Noticias del mercado & perspectivas

Many traders have the prudent approach that treats trading as you would a business. A critical component of this is to have a thorough knowledge of your expenditure related to your trading activity. With Share CFDs these are potentially fourfold namely: a.

Your cost of trading (e.g. brokerage) b. Your cost of holding a position c. The cost to enter a trade (your margin requirement) d.

Potential cost of the data feed (for non-traders) Brokerage Traditionally, uses a broker to trade shares incurs a fee for services of the placement and exit of a trade termed brokerage. This is usually organised as a minimum flat fee or a percentage of the trade entered, whichever is the higher figure. The majority of Forex traders are used to not “officially” paying a brokerage.

However, the bid/ask spread could be logically viewed as the cost of entry, as if you were to close a position immediately then you would be paying the difference between bid and ask prices. Hence, although with shares you are essentially in a loss situation at the start because of brokerage, with Forex you are also in a loss position at the start of a trade because of the spread. With Share CFDs the brokerage applied to entry and exit is 0.08% of the overall position exposure or a fixed minimum charge of $10 whichever is the larger.

For example. if you had entered a position with exposure of $10000 then the brokerage cost of this trade would be 10,000 x 0.08% = $8 hence this would attract the minimum $10 brokerage. Alternatively, if the position was exposure of $20,000 then the brokerage would be $16. This will be considered in your profit/loss column on your platform.

Holding costs As with Forex trading if you choose to trade longer timeframes involving holding a position overnight there is a debit or credit applied to your account for this. This charge is dependent on the direction of the trade (i.e. long or short) and the ‘swap rate’ applied to the position direction. The value is calculated using a base rate of 2.5% and then: a.

If it is a long trade the interbank rate is added to this b. If it is a short trade the short interbank rate is subtracted from this Rather than having to find the interest rate and doing the calculation yourself, to make it easy for you, the swap rate can be found by right clicking on the CFD in the “market watch” box of your trading platform and subsequently clicking on “specifications”. Scrolling down the pop-up box will reveal the swap rates.

For example, on the day of writing this article the swap rates for BHP are as below: So, a long trade with $20,000 of exposure to BHP with a swap of -4.05 is charged as (20,000 x 4.2%)/360 = $2.25 per day. Again, this daily holding charge (applied at 4.59pm US EST) will be visible on your trade box on your platform in the swap column and taken into account in your profit/loss column. The cost to enter a trade (your margin requirement) As with Forex, with CFDs you have the opportunity (as well as being aware of the risks) of using leverage to enter positions.

Unlike Forex there is not a set margin, so as with index CFDs, each equity CFD has its own set margin level. Again, these may be found in the ‘specifications’ box For example, ANZ has a margin applied of 0.05 or 0.5%, whereas with BHP the margin applied is 0.075 or 7.5% (See below). So as an example, If we take BHP at this margin rate and we open CFDs to the value of 10,000 the margin requirement on this position will be $750.

Potential cost of the data feed Most global exchanges including the ASX charge for a data-feed of live prices and other trading information e.g. volume. Often these are passed onto individual clients, however as part of the service we offer you will get this live feed at no subscription charge whilst you are actively trading. Obviously some of the information described above may be new to you, so if you need clarity get in touch with us please and we will always be happy to help.

When we first start to trade, or subsequently (as a more experienced trader) when we trade a new symbol or system we are often “excited” as we see a “hope” for better results. We often forget that the development of expertise in other areas we have in life (think about what you do in work now for example), you must invest time, effort, learning and making mistakes (providing you acknowledge and learn from them) to develop. This is not an overnight transformation, rather it may take several weeks if not months before you feel confident in your knowledge and skills.

It is bizarre therefore that we should expect anything different with trading development. To be clear, we respect and commend those who take the leap and move from demo to live account. After all, a demo platform ( you can trial a MetaTrader 4 or MT 5 demo account here ) will serve you in learning how the platform works, how to add indicators and get used to how markets move.

