Forex sometimes referred to as just FX, is the most liquid market in the world and largest in relation to daily transaction volumes. It involves speculation on the direction of foreign currencies. The trade volume for Forex is around US$4.5 billion per day.
Trading with commodities has been known to people from ancient times when only barter trade was used, before currencies existed. Commodity trading still exists today on a much larger scale and takes place on commodity markets.
This is where traders speculate on price movements in stock Indices like the FTSE 100, the Dow Jones and DAX. Indices price movements and volatility are impacted by factors like political events, economic data and big changes in the currencies markets.
Trading in stocks is when you invest funds so that it is put to use for productive projects such as growth or expansion. Once a tool for the rich, the stock market has now turned into the vehicle of choice for growing wealth for many segments of the population.
Bonds are one of the most popular instruments for earnings in the form of regular interest. Commonly referred to as fixed income securities; they are used by companies, municipalities, states, and sovereign governments to finance projects and operations.