Curious about trading but overwhelmed by options? Forex, CFDs, crypto – what does it all even mean?
This trading guide, by Amber Markets Limited, is your one stop shop to understanding all the financial markets out there. We will cover everything from forex and commodities to cryptocurrencies and even synthetics, so you can get a good grasp of what makes each market tick.
- Forex (Foreign Exchange Market)
- Global access: Trade currencies from all over the world, including major, minor and exotic pairs.
- High liquidity: With trillions of dollars traded daily, participants always find a buyer or seller.
- Accessibility: Open 24/5, so you can trade at your leisure.
- CFDs (Contracts for Difference)
- Metals
- Stability: Retain value during market turbulence.
- Hedging: Against inflation and currency devaluation.
- Liquidity: Easy to buy and sell due to high liquidity.
- Commodities
- Diverse Assets: Energy, agricultural and metal commodities.
- Economic Indicators: Prices reflect broader economic trends.
- Volatility: Prices can be very volatile, trading opportunities.
- US Crude Oil Spot (USCRUDE)
- UK Crude Oil Spot (UKCRUDE)
- US Crude Oil Future (CRUDE_YY)
- UK Crude Oil Future (BRENT_QYY)
- US Natural Gas Future (NATGAS_YY)
- Indices
- Diversification: Get exposure to multiple stocks in one instrument.
- Market Sentiment: Indices generally reflect the overall market mood.
- Volatility: Index values can be volatile, offering several trading opportunities.
- Cryptocurrencies
- Decentralization: Works without a central authority.
- Volatility: Prices can make large movements within a short timeframe, bringing many trading opportunities.
- 24/7 Market: Unlike traditional markets, the crypto market operates 24/7.
- Ethereum vs US Dollar (ETHUSD)
- Ripple vs US Dollar (XRPUSD)
- Bitcoin vs US Dollar (BTCUSD)
- Ethereum vs Bitcoin (ETHBTC), and more.
- Synthetic Assets
- Flexibility: Trade without owning the asset, having more options for risk management.
- Hedging: Useful for hedging against price movements in other real-world investments.
- Accessibility: Suitable for both experienced and new investors.