Mon. Oct 19th, 2020

One of the most important things to remember when you’re working with finances is that the economy can crash instantly. There is a lot of effort all year round to keep the economy afloat and to ensure that people are putting themselves in the soundest financial position possible, but it’s not always controllable.

For example, as Britain battles over Brexit, the GBP has fluctuated many times in just three and a half years – so who could guess what is going to happen next? It’s important to try and learn from history, and one of the best ways to do that is to remember that the economy isn’t always stable.

The sector most likely to see a crash following failure in the economy is trading – particularly Contracts for Difference (CFD) trading. As a whole, CFD includes speculating the future of the market, and if things are looking particularly well, a drop in the market could lose you a lot of money. However, it could go the other way around, and you could make a profit on markets that are failing. For example, if you’d guessed that the GBP would go down after the EU Referendum, you would have gained a high chunk of profit.

Investopedia noted that one of the biggest downfalls in history was the idea of ‘too big to fail’. Investors were adamant that larger banks were too big to fail, though the financial crash suggests otherwise. While banks are in a strong position, it’s still worth remembering that no company is “too big to fail”, and if you risk your finances with high trade prices, you may lose it all. When it comes to trading, remember to only ever do so within your means.

Following both The Great Depression in the US, and the Great Recession in the early 2000s, we’ve seen financial strain affect people in more ways than one. However, they followed multiple drops, not just the fall in the stock market. Not only did house prices get more expensive, but the credit crunch also affected people’s livelihoods. However, one of the key things that can affect people remains currency, which has recently grown in popularity for trading.

Cryptocurrency is a key aspect of the trading world nowadays, as is guessing the cost of finances. Different currencies change price constantly, which is why it’s best to speak with a number of travel agents on currencies before going on holiday and getting different currency.


Ultimately, there are a number of factors which will make a large difference within the trading industry, which is why we’ve seen so much change over the years. If one thing is clear from history, it’s that nothing is ever completely safe. This is proven by the demise of Thomas Cook – once the leading travel agent in the UK, but as the industry evolved, the company became less desirable. It’s vital to never put all of your funds into one company, and always be ready to make a fast move.

Leave a Reply

Your email address will not be published. Required fields are marked *