Stock Trading and Other Things

How exactly online trading causes the inflation go up?

some say it is due to wealthy people who make future contracts with lot of black money, some say its global crisis, but how exactly does the price rise occur from the producers to retailer because of online trading.please explain

Public Comments

1. as the demand increases in limited supply the prices of the certain commodity good or service rises eventually...
on line trading is the matter of the speculative buying and speculative sales .Thus the traders suceed in the manipulation of the real prices of the certain commodity by the virtue of creating false demand in bulk and also they squareoff there positions in retail in such a manner that there is no sign of over supply.

since the traders have a pool of money(black or white) what so ever it be.they invest it to gain the short term gains from the market.

2. in online trading there is no exchange of physical goods. everything is through forward booking on line where there is no real demand for or supply of goods. online trade creates artificial demand and makes a panic psychology in the market resulting in distress purchase by genuine consumers.value addition to marketing by way of online trading is zero rather it is a deterrent factor for a healthy market condition.

3. It doesn't! Prices may be pushed up if demand is high but traders will try to 'take profit' eventually and prices will fall. If the 'commodities' are seen as overvalued the price will fall too.
Overall there is no inflation as a result of online trading.