HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Choosing the Right Financial Instrument to Trade


For any trader about to enter the markets, a crucial part of the process is deciding on a suitable financial instrument to trade on. Choosing the right market can help traders significantly increase their trading potential. The financial market is made up of many hundreds of instruments across several asset classes. Each different type offers traders the opportunity to take advantage of price movements and to potentially make a profit on their investment. Before selecting a financial instrument to trade on, there are many factors a trader should consider, including liquidity, volatility, transaction costs, and the information available.

What is a Financial Instrument?

In simple terms, a financial instrument is an asset or capital package that can be traded. It represents monetary contracts between parties, which can be created, traded, modified, and settled. There are two main types of financial instruments: cash instruments and derivative instruments.
Cash Instruments

Derivative Instruments

Tips on Selecting a Financial Instrument

When it comes to choosing a financial instrument to trade, there is such a wide choice, meaning it can seem a tricky task, especially when first starting out in the world of trading. However, we have put together a few tips and factors to consider when selecting financial instruments, to help with what is an important decision.
Liquidity

Volatility

Costs

Information

Financial Instruments Available with IronFX

IronFX offers traders access to more than 300 tradable instruments across 6 asset classes, including forex, metals, indices, commodities, futures, and shares. It is possible to trade the world’s largest markets with the deepest liquidity pool, along with hundreds of CFD assets. Forex

Metals

Indices

Commodities

Futures

Shares

#source


RELATED

A Guide to Cryptocurrency trading

If you've decided to invest in the cryptocurrency market, as with all investments, it's important to do your research. Although Bitcoin is the most well-known...

What is a Bear Market? A Complete Guide

Sometimes, during market cycles, the stock markets may plunge, and prices could fall. It may be for a short period of weeks or months, or even drag on for years...

How Are Commodities Traded In Simple Terms

The lookout for how are commodities Traded is as old as the financial market itself. Perhaps commodities trading is even older than the financial market...

High-Frequency Trading (HFT) - Overview, Advantages, Risks

Everyone who is interested in financial markets, of course, knows about the existence of different trading methods. Some of them are quite popular, while not much is known about others...

Trading styles

Like every other trader, whether you are a novice trader or talented expert in the field of trading forex, you come with your own unique trading style. No two traders are alike...

Q2 2022 Earnings Season Explained

Earnings season is a few weeks when most public companies share their quarterly performance in their earnings reports. It takes place every three months...

The core concept of money management

Risk management, also known as money management, refers to a number of trading techniques employed to lessen risk exposure. Being affected by various factors...

Frequently asked questions about Cryptocurrency CFDs

Bitcoin is a digital currency that was created in 2009. Its creators are unknown, as they disguised themselves using the alias of Satoshi Nakamoto. When Bitcoins are bought or sold...

How to Spot a Bull or Bear Market?

There are two important terms in financial markets that can help investors understand and react to certain situations. Both bull and bear markets describe how markets...

A Guide to Trading EURUSD

EUR/USD is the currency pair which matches the exchange rate of euro (EUR) against the US dollar (USD). Traders can trade EUR/USD using financial derivatives like contract-for-differences (CFDs)...

Trade Silver Online: A Complete Guide for Beginners

To start with, what is silver trading? Traders have highly valued silver for many years now. The metal has various usages including jewellery or as a form of currency....

Understanding Signal Providers and Forex Trading Signals

In the vast realm of forex trading, a 'signal' serves as a beacon, pointing traders towards potentially profitable trade opportunities. A signal provider is akin to a lighthouse keeper...

Understanding CFD Trading in Forex and Other Markets

Contracts for Differences (CFDs) stand out as intriguing financial instruments, offering traders the ability to capitalize on price fluctuations without actually owning the underlying assets...

How To Identify Strong And Weak Currencies?

Are you an ambitious, venture trader with a strong interest in foreign exchange trading? Read this article to get a better understanding of strong and weak currency...

Forex Market Hours

Other than being the largest and most talked about financial market out there, Forex has a very appealing characteristic - around-the-clock operation. Being available...

IronFX: Leverage in Forex. Complete Guide

Leverage is simply borrowed funds that traders use to trade. In other words, it refers to the ability that traders have when opening an account with a forex broker...

How to Choose the Best Forex Broker

Choosing the best forex broker to open a trading account is quite hard as there are numerous choices available online. Although competition is very high pushing brokers...

Dogecoin vs. Bitcoin: Which one is the Better Investment?

Dogecoin and Bitcoin are two well-known crypto assets. However, some traders may not know how to compare Dogecoin vs. Bitcoin, so knowing some of the significant similarities and differences...

Guide to Forex Trading Costs: Unraveling the Fees

Forex trading, much like any financial venture, comes with its own set of costs. Grasping these costs is crucial for every trader, as it not only influences their bottom line but can also provide..

What is earnings season and why is it important for traders?

Every earnings season is a new opportunity to grow as an investor. An Earning Season is an important financial event and a new opportunity to grow as an investor...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.