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  • Synthetics make it custom – creating your own instruments

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It is challenging to be distinguished in the rapidly changing financial environment and grab the Trader’s attention. Broker’s offerings are very generic, and broadly speaking, there are no significant differences between them.

They have standard options to differentiate by changing the spread, swaps or commissions; however, it’s too little to stand out from the competition with the same platform. The main actions to draw attention on the market are marketing with sports stars, sports sponsorship, and adding more exotic instruments such as new cryptos, fan tokens, hundreds or even thousands of equities.

The market, by its nature, is subject to continuous development. To remain competitive, especially the creation of new trends is essential. We have recently experienced some directions as a technology provider: a geographical expansion and entering new promising markets such as the MENA region, South America or India. Some of our clients create different local instruments such as GAUTRY or  XAUUSDG, XAUUSDK and similar to that with silver, platinum, palladium to address local needs.

Many traders speculate on their local currency such as ZAR, INR, CLP and more quoted usually with USD. Unfortunately, there is often a problem finding the source of quotations for such unusual pairs. Here come synthetic instruments that could be an excellent fit for a particular clientele and help gain a competitive advantage.

One of the non-obvious solutions we can suggest to our potential customers is creating synthetic instruments. This functionality, available as an option in our Bridge, is offered as a single software or part of our White Label or Server Support package. 

The system enables us to cross any two instruments available within our Data Feed source, and it takes only a couple of minutes. You can create a new synthetic in a couple of ways:

  • Reverse quoting – you can change the quotation of every forex or crypto instrument, i.e. EURUSD to USDEUR.
  • Symbol splitting – base currency from the first pair and base currency from the second, i.e. BTCUSD | GBPUSD = BTCGBP. 
  • Symbol multiplying – base currency from the first pair and quoted from the second pair i.e. ETHUSD x USDPLN = ETHPLN

Please note that points 2 and 3 require a common currency on both sides.

Furthermore, our Bridge has side functions that can be used while creating new instruments:

  • Change in the quotation value of indices, commodities, and equities from USD to any other that crosses with a USD. For example, the coffee price reflected in USD to, i.e. USDTRY pair to reflect the price in a Turkish Lira – Broker can target a specific region by accommodating a local currency.
  • The creation of an entirely new instrument, i.e. stock operating in gold mining vs the price of gold.
  • Quotation change in some instruments, i.e., GAUUSD instead of XAUUSD. Gold is expressed in grams instead of an ounce, encouraging traders with lower margins.
  • Suppose the broker changes the contract size of the instrument (i.e. half price of BTCUSD to lower psychological boundaries of traders), which is available on a liquidity provider side. In that case, the Bridge can hedge those positions by a simple change in a multiplier value.

The range of modifications is vast, and everyone can find something new. Such instruments can be beneficial to target exotic regions and traders with lower margin capabilities. That will help surprise your existing customers and accommodate local preferences. 

Our instrument portfolio has 43 forex pairs and 47 cryptos + 3 crosses, which are excellent synthetics creation bases. Unfortunately, there is a wrong tendency on the market to claim to have hundreds of new crypto pairs, which is in practice a simple cross also available to create in our Bridge system.

Our Team is flexible when it comes to aligning with the broker’s needs, and we are happy to modify and create solutions following the voice of our clients. If you haven’t a White Label with the desired features, please email us to discuss your needs.

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