Green FX is here to stay. Retail brokers follow the lead of the banks

Retail FX Brokerage CedarFX understands the importance of offering eco-friendly FX trading accounts, especially if the new generation of traders want to ensure social and corporate responsibility when investing in capital markets. Here’s why it should be taken seriously.

It is very difficult for any industry these days not to consider global politics.

In Europe, including the UK, which is home to the largest and most important financial market center in the world, it is almost impossible to do day-to-day business without being caught up and appalled by the hair-raising, extreme leftist visions of US collective governments regio

In the UK, it doesn’t matter which of the three main parties a member of the public votes for. The result is that everyone is equal, only differentiated by the color of their suit, and everyone is inexorably socialist, inflicting permanent bans on the nation that has them, decimating their economy and restricting free trade, forcing the majority of the workforce into unemployment , which may become permanent, and then hit the nation with absurd green measures that are supposed to cost a fortune when all people want to do is make a living they can’t.

Germany, a notoriously socialist country, is going the same way, this time with Deutsche Bank, which is leading one of the most bizarre initiatives, namely focusing on green derivatives.

Deal-contingent hedge users may soon be able to link the derivatives with ethical goals as banks consider doing business with an environmental, social and governance (ESG) component.

« We should do it, » says Christopher Wall, global head of foreign exchange structuring at Deutsche Bank. “We’ll do it. When the customer asks for a solution, the banks come to the board so I already fire off emails about it. « 

Just like many interbank forex dealers whose management works tirelessly to appease the increasingly socialist policymakers in the governments of the western world, including the US, who are now going down the same path that parts of Western Europe have taken with them obsessed with lockdown Anti-business devastation of chaos and their illiberal ideologies, full of barriers to free market and littered with irrelevant and expensive pet projects full of greenwash.

« There is no doubt that sustainable financial and environmental, social and governance (ESG) products are becoming increasingly important to policymakers and financial market participants around the world, » the International Swaps and Derivatives Association announced last November .

Given the pressure to adopt a “green” policy now being pushed by central governments in the West, banks had to start offering so-called ESG product lines.

While this is a clear surrender of the capital market industry to the increasingly socialist governments, it does offer FX brokers the opportunity to diversify their product range, which is long overdue.

Keeping up with geopolitical and technological change and customer demand are important areas for retail FX brokers. Therefore, the ESG products must not be overlooked.

Retail FX Brokerage CedarFX clearly understood this. CedarFX’s groundbreaking Eco Account is the online broker’s answer to combating climate change.

Traders who choose this product will receive a commission of $ 1 per lot traded, calculated by CedarFX at the end of each month.

The money raised will be used to fund Ecologi conservation initiatives such as mangrove cultivation in Madagascar, reforestation in Changalane, Mozambique and responsible cultivation in Bosawas, Nicaragua. The account also provides merchants with a quick and efficient way to navigate the crisis by promoting environmental awareness and encouraging participation in environmental protection efforts. CedarFX has also supported Ecologi in its Gold Standard certified initiatives to reduce CO2 emissions and has so far successfully offset 1.83 tons of CO2.

Many of the younger audiences who have found it difficult to attract brokers without a clear differentiation in terms of product range or the ability to offer a proprietary trading platform may well be more interested in trading the capital markets if they are hungry for a climate change correction or The carbon footprint has been offset by your broker.

Another area that CedarFX is trying to reach a new generation of CedarFX traders in the Forex market is in the 0% Commission Account.

The online broker has removed commission fees so traders can be successful without incurring additional costs on their profits. Traders can now use all of their funds to diversify their portfolios and expand their options. 0% commission account users also cannot enjoy trading restrictions on zero commission trades.

Both account types can take advantage of CedarFX’s ultra-low spreads and ultra-fast payouts, and traders can access over 55 large, small, and exotic forex currency pairs, CFDs on stocks, energy, and metals, and 35 pairs of digital assets. In addition, CedarFX customers have access to 24/7 customer support through live chat, email, or a callback request.

In September, ISDA hosted a virtual conference on ESG and derivatives that highlighted the very important role that the derivatives market must play in moving towards a sustainable economy. One can only guess that these people are a barrel of laughs at a dinner party.

In fact, you would be spared their presence, as dinner parties are too lavish and not « sustainable » enough for those vegetarians who wear hemp, ride bikes, eat beans, and have a penchant for face topiary.

The reality is that the financial markets business, and especially the fast-paced electronic trading sector, at tier 1 interbank level and centralized counterparty level (listed derivatives) is not about green agendas and appeasing left-wing governments in irrelevant parts of Europe.

It is about free market capitalism, which gets the best prices for major currencies whose movements are determined by business activity in their host countries. It’s about analyzing the news, leveraging company decisions to drive a higher price for company stocks, studying the future value of derivatives in commodities and commodities, and predicting the performance of publicly traded companies around the world.

ISDA says that so-called sustainable funding will be at the center of recovery from the destruction Europe has wrought by locking down possessed governments with totalitarian aspirations. On September 16, the President of the European Commission, Ursula von der Leyen, announced that 30% of the € 750 billion recovery fund would be raised through green bonds.

