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What are Stocks, Futures and Indices?

What are Stocks?

A stock is a partial ownership in a corporation. When you purchase shares of a stock, you purchase ownership in that corporation, with rights to share in its profits. When a corporation needs to raise money for expansion or improvements, they will sell shares on the open markets. The US Stock markets are the New York Stock Exchange (NYSE), the NASDAQ, and the American Stock Exchange (AMEX) Australian Stock Exchange (ASX) London Stock Exchange (LSE), Tokyo Stock Exchange (TSE), Indian Stock Exchange and many others around the world (22 of which you can trade with Adest Trader.

What are Futures (Commodities)?

A futures contract is a standardized contract to make or take delivery of a commodity or currency at a predetermined time and place. In simple terms, a futures contract locks in a price for a future date.

Some of the most popular futures contracts traded in the United States today are equity based contracts such as the Dow Jones Industrial Average (DJIA); interest rate contracts such as Treasury bonds and Treasury notes; agricultural contracts, such as corn, soybeans, and wheat; and metals such as silver and gold.

What are Indices?

An index is a statistical measure of the changes in a portfolio representing a market. The Standard & Poor's 500 is the most well-known index, measuring the overall change in the value of the 500 stocks of the largest firms in the U.S.

What is Forex?

If you collect Index data with Genesis you will notice Forex data listed under symbols that begin with a $, in either All Indices or the Forex Symbol Group on your Symbol Grid window. For example, the Forex Euro-Dollar exchange rate appears as $EUR-USD.

The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar ($EUR-USD) or US Dollar/Japanese Yen ($USD-JPY). A true 24-hour market, Forex trading begins each day in Sydney (the liwis will say its Wellington, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. The FX market is considered an Over The Counter (OTC) or 'interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets. For more information, view the Margin Foreign Exchange website - www.i-deal.com.au

What are Options?

An option is the right to either buy or sell a stock, commodity, currency, or index at a specified price during a specified time period.

Options may allow a buyer to achieve higher returns than buying stocks. In today’s highly volatile environment, options allow the buyer to limit potential losses while retaining the potential for profits. In addition, an investor who borrows money to buy stocks is unable to deduct margin interests. Options are a great alternative because they allows for the deduction of all "margin interests."

For example, a stock option allows you to fix the price, for a specific period of time, at which you can purchase or sell 100 shares of stock for a premium. The option cost is only a percentage of what you would pay to own the stock outright. That leverage means that by using options you may be able to increase your potential benefit from a stock’s price movements.

What Options Trading Platform do you use?

We use the I-Deal Professional which has low brokerage and is straight to the market for Shares, Futures Options and Shares. You can can a 30 Demo of that from http://i-deal.com.au

For Forex Options use the I-Deal Trader 30 Demo of that from http://i-deal.com.au

Who Teaches Forex Trading

John Person - more>>

Russell Sands - more>>

David Hunt teaches private lessons in forex trading methods Ask for more information more>>

Trade Navigator Symbols

Stocks and Futures symbols are listed without special characters. Common stock and future symbols are: MSFT for Microsoft Corp., SP-200112 for the S&P 500 December 2001 contract, BO-067 for Soybean Oil continuous contract, etc.

Trade Navigator Indices begin with special characters as follows:

$ designates a Market Index. Common market indices are: $COMPQ for the NASDAQ Composite index, $DJIA for Dow Jones Industrial Average, $OEX for S&P 100 Index, $SPX for S&P 500 Index, $VIX for CBOE Option Volatility Index.

$- designates a Sector Index. A sector index is comprised of issues making up the sector. For example, the Airline Sector Index $-AIRLIN represents a measurement of all the airline stocks as a whole unit. The stocks that make up these sector indices are all equally weighted within the index.

# designates a Custom Index. This index allows you to create an index of stocks that you want to follow. It can be equally weighted or adjusted according to price or volume. You can create a custom index from any Symbol Group by placing a check mark next to Create custom Index/Sector from this Group on the Symbol Group Editor window and then clicking Save.

@asx is a suffix that designates if its an Australian Share or Index

How to Trade Stocks, Futures, Options and Forex

Revealed: How One Man Traded the Biggest Coffee Bull Market in History and How You Can Learn His Methods


Click here to get your special Report now>>

You may chart, create or test trading ideas with Trade Navigator or TradeStation 2000i. Then you can trade those ideas with I-Deal Trader.

FREE Elliott Wave Counts on ELWAVE for Tradestation more>>

ADEST  Ph + 61 (0) 2.9527.4690

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Warning and Disclaimer: Issued by ADEST Trading P/L, ABN 88 083 033 612.

This is general information not prepared for your specific investment objectives, financial situation or needs. Consult a licenced investment adviser before making investment decisions. Past performance is no guarantee of future performance. There is a risk of loss in trading as well as potential for profit. The opinions and methods you will hear today are from Jake Bernstein. The site is based on past historic data and is about methods and education. Jake Bernstein is a private trader and has much experience in trading. You will be taught his theories and opinions on trading methods. In no way is this intended as financial advice or an invitation to trade. Jake Bernstein is a not a Licensed Financial Services Licensee and therefore does not give investment Advice. He is teaching you his trading methods and that is all. You understand that you have to do your own research once you have learned these methods on your own markets. Jake Bernstein and ADEST make no guarantee about how you will perform using these methods. Jake Bernstein is not licensed to give advice or cause you to deal in a financial product in Australia. Please do not ask him to do so. He will keep to his methods. There will be a Licensed Financial Adviser at the Seminar with whom you can consult with about trading decisions. Do not ask Jake Bernstein for his current or future market opinion or anything to do with your own circumstances.

This seminar does not take into account your individual investment objectives, financial situation or specific needs. Before making an investment or trading decision based on any methodology, the investor or trader, should decide with or without professional Advice whether trading meets your investment objective and suits you psychologically, emotionally and financially. Trading & investing in any instrument ie shares, CFDs, foreign exchange, futures, commodities, have a risk of loss that if left open by market closure or lack of proper protective stop losses could result in a loss of all of your capital or more. Traders and investors are responsible for their own decisions and outcomes. Jake Bernstein is teaching you some methods based on what he sees as good for trading. Trading in any market financial or otherwise is a highly risky exercise and is not suitable for all people. Trading may not suit you. By attending this seminar you accept responsibility for your own trading outcomes and agree to research and test any trading method you learn at the seminar before making any trading decisions or committing risk capital to the market.

IT IS YOUR DECISION TO TRADE. THESE MATERIALS ARE FOR EDUCATIONAL PURPOSES and not an invitation to trade. You also agree to read the Product Disclosure Statements issued by your advisor, broker or market maker before trading and consult them as to the appropriateness of trading for you. You also indemnify ADEST. Jake Bernstein and their agents from any losses or consequential damage you may incur from using these methods. You will be asked to sign and indicate you understand & accept this Warning .