Given the different types of financial markets and the unique opportunities they offer – choosing one can be a difficult endeavor, especially when you are just getting started. At TradeFw you have access to any market you please and professional guidance to trade on the markets that can have the best and most profitable conditions.
The following featured financial markets are available on our platform and have the highest potential for forex traders:
1. The Forex Market
The foreign exchange, FX, or simply forex market – is the largest, most liquid in the entire world, with a daily trading volume that surpasses $5.09 trillion. This decentralized market is the place where currencies are being sold, bought or exchanged at a current or determined price. Currencies are always traded in pairs and the forex market determines their relative value by setting the market price of one currency if paid for with another.
The most popular and actively traded currency pairs are:
• The EUR/USD currency pair indicates how many U.S. dollars (the quote currency) are needed to purchase one euro (the base currency). As it represents the world’s two largest economies, the EUR/USD is one of the most traded currency pairs and its value is quoted as 1 euro per x U.S. dollars.
• The GBP/USD currency pair indicates how many U.S. dollars (the quote currency) are needed to purchase one British pound (the base currency). Given that the United Kingdom and the United States represent the world’s largest banking and financial systems – this currency pair produces almost 15% of the total daily volume of transactions on the forex market.
• The USD/JPY currency pair indicates how many Japanese yen (the quote currency) are needed to purchase one U.S. dollar (the base currency). This pair is the most popular currency pair involving the U.S. and an Asian country.
• The USD/CAD currency pair indicates how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). This pair is the most heavily traded currency pair on the foreign exhcange that involves the Canadian dollar.
2. The Stock Market
The stock market is the place where stocks and bonds are traded. In other words, the stock market is an aggregation of markets and exchanges where the activities of buying/selling of shares of publicly held companies take place. Stock trading enables companies and corporations to issue and sell their shares to the public for the first time through initial public offerings (IPOs) and helps them raise the necessary capital from investors.
The best-performing stocks are:
• Apple (AAPL) is an American multinational technology company that designs, manufactures, develops and sells consumer electronics, computer software, as well as other online services. The tech giant the largest publicly traded company in the world in terms of market capitalization. Apple trades on the American Stock Exchange, the NASDAQ stock market.
• Amazon (AMZN) is an American electronic e-commerce and cloud computing company that debuted as an online bookstore. It is considered the world’s biggest internet retailer in terms of revenue and market capitalization; as well as the second most valuable publicly listed company. Amazon is traded on the American Stock Exchange, the NASDAQ stock market.
• Google (GOOG/GOOGL) is now Alphabet Inc., an American multinational conglomerate with a primary focus on the Internet and technology-related businesses, among many others. The company is listed on the NASDAQ stock exchange.
• Fiat Chrysler Automobiles (FCA) is an Italian – American multinational company that was born after the merge of the Italian company Fiat and the American company Chrysler Group LLC. It can be traded on the Italian Stock Exchange (BIT) and the New York Stock Exchange (NYSE).
A market index typically represents a whole stock market and tracks its changes over time. Indexes are extremely helpful to online traders because they measure the value of groups of stocks. When an index goes up one level, consequently, the group of stocks increases its value by one level.
The most popular indexes are:
• NASDAQ 100 (^NDX) is a stock market index based on exchange and it consists of 103 equity securities issued by the top 100 non-financial companies listed on the NASDAQ.
• FTSE 100, also known as the ‘Footsie’, is a stock market index that consists of the top 100 companies in terms of market capitalization listed on the London Stock Exchange.
• S&P, also known as S&P 500, or Standard & Poor’s 500; is a stock market index that consists of 500 American companies listed on the New York Stock Exchange or NASDAQ – which are extremely large in terms of market capitalization.
Get started with TradeFW as your broker
The above featured markets aim to introduce online trading and the dozen opportunities it can offer to traders, no matter their level of experience. Our depth, speed and execution of delivering the ultimate trading experience will prove you there is no better choice than TradeFW. With us as your broker, you will get to savor the success by trading on any financial market you want!