By LCG Markets

Top 5 CFDs Traded in October 2012 – AUD/USD continues to be the patriotic favourite but the German DAX index has taken the 2nd most popular spot, followed by Gold and the EUR/USD dropping from number 2 to number 4. In 5th place we have the consistently popular Dow Jones Index.

Trading volumes among the LCG Markets client base were analysed during the month of October in order to see which Forex, Index and Commodity markets were the most popular. October offered a few surprises with Germany’s DAX index jumping to 2nd place and the EUR/USD falling from 2nd to 4th place. The patriotic favourite was the AUD/USD and this first place ranking has remained so for the whole of 2012.

The 5th most popular product went to the Dow Jones index and unusually our very own Aussie 200 index didn’t make it into the top 5, instead placing 6th.

“November continues to shape up to be the most anticipated trading month of the year with the US election, falling commodity prices and a looming fiscal cliff in the US. Major indices were range bound and difficult to identify any clear direction as were the Aussie dollar and the Euro,” said Ashley Jessen, Head of Sales Trading, LCG Markets.

“In regards to direction we had a very interesting month with 64.5% of traders selling the Aussie dollar short, hoping for a fall in value. In addition to this, it appears many traders got the fall in Gold wrong with 72% of traders positioning themselves for a rise in the precious metal. Perhaps a few of the traders were licking their wounds and remaining hopeful of a rise in the short term.

“Markets across the globe have suffered unusually low volume and have been in a consolidation phase that will likely break very soon. Globally, economies tend to have already priced in the negative news and are remaining optimistic for the future and so many traders are positioning their trades to the long side,” said Jessen.




% of clients trading

% of clients long

Trading Outlook





Forecasts were 50/50 for a rate cut and with the RBA deciding to keep rates on hold, the Aussie dollar broke out of a short term resistance at 1.0400 but resistance remains heavy up to 1.0600.


Germany DAX Index



Range bound trading systems are working well currently in this market as it remains stuck between 7200 and 7400. A nice 200 point range for traders to capture.





Bears well and truly spoilt the party in October and the short term trend remains down with support sitting around the $1650 – $1675 level. The US election looms large on this market going forward.





With the US dollar strengthening in the short term, we have seen the Euro dollar weaken to under 1.2800. This is unlikely to remain this way and many traders are positioning their next play to the long side with heavy support around the 1.2800 level.


Dow Jones Index



There is no doubt the Dow Jones is in a solid uptrend with a month of profit taking knocking the wind out of its sails. Support at 13,000 needs to hold if the uptrend is to remain in place, allowing bulls to remain optimistic going forward.


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The information in this article is supplied by LCG Markets. While all care is taken to ensure that the information is accurate, TheBull is not responsible for the accuracy of the information presented. All opinions are those of LCG Markets, not of TheBull.

LCG Markets is the trading name of London Capital Group Pty Limited which is regulated by ASIC and is fully owned by London Capital Group Holdings Plc  which is listed on the London Stock Exchange. London Capital Group transacts over 30,000 trades each day and has over 70,000 clients globally. LCG Markets is regulated by ASIC under AFSL 364264.

While LCG Markets attempts to ensure that the information herein is accurate at the date the information was produced, however, LCG Markets does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.