Follow our blog to get the latest market updates from professional traders. https://admiralmarkets.com.au/analytics/traders-blog 2019-02-26T15:20:43+11:00 2019-02-26T15:20:43+11:00 <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/gbp-and-brexit-vote-1-3.png"></a></p><p>On Tuesday 15 January, UK MPs voted to reject Theresa May's Brexit deal by a huge majority of 230 votes. At 432 to 202 votes, this is the heaviest parliamentary defeat of a British prime minister in history.</p><h2>Background on the Brexit vote</h2><p>The Brexit vote was for May's proposed terms of the withdrawal agreement between the UK and the EU, following the UK's 2016 public vote to leave the European Union.</p><p>The withdrawal agreement has taken over two years to negotiate and includes points such as how much the UK will have to pay the EU in order to break their partnership, what will happen to UK citizens living in the EU, as well as EU citizens living in the UK and how to avoid a physical border between the Republic of Ireland and Northern Ireland.</p><p>However, the negotiations have been beset by conflict and opposition from the UK House of Commons has rife throughout the negotiations, leading to the original vote being delayed while May sought support for the proposed terms.</p><h2>Why did the majority oppose the deal?</h2><p>There were a range of issues regarding the deal, but the biggest claim is that it failed to give back control to the UK of its own affairs.</p><p>A second sticking point is what will happen at the Irish border. Both the EU and the UK want to avoid the return of guard posts and customs checks at the Irish border, leading to something called the 'backstop' being drafted in the deal. However, this would mean Northern Ireland would remain under EU rule.</p><h2>What happens now the deal has been rejected?</h2><p>After the defeat, opposition leader Jeremy Corbyn tabled a vote of 'no confidence' on Theresa May, which is schduled for tonight, January 16.</p><p>If May wins, she will have three days to come up with alternative options for MPs which she said she would on Monday 21 January. However, if she loses the vote then the outcome is less certain - a general election could be called depending if a new government can be formed or a new confidence vote is won.</p><p>Following this, many commentators are considering the probability of a no-deal Brexit. Some argue that the chances of a no-deal Brexit are falling as the British parliament exerts more authority over the process, while others are concerned that a no-deal departure from the EU will only become more likely, as the rejection of the proposed deal reduces the available options.</p><p>The big question for traders, though, is how will the market react?</p><h2>The reaction: GBP spikes following 2018 declines</h2><p>While the markets were prepared for the House of Commons to vote against the Brexit withdrawal plan, the scale of May's defeat took many by surprise. A second surprise, however, was the market's reaction, with the British pound <em>rising</em> following the vote.</p><p>As the UK has approached its departure from the EU, the GBP has struggled, tumbling by over 7% during 2018.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/GBPUSD_weekly.png"></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-se" target="_blank">MT5 Supreme Edition</a><em> GBPUSD, W - Data range: from 30 October 2016 - 16 January 2019, performed on 16 January at 11:53 AM GMT. Please note: Past performance is not a reliable indicator of future results.</em></p><p>However, on the back of the parliamentary vote, the GBPUSD currency pair rocketed over 200 pips higher in just a few hours - up 0.5% following declines of over 1% earlier in the day.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/gbpusd_m5.png"></a></p><p><em>Source: Admiral Markets MT5 Supreme Edition GBPUSD, M5 - Data range: from 15 January 2019 - 16 January 2019, performed on 16 January at 11:51 AM GMT. Please note: Past performance is not a reliable indicator of future results.</em></p><p>While the political situation in the UK is highly uncertain, the market does provide one certainty - volatility is here to stay in the British pound. How are you trading it?</p><p><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-se" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/MT5_SE_dark-1.png" alt="" rel="" style=""></a></a></p><p><em>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li><em>The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation.</em></li><li><em>Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.</em></li><li><em>Each of the Analysis is prepared by an independent analyst (Jitan Solanki, Freelance Contributor) based on personal estimations.</em></li><li><em>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</em></li><li><em>Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. 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Before you start trading, you should make sure that you understand all the </em><em><a href="https://admiralmarkets.com/risk-disclosure">risks.</a></em></li></ol> 2019-01-17T16:42:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat https://admiralmarkets.com.au/analytics/traders-blog/pound-rockets-after-mays-crushing-defeat Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/top-10-trading-ideas-1-4.jpg"></a></p><p>In 2018, traders and investors from all over the world experienced one of the most interesting years in the financial markets. Trade tensions between the United States and China, ongoing troubles with Brexit, and a crash in cryptocurrencies were just some events that took centre stage.<br></p><p>However, these events are setting up 2019 to be a very interesting year for financial markets. In today's article, we take a look at the top 10 trading ideas for the new year that are available on the Admiral Markets' platform. Remember: trading is not just about the idea but also the execution and risk management of the trade. After all, every trade will win or lose so be sure to trade responsibly.</p><h2>Trade Idea #1: A 70% Stock Market Crash?</h2><p>The Rationale:</p><p>2018 has been one of the most volatile years global stock markets have seen since the 2008 financial recession. This volatility, combined with rising interest rates, may prove to be an explosive combination and is just one reason many hedge fund managers are predicting a <a href="https://admiralmarkets.com/analytics/traders-blog/2019-market-crash">stock market crash in 2019</a>.</p><p>In some cases, there have been predictions of a 40% - 70% crash in the stock market:</p><ul><li>Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners, has forecasted a 40% drop.</li></ul><ul><li>The CIA's Financial Threat and Asymmetric Warfare Advisor Jim Rickards has claimed that a 70% drop is the <em>best case </em>scenario.</li></ul><p>At the last Federal Reserve meeting of the year on 19 December, Chairman Jerome Powell reiterated his bullish stance on <a rel="nofollow" href="https://www.cnbc.com/2018/12/19/fed-delivers-.html">hiking interest rates</a> in the future. With interest rate hikes preceding more than 10 economic recessions in the past 40 years, it is little wonder that stock market investors are predicting the worst for 2019. The technical chart also has some investors concerned.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/SP500-1-1-2.png"></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-se" target="_blank">MetaTrader 5 Supreme Edition</a><em> - SP500 CFD, Monthly Chart - Data range: 1 May 2005 - 19 December 2018 - Performed on 19 December 2018 at 9:36 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the above chart of the SP500 CFD, the market has rallied higher since 2008 with only three major corrections. With the magnitude of the last retracement already exceeding the amount (in points) of the previous two retracements, sellers are firmly in control of this market.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/SP500-2-1-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - SP500 CFD, Daily Chart - Data range: 27 April 2018 - 20 December 2018 - Performed on 20 December 2018 at 12:49 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the above daily chart of the SP500 CFD sellers have struggled at previous levels of resistance. That makes the $2,603 price level an area to watch, as some traders may use that area to initiate fresh short positions. You may consider using <a href="https://admiralmarkets.com/education/articles/forex-strategy/forex-price-action-trading-strategy">price action based strategies</a> to help identify entry and stop loss levels for 2019.</p><h2>Trade Idea #2: Will central banks fuel a surge in Gold prices?</h2><p>The Rationale:</p><p>In the first quarter of 2018 demand for gold was up a whopping <a href="https://admiralmarkets.com/analytics/traders-blog/central-bank-gold-reserves">42% year on year</a> - according to the World Gold Council. It seems that most of the buying has come from central banks who - in 2010 - transitioned into being net <em>sellers </em>of gold to becoming net <em>buyers</em> of the yellow metal.</p><p>It is not yet clear why some central banks around the world have started to raise their gold reserves. One theory is that many emerging economies and fringe countries are trying to move away from the US dollar to end its status as the world's reserve currency.</p><p>After all, Russia and China have been very active in gathering support from global governments into creating a new gold-backed currency. With a frosty relationship developing between China and the US due to ongoing trade tariff disputes, many investors have diversified their portfolios to include gold - such as the world's biggest hedge fund manager <a rel="nofollow" href="https://www.americanbullion.com/how-billionaire-hedge-fund-manager-ray-dalio-diversifies-with-gold/">Ray Dalio</a>.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/gold-24-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - Gold, Daily Chart - Data range: 30 Aug 2017 - 20 December 2018 - Performed on 20 December 2018 at 2:26 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the above chart of gold it's clear to see that sellers were in control for much of 2018. However, in the latter part of 2018 buyers started to take control of the market. Technical indicators like moving averages can help in identifying possible entry points.