Growing up in a capitalist society, we are no strangers to the concept of trade. We are taught from a young age that we trade hours of our lives (and efforts) for cash, then trade this cash with others to get our hands on a whole host of products, goods, and services that appeal to us. But this simple process often becomes so ingrained in our consciousness that we forget there are different ways to trade. We don’t necessarily have to swap cash for personal goods directly. There are all sorts of other trades out there that can see you investing money in a good that we intend to sell later, trading assets for assets without cash involved at all, or trading shares in companies rather than engaging with the stock that they actually have for sale. So, to stir your imagination, let’s take a look at a few alternative forms of trading that you might like to consider engaging with!
Contract for Difference Trading
Contract for difference trading or “CFDs” are a popular form of derivative trading that allows you to speculate on the rising or falling prices of fast-moving global financial markets, including forex, indices, commodities, shares, and treasuries. There are various benefits that come hand in hand with contract for difference trading. It is relatively tax efficient, as there is no stamp duty to pay, and you can also “go short” or sell up if you feel that prices on the market are going to go down, or “go long” and purchase more if you think prices are going to go up. The first steps into cfd’s are to read up on the area and gain as much professional advice as you can. This will allow you to get to grips with everything you need to know to make a success of your engagement with this venture!
Forex trading, otherwise known as foreign exchange trading, will see you take to the foreign exchange market and trade one kind of currency for another. Now, people associate the exchange of currency with spending money for holidays, as this is perhaps the only time that they will look into the market. But when you take into consideration the sheer amount of trade that goes on between one country and another, never mind, multiple countries in huge deals, you’ll realise that the exchange market is used a whole lot more in business than anywhere else. So, getting involved with profitable exchange rates could really be a little money maker for you! Again, you’re going to have to do a lot of research and also be vigilant about keeping an eye on the market. But the dedication could see you make a significant amount of cash out of it.
These are just two alternative forms of trading that you might like to consider. You may not be familiar with them. In fact, you may never have even heard of them before setting eyes on this article. But they’re well worth engaging with on some level!