[Exploring rare opportunities in the bear market: Trading hot coins for hot rewards]

Can you show us some screen shots of the products you are talking about showing the price charts for the past two weeks?

[Overnight Premium and Futures Contracts]

How did you get on with this trade. Can you give some examples?

[Exploring rare opportunities in the bear market: Trading hot coins for hot rewards]

If they are such interesting products, why aren't they traded here? The answer is that their pricing is opaque and the market thin. Far better to trade in markets where prices are widely quoted and the markets are liquid. Can you say what are the buy sell spread on some of these products?

[EMFX USD/BRL opportunity]

I was looking at the overnight funding rates on some of the emerging currencies, and generally speaking the rates offer on short trades are relatively high, which for me is greater than 5%. Usually this would be because currencies like the Turkish Lira (TRY) are in perpetual free fall, and short trades are a loosing bet, so the interest offered on shorting the Lira are very high (34%).

But the Brazilian Real (BRL) offers an attractive rate (7%) and seems to be steadily depreciating against the USD. If the value of USD is currently high, and likely to fall in value relative to other currencies, then selling USD/BRL looks like an attractive trade, because you get both a capital gain from the short trade, but also a good rate of interest on maintaining the trade overnight.

My view is that the outlook for commodities produced by the Brazilian economy is good, so the Real is in a good position to see its value hold steady. With falling oil prices, the outlook for US inflation suggests that interest rates will fall soon, maybe more quickly than the Fed expects. So in my view, BRL is likely to strengthen relative to USD the medium term, so this trade looks very attractive.

Have I misunderstood, or is shorting USD/BRL a really attractive trade even if the USD strengthens in the short term?

 

[Exploring rare opportunities in the bear market: Trading hot coins for hot rewards]

 

No, as none of those are traded here, probably because

1. These Assets trade among participants in some niche market; that niche might be early-adopter crypto enthusiasts so they are are priced that make sense to  people within the niche;
2. The way to attract mainstream attention to some niche asset is mostly by saying that the market has endless opportunities;
3. Mainstream attention is supposed to attracts buyers but in reality no will buy a product because the price for niche products don't make sense to anyone.

[Going ling on GBP/USD]

Hi there, I hope this helps.

You cannot rely on the statistics as a basis for trading, as IG don’t provide you with details of the volumes or the age of the deals that are being used as a basis for the calculations. For instance, some traders may have held very high value positions for a long time and may be content to sit on large positions because they have hedged them elsewhere.

You have to assess your own position to see if the assumptions you made when you entered the trade still hold true based on your own risk appetite, not on the incomplete statistics that are used as a proxy for market sentiment.

Good luck!

 

 

[Price spike - No Lead Gasoline]

There was a significant price spike on Tuesday (1,500 point) for about a minute on the No Lead Gasoline contract for May-20. 
 

I would be curious to know if anyone knows if there any way to prepare for or even profit from such spikes?