What factors can affect online trading such as the forex market or even bitcoins and other cryptocurrencies?
Below we will try to analyze them, giving you also a complete explanation of how to invest and trade in these markets to get the maximum profit.
Data News and Economic Indices
The first element to consider is the economic calendar or a list that has the form of an economic indicator used on a daily basis by traders.
This economic news coming like a GDP report, today have a relationship with employment and also with producer price indices.
They soon provide important insights that have a high impact on this ultra-fast market.
Just as the GDP is acting, the employment report also helps investors in Forex or even the binary trading market to predict future levels of economic activity.
An inflationary process is characterized by the fact that the prices of the different goods and services do not increase at the same rate as wages. Consider these changes and their inclusion in the personal investment policy is of vital importance.
An environment of instability shortens the planning horizon and inhibits productive investment. The higher the inflation, the higher are the transaction costs in the economy. Money loses effectiveness as a medium of exchange and deposit of value.
The uncertainty in which the different economic variables are immersed in the world causes that the values obtained from the different economic indicators referring to the gains of a possible investment that isn’t yet known.
Interest Rate and Inflation
The dollar exchange rate and inflation are linked to short-term interest rates.
A rise in this rate determines the worth value of the currency. This means that it attracts more foreign capital with a consequent increase in exchange rates.
When the interest rate drops in value, then traders have more funds to spend, and this means that they make the economy grow and therefore bring the rate of inflation to increase.
Geopolitical Events
In short, they are factors that have a keen effect on forex and also the movement of prices in the stock market and options.
We can, therefore, say that some geopolitical events including political elections (for example the US presidential election between the Republican Donald Trump and the democratic Hillary Clinton) caused nervousness between traders and investors.
This event does nothing but produces great market volatility.
Here, experienced traders who have adequate knowledge of the reaction of assets can, during these geopolitical events, make profits even in a few minutes.
As a result, it can be said that only well-informed traders who closely monitor events worldwide can be considered as having the ability to move in the positive direction, including by trading binary, Forex or equities.
Conclusion
There are also some of these factors that directly influence prices while others do it indirectly.
It is clear that knowing these factors and making online trading through the best brokers like Juno markets is very clever so as in to keep pace with the ever-changing world of competition that involves trading.
You can also maximize profits when selecting the right trading platform and trading at the right time, this way, you will record success as many have done at Juno markets forex.
