Financial Instruments

A financial instrument is a monetary contract between two parties that allows one party to transfer to another party an asset, like cash, shares in a company, the right to future cash flow, or the right to buy or sell an asset sometime down the road. Financial instruments can be cash-based or derivatives based.  Examples include loans, deposits, bonds, stocks, stock options and futures, spot forex, currency futures, interest rate swaps, and currency swaps.

Common Trading Terms

Whether you're trading forex, crypto, stocks, options or futures, " trading" is comprised of many of the same common trading terms, concepts and principles. To become the best trader, regardless of your asset-of-choice, you have to learn and understand these key trading terms to lay your foundation before moving on to more advanced topics.

Currencies

Currencies are a form of money used as a medium of exchange in transactions involving goods, services, or financial assets. They are issued by governments or central banks and serve as the primary method of facilitating trade and commerce within a country or across borders. In the foreign exchange market, currency codes are numeric codes that identify a country’s currency. They were created, and maintained, by the International Organization for Standardization (ISO). Currency codes are used in international banking, business, and currency trading worldwide. The ISO 4217 standard establishes the rules for currency codes. Below is a list of money in use for countries around the world and the three-digit numeric ISO 4217 code for each currency.

The average man does not know what to do with his life, yet wants another one which will last forever.Anatole France