</p><p>It seems that buyers are stepping in on the 10 day moving average but how far can it go? The $1,380 level represents a 5 year high that is sure to have some traders excited. Are you one of them?</p><p><a href="https://admiralmarkets.com.au/start-trading/forex-demo" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Demo_Account-New2-4-18.jpg" alt="" rel="" style=""></a></a></p><h2>Trade Idea #3: Will a short squeeze in Treasuries send bond prices soaring?</h2><p>The Rationale:</p><p>The 10-year Treasury yield reached a seven year high in 2018. As yields and bond prices have an inverse relationship, this has helped the price of a 10 year treasury bond reach a critical seven-year low.</p><p>China, which is the largest foreign holder of US government debt (via products like Treasuries), has been cutting its holdings of US Treasuries for most of 2018. The continued trade dispute with the Trump administration has been cited as <a rel="nofollow" href="https://www.ft.com/content/7b1f42fe-0246-11e9-9d01-cd4d49afbbe3">just one of the reasons</a> for China's selling.</p><p>However, the short positions in the Treasury market are at the highest in history creating strong trading opportunities for some well known investors.</p><p>The Trade:<br></p><p>According to billionaire investor <a rel="nofollow" href="https://www.forbes.com/sites/daryljones/2018/09/28/is-billionaire-bond-investor-jeff-gundlach-right-about-treasuries/#5a6455d0c1d6">Jeff Gundlach</a> the extreme short positions in Treasuries makes it ripe for a 'short squeeze'. This is a situation where a heavily shorted asset moves sharply higher causing more short sellers to close their positions further accelerating the move upward - and it seems it has already started.<br></p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/US-treasury-notes-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - USTNote_H9, Monthly Chart - Data range: 1 Aug 2010 - 19 December 2018 - Performed on 19 December 2018 at 10:22 PM GMT</em></p><p><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the chart above, we can see that the 10-year Treasury Bond CFD is trading in between two horizontal lines - highlighted in blue - that represent historical highs and lows. Current price action shows price moving up as the short squeeze plays out.</p><p>Some traders will be looking to add to long positions with an eye for targeting the upper horizontal line at $133.37. To add further fuel to the move, if stock markets do crash in 2019 there is a tendency for investors to run to the safe haven of - you guessed it - Treasury bonds.</p><h2>Trade Idea #4: Will Trump crash the US dollar?</h2><p>The Rationale:</p><p>The US dollar spent much of 2018 moving higher thanks to rising interest rates from US Federal Reserve policy. However, according to <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2018-11-27/dollar-headed-for-multi-year-slide-jpmorgan-asset-predicts">JP Morgan Asset Management</a>, who manage over $1.7 trillion, the dollar could slump in the second half of 2019 and it could last for years.<br></p><p>So why the negativity surrounding the US dollar?</p><p>First off, US president Donald Trump has been blasting Federal Reserve Chairman for increasing interest rates - stating that a higher dollar makes them less competitive in global economic trade.Secondly, some investment banks are forecasting a cooling of in US economic growth and a possible pause in the Federal Reserve's hiking cycle. Both factors will cause investors to move their money into currencies and markets with better growth prospects - possibly sending the US dollar crashing lower.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/EURUSD-140-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - EURUSD, Monthly Chart - Data range: 1 Aug 2010 - 19 December 2018 - Performed on 19 December 2018 at 10:22 PM GMT</em><br></p><p><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>The screenshot above shows a chart of the EURUSD currency pair. When prices rise the euro is strengthening against the US dollar. When prices are falling the US dollar is strengthening against the euro.</p><p>After spending much of 2018 falling lower, the pairing has held at lower support - highlighted by the blue line. Sellers have struggled to break this level for the past four months. It seems it is just a matter of time before buyers take control making 2019 a big year for the euro currency and a possibly shocking year for the US dollar.</p><h2>Trade Idea #5: Oil. The comeback king of 2019?</h2><p>The Rationale:</p><p>In the last quarter of 2018 <a href="https://admiralmarkets.com/analytics/traders-blog/opec-oil-crash">oil prices crashed</a> more than 30% lower - making it the worst plunge since the 2008 financial crisis. But, is a reversal of fortune on the cards for the struggling black gold? <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2018-11-26/goldman-predicts-commodities-will-soar-in-19-as-oil-gold-climb">Goldman Sachs</a>seem to think so.</p><p>The investment bank has put a rebound in brent crude oil prices at the top of its list for trade ideas in 2019. And this was before the 7 December OPEC and Russia meeting where the cartel of oil-rich nations agreed to take off 1.2 million barrels of oil from the market every day for the first six months of 2019. While this news was highly favourable for Goldman's long-term call, what do the charts now tell us?</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/oil-5-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - BRENT, Weekly Chart - Data range: 12 April 2015 - 19 December 2018 - Performed on 19 December 2018 at 11:03 PM GMT</em></p><p><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the above chart of brent crude oil, the aggressive fall in prices in the latter part of 2018 is clear. While investment banks may be bullish on prices in the long term, the market may keep on falling down to the lower trend line support highlighted in blue.</p><p>However, this could be the big buy opportunity for the first set of buyers to step in to the market. Analysing price action at these levels will be key in determining whether other buyers are going to join in and make oil the comeback king of 2019. Watch this space.</p><h2>Trade Idea #6: Will 2019 see a resurgence in cryptocurrency prices?</h2><p>The Rationale:</p><p>It was only in 2017 that Bitcoin led the cryptocurrency market soaring higher to over 2,000% at its peak. However, it only took a year for over <a href="https://admiralmarkets.com/analytics/traders-blog/whats-next-for-crypto">$700 billion</a> to be wiped off the market in the great cryptocurrency crash of 2018. But with cryptocurrencies trading at yearly lows is anyone betting big on cryptos in 2019? There are a few.</p><p>Hot new startup, Bakkt, is getting cryptocurrency and Bitcoin traders very excited. The new company has been launched by the New York Stock Exchange's owner - the Intercontinental Exchange - and has backing from heavyweights such as Microsoft and Starbucks.</p><p>Given their backing from the Intercontinental Exchange, Bakkt aims to bring proper infrastructure and regulation to the tarnished crypto market. And they aren't planning to stop there. They have also teamed up with Starbucks so sometime in the near future you'll be paying for coffee by swiping your Bitcoin app.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/BTCUSD-5-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - BTCUSD, Daily Chart - Data range: 29 November 2017 - 20 December 2018 - Performed on 20 December 2018 at 3:03 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>Buyers of Bitcoin have been encouraged by this recent news, as prices rallied higher towards the latter part of 2018. With key technical resistance above - highlighted by the blue line - it seems that buyers have short term control of the market. A break above this and 2019 may be known as the year of the cryptocurrency resurgence. How will you be trading it?</p><p><a href="https://admiralmarkets.com.au/start-trading" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Crypto_CFDs_CTA-3.png" alt="" rel="" style=""></a></a></p><h2>Trade Idea #7: Can 2018's $20.5 billion worth of inflows into emerging markets continue in 2019?</h2><p>The Rationale:</p><p>Inflows into emerging market ETFs have risen to over <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2018-11-26/traders-put-1-3-billion-into-emerging-etfs-amid-bullish-calls">$20.5 billion</a> for 2018. The ETFs, or Exchange Traded Funds, invest across a wide variety of developing nations and commodities. The week ending 23 November also marked the sixth consecutive week of inflows into emerging market ETFs - and this bullishness has not gone unnoticed.</p><p>Investment bank Morgan Stanley is so bullish on the sector that they gave it a 'double upgrade'. They join other investors such as Aberdeen Standard Investments, Goldman Sachs Asset Management and BlackRock Inc in looking at the potential of emerging markets for 2018.</p><p>The Trade:</p><p>One of the best places to look for exposure to emerging markets is through the use of ETFs. For example, the Vanguard FTSE Emerging Market ETF CFD tracks the price of this fund which invests into large and mid cap companies in multiple emerging markets in Europe, Asia, Africa, Central and South America and the Middle East.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/vanguard-1-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - #VMO, Weekly Chart - Data range: 13 February 2011 - 20 December 2018 - Performed on 20 December 2018 at 3:19 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the above chart of the Vanguard FTSE Emerging Market ETF CFD, there has been a lot of interaction with the weekly 500 simple moving average. The market has bounced eight times off the moving average and broken three times. If buyers can get above the moving average - and stay above- then we may see billions of dollars worth of additional inflows into emerging markets. Then the question is whether you want to participate in it or not?</p><h2>Trade Idea #8: Will Brexit save the British pound?</h2><p>The Rationale:</p><p>The UK is set to leave the European Union on the 29 March 2019 at 11pm. Recently, the British pound has experienced heightened volatility due to the uncertainty on the future trading relationship between the UK and the EU.