What can we trade in the Financial Market and How does it Work?

What can we trade? How does it work?

In the Financial Market, lots of instuments can be traded. Some of the instruments are

Trading Instruments	Trading	BUY/SELL	Securities	Price	Trade Measure
Stock	Company	Number	Apple Tesco Honda BMW	$ £ ¥ €	Points/Tick
Indices	Index	Number Index	FTSE100 Dow30 S&P500 DAX NIKKIE225	£ $ $ € ¥	Points/Tick
Forex	Currency pair	lot	EURUSD GBPUSD AUDNZD GBPJPY CADCHF	Standard lot Micro lot Mini lot Nano lot	Pip/Point
Commodities	Valuable things	Weight	Gold Silver Copper Oil Wheat	Ounce Ounce Ounce Barrel Brussel	Point/tick

Trade Stock

1 Share of apple cost =$192.40 as it is US Stock

1 Share of Tesco cost = 249.20 Pence (GBP) as it is UK Stock

1 share of Honda cost = ¥3598.40

1 share of BMW cost = EUR 83.74

Trade Index

1 FTSE100 index cost=£7730.60

1 Dow30 index cost= $25322.50

1 DAX index cost = €12878.97

1 NikKie225 = ¥22929.00

Trade Forex

1 Standard lot = 100,000.00 Units

1 Micro lot = 10,000.00 Units

1 Mini lot = 1,000.00 Units

1 Nano lot = 100.00 Units

Trade Commodities

1 Contract of Gold controls 100 troy ounces or one brick of gold and 

1 mini contract controls 32.15 troy ounces

1 troy Ounce Gold = $1284.50

1 contract of Silver control 5000 troy ounces and 

1 mini contract controls 1000 troy ounces

1 troy Ounce Silver = $16.295

Oil

1 contract size is 1000 barrels

1 barrel Crude oil = $64.64

Wheat

1 contract size is 500 Bushels

$22.20/bushel

If you want to buy any shares of company, first of all you need to know where is the company listing. If it is listing in NASDAQ (Apple) then you have pay in USDollar. If it is Lising in FTSE100 (Tesco) then you have pay in GBP. Similary Honda and BMW in Yen and Euro respectively as they are listed in NIKKIE225 and DAX30.

Regarding Indices, if you want to buy1 index Dow30 then you have to pay US$25322.20. Similarly for 1 index FTSE100, you have to pay £7730.60

Curriences and Commodities are priced in US dollar.