The Foreign Exchange (FX) and Futures markets are two of the highest traded investment products to be found anywhere in the world. According to the 2010 Triennial Central Bank Survey the average daily FX turnover was $ 3.98 Trillion, of which 36.7% of that happened within London.
The global futures market trumps this with an average daily notional turnover of $ 6.1 trillion according to the Sept 2010 Review by the Bank for International Settlements, with trades spread across a number of Financial, Commodity and Agricultural investment products.Both the FX and Futures markets are known for their dynamic nature, where prices change rapidly throughout the day based on worldwide economic and fundamental factors. The fact the FX markets are open 24 hours a day also allows both Retail and Professional investors alike the opportunity to trade wherever and whenever they wish.
The FX and Futures markets are both relatively inexpensive to trade compared to many investment products available. This gives the added incentive of cost minimisation which can account for significant sums for many active investors over a period of time.
What many investors don’t take account of are factors such as ‘slippage’ (where the average price executed may be worse than the price showing on screen) or market ‘gaps’ when major news events disrupt markets, both overnight or during the day.
PIA firstcapital through their intra-day trading model believe they have found a strong balance in using many of the positive aspects of the FX & Futures trading markets to their advantage, whilst also harnessing the negatives points to limit the downside losses that can occur. For instance, at the end of each day positions are closed and accounts revert to cash. This means there is no overnight risk exposure and, real profits and losses are ‘banked’ to the client’s account each day.
Due to PIA firstcapital’s specialisation in markets that many investors consider as Alternative Investments, the potential for risks and rewards can both be substantial. It’s the very nature of a leveraged product where both large positive/negative returns can be generated through relatively small market price movements.PIA firstcapital by following a structured trading mandate within their FX & Futures Trading programmes also manage to bypass much of the emotion behind trading which contributes to many investors’ downfall. As a company they are under no illusion of the challenge that these markets can pose, even for the experienced investor, as surprises are regularly thrown up. Whilst this is the case, PIA firstcapital firmly believes they can offer investors a real opportunity to invest in Institutional level research on an individual investor basis.