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%
NordFX information and reviews
NordFX
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

Trading on Forex - A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations...

Can A Stock Go Negative?

There are numerous professional stock traders who have made a name for themselves in the dynamic stock market. However, it is essential to keep in mind that the stock market is also prone...

What is revenge trading?

Revenge trading has been identified as one of the major causes of traders' failure. In fact, Brett Steenbarger, a well-known trader and trading coach...

A brief history of Forex

When you think of forex today, you likely conjure up an image of a flat-screen digital device full of real-time figures, fluctuating graphs, notifications...

How to Trade Major Currency Pairs

The major currency pairs traded by forex traders around the world are the following: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, NZD/USD...

Know Your Heroes: Successful Traders of Modern Era

We bet you've heard many times that a great journey starts with a small step. What if we say that success is just a journey, not a final destination. But where you have to...

Understanding the Nuances of Limit Orders in Trading

In the intricate and fluctuating world of trading, limit orders emerge as an essential tool for investors and traders aiming to assert control over their transaction prices...

What is Notional Volume and Why Does It Matter

Notional volume is often used as a measurement when valuing a derivative contract. There are also various other ways derivative contracts can be valued...

What is stock split and stock split reverse?

Apple, Amazon and Tesla have all split their stocks in the past in order to make their shares more accessible to retail investors. In the following article you will learn what a stock split is...

How to Trade Oil CFDs: A Comprehensive Guide

The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains...

Forex Trading - The Actual Financial Solution

Forex trading has proven to be a steady source of income for many traders across the globe. The amazing statistics in 50+ Forex & Trading Industry Statistics...

Mastering Gold CFD Trading: Your Comprehensive Guide

Few assets hold the allure of gold. It serves various roles – a hedge against inflation, economic fragility, or a counter to the US dollar's influence. Regardless of its driving force...

Addressing Trading Biases: Managing Psychological Factors In Day Trading

In the intricate world of day trading and investing, psychological dynamics play a crucial role in shaping decision-making and overall success. Traders, regardless of their level of expertise...

Ten Most Valuable Currencies in the World

The United Nations recognizes 180 currencies in the world as legal tender. But while currencies such as the US dollar and the euro are popular and widely used, they do not hold the highest values...

Earnings Season: What Are They And How To Trade On Them

While marketing campaigns and plans from the top management are good, nothing says "We are successful" as well as a positive quarterly earnings report...

The Comprehensive Guide to Copy Trading

Copy trading, an innovative and adaptive strategy in the trading realm, offers participants the opportunity to emulate the trades of often more seasoned traders, all in real-time...

Effective Bitcoin Trading in Five Steps

Rather than starting to invest in Bitcoin, trading Bitcoin can be even more profitable than investing alone. Trading Bitcoin involves taking full advantage of the asset's...

The gamification of trading and the case for financial literacy

Trading apps are attracting younger audiences with new investment approaches and appetites, sparking knee-jerk reactions from regulators and media...

Is MetaTrader 4 good for beginners?

MetaTrader 4 (MT4) is one of the world’s most popular trading platforms, suitable for all types of traders, regardless of expertise. MT4 has become wildly popular for many reasons...

What is Algorithmic Trading?

Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows an algorithm (a defined set of instructions) to place a trade...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 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.