A brief overview of popular asset types, their distinct features and trading styles associated with them.
Introducing broker's main responsibility is to identify witch trading asset will suit best their customers' personality and trading style, brining them the best trading experience.
Brokers are offering access to several asset types, often all available in one platform within a single account. What to choose is a matter of taste, trading strategy and prevailing market conditions.
There is no need to restrict yourself to one asset type. Different assets can offer different trading experience.
It is possible to trade several assets simultaneously to capitalize on several trading opportunities. It can also come in handy when one of the asset types is not available (like Forex during the weekends). Then you can simply trade another asset type.
Binary Options will better suit those just starting their trading journey, as they are easy to understand and get into.
There are a few types of options currently available on the market. Binary options will better suit those just starting their trading journey, as they are easy to understand and get into. Digital Options work in a similar fashion but offer more flexibility by introducing the concept of the strike price and floating profitability.
Binary options are considered by many to be the easiest way to start your trading journey. All traders have to do when trading binary options is to choose the direction of the price change and click either 'Buy' or 'Sell'. If you make a correct prediction, you will receive a fixed profit that is determined before the deal is open. Otherwise, the investment amount will be lost. Binary trading is as simple as that. But don't get the seeming simplicity of this trading instrument fool you. The real challenge is to predict the direction of the price change correctly. For this exact purpose traders use technical analysis indicators.
Digital options are a more complex take on the binary options mechanics. In binary options, the closing price is compared to the opening price. In digital options, the closing price is compared to the so-called strike price, a precise threshold the trader has to choose before opening the deal. This can come in handy when you believe the price will / will not reach a particular level that differs from the current price. There is no set profitability for digital options. The amount of money you get will depend on the distance between the current price and the strike price, and the prevailing trend.
Forex (for Foreign Exchange) is the world's biggest and most volatile financial market
No stock exchange can demonstrate daily trading volume that is even remotely comparable to Forex. In Forex, national currencies are bought and sold as regular goods with the means of other currencies. Forex trading is carried out with the help of a multiplier, that helps proportionally increase both potential profit and loss. When trading Forex, traders close their deals manually, as there is no set expiration time. For many, Forex is synonymous to trading itself, and for a good reason. It offers a great mix of complexity, depth and remuneration.
Or rather CFDs on stocks. Very few brokers offer a DMA services.
Stocks, or rather CFDs on stocks, are an asset type that lets traders speculate on the price of the world's biggest and most renowned companies. Corporate news, earnings reports and macroeconomic events can all trigger a massive price swing. Both technical and fundamental approaches are used in stocks trading. This asset class will suite those who enjoy reading corporate news and dig deep into the industry of their choice — for stocks trading fundamental analysis is the King.
Exchange -Traded Funds
ETFs or Exchange-Traded Funds are an alternative to stock trading. A collection of stocks traded under a single asset, they carry a lower degree of risk and are better suited to long-term trading. Daily Junior Gold Mining Index, an index that tracks the performance of small capitalization gold mining companies, is the only ETF currently available on the platform.
There are several ways to trade cryptocurrencies
There are several ways to trade cryptocurrencies: using CFDs on crypto or the crypto exchange. Contracts for difference do not provide you with a right of ownership for the desired asset. Instead, they track the price performance of the said asset and provide positive or negative return based on the direction of the price movement. This asset class is well-suited for short-term trading. The exchange, in turn, offers the right of ownership and can come in handy when opening medium and long-run positions.
This is only a short review of most popular trading assets available on most platform. Hopefully this information will help you to make trading of your customers exiting and interesting.