Turning inflation into opportunity – what can you do?

Inflation is now a global phenomenon and people from all over the world are impacted by it. With prices rising uncontrollably, the big question emerging is whether - and how - it is still possible to protect purchasing power. Trading and investing during such times come with challenges, forcing people to adjust their exposure. How and when inflation will abate remains an unanswered question, which is why, in the meantime, you need to have a plan for your money.

Uncertainty requires a short-term approach

With economic uncertainty projected to remain elevated, putting your chips in the right basket has become increasingly difficult, even for professionals. Twists and turns can hijack traders, which might be one of the reasons why market participants are shifting to a short-term approach in 2022.

One of the ways to do that is by using CFDs (contracts for difference), or instruments designed for those who want to take advantage of short-term price movements. With low costs attached, and plenty of brokerages offering CFD trading, a live trading account online can be opened relatively fast.

Elland Road and CFD trading

Out of the brands that currently focus on this niche, Elland Road manages to stand out for several reasons that must be discussed. First and most importantly, this is a regulated entity. Elland Road Capital LTD. is a South Africa entity, authorized and regulated by the Financial Sector Conduct Authority (FSCA).

Working with a regulated broker when trading CFDs comes with multiple benefits, including the fact that traders benefit from negative balance protection, their funds are kept in segregated accounts, and they have complete freedom to deposit/withdraw funds.

At a time when inflation is high, finding the right assets to trade is a challenging task. With Elland Road, traders can trade CFDs on stocks and forex, two markets where activity has certainly picked up this year, yet the price action has not been as violent as with commodities, for example.

The asset index is diversified, so there are plenty of other options, including indices and crypto CFDs. Diversification is key in times of uncertainty, as well as the ability to place and close trades quickly - and Elland Road seems to deliver on both fronts.

Since inflation is at a multi-decade high in some countries, households are squeezing their expenditures. Allocating capital for basic needs makes people spend less on discretionary items. However, even during times like these, investing money in preferred assets is a challenge and a necessity for financial well-being.

Elland Road’s offer can be accessed even with limited funding, with the minimum deposit required to get started currently standing at 250 USD/EUR for a Classic account. There are other larger accounts as well, each with a larger pack of trading benefits. The markets are open to the wider public more than ever these days, thanks to the conditions offered by brokers like this one.

Even though inflation has been changing spending patterns, opportunities continue to show up in the financial markets. By using CFDs, it’s possible to take advantage of price movements and counteract the loss of purchasing power resulting from inflation.