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May Futures Rollover Announcement – May 10, 2024

Dear Client,

New contracts will automatically be rolled over as follows:

Please note:
• The rollover will be automatic, and any existing open positions will remain open.

• Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.

• To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.

• Please ensure that all take-profit and stop-loss settings are adjusted before the rollover occurs.

• All internal transfers for accounts under the same name will be prohibited during the first and last 30 minutes of the trading hours on the rollover dates.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dividend Adjustment Notice – May 10, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dividend Adjustment Notice – May 9, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Notification of Server Upgrade – May 9, 2024

Dear Client,

As part of our commitment to provide the most reliable service to our clients, there will be server maintenance this weekend.

Maintenance Hours :
11th of May 2024 (Saturday) 18:00 – 24:00 (GMT+3)

Please note that the following aspects might be affected during the maintenance:

1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.

2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss and Take Profit will be filled at the market price once the maintenance is completed. It is suggested that you manage the account properly.

Please refer to the MT4/MT5 software for the specific maintenance completion and marketing opening time.

Thank you for your patience and understanding about this important initiative.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dividend Adjustment Notice – May 8, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Global economy in 2024: A trader’s guide to growth, inflation, and geopolitics

The global economy is a complex and ever-changing landscape. For traders, understanding the key trends shaping this landscape is crucial for making informed decisions and navigating market volatility.

As we move through 2024, several significant trends are influencing economic growth, inflation, and regional performance. By staying informed and adapting your strategies accordingly, you can position yourself for success in this dynamic environment.

Understanding the playing field: Growth, inflation, and regional disparity

While the global economy continues to recover from the pandemic, the pace has slowed in 2024. This shift necessitates a closer examination of the underlying factors influencing growth. Understanding these dynamics, such as inflation and regional disparities, becomes crucial for traders navigating the evolving economic landscape.

Modest global growth

Gross domestic product (GDP), the total value of goods and services produced in an economy, is a key indicator of economic growth. Forecasts from organisations like the OECD (Organisation for Economic Co-operation and Development) suggest global GDP growth in 2024 will be around 3.2%, indicating a continuation of the post-pandemic recovery, albeit at a slower pace compared to pre-crisis trends.

Inflation, the rate of price increases, has been a major concern in recent years. While some relief is expected, with global inflation projected to decline steadily, reaching around 4.5% by 2025, this doesn’t mean traders can breathe a sigh of relief just yet.

Forecasts suggest inflation might still be around 5.8% in 2024. This is why central banks like the US Federal Reserve are likely to continue raising interest rates to curb inflation. These actions can impact borrowing costs and economic activity, so monitoring central bank announcements and economic data releases is crucial.

Geopolitical tensions

The global economic landscape is not only shaped by internal factors but also by external forces like geopolitical tensions. Escalating geopolitical tensions, like the ongoing conflict between Russia and Ukraine, can have far-reaching consequences.

Such conflicts can disrupt supply chains, causing shortages of key resources like oil and wheat, leading to price fluctuations in sectors like energy and commodities. Additionally, these tensions can trigger market volatility, impacting investor confidence and potentially leading to significant price swings in various asset classes.

Sectors potentially affected:

  • Energy: Tensions in oil-producing regions, like the Middle East or ongoing conflict zones, can lead to disruptions in supply and price spikes, affecting energy companies and related industries.
  • Commodities: Geopolitical instability in key food-producing regions or disruptions to shipping routes can impact the availability and pricing of essential commodities like wheat, corn, or metals, potentially impacting related stocks and indices.
  • Transportation: Disruptions in key shipping routes or airspace due to geopolitical tensions could impact transportation costs and logistics, affecting companies involved in global trade.

A tale of two worlds: Developed vs. emerging economies

The story of economic growth in 2024 is not uniform across all regions. Developed economies, which may see a slight acceleration to around 1.8% by 2025 according to the IMF (International Monetary Fund), might outperform emerging markets.

