Transcription
This has been a tumultuous year so far, leading to extremely fast evolution markets. In the first video in our three -part series with David Barrett of the Forex EBC Financial Group service provider, he thought about the first six “extraordinary” 2025 months, and how EBC global customers responded to the extreme volatility.
Global finance: Now, with current geopolitical tensions and policy changes in major economies, how does EBC help customers manage risks in such a fragmented global landscape?
David Barrett: Fragmented – Good word. Chaos, another word! The volatility we saw this year, even the first six months, has been extraordinary.
Everyone likes to move markets, but I think that some of the things we have seen, especially in April and May, were very, very extreme.
I mean I have been doing this for a long time. There are periods, you know, an extreme volatility that occurs. But for it to happen in such a random way that we saw was very difficult.
There are many customers who are simply not used to this. And are not configured to face it. Many customers who deal with markets today tend to negotiate in a fairly systematic way – they will therefore have trading algorithms or models that help them negotiate. Many people have used to signify return markets – so they sell rallies, wait for it to arrive, buy dips, wait for it to come back. And clearly, we have seen movements as huge as this kind of short -term trading scheme, especially at the beginning, suffered a lot.
And I think customers had to adapt to this. We have seen a change in the way the flow takes place, we have seen a change in the way different sectors of customers react to it. And I think it is our responsibility to give them the tools to be able to do so; But I do not think that anyone should never come back to the last six months and think that it is normal and acceptable, because it was right next to the ladder, it was really the case.
Global finance: How do traders rethink the risks and what EBC tools or strategies recommend navigating this environment?
David Barrett: I think they adapt, and I think people have to step back and understand that what we see is not normal and that they need to adapt.
So our advice to customers were: resume a little, smaller positions, less lever and take your time. Because if you look at volatility, you look at the extreme movements we have had, it has created a huge opportunity to enter and get out of the positions at levels and when you would never have thought would be there on the ordinary markets.
Our advice has therefore constantly been that you should be careful, you must preserve your capital and try to increase it. And we think that the opportunities offered by volatility mean that you can take your time, take a step back and do it more methodically than just jump with both feet.
Global finance: Have merchants changed their behavior accordingly?
David Barrett: Yeah I think they did it! As we said earlier, I think the obtuse volatility we saw was surprising enough for some people. There are people who exchange the markets who have not seen this.
We have customers of a full spectrum. Some of our entities will take care of retail; In the United Kingdom, we only deal with professionals. We have brokers, we have individuals with high net value as well as the guys of retail and family offices, etc. So there is a complete width.
I think the most professional end understands that these things can occur. But there will be many young retail traders who would not have seen this. And I hope it was a good education and a lesson for them, but I suspect that some of them have somehow had a baptism of fire. April in particular was quite mean.
Look at the second part of this interview with David Barrett: EBC UK CEO: wider instruments like ETF helping customers better reflect their risks
And the third and last video of this shooting: EBC Financial Group extends the business family in Australia and Maurice