Description of Instruments
Apart from currency trading, our company offers its traders a wide range of instruments – precious Metals, Index, Equity and Commodity CFDs.
By providing a wide choice of trading instruments, we help you to expand your trading strategies of currency trading in other markets. Besides, you will be able to use new instruments for the diversification of your investment portfolio.
In addition to standard trading instruments, IFC Markets gives a unique opportunity, which has no analogues in the world – creation of personal composite instruments, the variations of which are restricted only by your imagination (stock portfolios, currency indices, global stock indices, indices of precious metals, globally diversified portfolios and many more).
Investors involved in currencies trading buy or sell currency pairs, a relative value of one currency (called base currency) expressed in units of another currency (known as quote currency). The exchange rate reflects transferring purchasing power between currency units of different countries, reflected in currency pairs’ dynamics and quotations. The exchange rate itself is formed by supply and demand forces which may strengthen or weaken depending on a variety of factors, including macroeconomic, technical, political and even natural.
From the investment point of view metals, especially gold, are regarded as monetary assets due to their special role in the financial system. Gold has been considered the ultimate store of value, a protection against inflation, a hedge in social and political crises, and its role is accepted worldwide due to an exceptional liquidity.
Index CFDs and their dynamics are a precise and exact investor estimation of a particular national economy or a sector performance. Indices value by its nature is a composite indicator of systematic factors which influence markets as a whole.
Stocks represent ownership rights in companies. Stock Contracts for Difference are instruments that allow investors take the advantage of speculating on price changes of certain stocks without getting directly involved in the ownership. Those who hold a position in Equity CFDs will get or will be charged dividend adjustments on defined dates, equal to the dividend announced by the board of directors.
Commodity CFDs are considered an alternative type of derivatives which price and dynamics depend on the same factors and follow those, the real commodities, such as agricultural products, energy and other goods, do. Price determinants for commodities are mutual, as it may depend on supply stability, political and social factors, economic cycle stage which influences overall production process, weather and so on.
In contrast to traditional gold trading, quoted against the US dollar or the euro, this group includes the following unique instruments, in which gold is quoted against other assets:
The clients have an opportunity to create personal financial instruments - PCI (Personal Composite Instruments), the variations of which are restricted only by imagination – stock portfolios, currency indices, global stock indices, diversified portfolios, country indices, sector indices and many other financial products.