Emerging markets, facing a projected slowdown to around 4.2%, could be negatively impacted by factors like slower growth in large economies like China, a key trading partner for many. This disparity highlights the importance of considering regional variations when making trades.

Emerging market challenges: China in focus

Slower growth in large emerging economies like China, a powerhouse contributing significantly to global trade, presents a unique challenge in 2024. Forecasts suggest China’s economic growth might experience a notable slowdown, potentially dipping below 5% for the year.

One major concern is the potential decline in demand for exports from other countries. China, a major importer of raw materials and finished goods, could see a decrease in these purchases as its economic activity slows. This could particularly impact economies heavily reliant on exports to China, potentially leading to job losses and decreased production in certain industries.

The interconnectedness of the global economy makes China’s slowdown a significant factor for traders to consider. By understanding the potential impact on specific industries and regions, traders can make informed decisions about their investments and potentially mitigate some of the risks associated with this emerging market challenge.

Lower long-term growth on the horizon

Amidst the ongoing recovery, the outlook for long-term growth appears muted. Factors such as constrained labour and capital mobility are curbing productivity gains, signalling a slower economic trajectory beyond 2025. Traders must factor this shift into their strategies carefully.

Limited movement of skilled labour and investment across borders constrains productivity and innovation potential. Forecasts, including those from the IMF, indicate that global GDP growth may stabilise around 2.5% to 3% in the years beyond 2025, compared to pre-crisis levels.

Key considerations for traders in 2024

With a solid understanding of the major economic trends in 2024, you can now translate that knowledge into actionable strategies for your trading. Here are some key considerations:

  • Stay informed: Stay updated on economic data and forecasts from reliable sources like the OECD, IMF, and central banks. Subscribe to financial news for insights into global market trends.
  • Spot opportunities: Look for sectors in developed economies with growth potential, and consider emerging markets anticipating China’s recovery. Research companies positioned to benefit from these trends.
  • Manage risk: Use risk management tools like stop-loss orders and adjust position sizes to handle potential volatility from factors like inflation or geopolitical events. Assess long-term market prospects to determine your risk tolerance.
  • Diversify portfolio: Spread your CFD investments across different asset classes to balance risk and gain exposure to diverse economic conditions. This strategy helps capitalize on positive market movements while cushioning against losses elsewhere.

In conclusion, navigating the 2024 economic landscape requires understanding key trends: modest growth, inflation decline, geopolitical tensions, regional variations, and long-term growth prospects. This knowledge empowers traders to develop informed and adaptable strategies. By staying informed, focusing on opportunities, and prioritising risk management, you can navigate market complexities and position yourself for success. Remember, continuous learning fuels informed decisions – stay curious and adapt as the economic story unfolds.

Dividend Adjustment Notice – May 7, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dividend Adjustment Notice – May 6, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dividend Adjustment Notice – May 3, 2024

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Why is the gold price hitting record highs?

On 12 April 2024, the price of gold shattered records, reaching a staggering USD 2,431.42 per ounce. This 30% increase year-over-year has sent shockwaves through the financial world, particularly exciting forex traders with a keen eye on this timeless asset. But what’s driving this golden phenomenon?

The safe haven: Why gold shines bright

Gold has captivated humanity for centuries, not just for its beauty, but also for its enduring value. Throughout history, it has played a significant role in the global financial system, earning a reputation as a store of value and a hedge against inflation.

These characteristics make gold an especially attractive asset for traders during times of economic uncertainty. Here’s why:

  • Tangible asset: Unlike currencies or stocks, which are essentially digital representations of value, gold offers a physical presence. In times of economic turmoil, some traders find comfort in owning a tangible asset they can hold onto.
  • Limited supply: Unlike many other commodities, gold has a finite supply. This limited nature contributes to its value proposition. In simpler terms, because there’s only so much gold in the world, its value tends to hold steady or even increase over time.
  • Inflation hedge: Historically, gold has performed well during periods of inflation. When traditional currencies lose purchasing power due to inflation, gold tends to retain its value relatively well. This makes it a valuable tool for traders seeking to hedge against inflation and protect their capital.
  • Safe haven asset: Gold is often seen as a safe haven asset during periods of economic turmoil or geopolitical tensions. When stock markets become volatile and currencies experience fluctuations, investors often flock to gold as a more stable investment. This increased demand can drive up the price of gold, potentially creating opportunities for forex traders.

