Exchange Trading Tools
The field of financial trading is developing rapidly, which attracts a greater number of beginners to the market. In theory, anyone can trade on the exchange, but even the most talented and capable traders need to start with theory. The first step is to get acquainted with trading tools. By and large, tools - this is what they sell and buy on exchanges, earning on the difference in price. The following tools are most popular with traders:
- raw materials;
- currency pairs;
This is one of the most common and understandable trading tools. Buying a share, you get the right to a stake in the ownership of a company. However, to make money on shares you need a lot of capital. If you buy a dozen stocks, you will make ridiculous money on price fluctuations. Therefore, this trading option is suitable for large players and is designed for long-term transactions.
This market direction is the most active. You can trade goods on the stock exchange without actually owning them. Profit is formed due to price differences. That is, you can buy contracts for some goods at a low price, wait for a rise in price and immediately sell them.
Relatively recently, the financial market attributed commodity assets to goods. After a significant decline in oil prices, the situation changed, which led to the division of commodity assets into local groups. The category of raw materials usually includes:
Despite the decline in prices for the key tools of this group, many investors make good money by trading in raw materials.
- currency pairs;
Another popular trading tool is the currency. For the money of one country, investors buy the money of another state. And to make it more convenient, currency pairs are used on financial markets and exchanges. Moreover, the purchase is always carried out with the condition of further sale, that is, the goods cannot become the property of the trader. Earnings are formed due to the difference in quotes.
A stock index refers to the value of a group of stocks selected in a certain way. For example, a dollar index consisting of several currencies. As a rule, they trade not in the indexes themselves, but in futures for them.