Currency trading is the price speculation of one currency against another. Forex markets are always traded as currency pairs where a trader buys or sells one currency in terms of another. An example of one such trade would be an EUR/USD buy trade, meaning buying EUR and selling USD.
Stocks let trader own a piece of a company’s future. Stocks are one of the easiest ways to get started with trading. You can buy and sell stocks for the short-term, as well as you can hold your positions for the long-term. Trading profits are generated by buying a share at a low price and selling it at a higher one.
Most bonds and certificates of deposit are designed to offer investors a consistent, predictable income. They aim to protect the value of your original investment. Bonds can provide traders and investors an alternative to highly volatile instruments as well as stability and more certainty in a portfolio.
Energy trading is buying and selling different types of oil and other energy commodities with the aim of making a profit. As these commodities’ are finite resources, their price can see massive fluctuations due to supply and demand changes. This volatility makes energy trading extremely popular.
Options trading is the act of buying and selling options. An option is a contract that gives a trader the right to buy or sell an underlying asset before certain expiry date. When an option expires, it no longer has value and no longer exists. Traders use them to speculate on the price of a financial market, and in some cases its volatility too.
Precious metals are considered a safe investment choice in times of market uncertainty. Trading precious metals are often popular as a form of insurance. While metals tend not to be as affected by political and economic events as some other markets, they have their own price drivers that traders need to watch when trading.