums to rise enough on both legs to force him to close early in addition to posting variation margin on any daily losses. Yet he is dumb-founded to find that FCA rules require  the full margin amount M on BOTH legs. Not only can he not double his ROI but if he gets a margin call on his account he may have to close positions at a loss due to the extra margin M, on the second option position not being available as margin for other positions that he would have  preferred to keep open during some short-term turbulence..Thus the FCA can actually cause the retail punter in this scenario to lose money on a position that he would otherwise have likely profited from.

To avoid being treated as stupid (cos you don't happen to have half a million quid on top of your years of amateur trading experience)  many customers may inevitably end up trading with unregulated overseas brokers which isn't at all in any way even riskier for them now is it?

Link to comment
  • 3 months later...

FCA rules to ban crypto products are dumb. I used to have a Bitcoin ETN in my SIPP which was affected by the ban, meaning I could no longer buy the product anymore, only sell it. I sold it recently with a heavy heart knowing under the current rules I could not buy it again.
 

With the proceeds I bought a range of Bitcoin mining stocks like Argo Blockchain, Hut8 and Mara which act as a leveraged play on Bitcoin price (like all commodity miners do versus the underlying commodity). These miners carry greater operational risk than holding Bitcoin itself and the share price is much more volatile too. So instead of protecting me, all the FCA has done is forced me to take greater risk elsewhere.

Link to comment

What is the FCA ban?

The FCA announced a ban, affecting UK retail traders, on trading cryptocurrencies through derivatives like spread bets and CFDs. The ban began on 6 January 2021. You can find more information on the FCA’s website here.

This means that, if you’re contracting with our UK office, you’ll only be able to trade cryptocurrencies through CFDs and spread bets if you’re classified as a professional trader. Learn more about professional trading and check your eligibility on our professional account page.

 

