Exchange instruments.
A person who decides to become a trader first of all has a question - what to trade on the stock exchange?
Indeed, in a modern trader terminal the choice is quite wide.
In total, there are about 100 stock trading tools available, and choosing the most suitable one is not so easy.
And often the entire success of a trader’s career and the amount of earnings depends on this. Let’s try to understand the main groups of assets available for trading.
Exchange instruments - shares of large companies, indices, precious metals, commodity and currency futures and currency pairs.
What does each of the listed groups represent:
Stocks - usually these are shares of large companies such as Apple, Google, IBM, Boeing, Coca-Cola, etc.
only about 40-50 types of shares. The profitability of stock trading is not quite high, due to the fact that brokers rarely provide leverage of more than 1:100.
On average, a successful trader on the stock exchange earns about 30% per annum. Therefore, this trading option requires large investments and is designed for long-term transactions. But despite this, predicting changes in the value of shares is a little easier than for other assets.
Indices are a set of prices for a certain block of shares, for example, the Dow Jones index shows the value of shares of the 30 largest American companies.
Stock indices characterize general sentiment in a certain sector of the economy or in the country as a whole.
They are traded in the same way as ordinary shares of enterprises.
Precious metals - gold, silver and platinum - are quite an interesting trading tool that allows you to earn up to several hundred percent per year.
True, the most successful transactions are made mainly when the price has reached its bottom or peak, but you can also make money on intraday fluctuations.
Futures - with the help of them you can trade assets such as oil, gas or cotton; for some traders this option seems simpler due to its maximum reality.
That is, it is much more difficult to imagine what a stock index is than what a barrel of oil is.
Futures are great for seasonal trading, or making money during emergency events; profit on one trade can exceed 100%.
Currency pairs are the classic exchange of one currency for another, the most profitable and risky option for exchange trading.
Using the scalping strategy allows you to achieve huge profits in the shortest possible time period.
Options are a relatively new exchange instrument that allows you to significantly simplify the process of making transactions; all trading is actually reduced to choosing several forecast options for the price of a certain asset.
For example, from two options you should choose whether the price of oil will be lower or higher in an hour.
With a successful forecast, the profit is on average 80%. This type of trading is carried out by options brokers , companies specializing specifically in this type of contracts.
The range of exchange instruments is extremely wide; the article presents only the most profitable and popular options.