Courses & Webinars
Economic events
  1. Home
  2. Trading Courses
  3. Understanding the Asset types
Course 3
Latest Market Analysis
18.07.2024 - NASDAQ Soars.jpg
NASDAQ Soars 14% in AI Frenzy: What's Next?
COURSE 3 - Understanding the Asset types - COVER.jpg

Understanding the Asset types

Beginner Course 3

Did you know a vast selection of assets and categories are available for all to trade? Some of these, for example, currencies, may be easy to recognise and understand. This is something we use each day. 

However, other assets, for example, ETFs or cryptocurrencies, may be more complex to understand. Depending on your investment requirements, one of these may be more appropriate for you. For this reason, it is important to have a broad understanding of the main categories which we will cover as part of this short course. 

The Main Asset Categories

  1. (Foreign) Currencies - Traditional currencies printed by a central bank.
  2. Cryptocurrencies - a digital currency that a central bank does not verify. 
  3. Stocks - partial ownership of a company which is entitled to “dividend” payments. 
  4. Indices - a fund which includes multiple stocks within a single asset. 
  5. ETFs - an investment fund which invests in multiple assets. 
  6. Commodities - raw materials, precious metals and agricultural products.

Asset Traits and Characteristics 

It is important to note that each asset category can have very different characteristics. Therefore, it is vital to ensure the asset is appropriate for you, depending on your investment needs. For example, Natural Gas is extremely volatile compared to ETFs, and some shares pay dividends 4 times a year, whereas currencies do not. Hence, why it is important to know the characteristics of each asset in order to determine which best suits your needs.

Lastly, it is also important to note that each asset may have different influential factors. For example, shares may be negatively affected by a recession, whereas the price of Gold tends to react positively to recessions. This is mainly due to Gold’s safe haven status. For this reason, it is important to ensure you understand what can influence the price of the asset you are trading. 

Test your knowledge in under 5-minutes.

Take the course quiz
Derivatives are complex instruments and come with a high risk of losing money due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the risk of losing your money

Copyright © 2024 – All rights reserved.

NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.

The website is owned by The NAGA Group AG and operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of CT House, Office 9A, 2nd Floor, Providence, Mahe, Seychelles.
Tel: +2482574498

The group also includes NAGA Global (CY) Ltd, with registered address at Nikokreontos 2, NICE DREAM, 6th floor, Flat/Office 601, 1066, Nicosia, Cyprus. NAGA Global (CY) Ltd is wholly owned by The NAGA Group AG.

RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.

Restricted countries: NAGA Capital Ltd does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Anguilla, Australia, Austria, Barbados, Belarus, Belgium, Bermuda, British Indian Ocean Territory, Bulgaria, Burkina Faso, Canada, Cayman Islands, Central African Republic, Christmas Island, Cocos (Keeling) Islands, Congo, The Democratic Republic of the, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Falkland Islands (Malvinas), Finland, France, Germany, Gibraltar, Greece, Guam, Haiti, Heard Island and McDonald Islands, Hungary, Iceland, Iran, Islamic Republic of, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Korea, Democratic People's Republic of, Latvia, Libyan Arab Jamahiriya, Liechtenstein, Lithuania, Luxembourg, Mali, Malta, Montserrat, Mozambique, Myanmar, Netherlands, New Zealand, Norfolk Island, Norway, Palestinian Territory, Occupied, Pitcairn, Poland, Portugal, Romania, Russian Federation, Saint Helena, Ascension and Tristan Da Cunha, San Marino, Senegal, Serbia, Slovakia, Slovenia, Somalia, South Georgia and the South Sandwich Islands, South Sudan, Spain, Sri Lanka, Sweden, Switzerland, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turks and Caicos Islands, Uganda, Ukraine, United Kingdom and any other countries where the citizens have British proof of identity (i.e. British Virgin Island, Gibraltar, Isle of Man etc.), United States, U.S. Minor Islands, Vanuatu, Virgin Islands, British, Virgin Islands, U.S., Yemen, and Zimbabwe.