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There are multiple investment instruments used to evaluate savings in financial markets. Time deposit accounts, mutual funds, stocks, derivatives, and more. Each investment vehicle has many features and advantages in itself. Is it possible to invest in stocks and indices on the forex market? Can the transactions be opened with using leverage?
The answer to our questions YES, can be invested in stocks and indices in forex markets. Let's look at how this is now.
We open an account at the bank or brokerage houses to open trading on the Forex market. With this account, we can track the price of more than 100 products and evaluate the positions. The parities, commodities, stocks and indices are examples of products that can be traded in forex.
Indices is a stock market which has belonging a certain number of shares in a country.
For example; If we look for ABD, The name of the index followed first is Dow jones. It includes the big thirty companies.
Within Dow jones, there are McDonald's, Microsoft, American Express, The Coca-Cola Company and so on companies. The increase in the value of each share constitutes an increase in the total index value.
In the same way, we see similar value formations according to the price increase and decrease, of the shares in the other indices.
In Forex market is evaluated in to foreign stocks and indices. Therefore, in order to be able to trade in these products, it is necessary to follow the foreign markets in the best way.
Usage characteristics of foreign stocks and indices in the forex market;
Click here to open an account and start forex trading immediately.
Allowing more transaction in the market than in your balance is means, leverage. If we are using leverage in the foreign exchange market, we can use leverage in equities and indices too. We can also deal with the leverage in stocks and indices as well. You can learn how much leverage you can transaction with your account by asking the institution you are working with.
Forex is a market that is open 24 hours a day, 5 days a week. While there is no term in the currency, there is a certain maturity / session for some commodities, stocks and indices.
For example; DAX30- It is open for forex trading between 09:00 am and 23:00 am in the morning.
Apple Inc. (US) - It is open between 16: 30-23: 00.
The size of the process opened to evaluate a 1-lot transaction is called the contract size. The sizes may differ according to the product types.
For example;
A 1-lot transaction in currencies is 100,000 units. A 1-lot transaction for EURUSD is a 100,000 euro transaction.
In the case of stocks and indices, the contract sizes are different. Each 1 lot share and contract size is 1 unit.
So; If the price of the index is 17800 when the transaction is opened in the 1-lot Dowjns index; it is means the $ 17800 transaction is open.
If you make a BUY or SELL in Forex trading and hold the position the next day, your account will be swapped. It reflects the different swap costs in each case. Shares and indices are reflected in different swap balances.
You can get confirmation of how much swap is reflected on the phone by the institution. Or you can controlled by entering the properties field from the market watch screen on the platform . Apart from these, the swap price of the weekend can be reflected on a different day from the foreign exchange.
For many parities, trading with microrolot is possible, while some institutions in stocks and indices do not allow micro and minilot and at least 1 lot transaction has to be entered. You can find out from your bank or broker how many lots of transactions you can open.
Some indices and stocks and the countries they belong to;
Click here to open an account and start forex trading immediately.
The answer to our questions YES, can be invested in stocks and indices in forex markets. Let's look at how this is now.
We open an account at the bank or brokerage houses to open trading on the Forex market. With this account, we can track the price of more than 100 products and evaluate the positions. The parities, commodities, stocks and indices are examples of products that can be traded in forex.
Indices is a stock market which has belonging a certain number of shares in a country.
For example; If we look for ABD, The name of the index followed first is Dow jones. It includes the big thirty companies.
Within Dow jones, there are McDonald's, Microsoft, American Express, The Coca-Cola Company and so on companies. The increase in the value of each share constitutes an increase in the total index value.
In the same way, we see similar value formations according to the price increase and decrease, of the shares in the other indices.
In Forex market is evaluated in to foreign stocks and indices. Therefore, in order to be able to trade in these products, it is necessary to follow the foreign markets in the best way.
Usage characteristics of foreign stocks and indices in the forex market;
Leverage
Allowing more transaction in the market than in your balance is means, leverage. If we are using leverage in the foreign exchange market, we can use leverage in equities and indices too. We can also deal with the leverage in stocks and indices as well. You can learn how much leverage you can transaction with your account by asking the institution you are working with.
Transaction times
Forex is a market that is open 24 hours a day, 5 days a week. While there is no term in the currency, there is a certain maturity / session for some commodities, stocks and indices.
For example; DAX30- It is open for forex trading between 09:00 am and 23:00 am in the morning.
Apple Inc. (US) - It is open between 16: 30-23: 00.
Contract size
The size of the process opened to evaluate a 1-lot transaction is called the contract size. The sizes may differ according to the product types.
For example;
A 1-lot transaction in currencies is 100,000 units. A 1-lot transaction for EURUSD is a 100,000 euro transaction.
In the case of stocks and indices, the contract sizes are different. Each 1 lot share and contract size is 1 unit.
So; If the price of the index is 17800 when the transaction is opened in the 1-lot Dowjns index; it is means the $ 17800 transaction is open.
Swap
If you make a BUY or SELL in Forex trading and hold the position the next day, your account will be swapped. It reflects the different swap costs in each case. Shares and indices are reflected in different swap balances.
You can get confirmation of how much swap is reflected on the phone by the institution. Or you can controlled by entering the properties field from the market watch screen on the platform . Apart from these, the swap price of the weekend can be reflected on a different day from the foreign exchange.
Lot size
For many parities, trading with microrolot is possible, while some institutions in stocks and indices do not allow micro and minilot and at least 1 lot transaction has to be entered. You can find out from your bank or broker how many lots of transactions you can open.
Some indices and stocks and the countries they belong to;
Indices
|
|
CAC40
|
FRANCE
|
DAX30
|
GERMANY
|
DOWJNS
|
ABD
|
NASDAQ
|
ABD
|
RSL200
|
ABD
|
OMXS30
|
SWEDISH
|
Shares
|
|
Apple
|
ABD
|
Coca Cola
|
ABD
|
Facebook
|
ABD
|
Vodafone
|
ENGLAND
|
Peogeot
|
FRANCE
|
BMW
|
GERMANY
|
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