MahiFX Hosts the London Forex Trading Meetup
I went away with so much information. Although I don't understand everything, I want to learn more as I think this is a more credible source than the ordinary city broker's seminars.”
The first MahiFX sponsored session of the London Forex Trading Meetup went ahead despite wintry weather threatening to disrupt travel plans. Group members assembled at the new MahiFX offices for an interactive presentation and Q&A on big-picture forecast and strategies to make the most of the 2013 investing landscape with a focus on Options, Forex and Gold.
First up was Justin Pugsley, Markets Analyst for MahiFX, with a presentation on the prospects for Forex and Gold trading for the year ahead.
Such a refreshing talk by someone who really knows his stuff . . .”
Justin talked about some of the potential drivers of the forex market for this year, which included a possible slide towards currency wars after sharp falls in the value of JPY brought about by the Japanese authorities to try and boost exports.
He warned traders to be extra vigilant of news events as they have a strong propensity to bring about surprise trend reversals in the currency markets potentially leading to heavy losses for those not using strict money management. No countries these days want strong currencies and all are export focussed.
He pointed out that the Federal Reserve is potentially looking to call time on its quantitative easing programme as the US economy is slowly recovering. He said that if this follows through it could bring an end to the familiar risk-on risk-off rallies as the USD may rise in future on good news rather than bad as has been the case since 2007.
Justin estimated that gold remains locked in a consolidation pattern, adding that it is tightening. This often presages a breakout, which could happen in the second half of this year and is likely to be on the upside if central bank liquidity remains lose and they also carry on being net-buyers. The dark cloud for gold, he warned, could be an end to Fed QE as this would represent less liquidity in the market, which has spurred the gold rally over the course of the financial crisis.
David Cooney, MahiFX CEO, followed with a presentation on options trading. David shared insight into the world of interbank Forex trading and institutional Options trading gained as former head of global Options desk at Barclays Capital.
Invaluable insight into the world of institutional trading”
Discussion centred on the relationships between the options and futures markets, the pros and cons of options trading and risk relating to portfolio management. David pointed out the importance of understanding price influences on options positions – ‘The Greeks’ - and for enthusiasts, David explained the complex mathematical equations that illustrate the relationship between risk and portfolio diversification.