</p><p>The beginning of 2019 will be key to future direction of the British pound. UK prime minister Theresa May is due to put her deal to parliament for a vote. After cancelling the last vote due to the high possibility of the deal not being voted through it is the last obstacle that stands in between a deal or no-deal <a href="https://admiralmarkets.com/analytics/traders-blog/10-global-markets-to-trade-over-brexit-negotiations">Brexit</a>.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/gbpusd-36-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - GBPUSD, Weekly Chart - Data range: 19 April 2015 - 19 December 2018 - Performed on 19 December 2018 at 11:45 PM GMT. </em><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the chart of GBPUSD above, the currency pairing is ending 2018 at a critical juncture. The fall in the pair has been held at the lower trend line support - highlighted in blue. If traders can hold above this level then the British pound may find some support to push higher. If that is the case, any short sellers will look to exit their positions creating a possible short squeeze and the beginning of a huge turnaround story for the currency.</p><h2>Trade Idea #9: Is it time to like Facebook again?</h2><p>The Rationale:</p><p>On the 26 July 2018 Facebook shocked the market after admitting a significant decline in user growth after the Cambridge Analytica breach of 87 million Facebook users. This helped the stock to wipe off over $119 billion in their market cap. Since then, the stock has continued to decline in the broader tech market sell off, with the most recent data privacy exposé resulting in another <a href="https://admiralmarkets.com/analytics/traders-blog/facebook-data-expose">7% hit</a> to the share price.</p><p>However, is it time to like the stock again?</p><p>In Facebook's third quarter earnings report for 2018 the numbers reflected a return to stability in their user base after three million European users left the social media platform earlier in the year. The company also seem to be taking recent events very seriously by doubling their safety and security staff from 10,000 to 20,000.</p><p>The Trade:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/facebook-shares-2.png"></a></p><p><em>Source: Admiral Markets MetaTrader 5 Supreme Edition - #FB Weekly Chart - Data range: 19 April 2015 - 19 December 2018 - Performed on 19 December 2018 at 11:45 PM GMT.</em></p><p><em>Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In the chart above of the Facebook CFD, sellers still remain in control of the market. Buyers have struggled to break through the 34 exponential moving average - highlighted in purple. If traders are starting to like Facebook again, then the market will be looking for buyers to take control by trading above this moving average. Then it's up to the company to turn themselves around and attract even more buyers to the stock.</p><h2>Trade Idea #10: The new STARS of the financial world</h2><p>CNBC host Jim Cramer famously coined the term FANG for four of the hottest tech stocks at the time: Facebook, Amazon, Netflix and Google. However, while some stocks fared well for 2018, others haven't.</p><p>And now there is a new acronym in town that has piqued the interest of stock traders - the <a rel="nofollow" href="https://finance.yahoo.com/news/5-stars-stocks-beating-fangs-160014913.html?guccounter=1">STARS group of stocks</a>. It includes:</p><ul><li>Shopify</li><li>Trade Desk</li><li>Adobe</li><li>Roku</li><li>Square</li></ul><p>The likes of Shopify and Square only became public and available to trade in 2015. Square made its public debut in 2016. While these companies are very young, they're available to trade with Admiral Markets. Maybe one of these market leading internet-service stocks could be the next big thing in 2019 - how are you preparing for it?</p><p><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-5" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Admiral_Markets_MT5.png" alt="" rel="" style=""></a></a></p><p><em>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li><em>This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</em></li><li><em>Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.</em></li><li><em>The Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.</em><em></em></li><li><em>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</em></li><li><em>Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.</em></li><li><em>Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</em></li><li><em></em><em>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the</em><a href="https://admiralmarkets.com/risk-disclosure"><em> risks.</em></a></li></ol> 2019-01-14T12:07:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019 https://admiralmarkets.com.au/analytics/traders-blog/top-10-trading-ideas-for-2019 Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/jpy-flash-crash-6.png"></a></p><p>The USD/JPY exchange rate flash-crashed to its lowest level in over two years in its biggest drop since 2009. Mass panic hit the markets, causing a flash crash similar to the British pound selling after the Brexit vote.</p><p>Every Japanese Yen currency pair was affected. However, the biggest move happened in AUD/JPY, which crashed over 7% lower in the Asian trading session, as the 5-minute chart below shows:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/AUDJPY5M_2_January_-_3_January_2019.png"></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-se" target="_blank">MT5 Supreme Edition</a><em> - AUDJPY, 5 minute chart - Data range: 2 January - 3 January 2019 - Performed on 3 January at 11:24 GMT - Please Note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In a matter of minutes sellers took out the 2016 low, 2011 low and then the 2010 low as the weekly chart below shows:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/AUDJPYWeekly_March_2003_-_3_January_2019.png"></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com.au/trading-platforms/metatrader-se" target="_blank">MT5 Supreme Edition</a><em> - AUDJPY, Weekly chart - Data range: 2 March 2003 - 3 January 2019 - Performed on 3 January at 11:25 GMT - Please Note: Past performance is not a reliable indicator of future results, or future performance.</em><br></p><h2>What caused JPY's flash crash?</h2><p>While there is no single reason that caused mass panic in the market, there are some clues as to why the moved happened.</p><h3>1. Apple's China news</h3><p>Apple's CEO, Tim Cook, gave a <a rel="nofollow" href="https://uk.reuters.com/article/us-global-markets/apple-bombshell-rocks-european-asian-shares-flash-crash-jolts-currencies-idUKKCN1OX02B">rare warning</a> on the company's future revenue. The iPhone maker cut its revenue forecast - marking its first downgrade in nearly 12 years. The reason given was sales problems in the Greater China region, which accounts for almost 20% of the company's revenue.</p><p>The market already had some concerns regarding Chinese economic growth and the impact of US president Donald Trump's trade tariffs. However, with the CEO of the world's largest consumer company <a rel="nofollow" href="https://www.bbc.co.uk/news/business-46742871">saying </a>they "did not foresee the magnitude of the economic deceleration in Greater China", investors rushed to safe-haven currency plays like the Japanese Yen, while simultaneously dumping Apple stock in premarket trading.</p><h3>2. Low liquidity</h3><p>The aggressive buying of the Japanese Yen, and dumping of the Yen crosses, occurred after the New York session closed and before 8am in Tokyo. This can be an illiquid time of the day as major institutional players aren't behind their desks to execute trades.</p><p>However, what exacerbated the move was the fact Japan are on a week-long bank holiday, so Japan's central bank traders were not there to intervene. Trading algorithms can also cause violent moves in low-liquidity conditions, as there can be multiple systems firing off a lot of orders all in the same direction very quickly.</p><h2>How traders could have taken advantage</h2><p>A trading quote often pinned on the walls of many trading floors is the fact "anything can happen, at anytime". With anything happening to the JPY, how could you have traded?</p><p>To use the most extreme price movement as an example, if you had have opened a short trade on one lot of the AUD/JPY at 00:30 EET on January 3 and closed the trade just 10 minutes later at 00:40 EET at 71.053, at 1:30 leverage you would have made a profit of USD4,377.31.</p><p>Traders who opened a long trade at the low of 71.053 and held that trade until the currency pair climbed to 74.028 at 01:04 EET would have made a profit of USD2,761.34.</p><p>However, keep in mind that extreme volatility leads to extreme risk, especially when trading leveraged instruments like CFDs. This is why using risk management tools like stop loss orders and take profit orders can be useful to both protect against losses but also to bank any profits.</p><p>With 2019 starting off with a bang how are you preparing for the next opportunity?</p><p><a href="https://admiralmarkets.com.au/start-trading" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Live_Account-1-4.png" alt="" rel="" style=""></a></a></p><p>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</p><ol><li><em>This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</em></li><li><em>Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.</em></li><li><em>The Analysis is prepared by an independent analyst based on the Author's (Jitan Solanki, Freelance Contributor) personal estimations. personal estimations.</em></li><li><em>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</em></li><li><em>Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.</em></li><li><em>Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</em></li><li><em>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the</em><em><a href="https://admiralmarkets.com.au/risk-disclosure" target="_blank">risks.</a></em></li></ol><h4></h4> 2019-01-07T12:39:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets https://admiralmarkets.com.au/analytics/traders-blog/yen-flash-crash-hits-currency-markets Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/facebook-stock-crashes-7-in-data-privacy-expose"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/facebook-share-crash-2.jpg"></a></p><p>social network allegedly gave other tech giants like Spotify and Netflix access to private Facebook Messenger messages. This end-of-year revelation comes after a very turbulent year for the company. </p><p>Once the crown jewel of Silicon Valley, Facebook have been plagued by scandals which - according to the Bloomberg Billionaires Index - has wiped off over $17.8 billion from founder Mark Zuckerberg's net worth. Let's take a look at the situation in more detail. </p><h2>What is the new data privacy allegation?