The usage of option when trading foreign exchange has always been a popular among foreign exhange traders. There are two basic types of options: calls and puts. Call options A Call option provides the buyer with the right, but not the obligation, to purchase the underlying asset at a specified price, called the strike or exercise price, at any time up to and including the expiration date. Put options Provides the buyer with the right, but not the obligation, to…
Commodities trading is a form of investment that involves buying and selling commodities in the hope of making a profit. Commodities include precious metals, such as gold and silver, as well as agricultural products, such as wheat and corn, often referred to as soft commodities. Trading commodities can be a very risky investment, and it is important to understand the risks involved before you begin. The prices of commodities can be very volatile, and it is not uncommon for prices…
As with all financial trading, risk also applies to forex trading. The risk comes mainly from the leverage used by traders. In this very brief blog post, I will outline the main risk factors involved when trading foreign exchange. Leverage In forex exchanging, influence requires a little beginning venture, called an edge, to access generous exchanges unfamiliar monetary standards. Little value variances can bring about edge considers where the financial backer is needed to pay an extra edge. During unstable…
CFDs – Contracts for Difference – lets you trade on thousands of financial products with relatively low costs. A CFD is a financial derivative of an underlying asset such as a stock. CFDs can also be used when trading foreign exchange (forex trading). This article will outline the costs associated with CFD-trading. Spread Spread is the difference between the price of buying and the price of selling. Most financial instruments, have a natural markedsprea, as well as a markup from…