Forex stands for "Foreign Exchange". It is an international foreign exchange market, often referred to as FX. It is also the largest and most liquid market in the world. It is decentralized trading, in which one currency is changed for another to make money.
Physical shares represent a securities with which can associate management, profit or liquidation balance of a particular company. Investments in companies' shares have performed much better than other investment products in recent years.
Stock Indices are a statistical quantity that measures changes in the portfolio of stocks representing a portion of the total stock market (in some cases the entire market). Indices are also referred to as indicators of developments in the financial market.
Commodities include precious metals, such as gold, silver, palladium or platinum, energy raw materials, such as oil and natural gas, but also agricultural raw materials, such as wheat, maize, coffee or cotton.
The key to success is to understand what the difference between these instruments is, because sometimes we confuse stock trading and derivatives trading as the same thing, even though there is a difference between them. However, the two can be instrumented and combined to enhance each other's trading strategy.
When trading CFDs, we can leverage a wide range of underlying assets such as equities, indices, currency pairs and different types of commodities. CFD trades provide to traders direct market exposure without having to take ownership of the underlying asset. This instrument is commonly compared to futures and options contracts as the trader is ab...
When trading, it is important to know the level of risk or potential loss. For this reason every trader should be familiar with the concept of "Risk Management". It is a process in trading to keep losses under control and maintain a good risk/reward ratio. It consists of three phases, identification, assessment and mitigation of loss risks. By m...
The stock market is a collection of markets and stock exchanges where the regular purchase, sale and issue of shares in publicly traded companies takes place. Such financial activities are carried out through institutionalized formal exchanges or over-the-counter (OTC) markets, which operate according to defined regulations.
The bear market is the state of the market when prices fall for a longer period of time. A typical example is a situation in which the prices of traded assets fall by 20% or more from recent highs due to widespread pessimism and negative investor sentiment. The bear market is the opposite of a bull market and may be accompanied by a general economic downturn, such as a recession.
A bull market is a state of the financial market in which prices are rising or expected to rise. The term "bull market" is most commonly used to refer to the stock market, but can be used for anything traded, such as bonds, real estate, currencies and commodities. Because securities prices rise and fall essentially continuously during trading, the term "bull market" is generally reserved for longer periods in which a large proportion of securities prices rise. Bull markets usually last months or even years.
Using leverage means that you trade more funds than you have in your account. For example, a 1:10 leverage will allow you to trade up to ten times the capital invested in the trading account. It is important to realize that using a leverage can increase your potential gain / deepen your potential loss. Brokers with a European license provide clients with a maximum leverage of 1:30.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.