With oil becoming an increasingly attractive commodity to invest in amid unprecedented price moves, Axiory, a foreign exchange (forex) broker, has revealed exclusively to Finance Magnates that it will be launching new oil products – US Oil Index and UK Oil Index.
In particular, Axory is the first to go to market with IS Prime’s new products that aim to combat negative oil prices whilst still giving traders exposure to the asset. As Finance Magnates reported, the US Oil Index and the UK Oil Index are rebased at $100. This means, should IS Prime’s proprietary spot price fall into negative territory, say $-5USD, the pricing will reflect this at $95.
Speaking to Finance Magnates the Chief Executive Officer of Axiory, Roberto d’Ambrosio, said: “IS Prime came up with these products and we… think it’s the way to both protect clients and give them the opportunity to take advantage of the market.”
Not only does the new product, in d’Ambrosio’s opinion, allow Axiory to minimise risk and maximise the opportunity for its clients, he also highlighted that the product reduces operational risks, as it is harmonious with broker’s trading systems – as prices won’t go negative.
“Being an index and not a future it will have more smooth behaviour – still with a lot of volatility when this will happen during the settlement – but without the incredible impact it could have if the product was based directly on the future expiring the day that you have to roll it over,” he continued.
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Education is healthy for the whole industry
Nonetheless, although the FX broker will be launching this new product d’Ambrosio stressed that alongside this product, Axiory will continue to provide its clients, as well as traders who aren’t clients of the broker, with plenty of educational materials to ensure its users are aware of the risks and what’s happening on the market at present.
“We believe educating traders… is something that is very very important and it will be increasingly important going forward. Even if clients are trading with other brokers, I think it’s healthy for the whole industry that clients are aware of what they’re doing.”
Axiory sees record performance amid COVID-19 volatility
Aside from oil, Axiory detailed to Finance Magnates how it has been fairing amid the coronavirus pandemic. Overall, the lockdown measures have not been overly impactful on the broker, as the company already had employees working from home, so this has not been a large adjustment for the company.
However, like many in the industry, Axiroy has seen a solid uptick in trading volumes and client activity, with the company experiencing a record period in terms of volumes. More than that, the CEO of Axiory said that during this time, the firm has been able to keep business as usual, with clients served in a timely manner.
When asked whether Axiory experienced an uptick and volumes, d’Ambrosio responded: “The whole industry did and we did as well. We had quite an uptick in volumes… every time volatility in the market increases, volumes increase… we did very well.”