When we talk about online trading types we ask ourselves what we can trade online, I really believe that we can trade everything online but there are some types of trading easier that the others to be done on the internet, we will talk about online trading types because they are the most familiar online, the most traded online, and the easiest because of the systems and tools available and because online trading education about these types are available and it’s free. I believe if we learn any kind of them will help to understand the other types, there are many things in common.
Before we talk about each one individually we must mention that there are many common things in all these online trading kinds and I will list some of them here:
1- Traded by Money. They are all traded by money, all we need to an open account and start trading is money with many paying methods credit card, wire transfer, western union, and other methods might be available.
2- Traded Online. They are all could be traded online from home and you will not need anything other than your computer connected to the internet.
3- Predictable Motion. It could not be 100% predictable but with education and dealing with experts the changing in the prices is predictable, that’s why millions people make their living by online trading and the successful ones make their wealth from it.
4- Tools and Education Available. Online trading is a science and it’s like any other science could be learned getting expert in it, and there are many tools to use for trading goal witch is predicting the prices movement.
5- Same Goal. To make money by all of them you have to buy at low price and sell at high price.
So as we said they are all traded online by money, and prices motions can be predictable using the available knowledge and tools to buy when we expect the prices will go higher and sell at that time to take profit.
Here are the most familiar online trading types:
Online Currency Trading (Forex Trading)
Forex is trading currencies by pairs using your currency without physical transaction; the fact of trading forex is trading on the contract of the future of the currency, not the currency itself. It’s the most profitable and the most risky, it’s possible to lose all money you invest but it’s not possible to lose more than what you invest, largest market, and 24 hours.
Online Stocks Trading
Trading stock is buying or selling shares of the corporation which is register by Stock Exchange Market, it’s not global as forex. It’s the less profitable and the less risky, it’s not possible to lose all money you invest ant it’s not possible to lose more than what you invest, trading is not 24 hours.
Online Mutual Fund Trading
A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Instead of trading shares of corporations, you trade a group of shares in portfolios.
Online Options Trading
An option is an agreement between a buyer and a seller to sell an asset at an agreed upon and fixed price, at some specified future date. The asset is usually of the financial kind — a stock or a futures value. The agreement is optional because the buyer is not obligated to buy the asset, whether or not it decreases or increases in value. The seller, however, is obligated to carry out the transaction.
Online Futures Trading
Futures are contracts for the delivery of specified amounts of a certain commodity, on a certain date in the future. Many of the commodities involved in futures trading are agricultural, such as wheat, and orange juice concentrate. However, futures contracts for many other “commodities” such as precious metals, and currencies.