Article

What factors can affect share trading?

Topic: Stock TradingPublished April 30, 2012

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What factors can affect share trading? Trading on global equities has become one of the most popular forms of CFD trading. Part of the appeal for CFD share trading comes from being able to go short as well as long on a share price, which allows you to potentially take advantage of a falling price, as well as a rising one. The triggers for these changes in value come from a wide range of political and economic factors. Here are a few examples of what sort of factors can affect share trading. Press release from the company One of the most direct factors that can affect share trading is a statement released by a company itself. For example, if a company listed on the Singapore Blue Chip issues a profit warning, as a result of difficult trading conditions, this could lead to some volatility in their share price. CFD trading allows you to take a position on this shortly after the announcement. Government announcement A domestic political announcement can also have a potential impact on the share price of a company. One announcement that has produced volatility in the markets in the past has been a country’s employment figures. For instance, the non-farm US payrolls, released by the US Department for Labor, indicate how many people found work for the previous month. A figure that is higher than estimated could help galvanise US shares, based on the pretence that if more citizens are in work, they have more money to spend and the population in general has more money to spend on services. International financial figures A statement made by a separate nation can also influence the share prices of a country. For example, Australia and China have a close trade pact, which is worth in excess of A$105 billion. Because of this shared economic interest, the news that could affect one economy could also impact the other. Where to learn more These are just a few examples from many potential reasons that could affect share trading. You can find out more about what other factors there may be, as well as more information on share CFDs in general, at IG Markets. They provide free online seminars and daily market analysis to help you understand share trading. They also give you the chance to trade yourself in the market, with over 300 Singapore shares to choose from, as well as thousands of other global equities. Please refer to the risk disclosure statement from IG Markets. This article is provided for information purposes and should not be regarded as financial product advice. CFD trading can result in losses that exceed your initial deposit. You should consider the information in light of your specific objectives, financial situation or needs before making any trading or investment decision.

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