Wednesday 16 September 2020 11:15 amFXCM Talk

FXCM stock baskets offer cream of the crop industry stocks

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Craig has worked in the foreign currency and CFD trading industry for the last 10 years, and is currently the CFD Product Manager of FXCM, where he primarily oversees the suitability and expansion of the tradeable product line.

It’s been months now of lockdown, and with the majority of the world spending more time working from home with CNN, BBC and Bloomberg playing on the TV in the background, it is no surprise there has been a surge in new day traders looking to take advantage of the current market volatility by beginning to foray into the world of financial markets.

There are headlines in the news everyday about volatility, instability and other buzzwords that spell trading opportunity but also present challenging market conditions. Given the FX and stock markets were already difficult to navigate before the pandemic, they are exponentially so today.

So, where does that leave new traders?

For many, finding the right product or industry to invest in, much less a single company, can be a daunting and difficult decision to make. Traders are currently overwhelmed with options whether it be traditional investments, such as commodities or equities, or the more recent headline grabbing cryptocurrencies – all of which are now just a click of a button away for all retail traders anywhere in the world.

The most familiar market, and perhaps simplest to understand, for new traders is generally the stock market. However with endless stock investment opportunities, all with different price factors and volatility levels, it can be difficult to know which company to speculate on. 

It is here that Stock Baskets come into the fore as a convenient solution for speculating on the performance of a certain sector without having to open exposure on each stock individually. Traders can enter the market via a simpler and safer tool without the complications of analysing and selecting which singular company to invest in. In combining the shares of multiple companies within a sector into a single tradeable instrument, customers can speculate on industries as a whole instead of having to monitor the performance of a single company. 

We don’t need to look far to see this at play. With lockdown in place, consoles have seen a surge in popularity as many have turned to gaming to pass the time. Even without a gaming system, just a glimpse of any news publication will show the booming success of this industry right now. Many retail traders are noticing this and see it as a perfect investing opportunity to take advantage of. But which company of the hundred options to choose? With Stock Baskets you don’t have to, just open a position on the Esports and Gaming Basket, and speculate on the Industry as a whole.

By spreading their investments across a number of companies, Stock Baskets provide traders with a great chance to mitigate the risk of exposure to one single company while simultaneously benefiting from multiple trading opportunities. 

Stock Baskets save traders time by combining the most sought-after stocks from the highest performing companies in their respective sectors into one tradable instrument – an easy one-stop shop, eliminating the lengthy process of combing through individual stock performance data, and instead, traders now need only to pick their basket.

Currently, there are six baskets offered to retail traders, with more planned to come. One of the most anticipated among them is FAANG, containing shares from the American tech giants Facebook, Apple, Amazon, Netflix and Google. Other baskets feature heavyweights from the Biotech, Chinese E-Commerce, Chinese Tech, Cannabis and the Gaming and Esports industries. The list of companies and weightings is available on FXCM’s stock basket website (https://www.fxcm.com/markets/stock-baskets/).  

Despite this being a time of great change, our knowledge and expertise as one of the world’s largest retail CFD brokers continues to provide traders with reliable and trusted market opportunities. The demand for trading remains high and FXCM’s Stock Baskets deliver the flexibility and convenience that modern traders require.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 

75.38 per cent of retail investor accounts lose money when trading CFDs with this provider. 

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services. Founded in 1999, the company’s mission is to provide global traders with access to the world’s largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime. FXCM is a Leucadia Company.

Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. The products are intended for retail, professional and eligible counterparty clients. Retail clients who maintain account(s) with Forex Capital Markets Limited (“FXCM LTD”) could sustain a total loss of deposited funds but are not subject to subsequent payment obligations beyond the deposited funds but professional clients and eligible counterparty clients could sustain losses in excess of deposits. Clients who maintain account(s) with FXCM Australia Pty. Limited (“FXCM AU”), FXCM South Africa (PTY) Ltd (“FXCM ZA”) or FXCM Markets Limited (“FXCM Markets”) could sustain losses in excess of deposits. Prior to trading any products offered by FXCM LTD, inclusive of all EU branches, FXCM AUFXCM ZA, any affiliates of aforementioned firms, or other firms within the FXCM group of companies [collectively the “FXCM Group”], carefully consider your financial situation and experience level. If you decide to trade products offered by FXCM AU (AFSL 309763), you must read and understand the Financial Services Guide, Product Disclosure Statement, and Terms of Business. Our FX and CFD prices are set by us, are not made on an Exchange and are not governed under the Financial Advisory and Intermediary Services Act. The FXCM Group may provide general commentary, which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. The FXCM Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on the FXCM Group’s websites prior to taking further action. 

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