Regarding the things you should know about investment, we will take you step by step to understand investment and understand the differences between stocks, foreign exchange (Forex, and futures markets and understand the differences. You can choose your own investment trading method.
What is a stock trading market ?
The establishment of a company is often a group of people to work together to complete they are wrok , someone pays and someone to contribute labor, we join in a different order of effort and results are also different, this time the Kingdom of the Netherlands invented the seafaring era of the United Dutch East India Company by this method, through the willing pool of capital to open a company and according to the proportion of shares held by the shares called shares, and when the company settles the surplus when the profits are distributed.
When a company’s founding team has matured and intends to sell its business to other willing operators, there is often no one or a few people who can buy an entire company alone, and holding a business alone is a very high risk, when the founding team issues its company on the stock market and trades on the stock market, and through bidding by the market buyers and sellers to reach a tacit agreement and drive price fluctuations, This allows one company to be transferred to someone else.
Holding shares is equivalent to owning a company when holding enough shares and gaining voting rights can determine the operation of the company and receive a corresponding remuneration.
What is the forex market?
In the era of globalization, each country is trading thousand times a second, large and small, these transactions must be through the exchange of currency to obtain each other’s goods where the currency is very unstable, which affects the activities of many companies, so if the exchange rate often fluctuates will cause investment uncertainty, in order to cope with such a situation and let the company operate stable, many companies will buy currency futures in the FX market to hedge the risk of currency fluctuations and maintain stable profits, It is also the bring some of a group of people who do not operate a particular physical industry to speculatively predict currency fluctuations to earn profit by price differences.
What is the future market
similar with the forex market , corresponding to the entity’s raw materials , these things are often inseparable from the lives of many people , they are usually the main raw materials for the manufacture of various products , such as oil , coffee , cotton , grain and so on , often because of war , economic activities , seasonal climate and other changes greatly affected , so manufacturers and etailer here in advance at agreed prices to buy and sell the corresponding month’s contract ;
It also attracts a group of speculators to earn spreads through a range of knowledge-buying and selling contracts, including forecasting, climate analysis, supply and demand.
The ease with which to invest
Futures > stocks > forex
The length of the investment
Futures > Forex > Stocks