Introduction to Trading Instruments: A Comprehensive Guide for Beginners
Trading in the financial markets offers a plethora of opportunities for investors, but it's crucial to understand the tools at your disposal. Among these tools are various "trading instruments," which form the bedrock of your investment strategies. This guide aims to introduce beginners to the fundamental trading instruments that are commonly employed by traders worldwide. What are Trading Instruments? Trading instruments , in the simplest terms, are contracts between two parties that denote the buying or selling of an asset. These contracts come in various forms and serve as the medium through which investments are made. They play a pivotal role in global finance, facilitating many transactions in financial markets. Types of Trading Instruments Equities (Stocks) : Probably the most recognized among trading instruments, stocks represent ownership in a company. When you buy a stock, you are purchasing a piece of the company and thus become a shareholder. ...