There are many types of financial markets you can invest online and trade by yourself.
Here are some of the common markets online traders invest in.
Currency pairs are currently the most traded assets in the world.
They refer to the ratio between the currencies from 2 different countries.
The first currency in the pair, the one on the left, is the “Base Currency”. One on the right is called “Counted Currency”.
In trades involving currency pairs, the trade buys or sells the “Base Currency” at the current market price, and then takes profit or loss, according to the movement of the “Base Currency” relative to the “Counter Currency”.
In today’s market, not only currency pairs, but also commodities and raw materials are traded.
Including metals such as Gold, Silver and Iron, and agricultural products such as Corn, Coffee, Rice and Wheat.
Futures Contract – Oils
Futures contracts including Crude Oil and Diesel.
The futures contracts does an agreement which states that a certain product will be bought or sold at sometime in the future, at a predetermined price.
Oil has potential of future profits, since countries developed, and demand for Oils grow higher and higher.
The price of oil is mainly influenced by varying level of supply and demand.
Crude oil is the main source of energy in the world today, and has become more and more popular over the past 50 years, among traders and various kinds.
Stock indices provide information about the performance of certain group of stocks.
A stock index has a value that changes according to total performance of the group of stocks represented by it.
The index can be, for example, the weighed value of all stocks in the group.
Indices can be invested in the same way as single stocks. with the returns of proportional to change in index.