Available Markets to Trade

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buy and sell
buy and sell

With a variety of instruments available to market participants, it’s a broker’s responsibility to provide individual and unsophisticated traders with comprehensive information on the options.

The purpose is to help them select the right asset which suits them best in terms of their personal qualities and risk tolerance. The best customer experience is obviously the goal sought by the both parties.

To diversify their services, brokers often try to open their users access to as many asset types as possible. An astute trader will certainly appreciate the courtesy and take advantage of plenty of opportunities.

The fact that you can use the same platform to trade different instruments is a plus. You can focus on a single market to gain ultimate insight or build a portfolio consisting of multiple asset types for better diversification. For novices, this also means a possibility to switch from one instrument to another until they find what suits them best.

Here are some major instruments to consider:

Options

This financial instrument offers great trading opportunities, probably the best ones on the markets. The reason is because options, as a derivative rather than an asset, provide unprecedented leverage. This means that you can trade a wide range of assets, even quite expensive ones which a low-capitalized trader cannot afford to buy directly. This is why options are often recommended to beginners setting off for their journey in trading.

It is important to distinguish between two popular types of options.

Binary Options

This is the easiest way to try financial markets. As the name suggests, all you have to do is to guess where an asset’s price will be at the expiration, above or under the entry price. Accordingly, a trader just clicks ‘Buy’ and ‘Sell’ buttons to bet. If your direction forecast is right, you get a reward; otherwise, you lose all your stake. That’s simple. The trickiest part of the process is to predict where the price will go. It’s up to you to use all your skills, guts or technical indicators to win. How to start trading on the platform right now, you can find out on IQ Option Introducing Broker.

Digital Options

With this type of instrument, more proficiency is required. This is because a trade’s outcome depends not only on where the price is relative to your entry price but where it is relative to a predetermined level (strike price) you choose opening your trade. The reward amount you get is subject to the difference between the strike price and the market price at the selected expiration.

Forex

Forex is the abbreviation for ‘foreign exchange’ used to describe the biggest financial market of the world, where currencies of many countries are traded.

The global reach and immense cash flows characteristic to this financial universe make it the biggest market, and the most volatile one. Another aspect to consider is its distributed operation. Currencies are traded on multiple major exchanges throughout the world so that the process continues day and night, except for weekends.

Trading forex is a tricky yet rewarding adventure. Along with great opportunities, the instrument offers some pitfalls, which constitute the specifics a trader should be aware of.

Stocks

This instrument allows any individual trader or investor to buy and sell stocks of public companies for short-term speculation or investment purposes. To succeed, a quite deep insight into market mechanics and a company’s situation are required. Prices are affected by numerous factors, such as corporate news and financials, global economy health and political events.

That being said, the instrument is perfect for sophisticated and knowledgeable traders but can easily destroy a novice’s account. To help people get on board, many brokers offer CFDs on stocks, which do not involve actual asset delivery.

ETFs

ETF is the abbreviation for ‘exchange-traded fund’. The instrument is available on stock exchanges and is considered to be a safer alternative to stocks. In fact, an investor commissions trading to professional fund managers. In this case, an unsophisticated individual’s chances to get a reward are much higher as compared to trading stocks directly, while the potential profit to expect is quite moderate.

Crypto

Cryptocurrencies have been gaining popularity over the last years. Today, they are considered by many as an innovative investment instrument available to everyone. Traded 24/7, cryptos also offer great opportunities for a day trader due to their unprecedented intrinsic volatility. On the other hand, this is an extremely risky asset class, so good prior research and trading skills are key success factors. Opportunities to trade crypto, in terms of payment methods and available exchanges, grow from day to day, so this is a promising instrument. You can find out exactly how to start trading cryptocurrency on the portal bestintroducingbrokers.com

The above list of trading instruments is not exhaustive and presents only the most popular options available out there. Use this review to choose what suits you best, and good luck in trading!

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