News Trading page 2

Political and economic news is a powerful source of fluctuation in global financial markets. Even rumors of events such as falling central bank interest rates, lawsuits by governments and large corporations, soaring inflation, and unemployment, or a deteriorating international environment invariably cause market outrage.

In exchanges, one earns not only on the rise but also on the collapse of quotes. This amazing strategy is used by "bears" - traders who benefit from the "sinking" of securities and other assets. Because of the high speed of collapses relative to long rises, these operations are also called "shorts", "short positions" or "short selling". During crises, short positions make it easy and fast to make a fortune. In 1992 the well-known American trader George Soros and his partners from the Quantum Fund analyzed the currency market and noted that the pound sterling was unstable.

Political and economic news is a powerful source of fluctuation in global financial markets.