Trade with usAlso referred to as forex or the FX market, the foreign exchange market is the largest financial market in the world, with a daily turnover in excess of $6 trillion. Unlike other markets, forex has no physical or centralised location, and it is open 24 hours a day, Sunday night to Friday night.
Forex trading is essentially the simultaneous buying of one currency and selling of another,
on this massive decentralised global market.
In the Forex market, currencies are always quoted and traded in pairs, such as the GBPUSD. The first currency (GBP) is the base currency,
while the second (USD) is the counter or quote currency. The price of the GBPUSD at any given time is basically the exchange rate of the two currencies. In the GBPUSD example, the prevailing price will indicate the amount of US dollars you will have to pay for
1 unit of GBP (Pound sterling).
You can speculate on the prices of over 300 major, minor and exotic currency pairs, on all our intuitive and powerful platforms.
By definition, an index is a weighted statistical average that tracks and measures the performance of a selected group of stocks. Analysts, economists and investors use indices to assess the overall economic performance of a particular industry, exchange, market sector or even country. The most common and well-known indices include the S&P 500, NASDAQ 100, Dow Jones Industrial Average (DJIA), and the FTSE 100. The S&P 500 (Standard & Poor’s 500) is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the U.S.
Trade Major Indices Round the Block
Trade major indices with FTGmarkets, such as the UK 100, US 30, Euro 50 and Germany 30.
Some of the indices are also available for trading outside normal trading hours, which means you can speculate on their prices even if the markets are closed!
Trading out of normal trading hours has the following benefits:
Increased Flexibility – Buy and sell over a larger time period, which gives you more choices and opportunities.
Better Prices- Take profit and stop loss orders can be triggered during out-of-session trading hours. You will probably receive better prices and avoid possible market gaps and slippages when the underlying market opens.
Trade over 90 cash and forward indices on FTGmarkets now.
CryptocurrenciesCryptocurrencies are a new and exciting asset class. A cryptocurrency is a form of digital money that exists purely in computer code and is decentralized.
As the name suggests, cryptocurrencies use cryptography (an encryption technique) to regulate and create additional units. Bitcoin was the first cryptocurrency to be launched in January 2009, but there are now over 2000 crypto coins and tokens available online.
Cryptocurrencies can be used as a medium of exchange and as store of value, but they are very different from traditional fiat money. Still, you can buy and sell them like any other financial asset. At FTGmarkets, you can speculate on the price movements of various cryptocurrencies.
CommoditiesCommodities trading has been an essential part of human history since the days of exchanging spices and cowry shells. It is widely believed that commodities trading began in Asia hundreds of years ago. In today’s financial markets, commodities are mainly traded in two forms: cash settlement and forward settlement. In cash settlement, the clearance date is in the near future, whereas, in forward settlement, the clearance date is way further in the future and prices usually have wider spreads.
There are different types of commodities traded: Energies such as oil and natural gas; Precious Metals such as gold and silver; Agricultural Products such as coffee, wheat and sugar; and Livestock and Meat such as pork bellies and feeder cattle.
The most popular way to trade commodities is through futures contracts where there is an agreement to buy or sell a particular amount of the underlying commodity for a specific price at a later date. Futures exchanges standardize the minimum quality and quantity of a commodity to be traded.
For instance, at the Chicago Board of Trade, one standard wheat contract represents 5000 bushels.
There are two types of traders in the commodity futures market: buyers and producers, as well as speculators. Buyers and producers use the futures market as a way of hedging against changes in prices, and this group of traders actually make or take delivery of the tangible commodity when the futures contract expires. For instance, a sugarcane farmer may wish to hedge against future price losses before harvesting. The farmer will sell sugar futures contracts during planting season, thus guaranteeing a pre-set price when the crop is harvested. The other group, speculators, seek to benefit from the price changes of futures contracts. They will close their contracts before the due date and will never make or take deliveries.
Commodities are a popular tradable asset class on our platforms. We offer commodity spread bets and CFDs on both cash and forward commodities such as gold, silver, Brent and WTI Crude oil.
Stocks and ETF’sStocks, or shares, represent units of ownership equity in a company. Stocks give shareholders voting rights as well as a guarantee of the equal distribution of profits in the form of capital gains or declared dividends. There are two types of shares: common and preferred. The main difference between the two is that common shares have voting rights, while preferred shares do not. Interestingly, preferred shares carry the name because holders receive preference during dividend payouts and in the event of liquidation.
A Case of Stock TradingAs the markets adjusted to the end of the 2007/08 global financial crisis, the prices of FANG (Facebook, Apple, Netflix and Google) stocks started to edge higher, providing the cue for the entire market. The stocks continued to soar higher and higher, posting double-digit growths in 2017 on the back of strong earnings. They managed to drive the benchmark S&P 500 Technology Select Sector index up by 34.57% that year alone. When stocks rally, it means that investors are willing to pay higher prices to own equity in the underlying companies. In 2018, when the US-China trade war headlines dominated the wires, the stock market started to experience volatility and the shares of FANG companies trended sideways to lower.