Dear Traders,

We hope that you and your friends/families/loved ones are getting ready to enjoy a relaxed holiday season ahead.

 

Holiday Trading Hours

Please note that we have updated our holiday trading schedule (which generally reflects our LP’s trade hours) to the website.

You can view our market hours for each instrument here.

We will have full email, phone, and live chat support and service available during all open market hours.

 

Volatile Week Ahead

Before really getting ready to relax however, please take extra precautions in your trading on what may otherwise be a very volatile week ahead. This month has proven to already be a rather tricky month to navigate.

However, after years of waiting, it’s finally here. No, not the new “Star Wars” movie – but Fed week!

This is of course the Policy announcement by the US Federal Reserve we are referring to. On Wednesday, the central bank is widely expected to raise interest rates for the first time in almost a decade. The Fed’s decision may significantly affect global markets and politics as the world heads into 2016.

While this is considered by most analysts to be “major news”, note that Flash PMIs for France, Germany and the Euro Zone are due on Wednesday, hours before the Fed announcements which can further enhance the already expected huge volatility. Lastly, this coming week also sees rate decisions from central banks in Japan, Uganda, Sweden, Norway, Hungary, Mexico, Indonesia, the Philippines, Egypt and Chile, some of which are already battling to support currencies hit by expectations of a U.S. hike.

Some of you have asked if our leverage will be reduced on Wednesday, and the answer is that it will not. We do not over-leverage our book and maintain safe margin levels at all times, irrespective of general market volatility.

The take home here, is if you trade a strategy which thrives in volatility, this may be a great week for you. If not, extra safety and precautions should certainly be the mainstay of your strategy and put in to practice.

As most of you know, at Mt.Cook we run an agency model clearing protocol (a-book), which means we do not hedge our clients exposure or run a risk-book or dealing desk of any sorts. This ensures our goals are completely aligned with all of our traders and we can confidently say we are “on the same team”.

This is why we want to remind you: if you are trading this week – trade with a plan, ensure your risks are well calculated, and be safe!

Kind Regards,
Mt.Cook Financial