February 2015 Is Here

January is now gone, and it is February now, however, the markets won’t fully kick into gear until Monday when most businesses get back to work and the corporate exchanges open up for trading again.

One of the best things about Bitcoin and Altcoin is that it is much like trading on the Forex or the Futures because it can traded at any given time from anywhere with an internet connection. This opens up a lot of options for traders who want to keep their momentum going and moving their plays around that other exchanges like the NYSE and NASDAQ, and other exchanges that go on a 9 to 5 schedule.

While the more regulated Corporate exchanges should be strictly governed, it is essential that the commodity exchanges like Bitcoin, Gold, and Oil, be traded from anywhere around the clock. Why? Simply because they are staple goods, or primary commodities, whereas company stock, bonds, and funds are in competition with other companies, so unfair advantages could occur. Other reasons such as corporate governance and regional issues regulate companies based on their main country of business, so if the headquarters are in a specific country, it is most likely that they will be listed on the exchange in that particular country. However, many Canadian companies, and American companies, and really countries from all over the world can be listed on multiple exchanges. So if a mining company that has international operations is listed on the TSX, it can also be listed on say the Frankfurt, or the Australian exchange, as well as the NASDAQ. Where a company is listed is more than just where its primary headquarters are located, it is also about meeting the standards and regulatory measures that govern the listing requirements to be included on the Exchange.

It would never make sense to govern commodities in this way, and even some companies that are listed on multiple exchanges can be subject to what is known as the “Other Exchange” effect. If a company suddenly gets alot of volume on an international exchange like the Australian Exchange, then the following day, when the same company is listed on the American or Canadian markets, an increase in the value of the stock is often close to the gains posted during the night on the international exchange.

This is even more apparent in the Canadian and US companies who have a listing on the both the Canadian TSX, as well as the American NASDAQ, so that if the Canadian buyers want to use the TSX, then they can, and as many junior investing coaches will tell you, it is important to find these companies with dual listings and watch to see how the various buyers pick which exchanges to trade on. While the price in one country on one exchange may follow a similar trend as the other exchange, there can sometimes be a lag between the uptake on one exchange versus another, so that can be interesting to watch as well if you like stock market conversion plays.



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