</h2><p>Internal documents obtained from <em>The New York Times</em> show that Facebook collaborated with over 150 companies to gain users and help others bypass its usual privacy rules. Other tech companies have been highlighted in the report which has aided in a broader tech market sell off. </p><p>For example, the report claims that Amazon received access to Facebook users' names and contact information while Microsoft's Bing search engine was able to review nearly all Facebook users' friends without consent. While some of these partnerships ended years ago, the timing of these revelations is key. </p><h2>Why does this matter now?</h2><p>In 2011, Facebook promised US regulator - the Federal Trade Commission (FTC) - that it would not share user data without explicit consent. While Facebook insist they have done no wrong the timeline of recent events, it is just one of the reasons shares in Facebook have dropped nearly 50% since its peak at $218.62 on 25 July 2018. </p><p>In 2016, the company admitted Russian groups bought ads to spread propaganda and false information during the presidential election. On the 17 March this year, reports showed that Facebook allowed Cambridge Analytica to gather data on 87 million users to influence US elections. On the 28 September, the company admitted to users being hacked in the largest data breach in the company's history. </p><p>While Facebook's product partnership chief Ime Archibong has claimed there is an innocent explanation to why it allowed other companies to access users' private messages, it seems the damage has already been done. </p><h2>What's next for Facebook shares?</h2><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/facebook-stock-crashes-7-in-data-privacy-expose"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/facebook-shares-mt5-2-1.png"></a></p><p><em>Source: Admiral Markets </em><a href="https://admiralmarkets.com/trading-platforms/metatrader-se"><em>MT5 Supreme Edition</em></a><em> - </em><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/fb"><em>#FB</em></a><em>, Weekly Chart - Data range: 28 June 2015 to 20 December - Performed on 20 December 2018 at 12:08 PM GMT</em></p><p>When it comes to Facebook's share price performance, sellers are firmly in control of the market, and things will likely get worse before they get better as a lawsuit by US regulators has just been filed against the company. </p><p>With 2018 coming to end how will you be trading Facebook next year?</p><p><a href="https://admiralmarkets.com.au/start-trading" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/facebook-stock-crashes-7-in-data-privacy-expose"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Live_Account-1-3.png" style="" alt="" rel=""></a></a></p><p>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</p><ol><li>This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</li><li>Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.</li><li>The Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.</li><li>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</li><li>Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. </li><li>Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</li><li>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the <a href="https://admiralmarkets.com.au/risk-disclosure" target="_blank">risks.</a></li></ol> 2018-12-21T11:52:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/facebook-stock-crashes-7-in-data-privacy-expose https://admiralmarkets.com.au/analytics/traders-blog/facebook-stock-crashes-7-in-data-privacy-expose Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/crypto-market-crash-1-2.jpg"></a></p><p>Crypto prices are in free fall, with the market crashing twice in just two weeks.</p><p>Last week, the cryptocurrency market capitalisation dropped by $26 billion in just 24 hours.</p><p>Bitcoin (BTC) fell over 11% in just 12 hours, plummeting through the $6,000 major support and hitting a one year low of $5,300, and the crypto's market cap fell below $100 billion for the first time since October 2017. This is nearly a 75% drop from December 2017's all time high of nearly $20,000.<br></p><p>On the same day, Ethereum posted an 10.5% loss as it fell to a 16-month low of just $163 - down over 80% from it's January high of $1,412.</p><p>In the last 24 hours, things have gotten worse, with Bitcoin plummeting from $5,300 to $4,500 - a drop of more than 17% - and it's total market cap has fallen to just $80 billion. Meanwhile, Ethereum fell to $133 - down 17% in 24 hours and 33% in a single week.</p><p>If we look at the market as a whole, no crypto is safe:</p><ul><li>BTC/EUR - down 17.05%</li><li>BTC/USD - down 16.22%</li><li>LTC/USD - down 12.21%</li><li>LTC/EUR - down 13.60%</li><li>ETH/USD - down 15.53%</li><li>XRP/USD - down 14.26%</li></ul><p>The total cryptocurrency market capitalisation is now down to $152 billion - its lowest since October 2017.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/BTCUSDDaily-updated-4.png"></a></p><p>Source: Admiral Markets <a href="https://admiralmarkets.com.au/trading-platforms/metatrader-5" target="_blank">MT5</a>, Accessed: 15 November 2018, 10:25 AM EET</p><h2>Why did crypto crash?</h2><p>On CNBC's 'Fast Money', BKCM founder and CEO Brian Kelly said the crash was triggered by Bitcoin Cash's hard fork upgrade. However, there are a range of factors contributing to this year's market volatility:</p><ul><li>Bad press, with several similar crashes this year since the highs of late 2017/early 2018 getting extensive media coverage (these crashes include a $15 billion drop in just two hours in <a href="https://www.newsbtc.com/2018/06/10/what-caused-a-flash-crypto-crash-to-wipe-15-billion-out-in-just-two-hours/">June</a>, a $13 billion drop in <a href="https://www.express.co.uk/finance/city/1029981/Bitcoin-price-crash-BTC-cryptocurrency-news-USD-13-billion">October</a>, and this week's $26 billion drop)</li><li><a href="https://www.cnbc.com/2018/09/13/companies-race-to-solve-bitcoins-custody-problem-despite-slumping-prices.html">Security issues</a> relating to how cryptocurrencies can be stored safely</li><li>Government regulation concerns, due to Bitcoin being decentralised and the cyber security threats that entails, the world's governments have refused to adopt the currency</li><li>Delay in SEC Bitcoin ETF decision in <a href="https://www.cnbc.com/2018/08/08/bitcoin-price-falls-after-sec-postpones-key-etf-decision.html">August</a>, which is contributing to investors' concerns about the potential for further expansion of the market</li><li><a href="https://smartereum.com/5636/the-real-reason-behind-bitcoins-price-crash-revealed-wed-nov-14/">One publication</a> has also argued that the crash was triggered by a sell off of cryptocurrencies by US taxpayers in an attempt to pay off capital gain tax on their holdings</li></ul><p>Ultimately, the hard fork upgrade might have been the trigger, but it was just one domino in a chain of factors contributing to investor pessimism.</p><h2>Is this the end for crypto?</h2><p>The big question on many investors' and traders' minds is, is this the end for crypto?</p><p>If the negative sentiment from 2018 continues into 2019, it wouldn't be surprising for the crypto market to bottom out in the first half of the new year. However, some commentators are already predicting a turnaround, arguing that the <a href="https://moneymorning.com/2018/11/14/how-the-bitcoin-price-will-benefit-from-the-midterm-election-results/">US midterms</a> and <a href="https://bittmint.com/ceo-binance-forecasts-bitcoin-crypto-bull-run/1599/">US debt</a> could help the market rally towards the end of the year.</p><p>In any case, it is an exciting time to be trading!</p><h2>How could traders take advantage?</h2><p>The good news is that market volatility provides a range of trading opportunities. And, when trading CFDs on crypto cross pairs and cryptos paired with fiat currencies, traders can profit on market movements in any direction. </p><p>A trader who opened a short trade on just one lot ot BTC/USD, with leverage of 1:5, opening before the market fell at $6,189 and closing at the low of $5,300 would have made $889.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/BTCUSDH1-updated-3.png"></a></p><p>Source: Admiral Markets MT5, Accessed: 20 November 2018, 10:25 AM EET</p><p>Keep in mind that, while volatility does increase opportunity, it also increases risk. For this reason, it's important to have a <a href="https://admiralmarkets.com/education/risk-management">risk management strategy</a> in place before embarking on any trade.<br></p><p><a href="https://admiralmarkets.com.au/products/cryptocurrencies" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Crypto_CFDs_CTA-1.png" style="" alt="" rel=""></a></a></p><p>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</p><ol><li>The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation.</li><li>Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.</li><li>Each of the Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.</li><li>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</li><li>Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.</li><li>The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.</li><li>Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</li><li>The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.</li><li>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the <a href="https://admiralmarkets.com/risk-disclosure">risks.</a></li></ol> 2018-11-21T10:50:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours https://admiralmarkets.com.au/analytics/traders-blog/is-this-the-end-for-crypto-26-billion-drop-in-24-hours Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/US_Federal_Reserve-2.jpg"></a></p><p>On 26 September 2018 all eyes will be on the US Federal Reserve's decision regarding the Federal Funds Rate (the technical term for interest rates). On this day, at 7pm BST / 8pm CET, the central bank will choose between three options: keeping interest rates on hold, cutting interest rates or increasing them. The actions they take have a huge impact on the direction of the <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdollarindex" target="_blank">US dollar</a>.