Long Term trades are perfect for investors with more time to wait for return. The main advantage of this instrument is that making a prediction is easier to understand. When the market is in high volatility, it can be difficult to asses the small changes in market price. When you wait longer, you have a better chance of letting the asset respond to historical trends and market events, meaning that you could make more lucrative trades.
Forex (foreign exchange) involves correlation of two currencies. Namely, the value of the first currency in a pair is juxtaposed with the second one. Think of EUR/USD, one of the most popular currency pair.
The first currency in the pair (EUR) – is the base, and the second one (USD) – is the counter. The price difference between the two currencies is called spread. When you click buy or sell, you are buying or selling the first currency in the pair.
CFD is an investment style that defines a type of derivative that gives exposure to the change in value of an underlying asset. CFDs allows traders to leverage their capital and provides all the benefits of trading securities, without actually owning the product. Refer to gearing or leverage for more information. CFDs or contract for difference is one of the fastest growing investment vehicles in the world.