All the best - MongiIG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Corn Elliott Wave Technical Analysis Function - Trend  Mode - Trend Structure - Expected Impulse wave for (3) Position - Wave 4 of (3) Direction - Wave 5 of (3) Details - Wave 4 appears to be close to completion. Wave 5 down is expected to follow to complete wave (3). The current price action of Corn indicates a continuation of the bearish sequence that began in April 2022. Trading around the lows of October 2020, the long-term outlook suggests that the decline is part of a larger bearish cycle originating from April 2022. Given this context, selling on rebounds appears to be a prudent strategy.   Daily Chart Analysis On the daily chart, Corn exhibits a clear bearish impulse wave pattern starting from the peak of April 2022 at 824. The first two waves, (I) and (II), concluded in July 2022 and October 2022, respectively. Currently, wave (III) is in progress from the October 2022 high. Within this structure, wave (2) of 3 (circled) of III has completed, indicating that there is still considerable downside potential. Wave (3) commenced at 477'2 and is developing into a bearish impulse wave. According to Fibonacci projections, this wave could reach 345 or lower.   H4 Chart Analysis The H4 chart provides a closer look at the sub-waves of wave (3). It appears that Corn has completed an extended move for wave 3 of (3). The current rebound represents wave 4, which has already touched the 23.6% retracement level of wave 3 at 409 and could potentially continue higher to the 38.2% retracement level at 420. Once this corrective structure completes, the commodity is expected to resume its downward movement in wave 5 of (3).     Summary In summary, the Elliott Wave analysis for Corn suggests a bearish outlook both in the long term and short term. Key levels to watch include the support at 345 and resistance at 420. The analysis indicates that wave (III) is still unfolding, with wave 3 of (III) likely to push prices further down. Traders should consider selling opportunities during corrective bounces, particularly around the 420 level, as the overall trend remains bearish. By monitoring wave structures and key price levels, traders can anticipate future movements in the Corn market and make informed decisions to capitalize on the prevailing downtrend. Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!  
    • NEE Elliott Wave Analysis Trading Lounge Daily Chart, NextEra Energy Inc. (NEE) Daily Chart NEE Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Flat POSITION: Minor wave 4 DIRECTION: Bottom in place at wave 4. DETAILS: We are looking for a minor wave 4 formation, with support identified around $72.   NEE Elliott Wave Analysis Trading Lounge 4H Chart, NextEra Energy Inc. (NEE) 4H Chart NEE Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Flat POSITION: Minor wave 4 DIRECTION: Bottom in place at wave 4. DETAILS: The 4-hour chart shows a potential triangle in wave 4, suggesting a bottom formation and possible resumption of upward movement.   Welcome to our latest Elliott Wave analysis for NextEra Energy Inc. (NEE). This analysis provides a detailed overview of NEE's price trends using Elliott Wave Theory, helping traders identify potential trading opportunities based on current market behavior. We will explore insights from both the daily and 4-hour charts to provide a comprehensive perspective on NEE's price action. NEE Elliott Wave Technical Analysis – Daily Chart The daily chart indicates that Minor wave 4 has likely found support near the $72 mark. This level is critical as it suggests that the corrective phase might be concluding, paving the way for the next upward movement. Traders should observe this support level for confirmation of a bottom. NEE Elliott Wave Technical Analysis – 4H Chart The 4-hour chart offers a closer examination of the subdivision within wave 4, indicating a potential triangle formation. This pattern suggests that wave 4 may have reached its bottom and that an upward trend could already be starting. Traders should watch for a breakout from this triangle to confirm the continuation of the upward movement.   Technical Analyst : Alessio Barretta Source : Tradinglounge.com get trial here!  
    • Elliott Wave Analysis Trading Lounge Day Chart, Euro Stoxx 50 Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Orange wave 4 POSITION: Navy blue wave 3 DIRECTION NEXT HIGHER DEGREES: Orange wave 5 DETAILS: Orange wave 4 remains in play as a sideways movement. Wave Cancel invalid level: 4618 The Euro Stoxx 50 Elliott Wave Analysis on the day chart indicates that the market is currently in a counter-trend phase. This phase is characterized by a corrective mode, suggesting a temporary pause or reversal in the prevailing trend. The specific wave structure being analyzed is orange wave 4, positioned within navy blue wave 3. This means the market is in the fourth wave of a larger wave sequence, typically involving consolidation or a corrective movement before the final leg of the trend. The analysis suggests that the next higher degree direction is orange wave 5. This indicates that after the completion of the current corrective phase (orange wave 4), the market is expected to transition into orange wave 5, resuming the primary trend direction and likely leading to further price increases. Detailed observations indicate that orange wave 4 is still developing and is unfolding in a sideways pattern. This implies the market is currently in a consolidation phase with limited directional movement, characteristic of a corrective wave that moves sideways rather than trending strongly in one direction. A crucial aspect of this analysis is the wave cancellation invalid level, set at 4618. This level serves as a critical threshold for validating the current wave structure. If the market price falls below this point, it would invalidate the current wave analysis, indicating that the expected wave pattern is no longer valid and would require reassessment. In summary, the Euro Stoxx 50 day chart analysis shows the market in a corrective counter-trend phase within orange wave 4, positioned in navy blue wave 3. The market is currently consolidating sideways, and after this phase completes, it is expected to transition into orange wave 5, resuming the primary trend direction. The wave cancel invalid level is 4618, serving as a critical validation point for the current wave analysis.   Elliott Wave Analysis Trading Lounge Weekly Chart, Euro Stoxx 50 Elliott Wave Technical Analysis FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Orange wave 4 POSITION: Navy blue wave 3 DIRECTION NEXT HIGHER DEGREES: Orange wave 5 DETAILS: Orange wave 4 is still unfolding as a sideways movement. Wave Cancel invalid level: 4618 The Euro Stoxx 50 Elliott Wave Analysis on the weekly chart shows that the market is currently in a counter-trend phase. This phase is classified as corrective, indicating a temporary pause or reversal within a larger trend. The specific wave structure under analysis is orange wave 4, positioned within navy blue wave 3. This positioning suggests the market is in the fourth wave of a larger wave sequence, typically involving a corrective or consolidative movement. The analysis predicts that the next higher degree direction will be orange wave 5. This suggests that after the completion of the current corrective phase (orange wave 4), the market is expected to transition into orange wave 5, resuming the main trend and potentially leading to further upward movement in prices. A key detail in the analysis is that orange wave 4 is still in progress, manifesting as a sideways movement. This sideways movement indicates that the market is in a consolidation phase, with limited directional momentum, characteristic of a corrective wave that does not strongly trend in either direction but instead moves in a horizontal pattern. An important aspect to note is the wave cancel invalid level, set at 4618. This level is crucial as it serves as a validation point for the current wave structure. If the market price drops below this level, it would invalidate the current wave analysis, signaling that the expected wave pattern is no longer applicable and that the analysis would need revision. In summary, the Euro Stoxx 50 weekly chart analysis indicates the market is in a corrective counter-trend phase within orange wave 4, situated in navy blue wave 3. The market is consolidating sideways, and upon completion of this phase, it is expected to move into orange wave 5, resuming the primary trend direction. The wave cancel invalid level is 4618, serving as a critical threshold for validating the current wave analysis.   Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us