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Understanding the markets

Here is a short overview of the different markets available with a Premium Securities account:



Equities

Equities or shares represent holdings of ownership of public limited companies. When shares are listed, this means they are available to be bought and sold on national exchanges such as the London Stock Exchange (LSE)... More >


Indices

Equity market indices were invested at the end of the 19th century in order to get a general idea of how share prices were performing overall. The first index to be created was by one Charles Dow in 1896... More >


Foreign Exchange

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you may buy US dollars and sell Euros or you buy UK Pounds Sterling and sell Japanese Yen... More >


Commodities

The term "commodity" is usually understood to mean futures contracts on physical assets such as metals, energy, grains, livestock, food and fibre. These products are traded on a futures basis with the futures contracts being listed on various exchanges... More >


Trading Derivatives

Derivatives are a form of financial contract which are based on the price movements of an underlying instrument, such as an equity, index or currency, but which do not actually involve buying or selling the instrument itself... More >


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Risk Warning: Premium Securities are derivatives and therefore carry a greater risk than more traditional investments such as dealing in shares. Although losses are limited to the amount invested, the value of a Premium Security is derived from the underlying market and this will fluctuate. Foreign markets involve different risks than UK markets, and, in some circumstances, these will be greater. The potential for profit or loss from transactions on foreign markets or in foreign currency denominated markets will be affected by fluctuations in foreign exchange rates. Trading in Premium Securities may not be appropriate for many members of the public. You should, therefore, consider carefully whether they are suitable for you in the light of your circumstances and financial resources.
 
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