GFT News

GFT Offers New Volatility Index Market for CFD Traders

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Sydney, 22 April, 2009 – Since December 2008, volatility across many financial markets has reached record highs, and brought with it more risk to most traders’ current investments.

While risk is an inherent part of market volatility, GFT’s new volatility index for CFDs offers traders the ability to speculate on rising and falling volatility, potentially limiting their exposure to risk in other markets.

Martin Slaney, head of derivatives, GFT, believes that, while increased volatility does bring risk, it also offers new opportunities to traders looking to take advantage of new markets.

“Some traders may see increased volatility as a reason to stay out of the markets,” he said, “But our new volatility index CFDs help traders take advantage of current market conditions while also providing them with a hedge against volatility risks to their other investments.”

Based on the CBOE’s VIX, GFT’s volatility index is topical and traders may choose to use it to diversify into a new market by trading it stand-alone. In this way it can be used to speculate on likely volatility and can be a more easily understandable product than traditional ways of buying volatility.

For example, when trading other products such as options, traders must asses a wide range of factors including price, time to expire, interest rates, and dividends. With the volatility index, everything is included in the price.

“One of the greatest aspects of the volatility index is its simplicity,” Slaney said. “It isolates volatility and presents it in one neatly packaged contract.”

GFT customers can immediately begin trading the volatility index from 08:30 – 15:15 CST.

The volatility index is the newest derivative product from GFT and the fourth new market the company has released since August 2008, other recent new markets include UK Inflation Futures, Eurozone Inflation Futures and Spot Oil markets.

About GFT

GFT provides service, support and award-winning trading technology through its DealBook® suite of trading platforms, which are designed for trading online spread bets, spot foreign exchange and contracts for differences.

GFT launched its online spot forex trading services in 1997, becoming a pioneer in the online trading industry. Today, GFT is the brand name of several divisions and subsidiaries throughout the world. GFT’s world headquarters is based in Ada, Mich., with additional U.S. offices located in Chicago and New York and global offices in London, Tokyo, Sydney, Singapore and Dubai.

Contact

Tim Gort
Manager of Marketing & Communications
Global Forex Trading
616.942.3757
tgort@gftforex.com

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This information is made available by or for Global Futures & Forex Ltd. (GFT) in Australia (ABRN 103 508 461, AFS License 226625). Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. A Product Disclosure Statement (PDS) is available from the company website a www.gft.com.au. Please read and consider the PDS before making any decision to deal in GFT products. © 2009 Global Futures & Forex, Ltd. All rights reserved.