However, it is only when you start to have some “skin in the game” and are trading YOUR money, albeit with tiny positions to start with that you learn the most important lessons in trading and develop the appropriate mindset to begin to think about trading larger positions. All that been said, we see time and time again new traders or those trading a new system exhibiting three cardinal sins of the developmental trader, and decide to trade: a. With positions that are too big b.

Short cutting learning and system development c. Strategy skipping (i.e. moving from new system to new system) without meaningful measurement as to what works for you (and what doesn’t) or indeed whether the problem is YOU failing to trade a system religiously. These are all symptoms of impatience, of wanting to get massive returns quickly and without putting the hard yards in at the front end.

Remember this... The purpose of your trading when you start trading a live account should not be huge profit, rather it is to develop the confidence in your system, consistency in action and the measure whether what you are doing could be improved. Although it may seem strange to suggest, it is this and not, in the early stage of trading, the money (and level of profit) is most relevant in your potential lifelong career as a trader.

It is through patience, and adhering to that initial purpose that you can gain sufficient confidence and competence to trade larger positions (after all it is just moving a decimal point to go from 1 mini-lot to a standard lot) and put the right foundations in to move forward. Exercising patience to have the right things in place will serve you well for a potential lifetime of trading, to be impatient may mean your trading lasts but a few weeks or months. It is really that simple.

With the Brexit negations dominating the news flow over the last few weeks, you may forget there are other events taking place. On Thursday, the European Central Bank will announce its decision whether to increase, decrease or maintain the interest rates. The decision is scheduled to be announced at 12:45 PM UK time.

Why Is The Announcement Important? The European Central Bank is the central bank for the Eurozone, the countries which have adopted the Euro, including Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain. ECB’s decision to increase, decrease or maintain the interest rate has a significant impact on the financial markets because changes in interest rates affect the exchange rate of the Euro, so it is one of the must-watch economic events in the calendar.

Expectations The European Central Bank has not changed its interest rates since March 2016 and analysts are forecasting that the rates will also remain unchanged in the upcoming meeting. All eyes will be on the European Central Banks President, Mario Draghi’s speech shortly after making the announcement. Hot topics will involve the Italian and the Brexit process, which has developed into complete chaos.

The French budget is another issue to address for the ECB after the French President Emmanuel Macron gave in to the recent anti-government protests by the ''yellow vest'' movement which will cause France to exceed the European Union’s budget deficit ceiling next year. Other ECB data releases to keep an eye out: ECB Marginal Lending Facility (12:45 PM London time) Previous: 0.25% Forecast: 0.25% ECB Deposit Facility Rate (12:45 PM London time) Previous: -0.40% Forecast: -0.40% This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk. Sources: Go Markets MT4, Google, Datawrapper

One of the must-watch economic events this week will be the Bank of Canada interest rate decision. The decision is scheduled to be announced on Wednesday 29th May at 15:00 PM London time. Why Is The Announcement Important?

A bank interest rate is a rate at which a countries central bank lends money to local banks. The interest rate is charged by nations central or federal bank on loans advances to control the money supply in the economy and the banking sector. The Bank of Canada has an inflation target of 1% to 2% (currently 2%), and the interest rates are changed accordingly to meet the target.

Therefore, the Bank of Canada’s and other central bank rate decisions can have a significant impact on the financial markets. Expectations The last time the Bank of Canada raised its key interest rates was back in October of last year and it is expected that the rates will remain unchanged at 1.75%, according to the analysts. ''Recent economic data suggest that growth will be stronger than the Bank was expecting in the first quarter, providing a reason to not cut rates.'' ''At the same time, growth will remain below potential, providing no reason to lift rates. The Bank of Canada will, therefore, remain in a holding pattern for now and make any necessary adjustments to that stance based on incoming economic data'', Principal economist Alicia MacDonald said at the Conference Board of Canada last week.