</p><p>However, what is most interesting is that US Federal Reserve Chairman, Jerome Powell, will be holding a press conference 30 minutes after the release at 7.30pm BST / 8.30pm CET.</p><p>It has been suggested by various analysts that <a rel="nofollow" href="https://www.cnbc.com/2018/06/12/the-fed-is-hiking-rates-wednesday-but-heres-what-else-you-need-to-know.html" target="_blank">more press briefings</a> means more scope for further rate hikes. In August, this led to <a rel="nofollow" href="https://www.marketwatch.com/story/fed-minutes-show-support-for-september-interest-rate-hike-combined-with-anxiety-about-a-trade-war-2018-08-22" target="_blank">odds of a rate hike</a> in September of 96%, with a 60% chance of another occurring in December. Before we look at how you could trade this event, let's look at why interest rates are so important in the <a href="https://admiralmarkets.com/analytics/traders-blog/the-best-forex-currency-pairs-to-trade-for-this-week">currency</a> market.<br></p><p>To keep track of the announcements as they occur, why not check out our <a href="https://admiralmarkets.com.au/analytics/forex-calendar" target="_blank">Forex calendar</a>? The calendar provides useful information regarding forecasts, figures, statistics and more.</p><h2>Why Interest Rates Matter To Currency Traders</h2><p>Interest rates matter to currency traders, because they affect the demand with which international investors want to invest in a specific currency. For example, if you could choose between a savings account offering of 0.5% interest or 2% interest, which would you choose? Most likely the 2% interest account.</p><p>Currencies work in a similar way. Countries which have a higher interest rate tend to see more capital flows, as institutions want to receive a higher interest rate. The increase in capital flows tend to lead to a strengthening currency.</p><p>Conversely, countries which have a lower interest rate tend to see more capital outflows, as investors move their money elsewhere searching for a higher interest rate. These capital outflows, tends to lead to a weakening currency.</p><h2>How To Trade This Month's US Federal Reserve Meeting</h2><p>One important lesson to remember is that markets move on the anticipation of an event happening. However, there are still ways to trade on the day of a news event. Traders who have an understanding of the bigger picture can use <a href="https://admiralmarkets.com/analytics/traders-blog/6-reasons-why-price-action-is-the-king" target="_blank">price action</a> to their advantage.</p><p>As it has widely been reported, the Fed are more likely to <a rel="nofollow" href="https://www.marketwatch.com/story/fed-minutes-show-support-for-september-interest-rate-hike-combined-with-anxiety-about-a-trade-war-2018-08-22" target="_blank">increase interest rates</a> this month, and most traders will be looking to position themselves for that possibility. Let's have a look at the four hour chart for <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdchf" target="_blank">USDCHF</a> during the last time the Fed increased rates and delivered a press conference thirty minutes later - on 13 June 2018.</p><p><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/usdchf" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/a223d1d3241106b2964728a66c830a15.png" alt="Trade USDCHF" style=""></a></a></p><p>Source: Admiral Markets MT4 <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdchf" target="_blank">USDCHF</a> - Data range: from 21 May 2018 to 28 June 2018 - performed on 17 September 2018 at 11:23 AM BST</p><p>The highlighted blue box (shown above) displays the market activity on 13 June 2018 during the US Federal Reserve's decision to increase interest rates. The <a href="https://admiralmarkets.com/education/articles/forex-analysis/how-to-read-candlestick-charts" target="_blank">long tail candle</a> shows that buyers initially pushed the market higher on the back of the interest rate hike.</p><p>In this instance, the US dollar rose against the Swiss Franc. However, the market dipped afterwards. Why? Because in the <a rel="nofollow" href="https://www.marketwatch.com/story/fed-minutes-show-support-for-september-interest-rate-hike-combined-with-anxiety-about-a-trade-war-2018-08-22" target="_blank">FOMC meeting</a> concerns were expressed of a major escalation in the <a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1" target="_blank">ongoing trade war with China</a>.</p><p>The traders who were looking at the bigger picture may have waited till after the press conference to see how the market settled. The market rejected the previous low on 12 June 2018, and then traded back up to the high point made during the Fed's announcement. Some traders took this as a sign to buy the US dollar. In this scenario, traders could have traded a simple breakout of a trading range.</p><p><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/usdchf" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/ec48aeedca70bec6e726c58a7bf060cc.png" alt="Trade USDCHF"></a></a></p><p>Source: Admiral Markets MT4 <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdchf" target="_blank">USDCHF</a> - Data range: from 21 May 2018 to 28 June 2018 - performed on 17 September 2018 at 11:35 AM BST</p><p>For example, If a trader entered the market at 0.9896, with a stop loss order of 0.9823, the trader would then profit when the USDCHF trades above their entry price, as well as from the <a href="https://admiralmarkets.com/analytics/traders-blog/low-spread-scalping-strategies" target="_blank">spread</a> (the difference between the buy price and sell price of a market).</p><p>If the exchange rate stayed at or below their entry price, then the trade would have been a loss. However, the loss would be limited to where the <a href="https://admiralmarkets.com/education/articles/forex-basics/what-is-stop-loss-in-forex-trading-and-how-to-set-it" target="_blank">stop-loss</a> is placed. Trading one standard lot of 100,000 units would result in an approximate USD 757 loss.</p><p>If the trader decided to exit the trade at the next major high price level, then the trade would have been closed on 15 June at 0.9983, resulting in an approximate USD 901 profit.</p><p><a href="https://admiralmarkets.com.au/start-trading" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Trade_Forex_and_CFDs_CTA-4.jpg" style="" alt="" rel=""></a></a></p> 2018-09-26T10:14:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1 https://admiralmarkets.com.au/analytics/traders-blog/how-to-trade-this-months-us-federal-reserve-meeting-1 Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/Trump_Vs_China-1-3.jpg"></a></p><p>The Chinese Yuan has lost around <a rel="nofollow" href="https://insights.abnamro.nl/en/2018/07/global-daily-the-limits-to-yuan-weakness/">8%</a> against the <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdollarindex" target="_blank">US dollar</a> since its late March 2018 peak, thanks largely to Donald Trump's war on trade with China. With more <a href="https://admiralmarkets.com.au/products/volatility-protection" target="_blank">volatility</a> expected, how can traders try to take advantage, and most importantly, protect themselves along the way?</p><p>Let's take a look at the situation:</p><h2>3 Reasons Why Trade Tensions Are Heating Up Right Now</h2><p>On 22 March, Trump signed retaliatory tariffs on up to <a rel="nofollow" href="https://www.cnbc.com/2018/04/04/a-timeline-of-president-trumps-escalating-trade-war-with-the-world.html">$60 billion</a> of Chinese imports. Everyone expected China to respond, which they did. However, analysts expected someone would eventually give in. Here we are now, several months later with Trump having placed over $250 billion in tariffs on China, with a view to increase that amount even more.</p><p>Why are things heating up now? Let's take a look at the facts:</p><ul><li><a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/aapl" target="_blank">Apple</a> have <a rel="nofollow" href="https://www.cnbc.com/2018/09/07/proposed-tariff-list-covers-wide-range-of-apple-products-report.html">publicly stated</a> that Trump's trade tariffs will hurt their company. Can Trump really afford a fight with corporate America and Wall Street?</li><li>China is <a rel="nofollow" href="https://www.cnbc.com/2018/09/11/china-reportedly-set-to-ask-wto-for-permission-to-impose-sanctions-on-us.html">seeking permission</a> from the WTO to place sanctions upon the United States - a move that will escalate the trade war even further.</li><li><a rel="nofollow" href="https://www.scmp.com/comment/insight-opinion/united-states/article/2157682/real-reasons-yuan-fell-had-little-do-chinese">Rumours</a> are circulating that China are devaluing their currency to offset any tariffs from Trump. This is just one of the reasons why the Chinese Yuan has dropped so much over the past few months.</li></ul><p>It certainly looks like more volatility is on the way. Before we look at the possible ways to take advantage of it, let's first look at how we can access this market.</p><h2>Picking The Right Market To Trade: USDCNY Vs USDCNH</h2><p>While every market is affected in some way by Trump's trade war with China, the US Dollar and Chinese Yuan is where most traders will be looking for opportunity. However, it's important to know that there are two Yuan currencies: the Onshore Yuan (CNY) and Offshore Yuan, also known as the Offshore Renminbi (CNH). The Renminbi (CNH) was established because China wanted to internationalise their currency without fully opening up their market. That is why they still have the Onshore Yuan currency, which is fixed and controlled by the government and not tradeable. So, if you want to capitalise on the volatile US Dollar and the Chinese Yuan Market, the <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdcnh" target="_blank">USDCNH</a> is the instrument to trade.