• Team
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms Of Use
  • Submit Guest Post
  • Editorial Policy
Nilsen Report
  • BEST RATED
  • Box Office Collection
  • Brand Post
  • Games
  • Health
  • Tech
  • International
  • Viral
  • Gambling
  • Sports
  • BEST RATED
  • Box Office Collection
  • Brand Post
  • Games
  • Health
  • Tech
  • International
  • Viral
  • Gambling
  • Sports
No Result
View All Result
Morning News
No Result
View All Result

Trading Advice During Times of Geopolitical Turmoil

Kanish Parihar by Kanish Parihar
January 22, 2024
in News
0
Trading Advice During Times of Geopolitical Turmoil
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Geopolitical tensions are reaching fever pitch levels, with the ongoing war in Ukraine, a deteriorating situation between Israel/Gaza, and now US and UK reprisals against terrorist sites in Yemen. Viewed in perspective, the world is indeed in a precarious predicament. Yet trading and investing activity continues unabated, albeit with redefined parameters.

 

READ ALSO

House of David Season 2: What Fans Can Expect From the Next Chapter

Will Trent Season 5: Renewal Status, Plot, Cast, and Trailer

The stock market is impacted by uncertainty. The correct term attributed to this is volatility. Stocks, commodities, indices, currency pairs, and contrarian financial instruments such as cryptocurrency et al., are highly reactive to sabre rattling. War has dramatic and far-reaching implications for traders and investors, often shortening the horizon to the immediate future.

 

For example, commodities markets feel the pinch more acutely than others, given the world’s reliance on Brent and WTI crude oil. Energy prices whipsaw dramatically whenever OPEC countries modify production/output capacity. Granted, minor military incursions have minor impacts on financial activity. However, the current conflagrations are proving to be intractable conflicts with long-lasting effects.

 

Why do wars impact financial instruments?

 

It is well-established that commodities markets are often first to suffer the ill effects of global tensions. This is exacerbated by ongoing tensions in the Red Sea, where pirates, terrorists, and state-sponsored militants are intentionally targeting the international shipping of at least 50+ nations in the said area. That Allied forces were required to retaliate against the blatant and unprovoked targeting of cargo vessels was unavoidable.

 

Unnatural impingement of demand or supply in commodities resources naturally impacts the price of those underlying assets. Crude oil, grain barley, wheat, sorghum, livestock, textiles, precious metals, et cetera, are all impacted when pirates hijack cargo vessels. This pushes up prices in the short term, resulting in a net long position with CFD commodities. This is easily evidenced by the world’s leading trading platform in MT4, facilitating CFD forex and stocks trading, and various commodities, including hard and soft commodities.

 

How are commodity prices determined?

 

A cornucopia of factors impacts commodity prices. These include the usual suspects – Supply and Demand – and other important criteria. For example, the actual physical inventory, or expected production capacity, is vital in determining commodity prices. Other factors to consider include famine and disease, labour shortages, production capacity, weather conditions, and regulatory measures which could help or harm the efficient and effective production, distribution, and sale of commodities

 

Practically, it’s important to understand that commodities are typically priced in US dollars. This means that a strengthening of the USD relative to other currencies invariably makes the price of commodities more expensive in local currency terms. Inflationary factors can also dampen demand for non-essential commodities but tend to be relatively price inelastic about necessities such as basic foodstuffs, fuel, and life-saving medical treatments (insulin, biologics, heart medication, et cetera) or products.

 

How do Canadian traders profit from commodities?

 

The geopolitical landscape is dynamic: Anything can change at any time. This is precisely the reason that short-term trading tactics and strategies are preferred during times of excessive volatility. Short-term represents the immediate future, within minutes, hours, or days. These types of trades are best suited to derivatives trading instruments like CFDs. Clients of registered trading platforms are not required to take ownership of the underlying financial instrument; CFDs simply track the price movements of the underlying assets. Profits can be generated on rising or falling assets, provided that the correct call has been made upfront.

 

Concluding Remarks

 

In these turbulent times, traders must navigate a rapidly shifting landscape as geopolitical strife escalates globally. The heightened tensions between major world powers and key geopolitical hotspots have cast a long shadow over financial markets, introducing unprecedented levels of volatility. Traditional trading strategies may falter in such an environment, urging traders to adapt swiftly to the evolving dynamics.

