CHAPTER 5

Trading Other Asset Classes

This chapter describes the asset classes (stocks, indices, contract for differences (CFDs), options, commodities) which can be traded online through a broker’s trading platform as well as futures which can only be traded on an exchange through a broker. We will look at the key characteristics of each asset class as well as their usage to hedge open positions. It also describes the fundamental risks associated with the assets and instruments and how these risks can be mitigated. Trading tips designed to improve your ability to consistently make money are explained and analyzed. The instruments described in this chapter offer an alternative trading practice to that of the foreign exchange markets, however the ...

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