</p><h2>Trading On The Trump Vs China Trade War Using The USDCNH Currency Chart</h2><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/trump-china-trade-war-chart2.jpg" alt="Trump and China Trade War chart 2"></a></p><p>Source: Admiral Markets <a href="https://admiralmarkets.com/trading-platforms/metatrader-4" target="_blank">M</a><a href="https://admiralmarkets.com/trading-platforms/metatrader-4">T4</a> <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/usdcnh" target="_blank">USD/CNH</a> - Data range: from 11 June 2018 to 13 September 2018 - performed on 13 September 2018 at 8:40 AM BST</p><p>Range based trading is best suited to <a href="https://admiralmarkets.com/education/articles/forex-strategy/forex-day-trading-strategies-and-tips">short-term traders</a>, as no single buyer or seller is dominant in the market. In this scenario, range traders could use <a href="https://admiralmarkets.com/analytics/traders-blog/market-behavioural-patterns-that-you-should-never-forget">market behavioural patterns</a> like the pin bar reversal, which formed on USDCNH on 28 August 2018. For example, If a trader entered the market at 6.8141, with a stop loss order at 6.7846, the trader would profit when the USDCNH trades above their entry price, plus the <a href="https://admiralmarkets.com.au/education/articles/forex-basics/what-is-the-spread-when-it-comes-to-trading-forex">spread</a>(the difference between the buy price and sell price of a market). If the exchange rate stayed at or below their entry price, then the trade would be in a loss. However, the loss would be limited to where the <a href="https://admiralmarkets.com/education/articles/forex-basics/what-is-stop-loss-in-forex-trading-and-how-to-set-it">stop-loss</a> is placed. Trading one standard lot of 100,000 units would result in an approximate USD430 loss. If the trader decided to exit the trade on the first daily candle, then the trade would have been closed on 30 August at 6.8660, resulting in an approximate $747 profit.</p><h2>Managing The Risk Of Trading The Trump Vs China Trade War</h2><p>An important consideration to remember is that these are unprecedented times. No one knows how deep this trade war will go, or even what the longer term impact of it will be. Therefore, the market will likely be sensitive to different headlines from Trump and China respectively. So, how can traders protect themselves from these unexpected events? Well, one way is to always trade with a stop loss, so you know how much you could lose if your trade goes against you. This way you can effectively <a href="https://admiralmarkets.com/education/risk-management">manage risk</a> in your account properly for long term trading, rather than blowing yourself out of the water on just one or two trades.</p><p><a href="https://admiralmarkets.com.au/start-trading" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/15e8d6f83f1d9e74a0d3477a6f823109.png" alt="Trade Forex & CFDs" style="" rel=""></a></a></p><br>This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the <a href="https://admiralmarkets.com.au/risk-disclosure" target="_blank">risks</a>.<h4><br></h4> 2018-09-17T12:04:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1 https://admiralmarkets.com.au/analytics/traders-blog/trading-on-the-trump-vs-china-trade-war-1 Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/what-is-dash-2"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/af1acb9f4b31ec452a7c673a4d018974.jpeg" style=""></a></p><p><em>Source: Shutterstock</em></p><p>Dash shares many features with Bitcoin and other major cryptocurrencies: the main one being </p><p>the ability to send a digital form of cash via the Internet.</p><p>There are, however, some key differences between Dash and <a href="https://admiralmarkets.com/education/articles/cryptocurrencies/what-is-bitcoin/">Bitcoin</a>, including speed, cost and governance – with Dash coming out 'on-top' better in all of these instances.</p><p>This article explains the key ideas, features, advantages, and challenges facing Dash in the competitive <a href="https://admiralmarkets.com/education/articles/cryptocurrencies/">cryptocurrency</a> world.</p><p><br></p><p>What is Dash?</p><p>Dash (DASH) is an open-source cryptocurrency launched in 2014 that offers user-friendly and scalable solutions ("open-source" means that technology and software is built, tested, and improved on user collaboration.)</p><p>Both Dash and Bitcoin allow for online purchases and work with blockchains that publicly disclose each transaction (blockchain is the underlying logic behind cryptocurrencies and provides a public ledger for all the transactions in the network.)</p><p>Similar to Bitcoin, Dash offers anonymity as you are not required to disclose personal information, e.g., name and address. However, transactions are not public, which is a major difference with Bitcoin. </p><p>Dash provides strong encryption features to make privacy possible on its blockchain, specifically, its PrivateSend option. The main difference with Monero, in turn, is that this an extra option rather than a built-in feature.</p><p>Dash has worked on improving the field of cryptocurrencies in numerous ways. Simply said, Dash has worked intensively to improve on Bitcoin's flaws. Let's review those main differences.</p><h2>Is Dash an Alternative to Bitcoin?</h2><p>Dash has managed to improve on Bitcoin's original idea in multiple ways, including speed, cost, and governance. Let's review them one by one.</p><p>Speed: The transaction speed with Dash is incomparable to Bitcoin. Whereas Bitcoin transactions can take up to 10 minutes or more to confirm, Dash manages to complete a similar transaction in only 4 seconds. The difference in speed is certainly striking.</p><p>Costs: When it comes to costs, Dash manages to outperform Bitcoin by a large margin. Bitcoin transaction fees are apparently around $6. Dash managed to lower those fees drastically to less than half a US dollar, although these fees are expected to slightly go up when more transactions take place.</p><p>Governance: Dash offers a clear way how changes can be incorporated into the development of the coin, without the need for "hard forks". Bitcoin has encountered multiple hard forks, which is when two different solutions are implemented. Bitcoin Cash is an example of a different coin splitting itself off from the main Bitcoin coin. Dash manages this process via a voting system, which allows it to implement changes relatively quickly. </p><h2>How are New Dash Coins Created?</h2><p>The creation of new Dash coins is completed via the "mining" process, which is a usual way for <a href="https://admiralmarkets.com.au/products/cryptocurrencies" target="_blank">cryptocurrencies</a> to reward participants in recording blockchain transactions. The time needed for Dash to mine one block is less then two and a half minutes.</p><p>Newly created Dash coins are divided into three groups: miners, masternodes, and the development team:<br><br></p><ul><li>Miners: about 45% of the new coins are rewarded to miners as incentive to ensure that enough computers are participating in the blockchain process.</li><li>Masternodes receive about 45% of the coins</li><li>The remaining 10% go to fund and support the marketing, customer support, and development team itself. </li></ul><h2>What Are Masternodes? </h2><p>Masternodes are known as the Proof-of-Stake (PoS) algorithm, which is a concept that allows a person to mine or validate block transactions according to how many coins they hold.</p><p>Bitcoin, for instance, is based on the Proof-of-Work (PoW) concept, which means that Bitcoin's blockchain needs to be validated by all nodes within a network.</p><p>Masternodes are different from standard nodes because they reduce the number of nodes needed to approach a transaction. This makes the total number manageable and solves scalability problems for transactions.</p><p>Masternodes receive a clear economic incentive for their work: they receive 45% of the coins and also impact the future direction and course of the coin via the governance module mentioned above. </p><p>Unlike minors, Masternodes don't rely on PoW to secure the network, accounting for second tier duties, such as PrivateSend, InstantSend, and the governance functions mentioned above. (*) </p><h2>What is PrivateSend and InstantSend? </h2><p>PrivateSend and InstantSend are two of the extra Dash features, which are relying on the management from masternodes. The two features have specific advantages explained below. (**) </p><p>InstantSend. It is easy to explain the concept of InstantSend as it allows transfers to be sent pretty much instantly: a transfer is sent n less than a second. The user pays a premium for this service: it costs 3 cent. </p><p>PrivateSend. The name of the feature also explains itself. The exact details of the transfer are hidden, such as information about the sender and the receiver. How is that possible? PrivateSend mixes all the transactions with each other, which makes it much more difficult to trace the exact payment trail.</p><h2>What Dash Price Movement Like?</h2><p>Dash (DASH) has shown volatile <a href="https://admiralmarkets.com.au/trading-platforms" target="_blank">price movements</a> since 2017, just like other cryptocurrencies. In 2014 to 2016, the cryptocurrency had a slow start, but price action took off at the beginning of 2017.</p><p>Dash crossed the magical $100 border in March 2017, but that first bullish move was just the start. It hit $200 in May before making the next leap to $400 in August.</p><p>The next three months, the price stayed in a sideways range between $250 and $400, until a wide range of cryptocoins developed a spike. In November 2017, the price kept climbing and only stopped until price topped nearly at $1600.</p><p>This is currently the all-time high, and the price has been correcting lower ever since, building a retracement that took the price back to $330 as of March 2018.</p><p>What's Next for Dash? </p><p>Due to its emphasis on speed, costs, privacy, and governance, Dash seems to have found a solid niche in the world of cryptocurrencies. Whether it will be able to expand its applicability, however, remains to be seen.</p><p>Speaking of the price, analysing the charts is just one way of how traders can forecast future price movements.</p><h2>Trade Dash CFDs with Admiral Markets</h2><p>The good news is that you can <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/dshusd/" target="_blank">trade Dash CFDs</a> with Admiral Markets along with <a href="https://admiralmarkets.com.au/products/cryptocurrencies/" target="_blank">other cryptocurrency CFDs</a> and a wide range of additional financial products. Explore our <a href="https://admiralmarkets.com.au/products/" target="_blank">full product offering</a>!