The main factors of influence on the currency, stock, crypto-currency market. Choose the best tool for trading!

The development of information technology allows anyone who has access to the Internet to trade in various financial instruments. It is worth noting that trading in all markets at the same time is not the best idea, because certain markets have different factors of influence, therefore it is easier to achieve more successful trade by studying thoroughly one of the markets rather than mediocre knowing about all.

To determine which trade will be preferable for you, you first need to know about the main factors of price formation in a certain market.

Currency market

The currency market can be considered the most difficult, since the movement of currency instruments can be immediately influenced by more than one factor, which will complicate fundamental analysis. The main factors influencing the movement of the instruments of the currency market:

  1. The state of the country’s economy, which currency is a component of the currency instrument, changes in key economic indicators (GDP, inflation, employment, wage level, etc.).
  2. Force Majeure Factors: weather disasters; military conflicts; man-caused disasters; coups d’etat, etc.
  3. Political factors: elections; political crises (disagreements in the government); adoption of bills that may affect the development of economic processes.

In turn, despite the factors of influence on the foreign exchange market, it is not worth erasing it from the list of instruments for earnings. It should be noted that the main currency instruments are formed in tandem with the US dollar, therefore, for trading these instruments, it is often enough time to assess how high the demand for the American currency can be and start trading.

Stock market

When people talk about the stock market, the first thing that comes to mind is the stock quotes of various companies, which can be profitable to trade. In contrast to the foreign exchange market, stock prices are affected by a smaller number of factors, which simplifies the fundamental analysis for trade. The main factors affecting the company’s share price:

  • Financial indicators of the company (the state of demand for the company’s products).
  • Legislative base of the country in which the company operates (Trump tax reform).
  • Force majeure factors that adversely affect the production or sales of the company’s products (production breakdowns).

Crypto-currency market

The crypto currency market is the youngest of the above mentioned, thereby attracting investors as a new niche for earning. In general, the price of the crypto currency is formed due to the supply and demand, but it is worthwhile understanding what can affect this balance:

  1. Regulatory measures against the crypto-currency market from various countries of the world (tightening of trade or use of crypto-currency).
  2. Media news about the theft of the crypto currency or the unstable work of crypto-exchanges.
  3. Acceptance or refusal to use crypto currency by large corporations.


As you can see, different factors can influence different markets and it is quite difficult to take them into account, therefore it is not recommended to trade on instruments of different markets simultaneously, but the analytical information provided by Ester Holdigs Inc makes this much easier for you.

It is also worth noting that the trade in crypto currency, as well as currency instruments, can be conducted around the clock. In case you want to trade not in one of the markets, you can safely combine the stock market with any other, as trading in this market is limited to a trading session. For example, in the first half of the day, you can pay attention to trading in the foreign exchange market, and with the beginning of the US stock session – the stock market.

Alexander Sivtsov

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