WHAT ARE INSTRUMENTS AND SECURITIES?

Financial instruments and securities are assets that can be traded. The key difference between a ‘Financial Instrument’ and ‘Security’ has been blurred throughout the years and depends from one area of the world to another. A security can mean any financial instrument. On the other hand a financial instrument is any tradable asset.

WHAT’S THE DIFFERENCE BETWEEN ‘INSTRUMENTS’ AND ‘SECURITIES’?

In the United States, a security commonly refers to a tradable financial asset that may be categorized into:

  • Debt Securities (ie. bonds, bank notes, etc.)
  • Equity Securities (ie. stocks)
  • Derivatives (ie. futures, options, swaps, etc.)

The financial instruments that are tradable through EXE Markets may be categorized into the following:

  • Forex (ie. EURUSD, USDJPY, AUDZD, etc.)
  • Commodities (ie. XAUUSD, XAGUSD, XBRUSD, etc.)
  • Indicies (ie. US500, NAS100, JPN225, etc.)
  • Equities (ie. APPL, TSLA, UBER, etc.)
  • Cryptocurrencies (ie. BTC, ETH, LTC, etc.)

Brokers, such as EXE Markets, ensures that customers may trade any instrument of their choosing in order to diversify their portfolio. That way, no matter whether one trades stocks, commodities, or currencies, one will always have a place here at EXE Markets.