</p><p>Make sure to check out our insightful <a href="https://admiralmarkets.com.au/education/articles/" target="_blank">educational articles</a> on chart analysis, technical analysis, fundamental analysis, and risk management to be better prepared for making trading decisions. </p><p>We also most certainly recommend opening a <a href="https://admiralmarkets.com.au/start-trading/forex-demo/" target="_blank">Demo account</a> first to test your trading plans and strategies.</p><p><br></p><p>(*) <a href="https://www.investinblockchain.com/what-is-dash/">https://www.investinblockchain.com/what-is-dash/</a> </p><p>(**) <a href="https://www.bitcoinbeginner.com/blog/what-is-dash/">https://www.bitcoinbeginner.com/blog/what-is-dash/</a></p> 2018-05-28T16:04:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/what-is-dash-2 https://admiralmarkets.com.au/analytics/traders-blog/what-is-dash-2 Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/what-is-zcash-2"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/45102f59215816e42ddd528ed5b348e5.jpeg"></a></p><p><em>Source: Shutterstock</em></p><p>With the development of new technologies, there has been an increased demand for <a href="https://admiralmarkets.com/education/articles/cryptocurrencies/">cryptocurrencies</a>. However, there are several interesting things that distinguish Zcash from other similar currencies, such as partnership with JPMorgan 1, through the open-source project Quorum. Zcach privacy technology could soon be applied to different crypto and blockchain networks, including Ethereum-based tokens. CoinMarketCap estimates that Zcash's global market cap is more than $960 million. 2</p><h2>What is Zcash?</h2><p>ZCash (ZEC) is a cryptocurrency project that originated from the Zerocoin/Zerocash idea, proposed back in 2013. Zcash was forked out of Bitcoin and launched in October 2016, and it was previously known as Zerocoin.</p><p>It uses cryptography which in theory should provide privacy to its users. Cryptography aka cryptology analyses different protocols that prevent third parties, or the public, from reading private messages. 3</p><h2>How is Zcash Different from Bitcoin?</h2><p>Zcash is a <a href="https://admiralmarkets.com.au/analytics/traders-blog/everything-you-need-to-know-about-bitcoin-in-one-place-1" target="_blank">Bitcoin</a> fork. Because of that simple fact, they have a lot in common. There are two types of Zcash transactions: private and public (similar to BTC). When you download the official Zcash wallet, you will notice it offers two types of addresses: <em>t-addr,</em> your public address, and <em>z-addr</em>, your private address.</p><p>You can choose which one to use. Bitcoin transactions are fully transparent. Everyone can use a BTC block explorer to check if a transaction has been sent from one BTC address to another. Zcash is private if the user chooses a z-address. There is a special key view that can provide selective transparency.</p><p>According to the source, <em>"Zcash offers total payment confidentiality, while still maintaining a decentralised network using a public blockchain. Unlike Bitcoin, Zcash transactions automatically hide the sender, recipient, and value of all transactions on the blockchain" </em>4.</p><h2>How does Zcash Defend Its Privacy?</h2><p>Being a decentralised and open-source cryptocurrency that offers privacy and selective transparency of transactions. Zcash payments are published on a public blockchain, but the sender, recipient, and amount of transactions remain private.</p><p>Due to the encryption of the contents in the shielded transactions, the protocol uses a cryptographic method to prove transaction validity.</p><p>This method is called <em>zk-SNARK</em>. These constructions allow the network to maintain a secure ledger of balances without disclosing the parties or amounts involved. Instead of publicly demonstrating spend-authority and transaction values, the transaction metadata is encrypted, and zk-SNARKs are used to prove that nobody is cheating or stealing.</p><h2>What are Pros and Cons of Privacy?</h2><p>As we already explained, ZEC uses zk-SNARKs privacy protection technology.</p><h3>Privacy Pros</h3><ul><li>Sender's address is hidden;</li><li>Recipient address is hidden;</li><li>Amount sent is hidden.</li></ul><p>We think that strict privacy is beneficial for companies that want to protect supply chain information from competitors, all individuals who don't want any payment information publicly known as well as wealthy people who don't want any of their activities publicly exposed.</p><h3>Privacy Cons</h3><p>Zcash uses a new form of cryptography. Nobody can guarantee that there are no bugs in the system that will make it possible to deanonymize transactions or create coins out of thin air unless it has been tested for years. So, if coins are being created, it will not even be detectable because, unlike Monero, you can't verify the total amount of coins in the ZCash blockchain.</p><p>The blockchain and the network keep track of the amount of coins that are shielded and don't care who unshields a portion later. The coins go into a big pool and when you pull a little piece out, there's no way to correlate it to what went into the pool. 5</p><h2>How are New Zcash Coins Created?</h2><p>They are created through a process called mining. It will take up until 2032 for all 21m coins to be mined. It basically started with $US1m, pre-funded by investors. Zcash was not pre-mined or ICO-funded like many other cryptoprojects. Instead, it follows a unique funding and distribution approach. 6</p><h2>What is the ZEC Price Movement?</h2><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/what-is-zcash-2"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/b07c17e1b9426d006d650bfed7f29096.png"></a></p><p><em>Source: </em><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/zecusd"><em>ZECUSD</em></a><em> daily chart, Admiral Markets </em><a href="https://admiralmarkets.com/trading-platforms/metatrader-5/"><em>MT5</em></a><em>, Jun 2017 - Mar 2018</em></p><p>After a strong uptrend that began in September 2017, the price reached 800 ZEC/USD for a coin. Then, the price reversed towards 200 ZEC/USD and now, obviously, we see the support around 250 ZEC/USD. At this point, it looks like the uptrend might continue and buying the dips on the ZEC/USD might be a good option.</p><h2>Trading Zcash CFDs with Admiral Markets? Sure!</h2><p>You can trade Zcash and all major cryptocurrency CFDs in one place – with Admiral Markets. Explore <a href="https://admiralmarkets.com.au/products/cryptocurrencies/" target="_blank">our product range</a> to know what we are offering!</p><p>Looking to test your trading skills first? Take as much time as you need opening our <a href="https://admiralmarkets.com.au/start-trading/forex-demo/" target="_blank">Demo account</a>, polishing your strategies and plans in a risk-free environment.</p><p>References</p><p>1. <a href="https://www.forbes.com/sites/laurashin/2017/05/22/jpmorgan-chase-to-integrate-zcash-technology-to-its-enterprise-blockchain-platform/#25e2904e7a33">Forbes</a></p><p>2. <a href="https://coinmarketcap.com/">CoinMarketCap</a></p><p>3. <a href="https://en.wikipedia.org/wiki/Cryptography">Wikipedia</a></p><p>4. <a href="https://z.cash/">ZCash</a></p><p>5. Ibid</p><p>6. <a href="https://media.consensys.net/">Consensys</a></p> 2018-05-01T15:27:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/what-is-zcash-2 https://admiralmarkets.com.au/analytics/traders-blog/what-is-zcash-2 Trader`s Blog <p><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/51e9c58dc0f4fdea400caf3819fbcb75.jpeg" style=""></a></p><p>Cryptocurrencies are the next step in financial evolution. Being the first decentralised digital currency based on a system that works without a central bank or single administrator, BTC is a breakthrough in both financial trading and asset allocation. Online currency trading has just improved… but will it replace traditional investing?</p><h2>Bitcoin Vs. Gold Investing</h2><p>People like gold. It is a safe-haven asset. That is why most investments are made in this precious metal. But the early gold rush days are over; gold and bullion buyers shouldn't treat it as a get-rich-real-quick scheme. It's still a sound longer-term investment.</p><p>There are insights of ancient gold mines and mining operations dating back to 200,000 years BC. Civilisations started to trade gold around 600 BC, and it is still used by dealers and investors with great enthusiasm today. Gold is also sure to never lose its intrinsic value as a precious metal with numerous practical applications. Additionally, we need to say that fluctuations are less extreme than many other investment commodities, including Bitcoin.</p><p>We could also assume that Gold might rebound. The US Dollar is negatively correlated to Gold, and any weakness in the former should positively impact the latter. The cost of mining gold might increase substantially, and more miners might cease gold mining operations. If that happens, the prices will increase as gold reserves will be limited.</p><p>Gold accounts for approximately 1-2% of market participation. An increase should lead to price spikes. In addition, any uptick in the inflation rate might increase the price of Gold. Furthermore, as the Debt-to-GDP ratio in developed countries has been steadily increasing, this is a sign of further money supply, which is positive for precious metals, such as Gold.<br><br>Bitcoin has a finite supply, but it has one distinct difference when compared to other investments. For the first time that we have something that's not fully controlled by any entity, like a government or bank. However, Bitcoin is unlikely to fully replace Gold as an investment asset because the system has yet to scale itself in common marketplaces, where it can achieve a truly "universal" status and be used as a legitimate form of currency.</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/fe9db67a3fb72f813de215b553a41c6f.png"></a></p><p><em>Source: <a href="http://www.jmbullion.com">www.jmbullion.com</a></em></p><h2>A Bitcoin Investment Strategy </h2><p>We are now witnessing irrational behaviour in the cryptocurrency market. People think it's the future, but it reminds me a lot of the dot.com bubble... and it might burst – hard.