What's the trade on marijuana
More and more trading analysts are talking about the impact of WEED , since it entered in the financial markets. The question is whether or not it has the potential to cause a new bubble. Even if you're into it for the medicinal or recreational use, you should first get familiar with it, as well as the regulations and the main markets that are dealing it.
According to the European Monitoring Centre for Drugs and Drug Addiction, the first proof of marijuana use, dates from 2000 BC, in India. Whereas the first ban against it was imposed by the Ottoman Emir of Egypt, Soudoun Sheikouni, in the 1300s. Another ban was enforced by Napoleon, 500 years later.
Many European countries stand still in their position against legalizing marijuana, even for medicinal purposes. However, the majority has taken the very first steps towards changing something.
Currently, there are 15 European countries that consider marijuana to be illegal but decriminalized or unenforced. Switzerland shares the same opinion but is slowly moving towards legalizing medicinal use. Currently, Malta is the only European country that approved the medicinal use of cannabis, by now.
Continent after continent, marijuana laws start breaking
The history of US marijuana bans started early in 1937, with the Marihuana Tax Act, that was effectively prohibiting cannabis. By now more than half of the US states moved towards legalizing medicinal marijuana or have taken the extra step in legalizing it for recreational purposes.
Canada went straight to legalizing the recreational use, in 2018, and already has quite a few companies quoted at the Toronto Stock exchange. Mexico and a great part of South America, consider marijuana illegal but decriminalized. Guatemala, El Salvator, Honduras, Nicaragua, Panama, and the Carribean Islands share the opinion of illegal marijuana with their southern counterparts Venezuela, Guyana, Suriname and French Guyana.
At the moment, Uruguay is the only South American country to have legalized marijuana.
Marijuana regulations in Africa and Asia
On the other side of the Atlantic Ocean, only Morocco, Egypt, Guinea-Bissau, Equatorial Guinea and Lesotho consider marijuana as illegal but often unenforced. South Africa is the only African country to have legalized cannabis. Iran, Pakistan, India, Nepal, Sri Lanka, Bangladesh, Myanmar, Thailand, Lao, Viet Nam and Cambodia treat marijuana as illegal but often unenforced.
Georgia is the only country from the Asian continent to have legalized marijuana, whereas Russia and Israel are the only to consider it illegal but decriminalized. Australia has a rather narrow view on this matter, only the Northern Territory and South Australia, along with the Australian Capital Territory view marijuana as illegal but decriminalized.
Trading WEED CFD takes on the regulations of the broker offering it
What is really interesting about this asset is that even though many countries see marijuana as being illegal, there is already a relatively large market of companies quoted in the stock exchange. Which means that even though retail is not yet legal in all the countries or states, trading is very much so.
This pretty much sums it up to: You can still join in on the fun and get high on trading weed, under strict European supervision. One of the regulated brokers offering WEED (Canopy Growth Corporation) is Stratton Markets. Give them a look to see what many other things they have to offer.
Stratton also promotes training before trading, so it wants to remind you that: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This article was submitted by Stratton Markets
