What is traded on Forex and in the trader’s terminal
The answer to the question “What is traded on Forex” is quite simple and at the same time complex; on the Forex market they trade currencies and, more recently, cryptocurrencies.
But using a standard trading platform, you can trade other instruments, such as gold, silver, oil, stocks, indices, metals, wheat, etc.
Moreover, each of the selected instruments has its own trading features, on which the profitability of transactions directly depends, so before making a choice, you should dwell on this point in detail.
Let's consider what is the best way to trade to get the greatest profit and when to do it.
Currency is the most popular and most profitable trading option; trading occurs using currency pairs, each of which has its own dynamics of movement.
Pairs for beginners - they can bring only a few tens of profits per session, but at the same time there are no sharp fluctuations in rates and they have the greatest predictability, that is, just what a novice trader needs. These include NZD/USD and AUD/USD.
Pairs are for professionals - you can make money on them, but it’s quite difficult; during a session the rate can decrease by several hundred points, and increase your deposit several times, sometimes the profit is up to 500% per day. This category includes such currency pairs as GBR/JPY, USD/CHF and EUR/USD.
Precious metals – the leaders in this group are gold and silver; it is almost impossible to find another option in a trader’s terminal, no matter what broker he works with.
Gold, of course, is in the lead; this popularity is explained by the quick reaction of the price of the precious metal to changes in the economic situation in the world.
During crises, the price of gold rises rapidly; when the situation stabilizes and improves, it begins to gradually fall.
In technical terms, the trading process itself is practically no different from trading currency pairs, such as XAU/USD.
Gold trading is described in detail in the article - http://time-forex.com/pary/torgovly-zolotom
Oil – not all Forex brokers have the opportunity to trade it, and trading itself is more susceptible to seasonal fluctuations in demand.
Also, the price of oil actively reacts to events in the Persian Gulf and can be artificially regulated by large oil-producing corporations.
You can read how to sell and buy oil on the exchange here - http://time-forex.com/vopros/prodavat-pokupat-neft
Shares – you can also buy or sell shares of the most popular and well-known companies, but as a rule, such trading involves opening long-term transactions and has a lot of difficulties for a novice trader.
Trading shares with a small deposit - http://time-forex.com/inv/akcii-nebolshoy-depo
In addition, the modern trading platform also contains such interesting assets as cryptocurrencies, stock indices, futures for copper, iron, and cotton. Every year the list of tools available for earning money only increases.
Choosing an instrument is not quite simple; it’s up to you to decide what to trade on Forex, but it is advisable to use several options at once, and carry out transactions depending on the situation on the market.
For example, if the economic crisis intensifies, buy gold and the Swiss franc, and if there are reports of a natural disaster in Australia, sell the Australian dollar.