Election results are causing a flurry of trading activity
Image by Gerd Altmann from Pixabay
The US election day had been impatiently anticipated by the society of the world and finally, the world’s leading country has a new president, meaning that changes are coming in every area of the United States. While some people are still discussing whether the new president and his policies will be advantageous for the country or not, the impact of the elections is already felt in various sectors of the US and stock trading is among those sectors.
Experts try hard to predict what is ahead for the stock markets and many investors wonder how the US stock market participants will react after the election to protect themselves from possible risks. The flurry of trading activity can easily be noticed and it is not surprising at all because, throughout the history of the country, political uncertainties had always been followed by problems in the stock market.
Trading volumes increase
According to Reuters, all these political shocks caused by the election had a huge impact on the volumes of trade and in fact, the trading volume was boosted as a result of the election. Increased volume has a lot of reasons and one of the most important ones is that November has actually been the busiest month of 2020 for the trading industry. Although the volume across European markets faced great problems in the second quarter of the current year, now it’s clear that the results had been greatly exaggerated.
Another great reason for lifting trading volume was the Brexit related referendum in June that played an important role in boosting volumes. But also, on the other hand, one of the main sources for this increased rate is the number of people applying for a welcome bonus online on various forex platforms. The stock market relates to the FX market in a certain way. For example, fluctuation in currency rates can cause serious ramifications for companies regarding their costs, especially when they have international models. This can result in big differences in the quarterly earnings report and directly affect the stock price. Hence, probably, the high volume of the stock market is related to the fact that demand for the forex bonus promotions without deposit has risen and traders tend to open more and more accounts with the brokers as they have great opportunities to get no deposit bonus offers. As a result of the advantages of welcome bonuses traders usually earn decent payouts from the market.
As the volume of the stocks in the US market is still rising as a result of the elections, demands for the stocks are also increasing. It’s a pretty much important factor for the whole business sector of the country because the strength of the market is highly dependent on the volume and rising markets with high volumes are considered as strong and healthy. But still, it doesn’t mean that the current situation is stable and everybody knows that the post-election period can be harmful to the economy of the country.