CFDs – or Contracts For Difference – are increasingly popular financial derivatives among both professional and novice traders who wish to invest in the financial markets and make quick profits. To be profitable while trading CFDs, you need to focus on the most promising financial instruments – ones that are both liquid and volatile.
This month, 3 assets with interesting growth potential are the GBP/EUR currency pair, Bitcoin and Starbucks stock.
With UK Prime Minister Theresa May on her way out, all Brexit bets are off, and the GBP/EUR currency pair is an appealing pick. While the UK was given an extension until October 31st to reach an agreement on how to leave the EU, there is still no common ground about a deal.
This uncertainty is weighing heavily on sterling, which has been trading downwards for a few weeks. Indeed, economic as well as political risks about the divorce between the UK and the EU bloc are constantly affecting Forex markets, especially currency pairs containing the GBP.
Greater uncertainty and market volatility should be used wisely by CFD investors to take advantage of great trading opportunities.
Bitcoin is the most important cryptocurrency with market dominance of about 56%. As the largest virtual currency and the first one ever launched, Bitcoin has been leading the crypto-market upwards for the last few weeks. In fact, its price has risen by more than 90% since the beginning of the year.
The asset has recently crossed many resistance lines with ease, which shows that the bulls have taken control. They support the price and are continuing to buy with each resistance crossed, without waiting for a drop. The pace of this rally has surprised many analysts, but according to Arthur Hayes, CEO of the BitMEX trading platform, the Bitcoin price should return to the $10,000 level by the end of this year. Cryptocurrency CFDs are a great way to take advantage of the high volatility of this asset class without having to own the tokens themselves.
Since the beginning of the year, Starbucks stock has gained about 20% and still presents great investment opportunities. One of the reasons for this is that Starbucks isn’t just a regular American coffee chain – the company wants to integrate more new technologies into its organization to improve its overall offering.
Its mobile ordering option, for example, is becoming increasingly popular. Starbucks offers a Mobile Order & Pay application to reduce waiting time in its branches. In addition, this method allows the company to collect large amounts of data about its customers (preferences, morning routines, etc.), which enables it to create more targeted promotional offers based on ordering histories.
Now Starbucks has announced the adoption of Microsoft’s new blockchain solution (Azur Blockchain Service) to allow its consumers to follow the path of their beverage from plantation to final purchase. Coffee lovers who care about fair trade will be able to access a wide range of data about each product, from place of origin to roasting date and means of transport.
The development of these initiatives is probably going to support the Starbucks stock price in the medium to long-term.
More on this topic: A GUIDE TO CRYPTOCURRENCY EXCHANGES