Currency Pairs
The global forex market, with a daily trading volume of $5.5 trillion, continues to attract investors due to its leverage feature. The major currency pairs, consisting of only eight pairs, account for the majority of turnover in the forex market.
Major Pairs
The major pairs are considered the driving force of the global forex market and are the most actively traded. These pairs include the U.S. dollar, euro, Japanese yen, British pound, and Swiss franc.
* EUR/USD
* USD/JPY
* GBP/USD
* USD/CHF
* AUD/USD
* USD/CAD
* EUR/JPY
* EUR/GBP
Minor Pairs
Minor pairs, while less popular than the major pairs, still play a significant role in the forex market. These pairs involve less commonly traded currencies but offer various opportunities for investors.
Stocks
A stock represents a share in the ownership of a company and constitutes a claim on part of the company’s assets and earnings. In addition to trading foreign currency pairs, the forex market also provides investors with the opportunity to engage in stock transactions.
In modern financial terminology, the terms "stock," "shares," and "equity" are often used interchangeably. The stock market comprises various exchanges where investors can buy and sell shares of individual companies.
Similar to currencies, stock prices can fluctuate throughout the day, week, and month, influenced by various market factors.
Stock traders typically aim to buy stocks when they are undervalued and sell them as their value increases, capitalizing on price movements to generate profits.
CFDs
A Contract for Difference (CFD) is a financial product that allows investors to profit from the price movements of an underlying asset without owning the asset itself. These underlying assets can include stock indices, individual stocks, commodities, and more. For each point that the price of the instrument moves in your favor, you gain multiples of the number of CFD units you have bought or sold.
Advantages of CFDs
* Leverage: Amplify your capital by trading with leverage, allowing you to control larger positions with a smaller initial investment.
* Flexibility: Take advantage of both rising (long) and falling (short) markets.
* Diverse Markets: Access a wide range of markets, including stocks, commodities, indices, and more.
* Market Reflection: CFDs closely mirror the trading behavior and prices of the underlying market.
Crypto Coins
Cryptocurrencies are digital or virtual currencies designed to function as a medium of exchange. These currencies operate independently of government and financial institutions, with popular examples including Bitcoin, Ripple, and Litecoin.
Cryptocurrencies are built on decentralized networks using blockchain technology, a distributed ledger maintained by a network of computers. With Lotas Capital, you have the opportunity to trade digital coins within the forex markets, expanding your investment portfolio into the realm of digital assets.
Blockchain technology enables the secure and transparent execution of transactions without the need for a central clearing authority, fostering trust and efficiency in the digital currency space.
While cryptocurrencies present certain risks, they also offer numerous advantages, such as increased privacy, lower transaction costs, and global accessibility.
