A week ahead of the US Presidential election, 26 Degrees, run from its Sydney headquarters by CEO Gavin White, has expanded its Pairs CFDs offering with the addition of several Gold Pairs against major indices, including the US 30, US 100, Japan 225, China A50, and US Crude Oil.
Offering Gold Trading to Traders
According to today’s announcement (Tuesday), the company’s Pair CFDs allow traders to trade gold in a more targeted way. Gold has been one of the most traded instruments globally, and the commodity remains extremely volatile as it continues to rally upwards.
However, 26 Degrees does not offer services directly to traders. Therefore, it will be up to the brokers to assess demand for such Pair CFDs among their client base and offer these products accordingly.
“The rising popularity of gold trading among retail traders has been remarkable, and with our new Gold Pairs CFDs, we’re excited to offer brokers the ability to cater to this demand while providing valuable diversification across multiple asset classes,” said James Alexander, 26 Degrees’ Group Chief Commercial Officer.
“With recent interest rate changes from the Federal Reserve and a looming US election, it would not be surprising to see volatility surge in both US indices and Gold in the coming months, and these new Pairs bring both factors into play in a single instrument.”
Creating FX-Like Pairs for Other Asset Classes
26 Degrees launched its Pairs CFDs products last July, offering brokers 20 such instruments at the outset. The firm is now strategically expanding this product line.
Pairs CFDs create forex-like markets for equities, indices, commodities, and other asset classes. According to 26 Degrees, these new products offer a simpler and more effective trading experience than traditional instruments, providing traders with a single ratio of the two instrument prices. This ratio changes based on price fluctuations of the two separate assets, allowing traders to manage risk with one trade instead of opening two separate positions.
Additionally, these Pairs CFDs can be structured to enhance or reduce volatility, depending on the instruments’ correlation. According to the company, they also offer greater margin efficiency than trading each asset separately with two positions.
Meanwhile, 26 Degrees recently saw the departure of its top two executives from its Cyprus office, Riana Chaili and Lochlan White. Finance Magnates also exclusively reported that the company is now considering surrendering its regulatory licence in Cyprus.
This article was written by Arnab Shome at www.financemagnates.com.
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