What to choose for trading – stocks, currencies or options.

Choosing the right trading instrument is one of the most difficult tasks that must be solved before starting stock trading.

Modern dealing centers provide their clients with a huge selection of different trading instruments.

Therefore, it can be quite difficult for a novice trader to make his choice. Let's look at the comparison of the advantages and disadvantages of the three most common assets that are usually used when trading on the stock exchange.

Currencies – trading is carried out using so-called currency pairs; several types of market analysis are used to predict the exchange rate.

The main advantage of trading currencies is the availability of a lot of different information on this topic; on the Internet you can find both simple recommendations on Forex and a lot of free literature, video materials, and it is also possible to carry out automatic trading.

In addition, it is possible to use a bonus such as leverage, which allows you to increase trading volumes to simply enormous sizes.

And with a successful combination of circumstances, you can earn a decent amount of money in just a few days. You can start trading here with literally a couple of dollars, gradually increasing your deposit.

The main disadvantage of currency trading is the difficulty of forecasting rates; here you have to catch a trend and there is no guarantee that it will last for any length of time.

Stocks – if you take real trading, and not what you can find in most trading terminals, then this is a calmer and more measured process.

To carry it out, you must contact the bank and submit an application to purchase a certain number of shares, after which this purchase will be recorded in your name. Leverage is not used here , so the profit will not be large enough, but you can only lose everything if the company whose shares you purchased goes completely bankrupt.

The advantage is relatively calm trading and its simplicity; having bought shares at the most opportune moment, you just need to wait for them to rise and sell at a better price.

The disadvantages are low profitability, shares rarely rise in price by more than 10% per year, but they can fall by as much as 50%.

High initial deposit amount, usually from $1000. Options are one of the types of trading on the stock exchange, but unlike the other two, trading here is carried out according to the most simplified scheme.

To open a transaction, it is enough to make an assumption about how the exchange rate (currency, shares) will behave in the near future.

For example, in an hour the dollar will fall in price against the euro, the bet amount is 10 dollars. If the forecast is confirmed after an hour, you get $7.5 in profit, otherwise you only have $1.5 left. The main advantage of such trading is the elimination of psychological pressure; you have made a forecast and all you have to do is monitor its result, but there is no way to close the deal prematurely.

But it is the premature closure of Forex orders that sometimes becomes the main cause of losses. Unfortunately, behind the apparent simplicity there is also some complexity; to make an effective forecast, you need to use the same analysis as in Forex.