Into the world of Forex and CFDs
FOREX
With Zurich Wealth learn to trade in the price difference of major global currencies like the US dollar and the euro and understand the science behind their movement with Zurich Wealth.
INDICES
With Zurich Wealth learn to take the best positions in global indices and funds, which involve scientifically assorted major international corporations, and learn their effects on global markets with Zurich Wealth.
SHARES
With Zurich Wealth learn to trade in shares of global companies and business while learning how their market changes and revolves around the activities and reports of these corporations.
COMMODITIES
With Zurich Wealth learn to trade in real active commodities like gold and crude oil, while understanding how their prices change and how they are affected by global major events.
An overview of financial markets
Zurich Wealth – Forex education
What exactly are financial markets?
Financial markets are where individuals and businesses buy and sell assets such as stocks, indices, currencies, commodities, and more.
For hundreds of years, people have traded in financial markets. They arose from a practical need: to help people buy and sell things more efficiently, and to assist companies in need of capital in raising it quickly.
Markets have grown larger and faster over time, and more people than ever before now have access to them. They were once the domain of large banks, finance firms, and extremely wealthy individuals. But not any longer.
What are the assets available in the market?
Global traders have unprecedented access to a diverse range of markets. You can speculate on obscure markets such as lean hogs, interest rate changes, and more. Most traders, however, will stick to a handful of asset classes:
Shares are also referred to as equities or stocks. When you trade equities, you are investing in a single company that is publicly traded on a stock exchange. Examples include Apple, BP, and Microsoft.
Indicesare a measure of the price of a group of stocks. The S&P 500 (US 500), for example, is a measurement of some of the largest publicly traded companies in the United States.
Currencies, also known as forex or FX, see the buying and selling of the world's currencies, including the British pound, US dollar, Hungarian forint, and others, 24 hours a day.
Commodities are tangible assets consumed or used by humans, animals, or industry. Oil, gold, and wheat are all notable examples.
Why does the market change? And how is it affected?
Each asset has its own set of factors that influence its price, but the fundamental principle of supply and demand drives the price of every market.
The number of people attempting to purchase a financial market is referred to as demand. A market’s price will fall if demand is low but supply is plentiful.
Supply
The amount of a financial market that is available for purchase is referred to as supply. When a large number of people want to buy something but supply is limited, the price will rise.
Demand
The number of people attempting to purchase a financial market is referred to as demand. A market’s price will fall if demand is low but supply is plentiful.
A variety of factors can cause supply to fluctuate for a financial asset. A large shareholder in a company, for example, may decide to sell their stock, flooding the market with shares and causing their price to fall. Oil, on the other hand, is dependent on a diverse range of companies, institutions, and countries all over the world.
Certain factors that may affect demand:
News
Many market traders monitor the news in real time; positive or negative headlines affecting a market can quickly cause supply or demand to fall.
Central bank policy
Changes in interest rates, for example, can have a significant impact on the flow of money around the world as well as demand.
Company results
Companies that are listed on stock exchanges will release regular results that will entice investors to buy or sell their stock.
Government data
Government releases can have an impact on demand. Unemployment or inflation data, for example, provide insight into an economy's strength, which may make it more appealing to investors.
Who invests in the Forex market?
Institutional investors
Pension funds, asset managers, and mutual fund providers invest in financial markets to make money for themselves and their clients.
Brokers
Brokers execute trades on behalf of their customers, who are typically retail investors and traders.
Banks
Banks primarily serve as brokers for other companies, such as funds. Some banks, however, participate in the markets on their own behalf.
Everyday investors
Everyday investors and traders can participate in financial markets by investing in funds, purchasing stocks, or actively trading the markets via spread bets and CFDs.