pairs cfd - tesla and ford
pairs cfd - tesla and ford
pairs cfd - tesla and ford
pairs cfd - tesla and ford

26 Degrees launch Pairs CFDs

In an industry where broker dealers are constantly looking for new ways to expand their product range and differentiate themselves in a competitive market, Pairs CFDs by 26 Degrees provides them with an opportunity to do just that.

26 Degrees Global Markets, a leading multi-asset prime broker has announced the launch of their new trading product, Pairs CFDs. Built in-house and offered exclusively to broker dealers, Pairs CFDs provide traders with the ability to trade any two instruments against each other as a single instrument, just like an FX pair.

Whether that be Index vs Index, Commodity vs Commodity, Equity vs Equity, Pairs CFDs allow traders to go long in one instrument and short in another, creating a single leveraged position that is treated as a single trade.

Pairs CFDs provides a simpler and more effective trading experience than traditional ‘Pairs trading’ methods. Instead of a trader having to open two separate long and short trades where risk is managed separately, Pairs CFDs provides a single ratio of the two instrument prices, which is moving depending on the price fluctuations of the two separate legs. Importantly, this allows traders to easily set stop loss and take profit levels which are far more complex to set if managing two separate trades.

Pairs CFDs composition
Example of Pairs price construction

Just like any other 26 Degrees asset class, Pairs CFD pricing can be streamed via API from any of their 3 trading servers in LD4, NY4 and TY3.

Pairs CFDs can also be constructed in a way that either enhances or reduces volatility, depending on the correlation of the two instruments. Take Apple vs Microsoft during a volatile price event. As the two instruments often display a negative correlation, a trader who opens a long MSF/AAP Pairs position will see a price move in the Pairs CFD that reflects the aggregate volatility of the individual instruments. Additionally, Pairs CFDs offer greater margin efficiency than trading the two instruments as individual positions because margin is only charged on one leg of the trade, just like an FX pair.

No one else in the world is currently offering what we have developed. Our extremely talented team has built the technology whereby brokers can potentially offer their clients 100’s of new and unique Pairs, traded as a single position.

What is most exciting is how powerful these instruments can be around big news events like elections and earnings releases because of the heightened exposure they can provide.

We believe this presents a significant opportunity for brokers to offer a bespoke suite of highly relevant Pairs instruments to their clients and stand out from their competitors.
Gavin White
Group Chief Executive Officer

Riana Chaili, Chief Executive Officer – EMEA, highlighted the positive response from brokers already. “Those initial discussions we have had with some of our key broker clients have been extremely positive and provided a lot of valuable insights. Specifically, the ability for brokers to request bespoke new Pairs and within a short period, be able to show their clients a price in a unique instrument was well received and highlighted the sophistication and efficiency of the product build.”

26 Degrees launched with an initial suite of 20 Pairs CFDs, however are constantly adding new and bespoke Pairs in response to client feedback. To find out more about the Pairs products, click here.

If you’re interested in finding out more about Pairs CFDs by 26 Degrees Global Markets, get in touch!

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