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Products vs markets
Traders trade on markets using financial products. A product is how the trader obtains exposure to that particular market. For example, a trader can trade a CFD on Gold, strike a spread bet on Gold, buy or sell an option on Gold, buy physical Gold, the list goes on. All these types of trading provide the trader with an exposure to the price of Gold, it is just done through different products.
Margin trading products
We are going to look at three margin trading products in this course – CFDs, financial spread bets and spot forex – but keep in mind that these are not the only products available to traders or investors, we go into more detail in our Trading for Beginners premium course.
A margin trading product gives the trader exposure to a market and leverages their position. We discuss leverage at length in our Mastering Trading Risk and Margin Trading Demystified courses.
- Products are the mechanism through which traders get exposure to financial markets.
- Spread betting and CFD trading lets you speculate on the prices of index, equity, commodity, currency and debt markets.
- Spot forex trading only gives you access to currency markets.
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