Learn to Trade
Who trades currency and stock indexes?
Every day investors trade currency and stock indexes looking to make a higher return on investment and to take advantage of the opportunity of making money as markets rise and fall.
Banks and financial institutions also trade currency and index markets for exactly the same reasons, however in some cases they are using them to hedge stock market positions they have. For example if they have a portfolio of stocks they have bought and the overall stock market is dropping the value of the shares will be falling but they can take a “short” position on a Stock Index such as the ASX 200 and profit from the overall stock market falling.
When to trade the currency and index markets?
The currency market is a 24 hour a day market meaning we can take positions in the most liquid market in the world 24 hours a day. There are three traditional trading session, the Asian, European and US trading sessions and it is the European trading session that sees over 40% of the 5 trillion dollars traded in the currency market.
We have a dedicated online currency trading room that allow you to log in and listen and learn from our professional team as they explain the trade sets up. Our Currency Trading Room opens at 7pm AEST Monday to Friday which is shortly after the European financial markets open.
Here at LTG GoldRock, we also trade the ASX 200 Stock Index from 10am to 4pm each day however 90% of our trades are completed between 10.00am and 10.30am AEST. We also trade the Japanese Nikkei 225 Stock Market Index as it’s ideal for our Australian day light hours.
We also trade other global indices such as the US Dow Jones, German DAX and UK’s FTSE 100. With all our positions we are generally in and out of the market intraday meaning there is no risk holding any trades overnight or weekends.
There are a number of reasons why an investor might trade these two markets but the main reason is simplicity and profit opportunity. The simple decision we make is whether or not the the currency or stock index market is about to rise or fall. We are not stuck having to decide what stocks to buy or sell and which sectors of the market to invest in.
What are index markets?
An Index is simply a group of stocks. The ASX 200 is simply 200 companies in Australia listed on the ASX 200 that are ranked highest by market capitalisation, which is the stock price times the number of stocks on offer. For a stock to be considered part of the overall ASX 200 Stock Index its share price times the number of shares it offers must be amongst the top 200 companies valued using the same criteria. Brokers offer traders and investors the opportunity to buy and sell stock market indexes allowing them to profit from the share index if it rise or falls.
Where and how?
You are able to trade the currency and stock index market from anywhere you have internet access, all you need is a trading account which will be linked to an electronic trading platform on your computer, phone or tablet device.