Foreign Exchange Short for Foreign Exchange, it is a type of foreign exchange transaction, also called Forex for short (called FX margin transaction in Korea). Foreign exchange transactions, including FX transactions, include spot exchange, forward exchange, and currency futures, refer to the act of selling one country’s currency and buying another country’s currency by exchanging both countries’ currencies at the same time. For example, when traveling abroad, the exchange of local currency into the currency of the country of travel, and the exchange of local currency and foreign currency to pay for transactions in the course of economic exchanges between countries are all called foreign exchange transactions. Foreign exchange trading is the most liquid market among all investment products traded in the world, as it is formed not only by the central banks of each country but also by giant market participants whose purpose is to trade, capital trading and profit trading. The average daily trading volume of the global foreign exchange market is about $5.345 trillion (Source: Bank for International Settlements: September 2013), the largest financial market in the world.

About 5% of total traders in the foreign exchange market intervene to stabilize the local currency, such as governments and multinational corporations, or participate in corporate-level risk management, and 95% are formed by market participants seeking profit margins from changes in the exchange rate. The foreign exchange market developed from a fixed exchange rate system to a rapid increase in trading volume with major countries adopting a floating exchange rate system, starting with the United States in 1973. The market, which was limited to large traders such as computers, the Internet, and software, has grown into a larger market as small retail investors can participate in real-time trading.

Commodity trading is the buying and selling of raw materials, usually traded in the form of futures. From cotton and wheat to petroleum and metals such as gold and silver. The global economy is heavily influenced by the price of these goods.
It is affected by a variety of complex factors, including the production and consumption of goods, such as the political situation of the country of origin, economic events, natural disasters, and USD (as goods are usually priced at USD). Commodity prices tend to trend continuously, offering trading opportunities over a long period of time, from 5 to 10 years.

< Metal: Gold and Silver >

Gold was the most precious metal in history. It has always been linked to the currency being valued, and it is now providing safe haven for traders in times of financial crisis worldwide.
A similar stock to gold is silver, which has been associated with currency together. Although it does not have a high position, stability like gold, it is considered “silver” relatively more volatile than gold, making it attractive for traders looking to make a bigger return. But it is important to remember that every transaction comes with risks.

< Oil: Brent & WTI >

Crude oil is classified by location, quality, and characteristics. The most commonly traded crude oil is Brent (Brent Sweet Light Crude) and West Texas Intermediate (WTI), and the price of two crude oil provides a basis for the trading price of other crude oil.
Brent crude oil is extracted from the North Sea and WTI is extracted from North America. The WTI is recognized for its highest quality and is primarily used in diesel fuel, and is mainly used in the production of Brent high-quality gasoline. The prices of the two typical crude oil are determined by including transportation costs, production, and availability of storage facilities.
However, Brent Light Sweet Crude Oil is more versatile than WTI, making it a global benchmark for the energy market as it is more closely related to the global oil industry than WTI. In addition, global traders tend to favor Brent trading because of the greater price fluctuations compared to WTI. The price of the two products has been only a few dollars apart over the decades, but Brent has skyrocketed over the past decade, and they are now trading between $5 and $10 above WTI on average.

It is also called “cryptocurrency,” meaning that there is no real money such as bills and coins and that uses encryption technology. It has the advantage of reducing transaction costs such as transfer costs without the production cost of issuing money, and because it is stored on a hard disk, it does not cost storage, and there is no fear of theft or loss, so it functions as a means of storing value. A difference transaction (CFD) is a derivative in which a trader does not own the product itself, but can benefit from taking a buying/selling position by predicting the price fluctuations of the product. Traders ‘own’ price fluctuations of the asset while holding the position.