Diversifying Your Portfolio
Trading instruments, also called securities, are different types of markets you can trade. Although people are familiar mostly with the stock market, it is not the only marketplace where trading of securities occurs. You can also trade at the forex market, bond market, over-the-counter market, derivatives market, commodities market, and at the latest addition to them – cryptocurrency market. These financial markets are made by buying and selling different types of instruments, among which are equities, bonds, commodities, currencies, and derivatives.
Popular trading instruments daily see high trading volumes. The highest trading volume is usually experienced by Stocks, ETFs, Future Contracts, Forward Contracts, Options, Currency Derivatives, and CFDs. In most of the countries, trading instruments are regulated by various securities and exchange commissions, which monitor not only trading instruments themselves but also the compliance of companies involved in trading.
When you open a trading account with REX, you will hone your skills of trading stocks, currencies, commodities, indices, and cryptocurrencies. In the following sections, we elaborate on the differences between these trading instruments and explain in detail what pros and challenges each type involves. Please, read on to gain a more comprehensive picture of trading instruments offered by REX.