The ISDA says this will equate to a tremendous amount of new funding in this area, and both issuers and investors will be looking to the derivatives market to hedge their exposure. Product innovation is already developing rapidly to support the security needs of participants in this emerging market.

Primarily, the derivatives market will be the means by which participants can hedge their exposure to these green assets, but its role extends further. Derivatives play an important role in facilitating pricing and promoting greater market transparency. They help set a market price and thus enable a better risk assessment.

In addition to developing ESG derivatives, further efforts need to be made to promote standardization across jurisdictions and market segments to ensure efficiency, reduce risks and costs, and support digitization. ISDA acknowledges that it has always been a strong advocate of standardization in terms of documentation, market practices, operational processes and wherever it may make economic sense. This is just as important in a relatively new area like ESG as it is in more established markets.

To embark on a green agenda at a time when many people in Europe are forbidden to exercise their right to livelihood seems utter folly. However, Deutsche Bank may realize that governments along with QANGOs like ISDA are hell. Therefore, if you are interested in these green projects, you need to have good exposure hedging capability.

Given that some of the publicly traded option companies also share the ESG ideology, it should be noted that one particular company has instituted the creation of a standardized reporting framework for companies so that investors can compare companies directly on their sustainability level, adopting a common methodology by which Rating agencies can rate a company’s ESG rankings.

Jan Boomaars, CEO of Optiver, said: “We urge issuers and exchanges to create greater harmonization between ESG products and to make the differences between ESG products clear to the end investor so that they can make informed decisions about how to use ESG should be included in their systems. « 

These comments were made at a forum hosted by Optiver last week and moderated by Victor van Hoorn, Executive Director of the European Sustainable Investment Forum.

The panel, which included speakers from the European Commission, the European Parliament and the London Stock Exchange, asked questions about whether the existing capital market structures are suitable for the green transition and how capital markets can do their part to meet the EU’s obligation to become climate neutral by 2050 .

In addition to the proposals to market ESG investments more efficiently and sustainably in oneself, the panel emphasized the need for disclosure and in particular the need to make disclosures on ESG issues understandable for private investors and private investors

“Retail investors are gradually becoming familiar with these products. We need to support direct retail involvement. Therefore, (an) emphasis on disclosure will be very important ”, said Tatyana Panova, Head of Capital Markets Union at the European Commission.

What is the volatility index 75?

What is the volatility index 75?

Volatility Index or VIX or Volatility 75 indices are a symbol for the Chicago Board Options Exchange or CBOE. It is a measure of the volatility in price in the S & amp; P 500 index over the next 30 days. The volatility index is often referred to as the u201cfear index. U201d It is calculated and measured in real time by CBOE.

What is the other name for the volatility index 75?

The Volatility 75 Index, better known as the VIX, is an index that measures the volatility of the S&P500 stock index.

When is the best time to trade VIX 75?

The best time to trade the 75 volatility index is when the price is reacting to previous levels of support or resistance. The results of my research on the best time to trade V75 show that at 11:00 AM GMT and 11:00 PM GMT, there are major trend reversals, range breakouts, and price jumps.

What is the best volatility indicator?

The Best Volatility Indicators for Your Forex Trading

  • Bollinger Bands. Bollinger Bands are a measurement where two standard deviations (about 95 percent) are above and below the 20-day moving average. …
  • Average true range. Average True Area (ATR) uses three simple calculations. …
  • Keltner Canal. …
  • Parabolic stop and reverse. …
  • Impulse display in MT4. …
  • Volatility squeeze.

How is FX volatility calculated?

How is FX volatility calculated?

Reply. At XE, volatility is measured by applying the standard deviation of log daily returns, expressed as a percentage. Daily returns are the profit or loss of a currency pair over a period of time. At we assume the values ​​from two consecutive days at 00:00 UTC.

Does the standard deviation correspond to the volatility?

The standard deviation is a statistical term that measures the amount of variability, or dispersion, about an average. The standard deviation is also a measure of volatility. … The greater this dispersion or variability, the higher the standard deviation.

What is considered high volatility?

The historical volatility of a stock is also known as statistical volatility (SV or HV). The terms are used synonymously. A stock with an SV of 10% has very little volatility. 35% are not considered to be very volatile; 80% would be quite volatile.

What is the volatility index in Forex?

What is the volatility index in Forex?

FX Empire editorial team. The CBOE Volatility Index (VIX) is a market index that is used to measure the general volatility of the stock market, as implied by the S&P 500 index options over time. It is calculated and published by the Chicago Board Options Exchange.

Can you buy the volatility index?

Like all indices, you cannot buy the VIX directly. Additionally, unlike a stock index like the S&P 500, you can’t even buy a basket of underlying components to mimic the VIX. Instead, investors can only access the VIX through futures contracts.

What are the volatility indicators?

Volatility indicators are a special form of technical indicators. They measure how far an asset deviates from its mean directional value. This may sound complicated, but it’s simple: when an asset is highly volatile, it is drifting far from its average direction. For example, an earthquake has high volatility.

Can you trade the volatility index mt4?

As for trading volatility indices, it is certainly possible, but not necessarily with MT4, which is relatively limited in terms of the range of products that can be traded on MT4. Big brother MT5 offers more flexibility and a wider range of products, so you may find success here.

Green FX is here to stay. Retail brokers follow the lead of the banks
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