Category Archives: Education

Beginner’s Guide to Spread Betting: What It Is, How It Works and Why Choose It

In the last few decades, spread betting has turned from a niche investment product into a popular choice among UK traders and investors alike. However, if you’re just starting out, you may find this financial product to be somewhat intimidating. This is where our thorough spread betting guide comes to the rescue.

Below you’ll find all the things you need to know about spread betting before getting your feet wet. Ready. Set. Go!

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5 more “fat finger” errors that (nearly) destroyed the markets

A man with a smartwatch sitting on ground in despair

Source: Pixabay.com | Photographer: Holgers Fotografie

As we witnessed in our previous blog post on the topic, flash crashes can sometimes be sparked by typical human flaws, such as greed or carelessness.

This time around we’ll examine 5 extra cases where the markets crashed not just under the hasty fingers of nervous traders, but also due to some serious malfunctions in the automated trading software that they used. Before we do that, however, we’ll attempt to address the question that’s probably swirling in your mind as we speak.

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Two man-made flash crashes that rattled the markets

Fallen white king on chessboard

Source: Pixabay.com

Abrupt market crashes, also known as “flash crashes”, are anything but new. And while their effect on the global economies is typically short-lived, there are instances where such downfalls can spark lengthy economic crises, similar to the Black Tuesday—the day that marked the beginning of the Great Depression.

But if history has taught us anything during all these years of trading it’s that sudden market dips are usually a byproduct of either boundless avarice or downright reckless behaviour. In this article, we’ll look into two real-life examples of how greed and carelessness nearly caused the markets to come to a grinding halt.

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Should You Trust Market Crash Forecasts?

businessman-with-umbrella-standing-in-stormy-weather

Source: Pixabay.com | Photographer: Geralt

Incredibly low interest rates over the past decade. Surging debts on a global scale. Escalating trade tensions between leading economic powers. Extreme currency volatility.

These are all troublesome signals that immediately raise red flags in everyone’s minds about an impending financial crisis. And rightfully so since, if history has taught us anything, it’s that the markets go through repeated economic cycles of expansions and contractions.

But while most of us can sense that an economic downturn is probably coming, trying to come up with an accurate market downturn prediction can be a real brain-twister. With that said, what makes a market crash so notoriously difficult to predict in spite of all the “obvious” clues?

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Ray Dalio: there will be a new economic downturn in two years

Pictured: Train passing near a drawn shadow of a man with "Made in crisis" written next to him

Source: Unsplash.com | Photographer: Robert Metz

In about two years the global economy may enter a new financial crisis, thinks Ray Dalio, founder and co-chief investment officer of the Bridgewater Associates hedge fund.

In a recent interview for the popular business and economy website Business Insider, Dalio noted that the current situation is quite similar to that preceding the 1937 recession.

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Blockchain Technology: What It Is, How It Works, and Why the Corporate World Finds It So Irresistible

a blue web-like image in a digital setting

For the past decade, we’ve all probably heard the words “blockchain” and “blockchain technology” one time too many, much like a broken jukebox that is hopelessly stuck in an endless loop.

And when the cryptocurrencies drastically declined in price last year, we all thought we saw the end of it. Yet companies like Google and Facebook still seem more than inclined to invest millions into blockchain research.

Why is that? To answer that question, we need to start from the very beginning.

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