▷ Trading in financial markets: in which markets to operate

Until a few years ago, investing was only possible for a few pockets and you could only do it through your bank and hiring what they offered you. Today, new technologies allow our access to a wide range of products and in conditions that are available to everyone through the mobile phone.

Although you have to bear in mind that when it comes to investing, some minimum financial knowledge is necessary and knowing in what products we are investing our money and what risks we are assuming, it is essential find those platforms that offer the best service and the lowest commissions to invest.

Best financial markets to trade in 2022

If you want to know what are the favorite financial markets for trading To invest in this year 2022 and follow in his footsteps, take good note:

currencies

Its fluctuation in the money market is what you have to watch very carefully if you want to trade in this financial market. Its value depends on factors such as the interest rate, inflation, and the money supply. The most popular are USD, EUR, GBP, AUD, CAD and JPY.

the commodities

Among the most demanded financial trading oil and gold are found.

The price of Prayed it varies every day and these variations can help us to obtain profits. You just have to know how to buy or sell at the right time.

You will find two quotes from Petroleum, the West Texas (American) and the Brent (European), both are tradable and have different prices. Traders generally prefer trade west texas (American)

Oil has an essential weight in the financial sector. Its listing price determines the movements of this commodity market, which is one of the most influenced by geopolitical issues. Therefore, the West Texas index is dominated by the US government, which is the country that produces the most oil in the world.

cryptocurrencies

Cryptocurrency trading has become increasingly popular over the past decade, with the advent of the bitcoin. Cryptocurrencies are digital currencies created using blockchain or peer-to-peer technology that uses cryptography for your security. They are not tangible, they are made up of bits and bytes of data.

They do not have a centralized authority that issues them or regulates their circulation, therefore, they are not considered legal tender. However, they have changed the financial landscape and cannot be ignored. In addition, blockchain technology, the basis for the creation of cryptocurrencies, has generated new investment opportunities for the trading in the financial markets.

Stock Indices

Among the most influential indices chosen by traders are:

S&P500 one of the oldest indices in the world and where the 500 most important companies in the American economy and the most important in the world are currently listed: Apple, Microsoft, General Electric, JP Morgan, Johnson&Jonhnson, etc…

DOW-JONES is a stock index made up of the 30 companies with the highest market capitalization on the New York Stock Exchange. In this group of companies, the shares of transport and public services companies are excluded.

The Dow Jones is an indicator of the stock market but does not represent the performance of the market or the general economy of the United States. For this, it is more advisable to use other indices such as the S&P500.

NASDAQ It is the first electronic exchange in the world and the second largest in the US. It is the preferred market for those who are passionate about technology. It is made up of more than 3,800 companies in this sector. In turn, it has, among others, 3 subscripts:

  • NASDAQ100 Index: The most important. It includes 100 of the largest companies based on the volume of sales represented by the shares of those companies. This index includes companies dedicated to telecommunications, hardware and software. Does not include financial or investment companies.
  • NASDAQ Composite Index: Includes more than 3,000 companies from any field. Also financial, investment and technology companies.
  • NASDAQ Biotech Index: Includes pharmaceutical and biotechnology companies.

IBEX 35 is the reference stock market index of the Spanish stock market made up of the 35 most liquid stocks listed on the four Spanish stock markets, such as Inditex, Repsol, BBVA, Acciona, Iberdrola, Banco Santander, Telefónica, etc…

It is an index weighted by market capitalization, that is, not all the companies that make it up have the same weight and it is renewed every 6 months.
Trading is a risky activity. It is true that you can make a profit, but trading in financial markets is an activity that not everyone can do. You have to be prepared and that means having sufficient training to be able to start developing this activity. That’s why we recommend you learn from the best. At our Traders Business Schoolyou will be able to study with the best teachers and count on our experience in this exciting world.

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