Since high speed internet is available to almost everyone, online trading is very popular these days. Today anyone can operate anywhere with any financial instrument. Website design By BotEap.comIf you are a newbie to online trading, you should not worry, because there are a huge number of trading platforms, products, markets and brokers. For a beginner, it is better to use a popular trading method. Website design By BotEap.comspread bets
It is simple. A trader offers a bid and ask price for the market in which he is trading. The difference is the spread. If he believes the market will rise, he opens a trade at the buy price, which is known to be long. But if he thinks the market will fall, he opens a trade at the short ask price. Website design By BotEap.comCFDs
CFD is short for Contracts for Difference. Like spread betting, CFDs allow you to profit from rising and falling markets with buy and sell prices set by the dealer. Website design By BotEap.comCFD traders would trade a set number of shares or lots at a certain buy or sell price. CFDs have tighter spreads compared to spread betting, but financing taxes and dealer commissions apply. Website design By BotEap.comETFs
ETF is short for Exchange Traded Fund. ETFs are like stocks, but instead of buying a share in an individual company, you buy a stock which is a fund that tracks the price of a commodity. ETFs are bought and sold in a similar way to stock market shares, by paying a commission to a broker. Website design By BotEap.comUnlike CFDs and spread betting, ETFs do not provide the opportunity for leverage, although this means that losses cannot exceed your initial investment. Website design By BotEap.comChoose your market
It is very important to decide what to focus on and then become a specialist. Website design By BotEap.comforeign exchange
Forex represents a form of global exchange that estimates the relative value of various currencies compared to one another. Forex trading is popular all over the world and it works 24 hours except on weekends. Website design By BotEap.comEach market is represented as a currency pair. For example, GBP/USD is the value of the British pound against the US dollar. When trading currencies, you speculate on the value of one currency against the opposite pair. Website design By BotEap.comtracks
Indices are used to measure the value of the chosen selection of the stock market. For example, the FTSE 100 Index represents a rating of the top 100 companies listed on the UK stock exchange. When trading indices, you speculate on the rise or fall in value of any selected index. Website design By BotEap.comThere is much more to learn, but for newbies to this industry it is important to at least have an idea to start with and then delve into the philosophy of online trading.