In the midst of this recession, forex traders are having a field day with volatile currency markets.
Terrance Lee, assistant manager at PhillipCapital sees a very healthy range of trading in terms of highs and lows – at least 300 to 500 pips during intraday trade. For a normal contract, one pip is worth $10.
“Right now I think volatility is the key factor in investing in currencies in terms of short-term investment,” Lee commented at the Asia Trader and Investor Convention held in Singapore the past weekend.
“When we see this sort of volatility in the market, we don’t necessarily need interest rates to be high in order to benefit from it,” Lee adds.
One currency Lee is very keen on is the British pound sterling .
“Sterling against the (U.S.) dollar – I like to call this the monster pair. When this pair moves, it really moves and you can see at least four to five hundred pips in the intraday trading range. Sometimes it can even go up to seven to eight hundred pips,” Lee says.
Lee has been trading the pair successfully for the past several months.