Foreign exchange, or in its shorthand versions FX and Forex, are the markets for currency exchange. This market is the largest in the world, having a 5$ trillion daily volume. This market is active all the time, and doesn’t rely on a single exchanges opening hours like the stock market.
Forex is traded in pairs, divided into majors (USD/GPB), minors (USD/AUD), and exotics (USD/INR). The global benchmark and economic base currency is the United States Dollar (USD).
Commodities are goods whose quality does not greatly vary depending on the place of production and can therefore be bought and sold at the same price no matter where they are produced. Gold from Canada is the same as gold from Australia.
Commodities are traded through contracts for future delivery of the good and are therefore called Futures. Most of commodities trade happens for business purposes, however, a trader looking to benefits off price fluctuations in this market must be sure to sell the contract before the due date or be forced to receive the amount of goods.
Indexes are an aggregation of stocks measuring the overall value of all the stocks therein included. Indexes are therefore great for measuring the overall health of a market. Indexes can be comprised of stocks of a certain industry, like the Nasdaq Composite, which is comprised of the top tech companies. The S&P 500 aggregates the value of the top 500 US companies, the DAX has Germany’s largest corporations, and the Nikkei is Japan’s major index. Indexes are great for long term investors looking for a stable place to put their money.
Stocks, or Shares, for a publicly traded company, are parts of its value sold to individual and institutional traders and investors. Stocks represent ownership of a company and can be bought and sold on stock exchanges like the NYSE on Wall Street. Stocks are offered to the public by companies through an IPO or Initial Public offering or through a SPAC merger/aquisitions.
The most famous stocks today are Apple ($APPL - the worlds largest corporation), Microsoft ($MSFT), Meta System ($FB – formerly Facebook), and Google ($GOOGL).
Technical analyses is a method of predicting the direction an asset will take based on price history information rather than the calculation of the underline value of the asset. Technical analyses uses indicators and pattern recognition methods to predict short to medium length trends in the price fluctuations of the asset they are looking into. This method is most useful for short term trading to predict trends measure minutes to days and not long term value investing.