The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. Trading Forex has long been a popular choice for investors. Forex, or FX trading, is the largest and most liquid market in the world, with daily trades running into trillions of dollars. Currencies are traded in pairs, with the USD and the EUR being the most common traded currency and counter currency. Currency trading carries a level of risk but can also turn a huge profit for successful traders The Forex market is open 24 hours a day, five and a half days a week, and operates across nearly every time zone, which makes for an active market in a continual state of flux, with prices changing all the time.
When currencies are traded on the Forex market, they are bought and sold in what are known as currency pairs, where one currency is used to buy another. These pairs have been created to make comparing currencies easier, and as a way to better understand the value of one in relation to the other. The EUR/USD pairing is among the most popular. In currency pairs, the first currency is the base and the second currency is referred to as the counter currency. So in the previous example, you are using USD to buy EUR. Your broker converts your existing currency into USD, and then uses that to buy EUR. When buying a currency pairing, you take what is known as a ‘long position’, and when selling you take a ‘short position’. It is vital that you have a good understanding of the current climate of your chosen currency market. If you believe people are going to sell bitcoin, for example, then this will bring the price down in relation to the EUR. We provide regularly updated information on many popular pairings, and we include the popular Bitcoin cryptocurrency in our currency index. The majority of Forex traders focus on the following currency pairs: EUR/USD, USD/JPY, GBP/USD, and USD/CHF are the main four, followed by USD/CAD, AUD/USD and NZD/USD. All other pairs are just different combinations of the same currencies.
Stocks, also commonly referred to as equities or shares, are issued by a public corporation and put up for sale. Companies originally used stocks as a way of raising additional capital, and as a way to boost their business growth. When the company first puts these stocks up for sale, this is called the Initial Public Offering. Once this stage is complete, the shares themselves are then sold on the stock market, which is where any stock trading will occur. People occasionally confuse buying shares with physically owning a portion of that company, as if this somehow gives them the right to walk into the company offices and begin exerting their ownership rights over computers or furniture. The law treats this type of corporation in a unique way; as it is treated as a legal person, the corporation therefore owns its own assets. This is referred to as the separation of ownership and control. The separation of these things is beneficial to both the shareholders and the corporation, because it limits the liability for each party. For example, if a major shareholder were to go bankrupt, they cannot then sell assets belonging to the corporation to cover their debts and pay their creditors. This is the same in reverse; if a corporation you own shares in goes bankrupt and the judge orders them to sell all their assets, none of your own personal assets are at risk. One thing lies at the core of a stock’s value: it entitles shareholders to a portion of the company profits.
A stock market is where stocks are traded: where sellers and buyers come to agree on a price. Historically, stock exchanges existed in a physical location, and all transactions took place on the trading floor. One of the world’s most famous stock markets is the London Stock Exchange (LSE). Yet as technology progresses, so does the stock market. Now we are seeing the rise of virtual stock exchanges that are made up of large computer networks will all trades performed electronically. A company's shares can be traded on the stock market only following its IPO, making this a secondary market. The large businesses listed on global stock exchanges do not trade stocks on a frequent basis. Stocks can only be purchased from an existing shareholder, not directly from the company. This rule also applies in reverse, so when selling your shares, they go to another investor, not back to the corporation. The reason traders choose to invest in stock is because the perceived value of a company can vary greatly over time. Money can be made or lost; it depends on whether the trader’s perceptions of the stock value are in line with the market. Trying to predict the price movements of stocks in the short term is nearly impossible. Generally, stocks do tend to appreciate in value in the long term; so many investors choose to have a diverse portfolio of stocks that they intend to keep for a long time. Bigger companies pay dividends to their shareholders, which is a portion of the company’s profits. The value of the share itself will not impact the dividend. In order to trade stocks, there must be a seller and a buyer; as not all traders have the same agenda, stocks are bought and sold at different times and for different reasons. Someone may sell their stock for profit, others sell it in order to cut losses, and some because they believe the value of the stock is about to change either way.
A cryptocurrency like bitcoin is a virtual currency traded peer-to-peer on a blockchain, independent of centralized authorities like banks and governments. Cryptocurrencies are entirely virtual, so they are not backed by physical commodities and have no intrinsic value.
ETF trading is another new addition to the platform that offers an excellent way to diversify your investment portfolio with less risk. ETFs track baskets of assets, commodities and indexes, and trade in the same way as common stock on the stock exchange. They allow investors to buy on margin, sell short and purchase as little as a single share
Digital Options is a trading instrument that allows you to speculate on the extent of the price change, rather than just on the general price direction. If the price of the underlying asset is to reach the threshold selected by the trader (known as the 'strike price'), the payout may get as high as 900%. However, an unsuccessful trade will result in loss of the investment. A distinguishing feature of Digital Options is a predetermined expiration time that works in 5-minute intervals. We have also refined our offering and introduced plenty of new products in our bid to continue giving our customers the ultimate online trading experience, and to help them optimize their investment portfolio. Now, using our platform, our members can try online stock trading, forex currency trading, Exchange Traded Funds (ETFs), and Digital Options.