Stocks, Indices, Currencies? Which Asset to Trade?Blogs
The financial markets can be a confusing place. Stocks, indices, commodities? What does it all mean and where should you start?
Well, the first thing to understand is what you’re trading. On Stryk you can trade many different assets from stocks to currencies. In this article we’ll explain the differences so you can choose the right place to begin.
Stocks represent ownership of a company, such as Apple, Tesla or Shell. Stocks are great for trading if you think a particular company will perform well. For example, maybe you think Tesla will sell more cars this quarter than analysts are expecting. You can trade the stock expecting it to go up. Stocks are generally considered volatile assets compared to indices, commodities and currencies.
Stocks on Stryk: You can trade 761 stocks from the US and Europe.
Ever heard people talk about the FTSE 100 or the Nasdaq 100? That’s an index! Indices are a collection of stocks, usually from a particular country or location. For example, the FTSE 100 (UK 100 in the app) is an index of 100 large stocks in the UK. The Nasdaq 100 is a basket of mostly tech stocks in the US. People often trade indices to capture the bigger moves of the overall economy. For example, if you think German stocks will do well this year, you could simply trade the German index, known as the DAX 40, instead of buying individual German stocks.
Indices on Stryk: You can trade 13 different indices from Europe, Asia and the US.
Commodities are raw materials such as gold, silver, oil, sugar and other natural resources. Commodities are often traded based on their use in the economy. For example, you might think the demand for platinum will rise due to use in electronics. Alternatively, lots of traders use commodities like gold as a ‘safe haven’ to hedge their portfolio during turbulent markets.
Commodities on Stryk: You can trade gold, silver and platinum on Stryk, as well as oil futures.
Dollar, euro, pound, yen, Swiss franc. Meet the various currencies you can trade around the world. Currencies are traded in pairs. For example EUR/GBP is the pair for the euro and British pound. You would buy this pair if you think the euro will outperform the British pound. Fun fact, GBP/USD is nicknamed the ‘Cable’ due the transatlantic communications cable that links London and New York across the Atlantic ocean.
Currencies on Stryk: You can trade 23 different currency pairs on Stryk including GBP/USD, USD/JPY and EUR/USD.
Cryptocurrencies are digital assets such as Bitcoin and Ethereum. Built on blockchain technology, cryptocurrencies offer new ways to transact with each other without a middleman such as a bank. Please bear in mind, however, crypto assets are highly volatile.
Cryptocurrencies on Stryk: You can trade five cryptocurrencies on Stryk. Only available to EU residents.
There you have it! Now you know all the different products you can trade on Stryk. Where will you start?