Most online trading traders tend to choose trading instruments that trade below liquidity and giving them the movement of the price that lets earnings. Bear in mind that there are two important factors to look at when choosing trading instruments. We have volatility and liquidity.
Choosing the best trading instrument that suits your trading style requires online traders to do a lot of research. Know exactly what you want to trade before you can register and account with an online trading broker.
Popular types of financial trading instruments include Indices, Commodities, CFDs on Forex trading, Energies, Shares, Stocks, Spot Metals, E-minis and Bonds. Below, we’ve only identified the ones that are well known across the globe.
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Online Trading Instruments
You normally buy and sell commodities through futures. Main categories of commodities include energy, livestock, metals, crude oil, gasoline and agricultural products such as cotton, wheat, coffee, sugar and many more.
E-minis are another form of trading instruments that are traded online. This is an electronically traded futures contract representing a portion of a benchmark futures contract.
Exchange Traded Funds (EFTs)
Better known as EFTs, Exchange Traded Funds are investment funds that track commodities, sector indexes and many more.
FX or foreign exchange market is where foreign currencies are traded online. Forex trading is the largest traded financial market on the planet. More than $4 trillion is being traded online daily. Four main pairs are traded on a daily basis. USD/CHF, USD/JPY, GBP/USD and EUR/USD are known as the major traded pairs.
In the United States, treasuries are negotiable. According to the definition; “In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.”
Stocks are normally bought in the company. For example, if you want to buy a stock or shares from Google, Amazon or Facebook, you can buy a certain stock and start investing in the company.