You will find assets of all categories available for s trading at Jones Mutual. Each category has its own characteristics and meaning for your trading activity. Take them into consideration, when making your choice.
Commodities are probably the simplest asset type to understand for a beginner in s trading. These are raw materials and goods regularly traded in huge quantities on the international market. We are talking about precious metals, such as gold and silver, fossilized raw materials, such as oil and gas and food products, such as rice, wheat, coffee beans, etc.
Prices for these assets depend highly on the actual physical supply and demand in the world and less on speculations. Therefore, price movements are rather mild, and sudden large swings are not likely.
Commodities are considered to be rather low-risk assets. They are ideal for the beginning investor to get a feel for how trading works. On the other hand, it is necessary to keep up-to-date with the overall global market in order to predict price movements.
When a company reaches a significant size, it may register on a stock exchange and offer part of the companies’ ownership to the public. In this way, money is raised to help the company grow. By selling shares of the companies’ declared value on that stock exchange. Each person or entity can buy shares and will then own a portion of that company. The investors are called shareholders. If the company makes a profit, so does the shareholder.
The biggest Stock markets are the New York Stock exchange, the NASDAQ in the USA, the London Stock Exchange, the Japan Exchange Group, the Shanghai Stock Exchange, and the Hong Kong Stock Exchange. There are many more throughout the world, which are noteworthy.
Stock trading is highly popular also when it comes to Contracts For Difference. They offer a variety of opportunities for everyone. As an investor, you can choose an industry and a location you are familiar with. You can enter s on stocks of small or large companies, start-ups or established, all depending on the risk you are prepared to take.
An index is the numeric value of a list of specific stocks. The rate of an index is somewhat representative of the strength of the particular stock exchange. In other words, an index combines several significant stocks traded at the exchange. Its value is then calculated based on the combined value of these specific stocks. The numeric value received forms the index rate. s trading is possible on the index rates.
Examples for popular indices are S&P 500 comprising of 500 companies listed at the NYSE and NASDAQ, the Dow Jones comprising of 30 large companies listed in the US, the FTSE 100 consisting of 100 companies listed at the London Exchange, the NIKKEI 225 in Tokyo and the DAX in Germany.
As you may imagine, stocks trading involves a lot of speculation. The stock prices are often determined by what people believe they are worth. A convenient way to speculate in the stock market without exposing yourself to high risk is an investment in s on stock indices.
Everybody knows what a currency is. We use them daily. It is also widely known that one can make a profit by exchanging them against each other. Typically you would buy a foreign currency with your country currency and change it back when the rate changes in your favor. s can be issued on all large international currencies.
A central bank usually determines the value of a currency. It depends, like other assets, on supply and demand, which is largely determined by a countries economic situation and its export volume. However, currencies are also largely influenced by political developments and specific financial policies of the national bank.
For s trading, this is especially interesting because you are not limited to your own countries currency. It provides many opportunities, but also requires some experience. The price movements are generally not very strong but can be very quick and volatile.