Currencies

As a trader, you’d need to know the most traded currency pairs and the relationship between each of those pairs. Let’s have a look at the currencies you’ll see most, at least at the beginning of your trading career.

  • USD – The US Dollar
  • CAD – The Canadian Dollar
  • EU – The European Union’s Euro
  • JPY – The Japanese Yen
  • CHF – The Swiss Frank
  • GBP – The British Pound
  • AUD/NZD – The Australian/New Zealand dollar
  • CNY – The Chinese Yuan
  • MXN – The Mexican Peso
  • ZAR – The South African Rand
  • BRL – The Brazilian Real
  • KRW – The South Korean Won

Forex Currencies Basics

The FX’s essence lies in paying with one currency to buy another currency. This is why we have Currency Pairs. In its most common form, currency pairs include the USD as an utmost important currency. Currency pairs without the USD are called “cross pairs”.

 

The main terms you’ll encounter in Forex – Base Currency, Target Currency, Pip, and Spread. In a USD/EUR pair, the USD is the base currency and the EUR is the target currency. You may choose to trade on the EUR when it sits at 0.88687 (just as an example) and if EUR rises to 0.89187, you’d make a profit of $5 on every 1000 Euro you trade.

 

The Pip has its own category, as it is the smallest possible figure used to trade currencies. You can count four digits after the decimal point – that’s where you’d find the Pip. The Spread represents the starting state of a currency’s value and the finishing state (when you close the trade. It is neat to use a forex converter tool to check and analyze Forex currency pairs at all times.

Stocks

Stocks are essentially pieces of a company. Very small pieces, but the more you have, the more influence you can endure. The stock’s price, known as “share”, is used to reflect on company value and outlook among customers. All stocks fluctuate constantly, enabling both short-term and long-term profitable trades.

 

You can trade stocks on various stock exchanges – NYSE, NASDAQ, Foreign Stock Exchanges, and others.

 

Stock trading is carried out via “ticker” symbols. Each company has its own ticker symbol (1-5 letters), and you can find it by checking Google Finance or any other respectable financial portal.

 

You can buy stocks with the intention of selling them for a higher price, and thus getting a profitable trade. All you need is a laptop and a stable Internet connection. Making money from the comfort of your home sounds thrilling for a tryout, at least.

 

We advise our traders to buy different stock types to maintain a well-diversified portfolio. As stocks are the most efficient way to avoid inflation losses, it is convenient to have a balanced mix of stocks, commodities, and bonds in your account. Highest return with the lowest risk!

 

Small cap, mid-cap, and large-cap companies – engage with all kinds of stocks. “Cap”, as a term, comes from capitalization, which translates to any company’s total value. You multiply the total stock value by the number of total shares and get to the “Cap”.

 

Final, but also important, strive to keep your account diverse in terms of location. This should let you grow your account without the fear of stock vulnerability.

 

TOP PERFORMING STOCKS IN 2019

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Commodities

Commodities can be traded on Commodities Exchanges, like CBOT or NYMEX. You buy and sell commodities in a similar manner to stocks. You can also choose to buy and hold on to commodities as a counteraction to possible inflation.

 

Commodities divide into two main categories – Hard Commodities and Soft Commodities.

 

Hard Commodities:

  • Iron
  • Ore
  • Crude Oil
  • Gold
  • Silver

 

Soft Commodities:

  • Agricultural products – rice, beans, wheat

 

Commodities in the same industry should be balanced across different countries and exchanges. To name an example, the silver in one location should be of the same quality as the silver from another one.

 

Commodities are an essential part of both our trading and routine life. They can be bought, sold, or held to form a respectable field across all trading markets. Keep in mind, commodities can be bought (and sold) by using futures contracts. Those contracts are used to ensure a sale of a certain good (in a certain amount) in the future.

 

Another note, futures contracts’ prices are based mainly on speculation. Remember this when calculating your futures contracts’ risk levels!

 

TOP PERFORMING COMMODITIES IN 2019

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