Financial products 
- Shares
A share is part ownership of a business. Shares are issued by companies to raise money. The potential returns from investment in shares can be achieved either through capital (share price) growth or via income paid as dividends. For more information about share, click here.
- Foreign exchange (FOREX)
FOREX is a worldwide decentralized over-the-counter financial market for the trading of currencies. The foreign exchange is the most traded asset class, therefore the largest market with average daily turnover of US$3.2 trillion, in the world. The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. However, foreign exchange trading is also used by investors and traders to either hedge against the change in the movement of two currencies, or to speculate on the direction of fluctuations in the exchange rate of currencies. There are many relative advantages of investing in FOREX, as it is highly liquid, leverage available is high and the market is almost opened 24 hours a day except on weekends. It is opened from Monday 10am to Saturday 10am AEST. FOREX trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
- Derivative securities
Usually take the form of an agreement to buy or sell an underlying asset or item (share, commodity, property, security) at a fixed price on or before a certain date. Derivative securities are traded on exchanges like other financial instruments, and their value varies with the value of the underlying assets (which are traded separately from the derivatives). Futures, forward, options and warrants are some common types of derivatives used in hedging or to gain leverage.
- Interest rate securities
An interest rate security is a security that pays a fixed or floating rate of return. This return can be in the form of interest or dividends. Interest rate investments can provide investors with a regular income stream, diversification and portfolio stabilization. For more information about interest rate securities, click here.
- Contracts for difference (CFDs)
CFDs are leveraged instruments that enable you to gain exposure to certain assets at relatively low initial costs. Traders can take positions on both rising and falling markets. It is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the seller pays to the buyer.) |
