Online trading

Russia Ukraine conflict: impact on investments in e-commerce

Online trading has revolutionized the idea of ​​stocks and equity. People used to physically go or call the exchange to buy and sell. Now, with just a few clicks, actions are immediately reflected on your system in real time. The platforms are regulated and standardized to guarantee secure payment and security. Online trading platforms range from stocks, currencies, commodities, NFTs, mutual funds, and more.

According to Fazzaco, there are 13.9 million online merchants in 2021. It’s affordable, remote, and no time restrictions at your fingertips. Multiple factors affect the stock market and the trading system. Recently, the pandemic and the Russian-Ukrainian war have significantly affected the market. But will the changes last? How long does it take to recover from a war and a crash?

Market price

The market fell and the economy shrunk globally after Covid-19, but was still trying to cope with the losses when the war came. E-commerce has increased post-lockdown due to home comforts, ease of use and availability. In addition, the urge to get more money and to invest motivated young people. Measures are taken to have secure transactions and regulated platforms.

If we consider the long term, the market always regains its momentum and recoups all kinds of losses. What will happen this time? Will the economy be able to support the Russian-Ukrainian war? This article contains all the information from the security expert’s perspective on what will happen and how the stock market and online trading will perform.

Online trading opens a window of accessibility where you can list your favorite companies to find out their current rates, make a quote and buy those stocks quickly.

How to trade online?

You click, pay and the actions are reflected in your account. Yes, the process seems that simple, but there’s a lot going on behind those clicks. Including-

  1. First, your request is recorded and the order is placed on the site.
  2. Sellers’ stocks are checked in real time and if they want to sell, a confirmation is sent to both.
  3. The order is listed on the government stock exchange and reflected on each platform
  4. Then you pay and verify your sale. And the stocks are reflected in your account.

People should be aware of the companies for which they want to buy shares. Search well; check their past debts, outstandings, assets, net profit and share price to confirm your wish to buy. Don’t fall prey to market trends and just buy because everyone else is buying.

Effects of war on market and e-commerce

The market is largely influenced by news globally and issues like war affect the market negatively. Countries spent trillions on defense after 9/11, especially the United States. The conflict in the Middle East and the border issues with Iran did not affect the economic growth of the market much.

Online trading is beneficial when you consider that people can buy or sell stocks from anywhere in the world. So even with the closer stock exchange in Russia, people can trade.

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The escalation resulted in an invasion of Ukraine by Russia on February 24, 2022. It led to a market imbalance. The S&P 500 index fell 7% over the next few days and people were worried about commodity prices. A month later, the market rebounded at a faster pace than ever. Over $100 a barrel for oil prices included.

Over time, from Pearl Harbor in 1941 to today, the prices go down with the war, but the loss ratio in comparison also goes down. It usually takes 6 months to a year for the market to return to its previous price after the crash.

Companies that will be most affected

The conflict between Ukraine, Russia and NATO allies will have serious repercussions on the prices of natural gas, oil and other raw materials. But the market still ignores it.

Because Russia is a global influencer with the most defense and nuclear power in the world, the results are terrible. The market loses profits and leads to high prices.

The most effective will be seen in the oil markets, as Russia is a major producer of natural gas and crude oil. Pipelines are supplied from Russia to the whole of Europe for oil supply. If a conflict results in the closure of pipelines, the infrastructure will collapse with rising prices.

bear market

The market slowdown and decline is beneficial under a few conditions. This is a situation for the stock market where the decline is greater than 20%. The other word is a recession which can lead to an economic slowdown.

But since the market is down, people who have savings or cash can buy more stocks and can take advantage of the price rally. People should be careful about where they invest. Investments must be anchored by strong balance sheets and strong cash generation. Still in companies with good quality metrics that can recover from the recession.

New investors are expected to enter the market to enrich themselves.

Online trading is a simple solution where young people are increasingly engaging in the stock market. The internet connects them with information about the companies they want to invest in and helps them make informed decisions.

Last words

The market has adapted and learned to deal with conflicts like this over time. For a while this affects the market and it drops significantly. But, the overall effect fades over time. Central banks are ready to suppress this financial volatility. E-commerce has increased cash flow in the market. He helped people become more aware and accessible to information. Ease of use is the most important factor for merchants and businesses.

The main stock market corrections are due more to the global crisis than to the Wall Street war crash of 1929 (-89%), the Black Monday crash of 1987 (-22%), the Internet bubble in 1999 (76.8 %), to the financial crisis in 2008 (-54%). Even after these catalysts, the market still found a way to recover and eventually hit an all-time high.