Even though a rate decision is not expected, traders will be keeping a close eye to the upcoming meeting and the comments after the rate decision has been announced. To keep up to date with other upcoming economic events click here for our Economic Calendar. This article is written by a GO Markets Analyst and is based on their independent analysis.

They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk. Sources: DataWrapper, Bank of Canada

On Monday, UK Chancellor Phillip Hammond announced its latest budget, which did not have a massive impact on Pound Sterling. Now that is out of the way; it’s time to focus on another critical economic event – the Bank of England rate decision. The decision is set to be announced at 12:00 PM London time on Thursday.

About Interest Rates Interest rates are set by the Bank of England’s Monetary Policy Committee which is made of nine members – The Governor, the three Deputy Governors for Monetary Policy, Financial Stability and Markets & Banking, the Banks' Chief Economist and four external members appointed directly by the Chancellor. Bank of England has an inflation target of 2% (currently 2.4%), which is set by the Government and the Bank of England’s monetary policy is set to achieve the Government’s target. If the Consumer Price Index (CPI) inflation rate is more than 3% or less 1%, the Governor must write a letter to the Chancellor to explain why and outline how they will get the inflation to the target of 2%.

Expectations We have seen two rate hikes from the Bank of England in the last year, one in November 2017 and August of this year. The current interest rate stands at 0.75%, and according to the latest forecast, we will not see the Bank of England raising the rates in its upcoming meeting. After the announcement, all eyes will be on the Bank of England’s Governor Mark Carney press conference with his latest outlook on the British economy and Brexit.

The Governor recently mentioned that a limited and gradual series of interest rate hikes are required to keep the inflation in check. The markets are expecting a potential hike in May 2019, after the United Kingdom formally leaves the European Union. Other UK data to keep an eye on: • Bank of England Asset Purchase Rate (12:00 London time) Previous: £435 billion Forecast: £435 billion • Bank of England Inflation Report (12:00 London time) This article is written by a GO Markets Analyst and is based on their independent analysis.

They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk. Sources: Go Markets MT4, Google, Datawrapper

One of the must-watch economic events this week will be the Bank of Canada interest rate decision. The rate decision is due to be announced at 15:00 PM London time on Wednesday. Why is the announcement important?

A bank interest rate is a rate at which a country's central bank lends money to local banks. The interest rate is charged by the nation's central or federal bank on loans and advances to control the money supply in the economy and the banking sector. The Bank of Canada has an inflation target of 1% to 3% (currently 1%).

The interest rates are changed accordingly to meet the target. The decision to increase, decrease, or maintain the interest rate has a significant impact on the financial markets so it is one of the most closely watched economic events in the calendar. Bank of Canada interest rate changes since 2015 Expectations All eyes will be on the Bank of Canada governor, Tiff Macklem on whether the interest rate remains unchanged at 0.25% or reduced closer to 0%.

Canada has had one of the strictest lockdown measures in the world in its fight to defeat the Coronavirus in recent months, which has had a considerable impact on the country’s economy. Despite that, the rates are expected to remain unchanged, according to economists. Brett House, vice-president, and deputy chief economist at Scotiabank: ''We do not expect a rate cut from the Bank of Canada at its next meeting as rate-sensitive sectors don’t need an additional boost.

For instance, Governor Macklem noted before the holidays that we should watch how housing is faring... Canadian home sales were up 7.2 per cent month-over-month in December to set a record for the month, which completed an annual gain of 12.6 per cent year-over-year. In other areas, retail sales have been above year-ago levels for several months.'' ''Although some immediate risks to the economy have gone up with intensified restrictions to stem the spread of COVID-19, medium-term risks relevant for setting monetary policy have abated.

Vaccines are being delivered about a year ahead of the Bank of Canada’s earlier expectations; the U.S. stimulus and funding bill passed and a government shutdown was averted, which will provide some positive spillover effects into Canada; and financial conditions remain favourable to growth.'' The Monetary Policy Report is set to be released shortly after the rate decision.