Why do we discourage setting minimum trading premia?
The founders of Currency Hub have always traded their allowance in Q1 since 2017. Why? Because premiums decline over time, and timing spikes is impossible—just like in equities, where Warren Buffett advises staying in the market rather than trying to time it.
For example, in Q1 2022, the premium averaged 2%, but by Q4, it dropped to 0.7% due to congestion from last-minute traders using their SDA + AIT. This significantly impacts both premium and profits.
Many hold out, hoping for past premiums to return, but “past returns do not guarantee future performance.” We advise trading what’s available now rather than risking delays and getting stuck in Q4’s historically lower premiums.
Our goal is to preserve your AIT while securing the best available returns. You can afford to wait in the first half of the year, but if you haven’t started trading by June/July, you risk running out of time or settling for a lower Q4 premium.
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