The forex market, a global financial market, has many trading instruments traded. These investment instruments are traded under much better conditions on the forex market than other financial markets and bring higher returns. This is due to the trading features of the Forex market and the market structure.
It is possible to perform trading on the Forex market with bi-directional transactions, leveraged buy – sell transactions, limiting the risks by stopping the loss order, trading under the same conditions as all world investors, low difference between buying and selling, speculation and manipulation, Such as the operation of transactions over the Internet, is more advantageous than the stock market shows. For these reasons, the instruments traded on the stock exchange also generate higher gains on the forex market.
In short, investment instruments;
- Stocks and Stock market indices.
The Forex market is managed through trading centers located all over the world. This feature proves to be a global market, and trading hours are longer on this count compared to other markets. When one of these trade centers closes, the other is absolutely open and on this market, the market is always open except for weekends. Investors use a computer with an internet connection to make transactions through the market if the trading center is open.
Due to the global nature of the market, the diversity of investment tools is also high. Particularly in terms of currency, it is easily separated from other financial markets both in terms of trading hours and diversity. Forex market can be invested in the currencies of all world countries. In the Forex market, 7 major currencies are traded, and unlike the foreign exchange market, we can invest in currencies that we call the minor currency. Currencies other than currencies bought and sold in the region where they are located can also be easily invested in the forex market.
In the Forex market, currencies are traded in pairs, that is, parallels. This gives rise to a bi-directional processing feature. That is, currencies both gain value and gain value in the forex market when they lose value. To explain in terms of a parity; In the GBP / JPY parcel of British sterling and Japanese yen, the GBP is bought while the GBP gains value, and the JPY is removed from the net. Likewise the GBP loses value, the GBP is sold and the JPY is bought. In this way, an investment instrument gains both value and loss of value.
When the parity consisting of 7 major currencies is called the major parity, the minor currencies are traded in a major currency with the minor currencies.
Commodities are commodities, and they contain investment instruments that we often know from everyday life. For this reason, it is also known as safe investment vehicles. At the same time the commodity shows great fluctuations in the long term and is one of the long term investment instruments of the stock exchange. But with the leveraged trading of the forex market it is possible to achieve high yields in the short run.
Among these commodities we rank among the most traded investment instruments; Gold, silver, copper, oil, corn, cotton, cocoa powder. They have higher transaction volumes than others. To talk briefly about these commodities;
Gold and Silver
Gold is an investment instrument that has been bought and sold since ancient times and has never lost its value in spiritual sense. In addition to making gains in other financial markets, the most profitable gold transactions are realized through the forex market transaction features. Because every permanent gold is found in the stocks of the central banks of the countries, people see gold as a reliable investment instrument. For this reason, the demand for currencies is reduced and investments are made in the periods such as economic and political crises, natural disasters, announcement of macroeconomic data.
Silver, which is a gold alternative, can be said to be able to invest thanks to the forex market. Because of the rapidly deformed and darkened structure of silver, physical investment and long-term storage are not possible. Thanks to the non-physical trading on the Forex market, silver has become a lucrative investment vehicle. The price varies depending on the gold and is traded at the price of an ounce over American dollars like gold.
Copper in the group of industrial metals is also a profitable commodity for the forex market. Copper used in many important industrial sectors has become a good alternative to investors due to the performance it has shown in recent years. The prices vary according to the gold and create another alternative which is a gold alternative. In particular, the ability to have low prices, the developments are seen in the industry show that demand will increase further in the coming years and copper will gain more value.
Oil, which is unimaginable, will always remain popular because of its use as a raw material and fuel. So much so that, despite the development of research and development studies and technology, there has been no product developed for petroleum. It is one of the safe investment vehicles with regular supply and demand, and there are two types of transactions on the market, Brent and West Texas Oil.
Oil is seen as the black gold of the markets, and the trading characteristics of the forex market make it easy to trade oil. One of the two orders that gives the American dollar a fortune is gold, and one is oil.
Corn, Cotton, Cocoa
These agricultural products, which are needed in many areas such as food, textile, cosmetics and healthcare, are investment vehicles with high transaction volume of forex market. Due to the global market, these commodities are more traded due to the use of these agricultural products in many areas. I am familiar with everyday life products and for this reason almost everyone can comment on how their prices will change in the future and how they will change in the future. In addition, the factors affecting the prices of agricultural products are more pronounced than those affecting other investment instruments. For this reason, it forms safe investment instruments.
Stocks and Stock Indices
Stocks and indices that we share with the stock market are now trading under far better opportunities in the forex market and naturally bring higher returns. Due to many factors such as long trading hours, trading all over the world, trading features of the forex market, more profitable transactions can be made from the stock market.
Thanks to its bidirectional trading capabilities, stocks not only gain value, but also profit when they lose value. Thanks to its operations on the internet and its global nature, it can easily be invested in many more stock indexes such as the famous S & P 500, DAX, Dow Jones, FTSE 100,
The Forex market is not a global market, unlike stock exchanges, and two important features, such as not being managed from a single center, can make transactions safer and more profitable. A common feature with the stock market is that conscious investors can achieve these high gains.