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FXCM’s adding new pairs!
By Tim Shea | August 23, 2007
We’re now in the process of adding 4 new pairs to trade on certain account types, which will open up exciting new trading opportunities. AUD/CHF is being added to all accounts, while GBP/CAD, GBP/NZD, and USD/DKK are being added to 100k accounts.
I think the most exciting new prospect for me is the GBP/CAD. It has a surprising amount of volatility (rising 3800 pips in 2006, and falling 2500 so far in 2007), and when it moves, it MOVES. For example, from Nov 17 to Dec 1, 2006, it rose 1,200 pips… with NO retrace on the daily. Not a single red candle! That will make it a great new choice for trend and momentum traders.
Next is the AUD/CHF.
GBP/NZD also will hold a lot of interest for those who desire volatility. From July 26 to Aug 16, its moved a whopping 3,850 pips. Right now the Euro is at 1.3400. If it added 3,850 pips, it would be at 1.7250. I don’t see that ever happening in a month. Do you?
Finally, the only new currency being added is the Danish Krone, abbreviated DKK. This will be paired with the USD and offer a new method to trade the Europe/US relationship. The DKK is maintained in a tight trading band with the Euro, so trading USD/DKK is kind of like trading the inverse of EUR/USD. I’ll be interested to see what kind of strategies traders develop for this pair using the correlations between the EUR, DKK, and CHF.
I wish I could give you a date on these new pairs, but I don’t have one yet. In the meantime, you can get excited by taking a look at some charts of them. This chart can load those pairs: http://quote.fxtrek.com/misc/fxcm.asp
Tags: carry trade, carry trading, currency trading, forex trading, fxcm, pips
Topics: What To Look At In The Market |
August 24th, 2007 at 10:45 am
Why are three of the four new pairs unavailable to those with smaller accounts? Is it because of the greater volatility (and potential for loss)?
August 24th, 2007 at 10:46 am
is USD/DKK just a way to hedge EUR/USD?
August 27th, 2007 at 3:55 pm
The reasoning behind offering them on the 100k accounts first is actually a function of liquidity more than volatility (though liquidity does influence volatility as well). These pairs aren’t as commonly traded as the majors, and mini contracts are less commonly traded than 100k contracts. So, in order to offer better execution and tighter spreads on these pairs, we are offering them only to 100k accounts at this time.