October 27, 2020 | AtoZ Markets – The fast spread of Coronavirus (COVID-19) dramatically impacted financial markets worldwide, including the forex market, characterized by extremely volatile markets. For example, from February 2020 to March 2020, the S&P 500 index fell 34%. This fall was accompanied by extreme volatility at a level last seen during the financial crisis of 2007–2008. Specific measures implemented by governments across the world harmed currency valuations.
Surprisingly, however, some of today’s financial markets are in a booming mode. One example of those markets is the forex market, which has seen the best-case scenario. During the Coronavirus, the volume of the forex trading market has actually increased dramatically.
Coronavirus effects on online forex trading
As unemployment rates sore, many remaining without a job, started looking for different income streams. With more free time available to them, individuals discovered online trading and started to invest time in learning to trade. Part-time traders recognized the unique opportunity presented by the pandemic and devoted more time for trading online. Together, it increases overall trading activity.
The forex market, compared to others, is the most liquid and largest financial market in the world. The fact that it is open 24h makes it easy and accessible to trades worldwide, in different time zones.
For many traders, the most significant advantages of trading forex, compared to stocks, is that forex offers equal opportunity in both the market’s rise and fall. If one currency falls, it does so against another currency. All currencies cannot simultaneously decline.
The forex market offered attractive trading opportunities even while other assets decreased in value due to the COVID-19 crisis. However, some currencies were much more stable than others during the pandemic; they are the US Dollar, the Swiss Franc, and the Japanese Yen.
Summary of COVID-19 impact on the forex market
Economic changes in various countries worldwide will likely continue to impact the forex market, and it remains volatile for a long time.
Though the world is in a panic, as long as we can remain one step ahead using planning as much as possible, it will help us to succeed during these times. It looks like things will continue to be unstable for the time to come, but they can also present great opportunities. Now it is the perfect time for traders to tap into the large variety of educational materials available online to horn their trading skills, as they will remain helpful once the crisis is over.
Trading signals can be very helpful now, too. You can receive free, reliable trading signals directly to WhatsApp or email. LegacyFX signals are based on advanced technical analysis and can help you identify unique opportunities.
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