If you are an active trader on the forex markets, then you know that there are a lot of different factors that can influence the prices of foreign currencies. Whether it be natural phenomenon, political instability, or economic fluctuation, there a tons of different factors that savvy traders know to watch. The smartest traders even know how to capitalize on these fluctuations and make a profit.
Most traders are aware that they need to keep their eyes and ears open, and that is why they digest as much financial news as possible. Similarly, most traders actively following the major brokers since they report on trading trends. The XTrade Twitter feed, for example, constantly publishes information about hot trends and changing asset values.
Of all the factors mentioned above, political stability is often overlooked by forex traders. The changing of a government, and more radically war, can have a huge impact on a country’s currency. We have seen this recently in Syria and Turkey as their currencies were affected by the internal war in Syria and the attempted coup in Turkey.
Most recently, a shakeup in the Icelandic political system could potentially offer traders an opportunity on the forex markets. Iceland’s prime minister, Sigurdur Ingi Johannsson, has resigned from his post after the nation’s newly founded Pirate Party had a huge impact on the election.
“We are a platform for young people, for progressive people who shape and reshape our society,” said the Pirate Party’s anarchist leader Birgitta Jonsdottir in an interview with Agence France-Presse. “Like Robin Hood, because Robin Hood was a pirate, we want to take the power from the powerful to give it to the people.”
For those trading on XTrade, this could be a huge opportunity to make a profit. Keep your eyes towards currencies that may be affected by the changes in Iceland, such as the Kronor, the Euro, and the United States Dollar. Remember, do all of your research before trading on currencies in order to get an idea of which way they will move.
How to Capitalize on Political Changes
For those trading with XTrade or another forex broker, political changes like this are always something to stay aware of. That is because overnight a currency can rise or drop sharply in value. If you are savvy enough to buy, sell, or trade at the right moment, you could really make a killing on the forex markets.
That’s why staying abreast of the most up-to-date information is extremely important. You need to take in as many different sources of news as possible, and you need to focus on international current events.
For those that are a member of an affiliate program, like the XTrade affiliates program, you can capitalize on these events by publishing content related to the news. For example, you could publish content related to the political changes in Iceland and how new traders could take advantage. That will help increase your readership and hopefully your affiliates revenue.
Overall, stay ahead of the game when it comes to forex trading and be aware of everything that’s going on in the world. Who knows, maybe you will make one major trade that will provide you with a huge profit.