FX/Currencies / Forex
FX – Foreign exchange or Forex,
Forex is the most commonly traded asset in the financial market and is the world largest market.
Currencies are always traded in pairs and the Majors currency pairs are: US Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Australian Dollar (AUD), Swiss Franc (CHF), Canadian Dollar (CAD), New Zealand Dollar (NZD) the most traded Forex pair is Euro vs. the US Dollar (EUR/USD).
A currency is a system to determine prices and has different names, symbols and values in each nation, for example the British pound, the U.S. dollar and the European euro.
Currencies are being traded between nations and people in foreign exchange markets and are defined by governments and central banks.
A value change of each currency has a direct connection to the strength and stability of each
As a general rule, to determine the value of certain asset, it must be compared to a different Asset.
That is the reason why the US Dollar will gain value in comparison to the EURO once the EURO will weaken.
When one Asset goes up, the other one must go down When looking at a currency pair, the value of the currency that is on the left is the one that reflects the direction of the movement.
The abbreviation that represents the currency will usually be composed by 2 letters that represents the country’s name and the third letter represents the country’s coin name.
The forex market is a global decentralized market for the trading of currencies
It is the world's largest market trading over 4 Trillion Dollars a day.
Also known as the currency market, FX.
Currencies are always quoted in pairs because you are simultaneously buying one currency And selling another.
In the Forex market, currency pairs appear as follows: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, NZD/USD, XAU/USD
Commodities
Commodity are goods that you can physically own and that iseither grown or extracted from earth. Trading began in ancient times with people trading between their survivals Essentials and different valuables, therefore until today commodities are considered important Assets.
The most common commodities that are being traded in the financial market are:
Precious Metals such as Gold, silver, copper and platinum.
Natural resources like crude oil and natural gas.
Growing such as coffee, sugar and corn.
Indices
Stock index is the total value produced by combining several stocks. Index is designed to represent a particular market or sector, and monitor the changes in the market prices. Main indices are: Dow Jones 30, S&P 500, NASDAQ 100, FTSE 100, DAX 30, CAC 40 and NIKKEI 225.
Stocks
Stocks- also known as Shares, a share is a certificate of ownership of a company, or cooperation, which is publicly traded. Each unit of the company’s stocks is called a share. Being a shareholder entitles you to receive a portion of the company’s profits, according to the amount of shares you own, the profits distributed from a company’s earnings called Dividend.