US Banks - which is the largest & its impact in trading?

Have you ever wondered which US bank is the largest in terms of assets? Well, as of the time of this writing, it's JPMorgan Chase - the New York-based financial institution with over $3 trillion in assets, making it one of the most valuable banks in the world. But why is this relevant to traders? And how can you leverage this knowledge to improve your trading results?

Keep reading to learn what you need to know about trading with this largest US bank, including why many traders keep a close watch on this bank when making trading decisions.

Why is JPMorgan Chase, largest US bank, important for traders?

JPMorgan bank, being the largest US bank plays a crucial role in various financial markets, including Forex, crypto, stocks, and bonds, among others. As a trader, monitoring and understanding the impact of JPMorgan's actions and decisions on your portfolio is crucial.

Why?

1. JPMorgan Chase's market-leading position: JPMorgan Chase has been the largest US bank in terms of assets for several years and is widely regarded as one of the most influential financial institutions in the world. The bank's sheer size and reach means that its decisions and actions could have a far-reaching impact on various markets, from currency and commodities to stocks and bonds. For instance, JPMorgan's trading strategies could influence Forex rates, while the bank's bond offerings could affect yields across the fixed-income markets.
2. JPMorgan's risk appetite: Another reason why JPMorgan Chase is important for traders is the bank's risk appetite. JPMorgan is known for taking big bets on various financial markets, often creating significant volatility in the process. As a trader, it's essential to monitor JPMorgan's risk-taking behaviour and how it affects your trading positions. For example, the bank's decision to increase or decrease its exposure to a particular financial instrument could significantly impact market sentiment, leading to potential price swings.
3. JPMorgan's earnings reports: Traders should also keep an eye on JPMorgan's earnings reports, which are released quarterly. These reports provide insights into the bank's financial performance, including its revenue, net income, and earnings per share. JPMorgan's earnings reports could impact its stock price, as well as the broader market sentiment. For example, if JPMorgan reports better-than-expected earnings, it could boost the overall market's confidence and lead to bullish sentiment.
4. Regulation and legal issues: JPMorgan Chase's regulatory and legal issues could also impact traders. The bank has faced several lawsuits and regulatory penalties related to various issues, such as money laundering, market manipulation, and insider trading, among others. Traders should monitor these developments as they could impact the bank's stock price and potentially spill over to the broader financial markets. For instance, if JPMorgan is fined a significant amount by regulators, it could decrease investor confidence in the bank, leading to a potential sell-off in its shares.
5. JPMorgan's competitors: Finally, traders should also monitor JPMorgan's competitors, such as Bank of America, Wells Fargo, and Citigroup, among others. These banks could all play a crucial role in determining the overall market sentiment towards financials, which could impact JPMorgan's trading positions. For example, if Bank of America reports better-than-expected earnings, it could lead to bullish sentiment towards the broader financial sector, including JPMorgan.

How to trade and benefit from the bank’s activities

As we have seen, JPMorgan Chase is a critical bank for traders to monitor when making trading decisions across various financial markets. But how can you, as a trader, benefit from this information?

One way is by trading CFDs, or Contract for Difference. CFD is a trading method that lets traders speculate on the price movement of various financial assets like stocks, Forex, cryptos and commodities, without actually owning them. The CFDs buyer is benefiting from the price difference between the asset's opening and closing positions. CFDs are popular with traders because they offer more flexibility and leverage. Here’s how to get started:

1. Open a Skilling trading account: To trade CFDs with Skilling, the first thing you need to do is to open a trading account. Visit the Skilling website and create an account by following the prompts. Skilling offers both a demo and a live account. Demo accounts are funded with $10000 virtual funds are perfect for beginners and those who want to familiarise themselves with the trading platform without risking real money first.
2. Download Skilling platform: After creating an account, the next thing you need to do is download the Skilling trading platform. The Skilling Platform is a simple platform offering charts, technical indicators, and support. The platform is available on both desktop and mobile devices (android and iPhone), giving traders access to the financial market anytime, anywhere.
3. Choose your trading instrument: When you open a trading account with Skilling, you have access to over 1200 tradable assets. You can choose from stocks, Forex, cryptos, and commodities. Choose the asset you want to trade and start trading.
4. Utilise Skilling's resources: Skilling offers various resources to help traders improve their trading. Some of these resources include market analysis, education, webinars, articles and an economic calendar. Skilling's economic calendar provides information about upcoming economic events that could affect the financial market. Knowing when these events will occur and how they can influence the market could help traders make better trading decisions.

Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.