Getting into the financial market is one of the best decisions you can make if you’re looking for a passive income on the side, or you’re looking for an escape from your 9-5 work. While stocks and currencies are two of the most common instruments, there’s more to it than that. In fact, you can trade multiple instruments, depending on your trader. Some brokers let you trade several instruments all at once. In the following, we will be talking about some of the instruments you can trade with.
Otherwise known as the foreign exchange market, forex trading is not only the most common but also the best choice for beginners. Unlike trading with stocks or cryptocurrencies, you don’t need an overwhelmingly huge amount to profit from forex trading. So many forex traders will get into currencies first and from there, that’s when they can move to other instruments.
You may have heard of Bitcoin and Ethereum, which are two of the most common cryptocurrencies that exist in the financial market. This is an extremely volatile instrument and is absolutely nothing like trading currencies. While similar to forex, their exchange value fluctuates every now and then. It’s an unpredictable instrument.
When you buy stocks from a certain company such as Apple or Netflix, you own a certain percentage of that company, and it’s one of the reasons why this is another common instrument. Stocks are more commonly used for investments in the long-term, unlike forex where you’re simply trading currencies. While all these instruments are amenable in the long-term, stocks are different compared to others in this list.
Commodities are metals, energy, and basically anything interchangeable with other goods. The commodities market is more regulated compared to that of forex or even cryptocurrency. Some traders choose commodities as their primary instrument to trade with as these can be seen in your everyday life, which makes it a more relatable instrument. Visit our section about commodity trading to learn more.
In conclusion, I hope this article was able to shed insight into some of the instruments you can trade within the financial market. Having knowledge about the different instruments is crucial if you’re truly serious about getting into the financial market as a professional trader.