Tradable Assets

Enjoy a diversified portfolio with the wide range of assets available at ESPTrader Co.

The Foreign Exchange Market

Forex, the Foreign Exchange Market or simply FX, is the largest financial market in the world, with daily trading volumes topping $6 trillion. Forex is an OTC (over the counter) market; there is no centralized location or middlemen; and investors trade directly with the market pricing. Basically, the tradable commodity in the forex market is money. A forex trade, therefore, involves the simultaneous buying of one currency and the selling of another. Money never sleeps in the forex market; the market is open 24 hours a day from Sunday night to Friday night.

Currency Pairs

Forex is traded in pairs. For instance, in the GBPUSD pair, the first currency (GBP) is the base currency, and the second currency (USD) is the quote currency. At any given time, the GBPUSD price represents the amount of US dollars (quote currency) you will need to exchange for one unit of British pounds (the base currency).

There are 3 broad types of currency pairs: majors, minors and exotics.

  • Major
    There are 8 major global currencies: USD, EUR, GBP, JPY, CHF, CAD, NZD and AUD. A major currency pair is when any of the other 7 major currencies is paired with the USD, such as the EURUSD or USDJPY. Typically, majors are highly liquid and have low spreads.
  • Minor
    A minor currency pair combines any two of the 7 major currencies, excluding the US dollar (USD). The minor currency pairs are also known as cross pairs. Examples of minor currency pairs include the GBPJPY, AUDJPY or the EURAUD pairs.
  • Exotics
    Exotic currencies are currencies of global emerging economies, such as South Africa, Hong Kong or Sweden. An exotic currency pair will combine one major currency and an exotic one. Examples of exotic currency pairs include the EURSEK and the USDZAR pairs.

Indices

Indices track and measure the overall performance of a basket of stocks. Stocks that make up a single index are usually related by country, industry, exchange or even by market sector. Some of the most popular major global indices include the US’s S&P 500, Japan’s NIKKEI, Australia’s ASX, Germany’s DAX and China’s HSI.

Trade Major Indices Round the Clock With ESPTrader Co.

At ESPTrader Co., you can trade major indices, such as the S&P 500, Euro 50 and the UK 100, round the clock, even outside normal trading hours. This means more trading opportunities and better prices, as well as increased flexibility.

To top it off, there are many benefits to trading indices including:

  • Diversification – A single index gives exposure to major global financial markets.
  • Volatility – Money is made out of price movement, and due to their composition, indices guarantee volatility virtually at all times.
  • Boost trading potential – Go long or short according to market uptrends or downtrends.

Enjoy even further benefits by trading over 90 cash and forward indices available at ESPTrader Co.

Cryptocurrencies

Cryptocurrencies have quickly emerged as a new form of digital money and store of value. They represent a unique and exciting asset class.

Bitcoin, powered by the revolutionary blockchain technology, was released as the first cryptocurrency in the aftermath of the 2008 global financial crisis. Hundreds of other crypto coins and tokens have since sprung up. To highlight the potential of this new asset class, consider that Bitcoin rose from being worth a few cents on the dollar in 2009 to a peak of just below $20,000 in 2017.

At ESPTrader Co., you can speculate on the prices of major cryptocurrencies and benefit from their volatility, whether prices rise or fall.

  • Leverage Trading
    Control bigger cryptocurrency positions with minimal margin capital.
  • Trade Anywhere, Anytime
    Enjoy the convenience and flexibility of trading while on the go using the ESPTrader Co. Mobile App.
  • Superior Platform
    Trade professionally on our robust trading platform, with advanced charting capabilities, risk management tools, market analytics as well as detailed market
  • Excellent Customer Service
    Contact our award-winning customer support team who is friendly, professional, very responsive, and available 24/6, round the clock.
  • Cryptocurrencies
    Gain access to a wide cryptocurrency selection of over 800 coins and tokens, as well as ICOs (initial coin offerings).
  • Safety & Security
    We apply the latest SSL encryption throughout our site and utilise the highest security standards to manage all transactions.

Commodities

Commodity trading has always been part of human culture, all around the world. Until recently, commodities were only available for trading in the futures exchange markets. Commodities are also traded in two forms; forward settlement and cash settlement. In forward settlement, the clearance date is further away in the future as compared to cash settlements, plus the prices usually have wide spreads in comparison to cash settlements. There are different types of commodities: Metals such as gold, Energies such as crude oil, Agricultural products such as soybeans, and Livestock products such as pork bellies.

As an essential part of human life, commodities are very volatile and highly liquid. This offers traders numerous, lucrative trading opportunities in the financial markets. At ESPTrader Co., you can access a wide choice of commodities to trade, enabling you to diversify your trading portfolio with ease.

Trading Commodities

Commodities have traditionally been available for trading in the futures market where contracts mandate buyers and sellers to transact at a set future date and price. Futures exchanges, such as the Chicago Board of Trade, specify the contract months, minimum contract size, price quotation, minimum price tick, as well as the value of one tick on any one commodity.

Buyers and producers use the futures market for practical purposes to hedge against fluctuating prices. For instance, a maize farmer can agree to sell his produce at a fixed price to a milling company. If by harvest time, the price of maize has tumbled, the miller takes the loss; and if the price has jumped, the miller keeps the profits. This is a hypothetical practical case, but there is also an active speculative group that helps to promote price efficiency in the market as well as supply continuous liquidity.

ESPTrader Co. has numerous commodity CFDs available for trading including gold, silver and WTI crude oil.

Stocks and ETFs

Stocks are units of ownership equity in a company, while ETFs (electronically traded funds) are investment funds that invest in multiple financial instruments. Owning stocks in a company provides one with voting rights and a chance to share in the underlying company profits, but ETFs provide exposure to a diversified portfolio selected by a professional. Both stocks and ETFs are traded on exchanges throughout the day and have associated derivatives. They are also subject to the same trading rules in most exchanges. Major stocks include Apple and Facebook, while examples of popular ETFs are SPDR S&P 500 and VanEck Vectors Gold Miners.

A Case Of Stock and ETF Trading

FANG (Facebook, Apple, Netflix and Google) stocks turned higher shortly after 2009 when the effects of the 2008 global financial crisis started to wane. This inspired a 34.57% rise in the S&P 500 Technology Select Sector index. The SPDR S&P 500 ETF Trust that is designed to deliver returns similar to the S&P 500, also trended higher. Towards the end of 2018, the stocks largely trended sideways to lower as concerns arose of an aggressive Federal Reserve policy, trade war tensions, as well as potential recession fears. Stock prices rise when investors become more risk tolerant; and they fall when they become more risk averse.