The most traded products in the Forex market differ according to their categories. The most traded forex assets in product groups such as foreign exchange, precious metal, stocks, indices, energy, commodities and bonds are generally the same as spot markets.
The most popular products traded in the Forex market, on the other hand, may differ from time to time according to the investment strategies of market participants. Namely; Central banks, banks, funds, pension funds, insurance funds, which are Forex market participants, in short, corporate and individual investor groups that connect to the market online from all over the world perform portfolio and risk management depending on the economic conjuncture. So basically, although the first 30 products most traded in Forex generally do not differ, the products in the top 50 may differ.
Product categories traded in the Forex market
The main product categories traded in the Forex market are parities (currency pairs), commodities, stocks, indices, bonds and bonds. In order to explain better, let’s examine what are the most traded product categories in the Forex market;
Parities: A financial term that indicates the value of a country’s currency relative to another country’s currency. Parities are divided into three sub-categories, major, minor and exotic, according to transaction volume and liquidity.
Major parities; They are currency pairs consisting of the most liquid currencies used in world trade. Major parities are those with less volatility and no sharp price movements. E.g; Such as EURUSD parity, USDJPY parity, GBPUSD parity, USDCHF parity, AUDUSD parity, USDCAD parity, EURJPY parity, EURGBP parity.
Minor parities; Currency pairs with less transaction volume than major currencies. Currency pairs with currencies such as New Zealand, Hong Kong Dollars, and Singapore Dollars are examples of minor pairs.
Exotic parities; They are highly volatile currency pairs that are less liquid than major and minor currencies. Currency pairs with the Mexican Peso and the South African Rand are examples.
Stocks category: Futures and CFD products, where the stocks of the world’s largest companies such as Apple, Intel, Microsoft, Facebook, Amazon, Coca Cola, Mcdonalds, Pfızer and Google are the underlying assets, are traded in the stocks category.
Index category: Futures and CFD products, where the indices of the world’s largest stock markets are the underlying assets, are traded. Investments can be made in futures and cfd products of stock market indices such as S&P 500, CAC 40, NASDAQ 100, FTSE 100, DAX 30, NIKKEI 225.
Commodity category: Forex market is a market where many different commodities are traded at the same time. E.g; In the precious metal product group, commodities such as gold, platinum and silver can also be bought and sold online at the same time. As energy commodities, oil, natural gas, crude oil, fuel oil commodities can be cited as examples. A wide variety of agricultural products, including soy, cotton, cocoa, corn, wheat, can be considered in the agricultural commodity product group.
In the fixed-income product category, transactions can be made in futures and CFD contracts, which are the underlying assets of many countries’ bonds and bills, including 5, 10, 30-year US bonds and bills, Eurobonds.
In short, many different futures and CFD products are traded on the same trading platform in the Forex market, with many different risks and returns. GCM Forex, one of the leading and award-winning institutions in the sector, can perform transactions on more than 160 products from a single account.