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 profitable trading option. Trading occurs using currency pairs, each of which has its own dynamics.
Pairs for beginners – they may only yield a few dozen profits per session, but at the same time, they avoid sharp fluctuations and are the most predictable, which is exactly what a beginning trader needs. These include NZD/USD and AUD/USD.
Professional pairs – you can make money on them, but it's quite difficult. The exchange rate can drop several hundred pips in a single session, and sometimes the profit can be up to 500% in a single day. This category includes currency pairs such as GBR/JPY, USD/CHF, and EUR/USD.
Precious metals – gold and silver lead this group; it's virtually impossible to find any other option in a trader's terminal, no matter which broker they work with.
Gold, of course, is the leader; this popularity is explained by the rapid reaction of the precious metal’s price to changes in the global economic situation.
During crises, the price of gold rises rapidly, but when the situation stabilizes and improves, it begins to gradually fall.
Technically, the trading process itself is practically no different from trading currency pairs; the XAU/USD instrument used is the one used.
Gold trading is described in detail in the article - http://time-forex.com/pary/torgovly-zolotom
Oil – not all forex brokers offer the option to trade it, and trading itself is more susceptible to seasonal fluctuations in demand.
The price of oil also actively reacts to events in the Persian Gulf and can be artificially regulated by large oil-producing corporations.
You can read about buying and selling oil on the exchange here - http://time-forex.com/vopros/prodavat-pokupat-neft
Stocks – you can also buy or sell shares of the most popular and well-known companies, but this type of trading typically involves long-term transactions and presents many challenges for a novice trader.
Trading stocks with a small deposit - http://time-forex.com/inv/akcii-nebolshoy-depo
In addition, the modern trading platform also offers interesting assets such as cryptocurrencies, stock indices, and futures on copper, iron, and cotton. The list of instruments available for profit is growing every year.
Choosing an instrument isn't as easy as trading Forex. The choice is yours alone, but it's advisable to use several options at once, and make trades based on the market situation.
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.
