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CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider.
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CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX, or any of our other products work and whether you can afford to take the high risk of losing your money.
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Glossary

Instrument

Definition

A tradable symbol with a monetary value: forex cross (currency pair), stock ticker (for CFDs and stocks), and so on.

What is an instrument?

In finance, an instrument is a tradable asset. Financial instruments can be equity-based (representing ownership, like stocks), debt-based (representing a loan made by an investor to the owner, like bonds), or they can be derivative products.

Why are instruments important to consider when trading?

Financial instruments are the building blocks of the trading and investment world. Each instrument has its own set of characteristics and risks, and understanding these is crucial for traders. The choice of financial instruments depends on the investment strategy, risk tolerance, and market conditions. Knowledge of various financial instruments allows traders to diversify their portfolios and optimise their investment strategies.

Related Items

Instrument Symbol Base currency Counter currency
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Put this into Practice

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