What are all the ways to profit from the financial markets?

Posted: 22-08-2010 | Author: admin | Category: Investing


Does anybody know of any other ways to profit from the financial markets other than the regular ones (buying stocks and hoping they will go up).

I already know of: Shortselling, options, futures, derivatives, arbitrage, gearing ……

Category: Investing by admin

2 Responses to “What are all the ways to profit from the financial markets?”

  1. Swaminathan P, on August 24th, 2010 at 3:01 am Said:

    you can try in foreign exchange

  2. Paul, on August 26th, 2010 at 1:15 am Said:

    There are several stock exchanges in the US and abroad. You can buy/short stocks as well as buy/short options (which are derivatives on stocks). You can also buy/short futures on the markets (DJIA/DOW, Nasdaq) themselves.

    In the commodities market, you can buy/short futures based on what you think the future price of that commodity (oil, corn, sugar, beef, etc.). The original purpose of this was to allow farmers to set the price they were willing to sell their crops before they actually harvested.

    There are also corporate bonds, municipal (city) bonds, Treasury bonds, Traesury bills, etc., which are all basically loans.

    There are also currency markets, where you literally buy and sell money (of a different currency)

    Stocks, options, bonds, and futures are financial securites.

    Purchasing/buying, shorting gearing/leveraging are techniques used with the above securities.

    Combing techniques and securites can create a near infinite variety of ways to make money. Some simple ones:
    1) buy some stock and sell a call option
    2) buy a put and a call on the same stock
    3) buy gold and sell Euros
    4) buy silver futures and sell gold futures

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