The World of Commodities: Trading Earth’s Treasures
Commodities trading involves raw materials like gold, oil, and agricultural products. Imagine Tom, an investor, buying gold as a hedge against inflation or market volatility. It’s like adding a safety net to his investment portfolio.
Forex Market: The Arena of Currencies
Forex, the foreign exchange market, is where currencies are traded. It’s the world’s largest financial market. Picture Lisa, a trader, exchanging euros for dollars, capitalizing on changes in currency values. Forex trading is like sailing on the global financial oceans, where currency values ebb and flow with economic tides.
Understanding Pips: The Pulse of Forex Prices
In Forex, price movements are measured in pips (percentage in point). If EUR/USD moves from 1.1200 to 1.1205, that’s a 5 pip change. For traders like Lisa, understanding pips is crucial for managing trades and calculating profits or losses.
