Month: August 2015

This leads to delays in the activities in the market thereby stopping the trades and their movements.

Now that all of us know about the volatility of this market, let`s take a look at how trades and trading activities get affected here because of this. Trading is all about the various assets that are used for trading on a particular trading platform and they are traded based on their pricing changes and their movements and successful victories in the market. Now one might find the prices of a particular asset being highly volatile. This, if it happens when the asset has already been selected for trading, what and how would a trader get affected?

  • High volatility leads to delay in the markets. This leads to delays in the activities in the market thereby stopping the trades and their movements. So when all this clears out, the prices of the assets might have changed from what they were at the start of the trades and hence a trader suffers this price change. The outcome of such fluctuations is both beneficial as well detrimental and here is where the luck of a trader works. There is absolutely nothing a trader would be able to do or the market for him.
  • Another delay might happen in the execution of the trades. Yes, when the market is low and slow, the system gets slow and you might experience a delay in the execution of a particular trade due to heavy internet traffic. So this way the number of trades a person plans to have a day might get crashed finally ending up at just one or two out of the many planned.
  • Another problem that a trader might face is the confusion or the discrepancy in the prices at which he had placed a trade and the prices at which they actually happen. When the system slows down, there are all possibilities for the quotes to get slightly interchanged causing a confusion in the prices of the trades.

It is for this reason that a trader is expected to always be in constant touch with the market to calculate and understand the changes and forecast any volatile situations to avoid losses and to safeguard his stand in the trading market. There are a lot websites that help in giving such information to the traders and also keep them updated with every change in the market. Getting a subscription to their website would amply support and help the traders in having a profitable and productive trade.