It was the beginning of the 21st Century, when the commercialization of internet took place. Soon, internet made its place as the top household utility, making it almost a basic necessity for modern day human beings. With the commercialization of internet, came tremendous advancements in technology, and people found new ways of communicating.
Soon, the internet was no longer a source of just entertainment and became a field where any startup would find success and tremendous growth. That was the time when online trading came into being and became a huge success.
Benefits of Online Trading
Before online trades were introduced, only families belonging to traditional trading groups were doing it. However, the advent of online trading gave opportunity to even the most common people to perform trades and benefit from the industry. The online trading industry was introduced around 2005 and since then, it has continued expanding and adding new products to the catalogue. At present, there are around five major trading instruments available for you that you can benefit from:
Forex Trading
It is one of the oldest kinds of trades that were introduced in the online trading industry. Foreign Exchange (Forex) Trades deals with trade of fiat currencies through online platform. Forex trading is performed in the form of pairs and currently has more than 70 pairs that you can trade in. One of the top forex pair is USD/EUR, which comprises of almost 50% of the total forex trades taking place in the entire forex industry. In forex trading, you chose a particular pair and purchase a certain amount of them. As soon as the situation becomes profitable, you can go ahead and sell the respective currency to make profits.
Commodities Trading
Commodities trading deal with trades of materials that are mined, drilled, and grown, from the surface of earth. Some of the examples of commodities trading include oil, petroleum, gas, corn, cotton, iron, gold, and so much more. It is the largest trading instrument that has tremendous number of sub-instruments within it. You can choose the commodity of your choice and monitor its market price. If its price increases compared to your purchasing price, then you can sell it to make profit.
Stocks Trading
This is one of the most common type of trading that deals with the stocks/shares of companies being sold through stock exchanges. Companies sell fractions of their ownership to public with aims to generate capital and meet their annual targets. At present, some of the most prominent and highly traded stocks are for Tesla, Microsoft, and Apple. You can purchase the shares of a particular company of your choice and monitor as their price increases in the market. If that is indeed the case then you can proceed with the sale of the stocks and make profits on them.
Indices Trading
In terms of Indices trading, there is not one company but several companies that have been combined and the average price of their stocks/shares is measured. This way, the companies show the collective stock price figures instead of individual ones. In Indices trading, you cannot purchase shares of individual companies but place short and long calls. If you make a short call (bearish prediction) and the outcome after the specified time is in your favor, then you make a profit, otherwise, you incur a loss. The similar process is repeated in case of long call (bullish prediction).
Cryptocurrencies Trading
Cryptocurrencies Trading involve the trades of digital assets that have no physical existence and are decentralized in nature. At present, cryptocurrencies is one of the most popular and adopted trade among individual investors. In crypto trading, you choose a particular cryptocurrency, make an investment, and purchase as many crypto as you can. As the price of the particular cryptocurrency rises and becomes profitable, you can go ahead and sell them to make profits. At present, some of the most lucrative and profitable cryptocurrencies include Bitcoin, Ethereum, Dogecoin, Binance Coin, Cardano, and Ripple.
Online Trading is the Future
Despite all the success and progress the online trading industry has made, many people are still hesitant about online trades. Even regulatory authorities are not fully convinced about the authenticity of online trades and the asset currently under their microscope is cryptocurrency. It is true that the cryptocurrency industry has been facing a lot of scrutiny from the regulatory authorities but it is still growing bigger and better. Therefore, you must keep up with the trend and find the best trading option for you to invest. Soon, the entire world will recognize the potential of online trades and the industry would become the future of finances and money making.
