Media centre

Browse our latest news and press releases

CFD trading is high risk and may not be suitable for everyone.
With coronavirus volatility and remote work, people are turning to day trading
  • Day traders buy and sell financial instruments within a single trading day

  • Short-term trading is leveraged and requires specific knowledge and experience to manage risk while optimizing results

  • Online brokers such as LCG are seeing increased interest in trading, LCG has extended its range of educational service

 

London, April 9, 2020: As the coronavirus has continued to spread, many businesses have asked their employees to work from home and equipped them with high-speed laptops and smartphones. Amid an economic collapse and layoff spikes, some people  have elected day trading as a part-time activity.

According to experts from LCG, day trading requires developing a detailed strategy and the consistent execution of a trading plan. With spare time at home, the occasional trader can become a day trader.

Markets are observing unprecedented times and significant worldwide economic disruption, but experienced traders know that volatility is offers extra potential as long as the additional risk is understood.

”Price moves that typically take weeks to materialize are happening in hours. Things like the price of oil losing two-third of its value in the first three months of this year are capturing the public imagination. But capturing this volatility is far from a given and many traders get caught offside by not adjusting quickly enough. Having a trading strategy that can adapt parameters like profit targets and stop losses is paramount, explains Jasper Lawler, the Head of Research and Education at the LCG (LCG).

Day trading is the practice of buying and selling a financial asset within a single trading day. Known as day traders, investors that follow this practice sometimes make use of financial leverage. This means taking bigger positions relative to the amount of funds they have to trade which can lead to bigger wins and losses. Day trading is most commonly seen in the foreign exchange and stock markets.

Due to the short time frame involved and the use of leverage to maximize profits, day trading is normally reserved for investors that are knowledgeable about the financial markets. The trader must develop a clear strategy and have enough discipline to stick to it.  Day traders focus their activity on only a few assets, opening their positions on the market throughout a trading day and closing them before it ends.

Following the latest economic news and events is important to a day trader. It helps to understand them how a specific asset will perform over the coming day and allows to adjust their strategy accordingly. Technical analysis is also central to developing an idea of how a given asset may move.

LCG is seeing an increased interest from people wanting to take advantage of volatile markets. The number of those looking for information on mobile devices related to daily affairs analysis, trading psychology and strategy have risen by 25 %. According to the online brokerage firm, traders now spend more time on learning risk management techniques via webinars and expert analysis on market movements via social media as well as specialized thematic cheat-sheets to reflect the current market opportunities.

LCG offers trading to its clients on the trading platform

Risk Warning: Contracts for Difference (CFD) trading carries a high level of risk to your capital and can result in losses that exceed your initial deposit. CFD trading may not be suitable for everyone, so please ensure that you fully understand the risks involved. LCG Capital Markets Limited (LCG BHS) is a company registered in the Commonwealth of the Bahamas under registered number: 200271 B. LCG BHS is authorised and regulated by the Securities Commission of Bahamas (SCB) with License No. SIA-F194. The registered address for LCG BHS is: Sassoon House, Shirley Street and Victoria Avenue, Nassau in the Island of New Providence, P.O.BOX SS-5383, Bahamas. Please read carefully the relevant Risk Disclosure, available here Legal Documentation

Affiliate Regulations:
LCG Limited- Financial Conduct Authority (FCA no. 182110)
LCG (Cyprus) Limited- Cyprus Securities and Exchange Commission (License No. 341/17)

The information on this website is not directed at residents of the following countries: Australia, Belgium, Canada, New Zealand, Singapore and United States, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to the local law or regulation.

The website www.lcg.com/int/ is maintained by LCG Limited (hereinafter as ‘LCG LTD’). LCG LTD is a company registered in England and Wales under registered number: 3218125. LCG is authorised and regulated by the Financial Conduct Authority (FCA) under the firm reference number of: 182110. LCG LTD, LCG Int. and LCG BHS are subsidiaries of LCG. LCG Int. operates the website https://int-my.lcg.com. LCG (INT) LIMITED OU is a subsidiary company of LCG Int. Limited (“the Company”) and is acting as the payment provider of the Company.