Introduction
Deriv Forex is a popular online trading platform that offers a wide range of trading instruments to cater to the diverse needs of traders. These instruments allow traders to participate in the forex market and take advantage of various trading opportunities. In this blog post, we will explore the different trading instruments available in Deriv Forex and how they can be used to diversify trading strategies.
1. Currency Pairs
1.1 Major Currency Pairs
The major currency pairs are the most actively traded pairs in the forex market. These pairs involve the world’s most widely traded currencies, including the US dollar (USD), Euro (EUR), Japanese yen (JPY), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), and Australian dollar (AUD). Major currency pairs offer high liquidity and often exhibit lower spreads, making them popular among traders.
1.2 Cross Currency Pairs
Cross currency pairs, also known as minor currency pairs, do not include the US dollar as one of the currencies. These pairs involve two major currencies, such as EUR/GBP or GBP/JPY. Cross currency pairs provide traders with additional trading opportunities and allow them to diversify their exposure to different currencies.
2. Exotic Currency Pairs
2.1 Emerging Market Currencies
Exotic currency pairs involve the currencies of emerging market economies, such as the South African rand (ZAR), Mexican peso (MXN), or Brazilian real (BRL). These pairs are considered to have higher volatility and wider spreads compared to major or cross currency pairs. Trading exotic currency pairs requires careful analysis and risk management due to their potential for larger price fluctuations.
2.2 Regional Currency Pairs
Regional currency pairs involve currencies from specific regions, such as the Scandinavian currencies (SEK, NOK), Eastern European currencies (PLN, CZK), or Asian currencies (SGD, HKD). These pairs offer opportunities for traders who have a particular interest in specific regions or want to diversify their portfolios further.
3. Precious Metals
3.1 Gold
Gold is a popular trading instrument in the forex market due to its status as a safe-haven asset and its ability to act as a hedge against inflation and currency fluctuations. Traders can speculate on the price of gold and take advantage of its volatility by trading gold contracts on the Deriv Forex platform.
3.2 Silver
Silver is another precious metal that is actively traded in the forex market. It offers traders an alternative to gold and can be used as a diversification tool. Trading silver contracts allows traders to participate in the price movements of this precious metal.
4. Commodities
4.1 Crude Oil
Crude oil is a highly traded commodity in the forex market. Traders can speculate on the price of crude oil and take advantage of its volatility by trading crude oil contracts. The price of crude oil is influenced by various factors, including global demand, geopolitical events, and supply disruptions.
4.2 Natural Gas
Natural gas is another popular commodity traded on the Deriv Forex platform. Traders can participate in the price movements of natural gas and take advantage of its volatility. The price of natural gas is influenced by factors such as weather conditions, supply and demand dynamics, and geopolitical events.
Conclusion
Deriv Forex offers a wide range of trading instruments to cater to the diverse needs of traders. From major and cross currency pairs to exotic currency pairs, precious metals, and commodities, traders have numerous options to choose from. By diversifying their trading strategies and utilizing different trading instruments, traders can maximize their opportunities in the forex market and potentially achieve their trading goals.