Factors fuelling the gold rally

So, what’s behind the recent surge in gold prices? Several key factors are at play:

Geopolitical tensions

The ongoing conflict between Russia and Ukraine has sent ripples of unease throughout the global economy. This uncertainty can push investors towards safe havens like gold, with demand for gold bars in Europe surging by 300% in the first quarter of 2024 compared to the previous year.

Economic uncertainty

Fears of a recession are rising, with the International Monetary Fund (IMF) recently downgrading its global growth forecast to 3.6% for 2024. This economic slowdown can also increase demand for gold as a hedge against potential financial instability.

Central bank activity

The Federal Reserve’s recent pivot towards a more dovish stance, hinting at potential interest rate cuts in the latter half of 2024, has impacted the gold market. In a low-interest-rate environment, gold becomes a more attractive option compared to traditional fixed-income investments that currently offer minimal returns. For instance, the yield on the benchmark 10-year Treasury note has fallen to a record low of 1.2% in April 2024.

Physical demand

Recent trends in physical gold demand from consumers and central banks can also influence the price. In India, the world’s largest gold consumer, demand surged by 22% in the first quarter of 2024 compared to the same period last year, driven by the upcoming wedding season and rising disposable incomes.

On the institutional side, central banks around the world have been net buyers of gold for the past five years. China, a major player in this trend, has been accumulating gold for years and now holds the world’s second-largest reserves, estimated at around 3,000 tons, trailing only the United States.

China’s gold reserve. Source: World Gold Council

Their buying spree shows no signs of stopping, with reports suggesting they added a significant 150 tons to their reserves in just the first quarter of 2024. This growing appetite for gold from central banks, particularly China, could further support rising prices.

Gold price forecast: Navigating uncertainty

Predicting the future price of any asset is inherently challenging. Experts hold diverse opinions on the gold price outlook, with some analysts at Goldman Sachs predicting a further rise to $3,000 per ounce by the end of 2024, while others at JPMorgan Chase remain cautious, maintaining a neutral price target. Instead of chasing price predictions, focus on developing sound trading strategies based on thorough market analysis.

Gold historical price. Source: goldprice.org

Capitalising on the gold surge with VT Markets

CFD trading allows you to participate in the gold market by speculating on price movements without physically owning the metal. VT Markets offers a user-friendly trading platform where you can trade gold CFDs.

Here are some key strategies to consider:

  • Going long: If you believe the gold price will rise, you can go long by buying a gold CFD. You’ll then profit if the price increases by more than the initial margin you placed on the trade.
  • Going short: Conversely, if you anticipate a price decline, you can go short by selling a gold CFD. Profits are then generated if the price falls before you repurchase the CFD to close your position.

VT Markets also offers up to 500:1 leverage on gold, a tool that can amplify your potential profits. Leverage allows you to control a larger gold position with a smaller initial investment. For example, with 10:1 leverage, a $1,000 investment can control a $10,000 gold position. However, it’s crucial to use leverage responsibly, practicing sound risk management strategies like stop-loss orders to mitigate potential losses.

In addition to a user-friendly platform, VT Markets provides daily market analysis and valuable educational resources to help you make informed decisions and navigate the gold market with confidence. Plus, test your strategies risk-free with their demo accounts.

In conclusion, the factors driving the gold price surge are complex and multifaceted. Understanding these factors, coupled with a well-defined trading strategy and a commitment to risk management, can empower you to potentially capitalise on this golden opportunity. If you’re interested in learning more about gold CFD trading, explore the resources offered by VT Markets and take the first step towards joining the gold rush.

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