Instruments
Answer
Hello,
What is the deference between this instruments:
Stocks
Forex
Options
Futures
Indices
Commodities
Energies
Shares
Bonds
ETFs
Spread betting
That will be a great help for us to understand more.Differences
stocks is equities
option is call option (buy) -- like forex
put option (sell) more it fall, more you win
unlike forex, option, you need to pay very high premium to insure each share
bonds is T-bill -- i.e. fix interest for 5 , 10 years
future is future contract that exercise it at ONLY CERTAIN price (as stated in the contract)
commodities, are gold , copper , coffee , cotton etc
energies is not a proper financial derivative term
forex , if you get negative pip spread for 2 or 3 broker, you will win most of the time
I would say everything: risk, profit potential, activity, government regulation...
Stocks and shares
These are essentially the same thing. You buy and sell a 'share' of a company and profit from a rise in its value (if you're long) or lose if it falls in value.
Forex
Forex, FX or Foreign Exchange plots the value of one currency relative to another and are traded in pairs. The major pairings include the USD$ as it's the world's most important currency.
Indices
Indices are benchmarks which enable traders and investors to gain a macro view of the market as a whole - or a sector within a market. Most indices are not tradeable instruments in their own right, although there are numerous ETFs (Exchange Traded Funds) which mirror the movement of the index, along with various derivative products (see below).
Options & Futures
These aren't tradeable instruments but, rather, derivative products that enable traders to speculate on price movements of 'underlying' instruments such as shares.
Spread betting
Technically, SB isn't a true derivative product, although it's reasonable to think of it as such for all intents and purposes. Like options and futures, SB firms base their prices on an underlying instrument like shares, FX and indices like the Dow and S&P.
ArtVor, follow me! Now we go to Google and search for wikipedia then you type Options, Stock, Futures and read all articles and won't need to start threads like this.
ArtVor, follow me! Now we go to Google and search for wikipedia then you type Options, Stock, Futures and read all articles and won't need to start threads like this.
+1
My friend, if you have such question it's to early for for to post on this forum.
Do some researches before asking a questions! Big G will help you!
Good luck!
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Hello,
What is the deference between this instruments:
Stocks
Forex
Options
Futures
Indices
Commodities
Energies
Shares
Bonds
ETFs
Spread betting
That will be a great help for us to understand more.