Financial markets are one of the most important, interesting and enigmatic topic for discussions all around the world. Those who trade think that they know everything about them but it seems to be impossible. Markets are constantly changing and their movements are unpredictable most of the time. One could spend their whole life studying them and trying to understand but only get a slight glimpse. We don’t claim that we will tell everything there is about the markets but we can at least begin with learning various types of markets there are.
The most popular and the biggest market there is a foreign exchange market. Thanks to the long life and quite simple rules of game there are there, it is the most popular among beginners and amateurs. It can be described through several points. One of the biggest advantages of this segment of the market is that it is open 24 hours a day. Since the first bell rings on Monday in Australia, until the market hours end in the USA on Friday there is a constant possibility to trade.
Second there is a possibility for traders with even the small starting capital due to the high leverages and low entering trades. Although there are risks involved as well, as it is very dependable on the current situation in the world. And we are not just talking economies – politics, geopolitics, various fiscal policies and change in the world situation all influence the situation on the market.
Currencies in the foreign exchange are traded in pairs. There are regular couples like EUR/USD or USD/JPY, for example, but there is always the possibility to come across brokers, who will offer more interesting and unusual couples.
Stock market is the second type of market. This segment is usually the first thing that pops into one’s mind after they hear about trading. And that is only fair. Stock market is very popular due to always being in the spotlight. Although they me not be as comfy as our previous type. They are certainly not available for 24/5 trading sessions. Those who trade in stock markets know the exact time table of their local markets since that is the main place for their work. Leverage is also fairly low and those who want a lot of choice may forget about it in the stock market, as the assortment of the trading instruments is usually very limits to the most traded.
Stock market is much stricter to the traders and has a lot more rules. Those who want to escape these limitations can always trade futures – that gives more freedom to the traders. One of the biggest advantages, as strange as it may seem, are limitation hours. That way a trader always knows when his working day is going to end and will not have a seductive wish to trade through the night. The most commonly traded instruments of the stock market are S&P 500, Dow Jones, Nasdaq, DAX, Nikkei 250, Hang Seng and others.
Commodities market. It is a very big segment of the market that can easily make one a billionaire. Trading natural commodities, such as gas, oil, corn, cocoa and a lot of others would feel much different from the other two segments, according to experienced traders. Due to the natural origin
We can see that the segments of the markets are very different and the only common thing between them are traders who want to profit. One can jump from one segment to another, but it is better to focus on one of them in order to prevent major losses and attention split. Enjoy your trading in either of them!of this market’s instruments one’s profit here is dependent not only on the financial situation in the world, but on nature itself. Mind, that supply here is one of the key factors to profits and losses. Commodities are closely entwined with other segments of the markets as they can easily effect each other up to the critical points. The best representation for it is provided by gold and USD. As soon as dollar rises, gold goes down and when dollar is weak, gold gains price. Such is the law of commodities market.
We can see that the segments of the markets are very different and the only common thing between them are traders who want to profit. One can jump from one segment to another, but it is better to focus on one of them in order to prevent major losses and attention split. Enjoy your trading in either of them!
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