Expert Insights: Bitcoin Vs. Forex Trading


Expert Insights: Bitcoin Vs. Forex Trading

We speak with Ken Ong, Head of Global Futures & FX at KGI Securities, who shares his expert insights on bitcoin and forex trading.

Published on 28 February 2018

Bitcoin captivated the investing world in 2017, surging around 2,000% to an all-time high of over US$19,000. Although the cryptocurrency’s prices have fallen over 30% so far this year, many analysts and investors are still bullish on the future prospects of bitcoin and other digital coins. Others, however, still prefer to trade in conventional currencies via a forex platform.

 Ken Ong, Head of Global Futures & FX at KGI Securities in Singapore

Here we speak with Ken Ong, Head of Global Futures & FX at KGI Securities in Singapore, who shares his insights into the global cryptocurrency craze, explains the intricacies of bitcoin trading, and highlights opportunities in the bitcoin and forex markets.

Bitcoin, forex, cryptocurrencies, futures, KGI Securities, Singapore

WEALTH (W):  Bitcoin registered phenomenal gains in 2017. Where do you see bitcoin prices headed this year?

Ken Ong (KO): Views from our clients on the movement of bitcoin prices have been polarising thus far, as they take into account the current market conditions and circumstances. We always do advocate our clients to exercise caution when trading in bitcoin-related products.

W: How do you see bitcoin, other cryptocurrencies, and the underlying blockchain technology changing and developing in the coming years?

KO: Blockchain technology was deemed as an advanced cybersecurity feature a year or two ago. However, with the recent cryptocurrency theft, things have changed quite a bit. Blockchain technology will have to evolve to keep up with the rapidly developing and ever-changing world of technology advancements.

W: Bitcoin futures have been launched on several major exchanges. Can you explain what bitcoin futures are and tell us how investors can access them?

KO: A bitcoin futures contract revolves around users agreeing to buy or sell a specific amount of the cryptocurrency once it reaches a predetermined price on a future date. Currently, only CBOE and CME are offering bitcoins on the futures market and these can be accessed via our KGI Securities Singapore platforms.

W: What are the benefits of trading in bitcoin futures as opposed to bitcoin itself?

KO: Investors will be able to trade on bitcoin futures with leverage as opposed to a conventional dollar to dollar purchase of the bitcoin itself. The demand on a futures exchange like CBOE and CME would likely be more liquid and the fix upfront trading cost value adds to it. On top of that, investors can be looking to use bitcoin futures as a hedge against their bitcoin exposure. Being a cash (non-delivery) product, there is minimal risk to the growing trend of cyber-attacks on the cryptocurrencies exchanges.

Bitcoin, forex, cryptocurrencies, futures, KGI Securities, Singapore

W: How do you think the launch of bitcoin futures will impact bitcoin trading and prices?

KO: With the launch of bitcoin futures, more investors will be exposed to bitcoin and in the long run, this may have a great impact on the bitcoin industry as a whole.

W: When will we see a bitcoin ETF? What impact do you think this will have on bitcoin trading?

KO: Nasdaq bitcoin ETFs would be available and we do imagine that ETFs would serve as an additional and interesting avenue for investors to hedge their exposure in bitcoin.

W: How is trading in cryptocurrencies like bitcoin similar to forex trading? How is it different?

KO: Cryptocurrencies are slowly making their way as a mode of payment worldwide. This creates an underlying value for bitcoin just like any of the currencies. Bitcoin prices, however, are not as stable and have great volatility, which might present opportunities for investors to leverage on.

W: What are the advantages of forex trading compared to bitcoin trading?

KO: As mentioned, cryptocurrencies are similar to forex trading in a lot of ways. The main difference would be that there’s always liquidity under normal market conditions.

Bitcoin, forex, cryptocurrencies, futures, KGI Securities, Singapore

W: Which currencies do you see great potential in for 2018?

KO: Gold, Thai baht, and Chinese Yuan Renminbi are some of the currencies that could see an exponential increase in interest in 2018, and there should be lots of market players monitoring these pairs very closely.

W: Can you tell us about your online trading platforms? What is the technology behind them? Who can use them and how easy is it to get started?

KO: KGI offers a wide range of products such as forex, futures and equities.

All of these offerings are offered via advocated platforms such as Maxxtrader, MT4, and CQG. One can easily get started with our online account opening through our webpage.

W: What types of bitcoin and forex trading do you offer via your platforms?

KO: KGI is currently only offering bitcoin trading via the futures product. On the forex trading side of the business, we offer a wide range from the standard Spot FX to Forwards and NDFs up to the value date of three months.

W: What are your top tips for forex trading in 2018?

KO: We do see a growing demand and interest in Asian/US denominated currency pairs. It might be worthwhile to monitor these closely, given their significant political and economic ties with the US.

Bitcoin, forex, cryptocurrencies, futures, KGI Securities, Singapore


Find out more about securities brokerage, let us introduce you to the experts at KGI Securities. Fill in your details and we will contact you as soon as possible