Australian prime of prime and liquidity provider 26 Degrees announced on Tuesday that it has added new gold instruments to its Pairs trading offering.
In simple terms, pairs trading involves shorting one asset and going long in another. This could be more fundamentals or technically-driven.
For example, last year you could have gone short private China real estate and long SOE China real estate, with the assumption that companies in the former sector would go bankrupt but the latter would receive state backing and so survive.
The CFD product that 26 Degrees has created allows you to take positions akin to this in one trade, rather than opening separate long and short positions.
The new Pairs products announced on Tuesday allow traders to take a long or short position in gold against a range of indices, as well as US Crude Oil.
“The rising popularity of gold trading among retail traders has been remarkable, and with our new Gold Pairs CFDs, we’re excited to offer brokers the ability to cater to this demand while providing valuable diversification across multiple asset classes,” said 26 Degrees Chief Commercial Officer James Alexander.
““With recent interest rate changes from the Federal Reserve and a looming U.S. election, it would not be a surprise to see volatility surge in both US Indices and Gold in the coming months and these new Pairs bring both factors into play in a single instrument”.
