Tuesday 2 June 2015

Financial Instruments in top Forex Brokers Business

A lot of people think that traders trade only currencies on Forex market, but this is not true. There is a great amount of financial instruments that can be used for trading. They are metals, oils, indexes, CFDs and so on.

Metals

Profitable assets for top Forex brokers and traders are gold, silver and other precious metals. These investments are safe because the demand for it is rather stable. Silver has lower volatility than gold, what makes it even more stable.


Oil

Oil is considered to be the best selling raw material. This type of trading helps to secure funds when there are some negative changes on the market, because its movement is very stable.

Indices

WSI – World Stock Index – is calculated on the basis of the indices of 47 countries. The data is calculated by addition of the quotes of all the corporations that trade at a certain stock.
Dow Jones, American index, is the most popular. Other well-known indices are CAC 40, Nikkei 225, FTSE 100, Nasdaq Composite, S&P 500. All in all there are more than 2000 stock indices. Stock markets have high volatility and they fit traders who are looking for big profits and dare to take a risk.
Indices also help to get a picture of global economy situation, because with their help you can analyze world's leading markets.

Futures

Futures are types of contracts that mean that a certain instrument will be sold in the certain time in the future at a certain price. Usually such transactions are carried out within 3 months.

CFD

With the help of Contracts for Difference traders can speculate on the difference in the cost of any financial instruments. They don’t become owners of these instruments like stocks for example but they can earn money on the change in their rate.

Currencies

And finally currencies. Forex is a global currency exchange market, represented by a huge net of dealers connected one to another with 24h working telecommunications. Exchange rates change every second what gives an opportunity to earn money for traders. Brokers allow traders to trade, sell or buy currencies and offer them a kind of credits to enter the Forex market. Such “credits” are called leverage. Forex example, 1:100. It means that you deposit for example $500 but are able to trade as if you had $50 000.

Brokers earn money on commissions and spreads, but these are NDD (No Dealing Desks) brokers that are not interested in their clients’ failures. DD (Dealing Desks) brokers on the contrary do everything to merge the clients’ deposits, creating a kind of their own market with their own laws and doing anything they want to. So we strongly do not recommend to trade with them.


FXMoneyWorld offer its clients to trade all the mentioned instruments: currencies, metals, futures, oil, indices and CFD.

To learn more visit our page https://fxmoneyworld.com/financial-instruments.html.

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