CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.99% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.99% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Security of Funds

Security of your funds is our number one priority. We safeguard our Client funds in top tier banks.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Two Reasons Why It is Prime Time for Trading Despite Silicon Valley Bank’s Failure

Alejandro Zambrano Alejandro Zambrano 16/03/2023
Two Reasons Why It is Prime Time for Trading Despite Silicon Valley Bank’s Failure Two Reasons Why It is Prime Time for Trading Despite Silicon Valley Bank’s Failure
Two Reasons Why It is Prime Time for Trading Despite Silicon Valley Bank’s Failure Alejandro Zambrano

In the last few days, silver prices soared by nearly 10% in just two days, whilst Bitcoin prices gained 21%, and the DAX 40 dropped by 5% from last week’s high. What drives these significant price changes, and why is it prime time to consider funding your ThinkMarkets account and start trading?   
 

The most waited recession, the second shoe finally drops  


Economists and market pundits have been calling for a recession for months as the Federal Reserve increased its funding rate from near zero to 4.75 per cent in the last 12 months. The Nasdaq 100 did indeed drop by 37% from its 2021 high consequently. However, since its October 2022 low, the index was up by 24%, whilst the US economy remained very strong, apparently unaffected by the sharp increase in interest rates.   

The reason for the increase in the Nasdaq 100 was because, for the first time in a long time and to investors' surprise, it looked like the Federal Reserve was able to implement a soft landing. This is when the central bank manages to lower inflation and economic growth without crashing the economy.   

Yet fast forward a few weeks, and the troubles expected by experts have finally emerged with the spectacular collapse of Silicon Valley Bank (SVB), a bank highly favoured by the tech industry. The failure marks the second-largest bank collapse in US history.   

Over the weekend, the event posed a grave threat to some of the most promising US and UK firms. Indeed, the future lifeblood of these countries was staring down the barrel of bankruptcy, as they had money trapped within the bank and no other funding to survive.    

Subsequently, the US and UK governments have been forced to step in to support depositors, and markets have reacted forcefully, sending yields lower and silver and bitcoin prices higher.   

New traders may perceive increased market turmoil and recession risk as a reason to avoid trading. However, as a trader we need the markets to move to earn, so some say market turmoil provides the best time to start trading with caution.  
 

No smoke without fire  


It is unlikely that the Silicon Valley Bank (SVB) and Silvergate bank, an essential bank for the crypto sector, are the only victims of the increased interest rates. Most leading economic indicators suggest that the unemployment rate is on its way up in the USA, which should send shockwaves across the financial markets and allow experienced traders to capitalize on market volatility.   
 

Technical analysis works better  

In times of high volatility, technical analysis can be really handy. Various chart patterns can help traders identify upcoming trading opportunities, such as classical patterns like rectangles, heads and shoulders, and ascending and descending triangles. 

All in all, the next few months may be very exciting as risk often brings opportunities. However, make sure to use risk management tools to prevent losses higher than you may anticipate. 

Open and fund your trading account with ThinkMarkets today. Trading during volatile conditions may lead to profits as well as losses.  
 
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

Join the hype around the launch of the new ME...

By Alejandro Zambrano

06/07/2023

Top 5 AI Stocks in 2023

By Carl Capolingua

13/06/2023

US interest rates in balance as traders await...

By Carl Capolingua

10/05/2023

Charts show Banking Crisis echoing GFC meltdown

By Carl Capolingua

04/05/2023

Gold and Silver's time to shine amidst market...

By Carl Capolingua

05/04/2023

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top