The financial market is ever-expanding, much like our known universe. Thankfully, financial instruments do not have a finite supply.
If you have an interest in an individual financial instrument, you will find it on this page. If you cannot, let Investing Guides know which instrument you would like to see and it will be considered!
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The ins and outs of financial instruments
In order to understand financial instruments, it’s best, to begin with, examples. Stocks, bonds, ETFs are products. Tesla, whilst being a stock, is also considered a financial instrument.
Usually, people speak of individual stocks, ETFs or otherwise, when they mention financial instruments.
Financial instruments – Cash vs margin
When broken down, two types exist. The first is cash instruments, which are the largest type covered on investing guides. The second is derivative instruments, and these can come with additional risks.
Cash instruments
Stocks & Bonds, ETFs and several other direct products are considered cash instruments.
ETFs are technically derived instruments as the underlying asset is a stock or bond. However, these are still considered more cash-like, due to the nature of the underlying asset.
Derivative instruments
The true derived instruments can become confusing as their value is dependent on the underlying asset, but not mirroring it.
For example, a stock option on Tesla could be selling for 200 USD, even though Tesla’s stock value is closer to 1.000 USD.
If this sounds confusing, think about it this way: You go see the Mona Lisa and you know of its value as an expensive piece of art. Now image you made a professional picture of the Mona Lisa, as that is your profession.
As a result, you now possess a physical photo of a piece of art. Next, you sell this to a collector. He buys it because he believes the Mona Lisa will increase in value & he can sell the photo for more money in the future.
In short, this is the derivative concept & is completely legal in most countries.
Stock instruments
Most instruments we will cover and provide live data on will be stocks. Because stocks are often the first bought financial instrument by any new investor. They also make up many ETFs & serve as the stock market when accumulated.
ETF instruments
In this section, as well as investing in, we will cover ETF instruments too. Thanks to their broad diversification, it is a relatively low-cost way to spread risk & reach the sectors you want to support.
Why should I care?
Fair question & thank you for asking. You could care to possibly invest in a company or ETF, and be in need of fundamental analysis. Based on this live data, you may decide that investing is a right or wrong fit.
Or maybe you already own several of these financial instruments, and your true interest lies in checking their life price 10 times a day. Trust me, no judgment here, most enthusiastic investors, go through this phase.
However, do make sure you check the price because of positive vibes. If you find yourself in fear & nervousness, you probably invested more than you are comfortably risking, and would therefore be better off transferring that money back to yourself.