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August 27, 2015

Best Trading Istruments for Beginners

In the last few years the popularity of trading has increased tremendously. Today people are more informed and have more knowledge on the financial markets. The knowledge is power, so in trading it results in increasing the chances of earning more money. The number of traders increases day by day and this is because of steadily growing popularity of online trading. 

However, it should be pointed out that among people who are actively taking part in trading there are many beginners, who are not familiar with the market, with trading in general and sometimes working with them is really very difficult.

It is difficult because without having experience and enough knowledgeon the market they start trading such instruments that are very risky and may cause them lose much money. But because someone has said that it is possible to earn enormous amount of money by trading for example commodities, a trader may make up his mind to trade only commodities without even knowing the possible risks.

This is not right and each beginner should keep in mind that if he wants to do well in trading he must be aware of all the trading instruments and should choose the ones which are less risky. In this article are mentioned which are the best instruments to trade for beginners.

As it is known there are various types of instruments like stocks, indices, commodities, currency pairs, etc., but it goes without saying that the most suitable instruments for beginners are, of course, currency pairs.

There are various currency pairs but if you are a beginner it is more advisable to start trading the major currency pairs which are the following ones:

·         EUR/USD

·         GBP/USD

·         USD/JPY

·         USD/CHF

These four currency pairs are the most widely and actively traded currency pairs in the market. These pairs are considered to be popular as they have high liquidity, which is very important, because it can help you to benefit from price changes. Secondly, they are less risky and this is one of the main reasons why many traders prefer to trade mainly these currency pairs. And the last important thing about these four currency pairs is that they have very tight and low spreads. Actually, spreads differ from broker to broker and nowadays all Forex brokers offer either fixed or floating spreads to their customers. There are some brokers who offer very low spreads and there are those, who offer comparatively high spreads for these currency pairs. However, in case of good research you will certainly find a broker who provides low spreads for these pairs.

In today’s reality there are so many sources of information and the fastest one is of course internet. So, dear beginners do not hurry with your decisions. Examine the market thoroughly and after that enjoy trading.    
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Item Reviewed: Best Trading Istruments for Beginners Rating: 5 Reviewed By: EconMatters