An anecdotal throwback to deepest, darkest lockdown....
Do you consider yourself savvy? If so, you may have noticed a few developments which weren’t picked up by the mainstream media. Such as the fact that, at least during lockdown, the price of steak plummeted. Bad news for the meat industry but good news if you were looking to cook up a fancy lockdown storm. And who knows maybe you cared to use the time to get on better terms with your other half?
But if you had been looking to find a bargain fine wine to accompany your steak, you might have been hard pressed. The fine wine market remained relatively robust and immune to the Covid-effect. If you were an investor looking to invest in a tangible commodity, fine wines could have been a strong contender for securing that safe haven.
But we’re not here to talk investment, per se, nor are we here to talk safe havens.
Take a few seconds to imagine a hypothetical trip to the butchers. It was (a drizzly) Friday night steak night and being a savvy trader you bagged 450g steak at a bargain price. Then imagine, you arrived home to find yourself left with only 300g of the precious stuff. Not so savvy, eh?
Where did it go? You’d think you’d been mugged by an invisible meat thief!
Traders often experience a similar problem. Yes, you heard right. Traders who find a slice of their speculative profit mysteriously eaten into.
Let’s have a look why.
The last few months have seen some of the most violent market swings in history. However, these stunning market moves have exposed something that often goes undetected during times of relative calm. That is, how dealing spreads (the difference between your buy and sell price) can widen dramatically, ultimately inflating your trading costs and reducing your profit.
Trading providers who do this will say they have to widen their spreads to keep in line with the underlying market when, in reality, widening the spread is a pure business decision.
Choose your league
In the world of trading, there are two distinct types of provider: those who offer fixed costs and those who offer variable costs.
So, returning again to the central question… would you consider yourself a savvy trader?
As a trader, you’ve risked your capital and it’s all thanks to your hard work and intuition that you’ve placed the right trade. So why then allow yourself to lose a slice of that hard-won upside because you’ve traded through a variable spread provider? Here at Trade Nation, we believe you deserve the opportunity to maximise your profits.
* We can’t remove the underlying risks of trading but we can remove the risks of unknown costs. When you trade with us, you’ll enjoy access to a wide range of markets and financial instruments but with fixed, honest, reliable spreads.
* Capital at risk