 

This volatile scenario underscores the importance of agility and foresight in trading. Investors and traders must focus on short-term strategies, capitalizing on the immediate repercussions of geopolitical events. Derivative instruments like CFDs (Contracts for Difference) become particularly valuable in this context, allowing traders to speculate on price movements without owning the underlying assets. Such tools offer flexibility in bullish and bearish markets, enabling traders to profit from quick shifts in market sentiment.

 

Ultimately, amid turmoil, the key to successful trading lies in staying informed, being adaptable, and having a keen sense of market sentiment. While uncertainty reigns, those who can deftly navigate these choppy waters may find opportunities amidst the chaos. However, it’s crucial to approach such volatile markets cautiously, understanding the heightened risks involved. 

Related

Related Posts

House of David Season 2: What Fans Can Expect From the Next Chapter
Entertainment

House of David Season 2: What Fans Can Expect From the Next Chapter

April 20, 2025
Will Trent Season 5
Entertainment

Will Trent Season 5: Renewal Status, Plot, Cast, and Trailer

April 20, 2025
Tracker Season 3: Renewal Confirmed, Release Date Predictions, and What to Expect
Entertainment

Tracker Season 3: Renewal Confirmed, Release Date, and What to Expect

April 20, 2025
‘Love Island USA’ Season 6 Stars Leah Kateb, JaNa Craig, and Serena Page to Reunite
Entertainment

‘Love Island USA’ Season 6 Stars Leah Kateb, JaNa Craig, and Serena Page to Reunite in New Peacock Spinoff

April 17, 2025
Will The Åre Murders Get a Season 2 on Netflix?
Entertainment

Will The Åre Murders Get a Season 2 on Netflix?

April 16, 2025
Golden Bachelor Star Gerry Turner
News

Golden Bachelor Star Gerry Turner Shares Positive Update Amid Incurable Cancer Battle

April 16, 2025
Next Post
Driver Parks in Front of Fire Hydrant, Faces Immediate Consequences

Driver Parks in Front of Fire Hydrant, Faces Immediate Consequences

Please login to join discussion

Popular News

Sean Kingston Released from Custody

Sean Kingston Released from Custody After Posting $100,000 Bond

April 16, 2025
Mikey Madison Rumored for Major Role in Shawn Levy’s Upcoming Star Wars Film

Mikey Madison Rumored for Major Role in Shawn Levy’s Upcoming Star Wars Film Alongside Ryan Gosling

April 16, 2025
Bad Sisters S3? Sharon Horgan Talks Spin-Off & Future Plans

Bad Sisters S3? Sharon Horgan Talks Spin-Off & Future Plans

April 15, 2025
Is 'Black Mirror' Season 8 Coming? Everything We Know So Far

Is ‘Black Mirror’ Season 8 Coming? Everything We Know So Far

April 15, 2025

EDITOR'S PICK

deadwind season 4

Deadwind Season 4: Release date and All you need to know

April 4, 2024
Marco Polo Season 3

Marco Polo Season 3: When will it Release and what to expect?

June 5, 2023
Gracie Abrams and Paul Mescal

Gracie Abrams and Paul Mescal: Relationship Update from Insider

April 7, 2025
Chilling Adventures of Sabrina to be converted into a comic book!

Chilling Adventures of Sabrina to be converted into a comic book!

August 6, 2021

About

Nilsen Report is an independent publication house which believes in bringing light to the latest News. We have explored nooks and corners of the world . This blog has well-crafted articles explaining the need-to-knows about the things happening around the globe.

Follow us

Categories

  • Brand Post
  • Canada
  • Cover
  • Entertainment
  • Events Toronto
  • Fashion
  • Film Studio
  • Gambling
  • Games
  • HAMILTON
  • Health
  • International
  • LifeStyle
  • Movies
  • Music
  • News
  • Opinion
  • Politics
  • Science
  • Sports
  • Tech
  • TORONTO
  • Travel
  • TV Shows/ Web Series
  • Uncategorised
  • Uncategorized
  • Viral

Recent Posts

  • House of David Season 2: What Fans Can Expect From the Next Chapter
  • Will Trent Season 5: Renewal Status, Plot, Cast, and Trailer
  • Tracker Season 3: Renewal Confirmed, Release Date, and What to Expect
  • ‘Love Island USA’ Season 6 Stars Leah Kateb, JaNa Craig, and Serena Page to Reunite in New Peacock Spinoff
No Result
View All Result
  • About Us
  • Contact Us
  • Editorial Policy
  • Home 1
  • Privacy Policy
  • Reviews
  • Submit Guest Post
  • Team
  • Terms Of Use

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.