Trading tools is an asset that a trader can use when making a transaction. It is clear that the more such assets there are, the broader the trader's opportunities for developing various trading strategies and hedging risks. Accordingly, the likelihood of making a serious profit is higher. That is why the brokerage company NordFX offers its clients an impressive range of trading instruments, the complete list and specifications of which can be found both on the broker's official website in the Trading Accounts section and in the trading terminal control panel. Here we will consider their main groups.
1. Forex currency pairs are probably the most popular asset, which implies the acquisition of one currency in exchange for another. For example, choosing the EUR/USD pair as a trading asset and opening a long position (buy), you buy euros for US dollars. Opening a short position (sell), on the contrary, you sell the European currency and get the American one in return.
Currency pairs are divided into dollar pairs and cross pairs. The former include the US dollar. For example, these are USD/JPY, USD/CHF, or AUD/USD. The latter do not directly contain the dollar, but their cross-rates are calculated with its participation. For example, in order to determine the current GBP/NZD rate, the ratio of the GBP/USD and NZD/USD rates is taken.
In total, there are 33 pairs available for trading in NordFX, from the most popular and liquid, like EUR/USD to such exotic as USD/ZAR.
2. The next group of trading instruments is precious metals. Here, both gold and silver quotes are also pegged to the US dollar, forming pairs XAU/USD and XAG/USD. In addition to them, commodity assets include oil: UKOIL.c (Brent Crude) and WTI_OIL (West Texas Intermediate).
3. Indices are CFDs (Contract for Difference) on major stock indices such as Dow Jones, S&P500, NASDAQ, Nikkei, etc.
4. CFDs on shares of nearly 70 of the world's leading companies, such as IBM, JP Morgan Chase, Coca-Cola, Mastercard, McDonalds, Microsoft, Twitter, UBER, eBay, Alibaba, Deutsche Bank and many others.
5. Cryptocurrencies. This block of trading assets includes bitcoin (BTC/USD) and 10 top altcoins, such as ethereum (ETH/USD), ripple (XRP/USD), dashcoin (DSH/USD), etc.
It is especially important to keep in mind that any of the trading tools indicated in these 5 groups allows a trader to make money not only on the growth, but also on the fall in its value. At the same time, a trader can repeatedly increase their profit using margin trading and leverage provided to them by the brokerage company NordFX.