CMC Markets is the one of the world’s leaders in spread betting and CFDs. The company has announced its expansion of services with 12 new forex baskets that are now added to the CMC’s platform. The new indices offer clients an easy way to diversify their exposure to several worldwide economies.
The in-house management allows CMC to keep the new indices and their composition relevant, as well as to provide transparency in terms of pricing. All 12 indices are designed on a trade-weighted basis. The liquidity and stability of each currency pair within the indices are taken into account, as well. This means that even in volatile markets, CMC delivers consistent pricing of its products, where the maximum weighting of any one cross is capped at 40% to prevent any unnecessary influence of one single currency pair.
This is what the Group Head of Trading, Mr. Simon Campbell, said about the new indices:
We are continually working with our clients to ensure we deliver a product suite which allows them to trade in exactly the way they want. The increasingly complicated geopolitical landscape is creating a range of trading opportunities, and these new indices give CMC clients the potential to gain broad-based exposure to a number of distinct economies, from the eurozone or US, to countries like Sweden, Norway or Singapore.
The problem with trading on a single pair is that clients can be exposed to negative movements related to the opposing currency in the pair. When a client trades on an index, such a risk can be avoided. For example, trading GBP/USD over Brexit allows exposure to sterling, but essentially such a move leaves investors vulnerable to an adverse move on the USD (such movements can be triggered by Fed announcements, or news regarding the US-China trade relationship).
The new CMC GBP Index lets clients trade on the pound against a weighted mix of the Swedish kroner, Chinese yuan, euro, Norwegian kroner , Canadian dollar, US dollar, Swiss franc, Japanese yen and in one single transaction.
The followed currencies are also supported by the CMC forex indices: Japanese yen, Swedish kroner, New Zealand dollar, Canadian dollar, Singapore dollar, US dollar, Australian dollar, Chinese yuan, Swiss franc and Norwegian kroner.
In addition, CMC Markets will continue to support the price for the USD Index under the currently existing name.
More information about CMC Markets can be found here: