Tactical Asset Allocation
Not every trading instrument performs well all the time; some trades go well. while others fail. Experienced traders understand what trades they should switch out to optimise the performance of each instrument they trade, allocating equity to those asset classes which are currently performing well.
For example, during a global decline in the economy, it is often advisable to move into trades such as gold, government bonds, or maybe foreign currencies like the Swiss Franc.
This power, which multiple asset trading delivers, enables you to take advantage of market movements in order to seek greater income generation.
A Range of Opportunities
When one market is moving upwards, another might be declining. If you only trade one financial instrument, your chances of earning income from other high performing assets are slim.
Multi-asset trading delivers access to a wide range of financial instruments, enabling you to take advantage of those markets that are currently gaining while avoiding poor-performing assets because you always have the opportunity to switch to other asset classes and instruments that are on their way up.
For instance, you may purchase a long-term equity trade and still buy day-trade futures, which means you could then gain from the stock market as well as the futures market, at the same time.
Explore all contract specifications where contract sizes, minimum tick sizes and financing charges are indicated for every account type.
Find out how fees and charges are calculated on trades, including overnight costs, dividends, margin levels and contract expiration times.
Discover how our execution policy is designed to provide you with the best pricing and execution terms no matter how you trade.
Capital preservation tends to become more important during times of global economic downturns, and this provides traders with unique opportunities to adopt strategies that further the goal of capital preservation through hedging.
Hedging is an extremely effective risk-management strategy that the majority of experienced traders turn to in order to offset short-term risks in their portfolios. For example, you might open a number of trades in US stocks but are concerned about the upcoming FOMC announcements. With access to derivative products like commodities, you can go short the Dow Jones, for example, and potentially reduce your profit, but also hedge yourself against future loss of funds.
As most investors and traders have realised, a well-diversified portfolio can be the key to success in the markets. You can effectively reduce your risk exposure by making investments in multiple markets or asset classes at the same time.
This strategy makes it easier to survive price swings and achieve more stable returns. The majority of investors often diversify across sectors and geographies as part of a diversified portfolio and can do so when they have access to a multi-asset trading platform, and a suite of asset classes to select from.
Power up your trading by choosing a margin account for leveraged derivatives trading.
Leverage is key as it is one of the most efficient uses of capital for all types of trader. For example, if you choose to trade oil, you could buy a futures contract, which requires only a small percentage of your total exposure as collateral on your margin account. Leveraged derivative trading delivers unrivalled access to markets that would otherwise be unavailable.
Leverage also allows you to take larger positions without having to tie up the bulk of your capital. In short, leverage can amplify your potential for profit, even though it may also increase your potential for loss.
Why Trade & Invest with SGT?
SGT has been providing trading and investment services to international clients since 2006.
SGT has secured Professional Indemnity coverage for its FX and CFD trading underwritten by a Lloyds of London syndicate.
In today's global markets, no trade is removed entirely from the impact of geopolitical and economic risks.
To build your wealth and protect your portfolio effectively, you need a strategy that can defend you against these risks.
For many traders today, multi-asset trading is rapidly becoming their preferred tool, not only to mitigate risk but also to capitalise on the volatility in the movements of the world’s markets.