Trading Basics

Trading is an exchange of one item for another. On financial markets an asset is being bought for one price and sold for another, that is hopefully higher or something is sold for one price and bought again by lower price to profit. There are different types of trading strategies used by investors to profit. To create profitable trading portfolio traders use many different currencies, commodities, stocks, etc.

CFD Trading

CFDs are a financial derivative trading instruments: they derive their pricing from an underlying asset. CFDs allow investors to obtain a profit of prices moving up (long positions) or of prices moving down (short positions) on underlying financial instruments and are frequently used to speculate on those markets.

Short Selling

Short selling is a trading strategy, when an investor anticipates a decrease in share price and gets profit only when a shorted security falls in value. Short selling is another trading tool, which provides a sizable opportunity with high dose of risk. Traders can use it in their trading portfolio if it fits their investing style and risk tolerance.

Trading Instruments

Trading instruments are items traded on financial markets including stocks, commodities, currencies, indices as well as PCI (Personal Composite Instruments). While choosing instruments to trade it is necessary to conduct a thorough research. Although liquidity and profit potential are important factors to consider, however, other aspects should be considered in this respect.