</p><p>Bitcoin is by far the most popular cryptocurrency. People are dumping money in there thinking that it will never be devalued as there is no Central Bank to regulate it. At some point it has to, because people use it for trades/services, and it is hard to get paid in fractions. If one Bitcoin is worth, for example, 14,400 USD, and I am a tradie charging you $100 for my plumbing services, in terms of Bitcoin this would mean that you need to pay me a fraction of a coin. Thus, it becomes ridiculous at some point if the price goes too high. We'd need to:</p><ol><li>create additional supply;</li><li>re-set the price if it goes too high;</li><li>come up with an alternative if we are not able to get paid in small amounts.</li></ol><p>One more thing to notice is that if we go higher into 2018-2019 with equities, Bitcoin might crash with equities and real estate. Usually, all risky assets blow up together, and we might see a value destruction. When loans get written off, it actually reduces money supply, whereas assets devalue and currencies get stronger in that environment.</p><p>Want to find out more about Bitcoin? Boost your knowledge by checking out our <a href="https://admiralmarkets.com.au/analytics/traders-blog/everything-you-need-to-know-about-bitcoin-in-one-place-1" target="_blank">What is Bitcoin article</a>, now!</p><h2>BTC Futures</h2><p>The adoption of <a href="http://www.cmegroup.com/media-room/press-releases/2017/10/31/cme_group_announceslaunchofbitcoinfutures.html/">BTC futures</a> should be seen as a very positive step for Bitcoin. Banks say Bitcoin is generally a bad investment because it falls in the unregulated space, thereby calling it "risky"; and they are saying this as it could eat into the personal banking services of banks, making it easier and cheaper to transact funds between people and/or merchants using Bitcoin technology. The introduction of BTC futures is a move into the regulated space, making it a reduced risk for Bitcoin's profile.</p><p>Fundamentally, when you consider what Bitcoin offers society, in the sense that it is a store of wealth (especially, for countries with extremely devaluing currencies and hyperinflation) and it's a platform allowing a transactable service, there is a possibility that it could reach 70,000 USD per Bitcoin, which would take it to a market capitalisation level of USD 1 trillion, and still a fraction of the Gold market, which is valued at 7 trillion USD. Note also, Bitcoin is much easier to use for transactions, unlike Gold.</p><p>In addition, technical analysis shows that it might reach 70,000 USD per Bitcoin, as crazy as it may sound. The use of futures exchanges should provide more liquidity in the coin, making it less volatile.</p><h2>Other Bitcoin Investment Risks</h2><p>There could be a major push by governments to shut the technology down, this is because it would rival their own national currencies, making it harder to implement monetary policies. </p><p>In addition, banks have deep pockets and may decide to buy out Bitcoin in order to protect their personal banking department revenues that are at risk from this technology. </p><p>To the conspiracy theorists, it could also be possible that banks and governments could employ hackers to take out the technology, rendering it unsafe and causing a mass exodus of monies in the cryptocurrency market. This is one of the general bitcoin security risks. </p><p><br>As Central Banks print more and more money over time, devaluing the value of fiat currencies, their current QE programmes could be deemed very risky, bloating Central Bank balance sheets. As Central Banks embark on such wild decisions, they are demonstrating no accountability to safeguard the long-term value of their respective fiat currencies in a currency war environment.</p><p>The key factor with the CME announcement is that now large investors can hedge their exposure so they have no reason to avoid Bitcoin. The coming days will reveal how much institutional interest there is. If they can hedge, they will go in. Remember the dot.com bubble? Conservative funds were forced to invest in risky high-tech stocks because their results looked poor in comparison to the tech funds. The same may happen to cryptocurrencies. When funds are getting double digit returns by putting some of their funds into crypto, everyone will get on board.</p><h2>Is Bitcoin Safe?</h2><p>It is claimed that Bitcoin cannot be hacked, manipulated, or altered; however, exchanges or digital wallets are vulnerable, just like online bank accounts. If you hold any Bitcoin, you may become a target.</p><p><br>As Bitcoin doesn't actually exist in a physical sense, held in the wallet are secure digital keys in relation to Bitcoin. The private key is a secret code allowing the user to prove ownership of their Bitcoin. Wallets installed on smartphones using an app, or web-based wallets, can also be activated on currency exchanges. Bitcoin holders need to ensure their computer's security is up-to-date, and such exchanges require a high-level of security.<br><br>James Hill, a software developer at <a href="http://www.scottlogic.com/">Scott Logic consultancy</a>, says the security of the core blockchain algorithm, which underpins all cryptocurrencies, is strong. He mentions that the real risk comes from losing the keys that prove coin ownership.</p><h2>How to Trade Bitcoin</h2><p>Traders have asked me many times:</p><ol><li>where to trade bitcoin;</li><li>how to trade bitcoin for usd;</li><li>can we trade bitcoin for profit;</li><li>is there a way to trade bitcoin on forex;</li><li>how to trade bitcoin on mt4.</li></ol><p>Gold might be going through a revaluation phase, where cryptocurrencies like Bitcoin are now rivaling it as the preferred risk-off asset, or when such inflation risks persist. This crypto hype has potentially weakened some demand for Gold. Furthermore, there is the possibility that the US FED may hike rates three times over the next 12 months, and this shifts further investments from Gold into bonds. </p><p>For that reason, as well as everything that's been mentioned above and due to high cryptocurrency price potential, the right thing to do in our opinion is to actually TRADE Bitcoin vs other currencies, like the <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/btcusd" target="_blank">BTC/USD CFD</a> that Admiral Markets offers, for example.</p><p>Due to the uncertainty surrounding Bitcoin as an asset, you might like to exploit its daily movements to your advantage. Simply put, when investing in Bitcoin, the traditional buy and hold strategy is still unsafe.</p><p>The Bitcoin strategies you could choose to adopt are daytrading, intra-week trading, and/or scalping. You can always watch our professional webinars and ask for any trading-related advice on our MT4 platform.</p><p>Take a look at this chart:</p><p><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/remote/ce7898483601b89c2cbc86bdb83d8a47.png"></a></p><p><em>Source: BTC/USD daily chart, Mar-Nov 2017, Admiral Markets </em><a href="https://admiralmarkets.com/trading-platforms/metatrader-4"><em>MT4</em></a></p><p>Traditionally, there is a price cycle in every asset and financial instrument. We distinguish four major price/market cycles.</p><ol><li>Accumulation</li><li>Mark-Up</li><li>Distribution</li><li>Mark-Down</li></ol><p> Depending on the market, they share similar characteristics and go through similar phases. Markets are cyclical, they can go up, peak, lower, and then bottom. When a cycle is finished, the next one begins.<br><br>Many investors and traders usually fail to recognise that markets are cyclical or forget to realise the end of the current market phase. In addition, even when you accept the existence of cycles, it is almost impossible to pick a top or bottom of such cycle. However, understanding of cycles is essential if you want to maximise trading or investment returns.</p><p>By using our charts, you will be able to exploit major <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/btcusd" target="_blank">BTC/USD CFD</a> movements on both lower time frames, such as the five-minute chart, and higher time frames, such as daily charts. You might also want to invest in the BTC's strength (or weakness) by trading the weekly and monthly chart.</p><p>By using the offered leverage in a smart way and trading BTC/USD CFDs, you might potentially make much higher returns than simply buying BTC.</p><h2>Conclusion</h2><p>Should bitcoin become a form of currency? As with all technology, something better may come along in the future, and when this happens, it could cause Bitcoin's value to drop, doing so in spectacular fashion. Unlike currencies, Bitcoin has no interest yield, therefore, in a normalising monetary policy environment with rising rates, it's best not to try and treat this commodity as a long-term store of value to fund your retirement.</p><p>Although BTC presents innovation and perhaps evolution as a virtual payment system, there are still many issues in terms of security and sustainability that need to be addressed before we can encourage customers to use it or accept it as a method of payment. Whilst we believe that Bitcoin could eventually be a viable investment choice, it should never surpass the stability and versatility of Gold as an investable commodity.<br><br>We suggest starting with a small investment amount to begin with, perhaps a small fraction of your capital, about 0.1%, to learn how it works, how to trade it, and how to handle it safely in a wallet. </p><p>If you're going to trade <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/btcusd" target="_blank">BTC/USD CFDs</a> – or <a href="https://admiralmarkets.com.au/start-trading/contract-specifications/instrument/gold" target="_blank">Gold Spot CFDs</a> – we suggest you pay close attention to <a href="https://admiralmarkets.com.au/education/risk-management" target="_blank">the risks</a> that may be involved with trading and should always practise any trades on a Demo account, before venturing into the live market.</p><p><a href="https://admiralmarkets.com.au/start-trading/forex-demo" target="_blank"><a href="https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing"><img style="width:auto;" class="img-responsive" src="https://fxmedia.s3.amazonaws.com/articles/DEMO-9.jpg" alt="Open Risk-Free Trading Account" rel="" style=""></a></a></p><p><br></p><p>Thanks and safe trading,</p><p><strong>Admiral Markets</strong></p> 2018-01-24T03:47:00+00:00 https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing https://admiralmarkets.com.au/analytics/traders-blog/trading-cryptocurrency-cfds-vs-traditional-investing Trader`s Blog