What can we trade on the Trading platforms?
Financial securities and commodities can be traded using trading platforms.
In general, we can trade the ownership of various financial instruments and commodities using a Trading Platform. But, some investors and traders may not want the ownership. Their motives may be to gain profit from the instrument or commodities. This kind of situation is very common, and the solution to this is investing in derivatives of these assets.
A derivative is a contract in which its value is based on the market value of the base asset. Here, the trader does earn by buying or selling the asset, rather they earn based on the value movement of the asset and its instruments.
The most commonly known derivative is CFD (contracts for difference). Here, the buyer and seller agree on whether the price will increase or decrease, and based on this one will trade. It is a well-known method to trade and earn based on your knowledge. It is a higher-risk, high-return kind of approach to trading.
The most common trades option for CFD trading are as follows:
Forex:
It is a derivative tool for trading on currencies.It is a popular CFD trade one uses to trade currency pairs. Here one trades on whether the price of a currency will rise or fall. The rewards are as great as the risk.
Metal:
Here the price of gold and silver is traded using a CFD.
Commodities:
Here the price of other commodities is traded and used to make a profit.
Indices:
You can speculate the price of the index and based on that trade for it.
Shares:
One may speculate whether the price of the share will rise or fall. Based on this they will decide whether to long or short the CFD.
Futures:
They are well-known trade options using CFD. One should pay close attention to it to ensure profit.It is a higher-risk, high-return kind of approach to trading.