Global Trader 247, the pioneering international financial institution offering a spread trading and a contract for difference (CFD) execution service to both private and institutional clients investing in international and domestic financial markets, has launched Recognia Technical Events and Chart Pattern Recognition Services as an additional service to its investors.
When an investor or trader performs a spread trade, the investor is exposed to the change in the value of an asset without owning the underlying asset itself - instead the trader enters into a CFD.
CFDs reduce the person`s capital investment requirement and, at the same time, increases their potential for profits. Spread trading, otherwise known as CFD trading in the institutional marketplace, is an exciting new alternative to traditional trading.
When investors buy a stock they pay 100% of the quoted price of the stock, plus about 1% in brokerage fees and tax, and then hang on for months or even years hoping the price will rise, allowing them to sell some time in the future at a profit. With spread or CFD trading (this is the major difference), the investor never takes ownership of the stock. All they are buying is the price movement in the stock (or bond, currency, commodity, etc). This takes away a lot of the headaches of stock ownership, such as script custody and tracking dividend payments.
Recognia`s Research Services allows investors on Global Trader 247 to look for patterns in the price movements of CFDs` underlying interest. For example, if Recognia finds a topping pattern representing a potential downturn in the price of a security, Global Trader 247 investors may choose to sell or short sell a contract against that security.
"Recognia`s pattern recognition technology is an extremely valuable resource to our investors," says David Butler, Executive Chairman of Global Trader 247. "As we offer the only CFD platform in SA that allows you to buy and sell exposure to global indices, equities, currencies and fixed income, Recognia`s ability to recognise technical patterns across asset classes has a highly tangible benefit to our investors."
Technical analysis is distinct from fundamental analysis, where investors use company and market information (such as earnings, balance sheet, interest rates etc) to make investment decisions. For those investors that in the past have tried to use technical analysis to support their investment decisions, it has been a time-consuming and manual process that often required extensive training and education. Recognia`s use of advanced computer technologies and innovative approaches has allowed for the automation of the process of finding, categorising and presenting events based on the principles of technical analysis.
"We are very pleased to be offering our services to Global Trader 247`s investors," says Sean Church, President and CEO of Recognia. "Global Trader 247`s product represents one of the newest and most unique investment products offered to investors in many years. Their customers now have access to leading analytics, of the kind usually only available to professional and institutional investors, to help trade a leading investment vehicle."
For more information on Global Trader 247, log onto www.gt247.co.za.
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