When political powers unite and strike up a relationship, the benefits for the average person aren’t always obvious. For instance, when the Paris Agreement was signed in 2016, the push to reduce greenhouse gas emissions was clearly a positive thing. However, for most people, this meeting of political minds hasn’t really changed much in their day-to-day lives. Naturally, in the coming decades, the Paris Agreement will clearly help the environment and, in turn, our lives. The same argument can apply to an important trade deal between Singapore and India. Announced in June 2018, the agreement reduced or eliminated tariffs on 30 products. Following a second review of the Comprehensive Economic Cooperation Agreement (CECA) between the two countries, officials agreed to reduce levies in order to boost import/export opportunities.
For the national coffers, the new tariffs will clearly bring in more money. For businesses affected by the tariffs, such as those focused on food and nylon products, the changes will also be financially beneficial. For consumers, the medium-term benefit should be better prices. However, in the short-term, there is another way to capitalize on the deal. By dipping into the online trading world, anyone can invest in currencies, commodities and companies and make a profit. By downloading a commodities and forex trading app, a novice can not only get access to thousands of trading options but supplementary tools. From live price data and alerts to trading guides, even those with very little experience trading can dive into 15,000+ markets using their iOS or Android device.
With these provisions in place, a sharp investor can take advantage of a news story about a new political agreement between Singapore and India. In fact, what’s interesting about online trading is that contracts for difference (CFDs) allow investors to take either side of the equation. So, if someone felt like reducing tariffs for nylon would negatively impact the value of wool, they could use a trading app to speculate on the price decrease. Similarly, if the new levies on food are going to cause a spike in the production of bread, savvy investors could get in before the market reactions and turn a profit. Although the technicalities of trading are more complex than our examples would suggest, the basic premise is simple. By taking note of world events and potentially positive political unions, the average person can benefit in the short-term.
Of course, this isn’t true in every situation and nor should it always be your goal. However, if you’ve ever read a headline about events like a US-China trade war and thought “what’s in it for me?”, the answer could be an investment opportunity. Thanks to modern technology, it’s easier than ever to access a world that was previously once reserved for the financial world’s elite. What’s more, with the top online trading platforms set-up to help newbies become experts, the opportunities are there for everyone. In short, if you’ve got your finger on the political pulse and want a way to take advantage of what you know, trading technology is a hugely valuable resource.