Today, cannabis trading has opened the way for traders to make some good sound investments and profits, that is, for those who get in on the action early.
It is the hottest trend to hit the global markets with some calling it ‘the new gold’, or ‘green is the new black’.
Based on a recent report, global consumer cannabis spending could grow by 38% to $16.9 billion this year.
That’s not all…
The global cannabis industry has grown exponentially and continues to soar with new opportunities arising in the market from industries as more countries and states legalize cannabis.
If you take a look at the impressive figures, you will understand why so many traders are opting to trade cannabis stocks and indices, as it opens up tremendous opportunities for savvy traders.
Growth in cannabis soars
In 2017 worldwide spending reached 9.5 billion US dollars with predictions that by 2022 it will reach 32 billion US dollars and by 2030 it will be worth a staggering $75 billion.
Now, you are able to trade cannabis stocks and indices which are offered through CFD Index on Plus500’s trading platform. Canopy Growth, Tilray, Aphria and Aurora Cannabis are only a few of the giant Cannabis companies to choose from.
Let’s first take a look at the different ways that you can access a balanced exposure and understand what is driving the growth in this niche market.
Medical products is seen as the primary product that will be the industries long-term sustainability.
Production and development of medical marijuana has seen biotechnology companies investing in research and development to maximize the strength of certain components.
Applications derived from cannabis are believed to alleviate a wide range of symptoms and have a positive impact on diseases such as epilepsy, multiple sclerosis, Parkinson’s disease, Alzheimer’s, cancer, depression, anxiety and breast cancer. Even the use of medical cannabis for animals.
Growers and the black markets
Since the legalization and relaxation of laws of cannabis by many countries, the growers that cultivate and sell to consumers and black markets will see revenues shifting and being absorbed by large corporations.
Expansion in recreational consumption
Large corporations, like Aurora Cannabis and many others are now active in many countries for recreational consumption, ever since the relaxation of laws and legalization of cannabis in many countries.
Cultivators and growers of cannabis are engineering and developing a variety of strains for products that can be used in the industry that are non-psychoactive.
Alternatives such as edibles and cannabis-infused beverages, hemp products all derived from CBD or Cannabidiol that has a variety of medicinal and health benefits without the side effects of being ‘high’ are being researched and developed.
Today, there is a lot of activity in the markets as companies look to capitalize on cannabis with mergers and acquisitions.
In order to profit from Cannabis trading, it is important for traders to keep away from company-specific trading, because of the entry of new companies in the markets, creating high volatility, and use an index approach.
With the many benefits of CFDs trading, like leverage, it has become a popular way to trade and increase profits.
Today you are able to trade indices such as BITA’s Cannabis Stock Index and share CFDs with the leading forex/CFDs broker Plus500.
However, before trading CFDs you should be aware of the risks involved because of the leverage.
At Plus500, you are able to learn all the ins and outs of trading CFDs, leverage and more by joining their informative education program. Here you will also learn about all aspects of trading, using the many advanced and powerful tools and features, trading strategies and more. This gives you control over your account!
You can also discover how to navigate the Plus500 platform which is easy to use and put to test your trading strategies with their free unlimited demo account that comes with virtual money.
Plus500 offer very attractive perks
- With no commission charges
- Free demo account with virtual money to practice trades
- Leverage of 1:5 trading through cannabis CFD indices
- Guaranteed stop
- Tight spreads
- Ability to trade on your mobile, and get free alerts on market events
- Advanced financial trading tools and graphs
- Financial news feeds
- Email and push notifications on market events, free
- Stop Limit/Stop Loss/Trailing Stop
Why trade with Plus500?
One of the major concerns when it comes to trading online is the safety and security of your investments and friendly user experience.
Plus500 is recognized amongst their traders for their integrity and honesty and are authorized by various financial institutions, they are also listed on the London Stock Exchange.