Jakarta, 13 August 2021 - After successfully recording multilateral transaction growth of 57.9% in the first semester of 2021, ICDX has launched nine new foreign exchange (forex) products in the GOFX derivative product group. The nine new forex products consist of cross pairs AUDCAD, GBPCAD, AUDCADMicro, GBPNZD, GBPCHF, GBPNZDMicro, EURCHF, NZDJPY, and CHFJPYMicro. The launch of this new product aims to support multilateral growth in the second half of this year.
“The advantage of trading non-USD forex is that traders can avoid several key events that are sensitive to dollar. One example is the high risk of trading during non-farm payroll announcements, either before or after. Cross pairs offer a more conservative way to trade during these times in the hope of avoiding the extreme volatility that is often experienced in USD pairs,” said Vice President of Research & Development ICDX, Isa Djohari.
Another cross pair advantage is the carry trade, where traders can take advantage of the higher interest rates provided by these currencies. The major pairs will always move in the same direction or against each other as the movement of the dollar exchange rate strengthens or decreases. While the cross pair allows movement with a new pattern because it does not follow the movement of the Dollar exchange rate. In addition, cross pairs also offer an excellent alternative when the USD pair fails to make any significant trades.
The launch of these nine new foreign exchange products also responds to the multilateral growth of ICDX forex transactions, which was significantly demonstrated by the micro forex GOFX which increased by 136%, namely 102,050 lots during January-July 2021. The development of ICDX forex contracts, especially micro pairs, provides accessibility for the public to be able to transact foreign exchange with less funds because the initial margin is very affordable. What's more, these nine new forex products are not widely available at Indonesian brokers, so people can access them through brokers that provide GOFX.
The GOFX spot forex contract is the first in Asia as well as the first legal micro contract in Indonesia which is only available on ICDX. As a derivative product traded multilaterally, all GOFX transactions are traded directly on the ICDX exchange, so the prices formed are more fair and transparent. All customer funds are placed in the ICH clearing house to ensure transaction security.
"Seeing quite good growth during the first seven months of 2021, and with the launch of this new foreign exchange product, ICDX is optimistic that it can continue to increase the volume of multilateral transactions, especially foreign exchange until the end of the year. As a Commodity Exchange, we strive to always be able to provide new multilateral products that traders are interested in. These nine new pairs are expected to fulfill traders' high needs for a variety of multilateral foreign exchange products," concluded Isa.