When it comes to trading, Forex trading reigns supreme; with over $5 trillion in and out of the Forex market every single day, there is plenty of money to be made exchanging currencies. More and more people are getting started in trading Forex and making money. Will you be the next trader to make a million with well-timed currency trades? Trading with Target Trading will make sure you have all the tools you need to get there.
Equity indices are stock market indices that are used to measure the health and value of specific segments of the stock market or the overall economy of a nation. They can be based on specific industries (for example, the NASDAQ Composite measures the overall performance of the most highly-valued IT companies in the United States) or on specific corporations that have the most impressive impact on the overall economy of a country (for example, the American S&P 500 is based on the largest 500 companies trading on the New York Stock Exchange).
The term “commodities” refers to natural resources that are derived from nature. These are mostly used as raw material for other products. In this sense, commodities are resources that are eventually consumed, for example oil or gold. Each commodity market will have its own particular cycles, determined by supply and demand. Before we delve further into commodities and other CFD asset classes, it is important to explain what CFDs are.
A stock price reflects the value of an investment in a company. This is determined by dividing the total value of the company by the total number of shares issued. The fluctuation in the market is mainly determined by supply and demand. Corporate data will also have a significant influence on stock value.
It is important to remember that when you enter a stock CFD trade, you don’t buy the stock itself, but instead agree a contract with the broker to settle the difference in value between the entry and exit price of the stock.