What is Asset Class?
A broad category of financial instruments that share similar characteristics and tend to behave similarly in the market — forex, equities, commodities, and indices are each their own asset class.
In-Depth Explanation
Practical Example
"A trader diversifies across asset classes by holding a long position in gold (commodities) while also trading GBP/USD (forex)."
Related Terminology
Forex (FX)
The global market where national currencies are exchanged — the world's largest and most liquid financial market, operating 24 hours a day, five days a week.
Commodities
Raw materials and primary goods — gold, oil, wheat, coffee — traded on global markets as assets in their own right.
Index / Indices
A market index measures the combined performance of a defined group of stocks, such as the FTSE 100 (the 100 largest UK-listed companies) or the S&P 500.
Bull Market
A market condition where prices are rising or expected to rise.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
Join Drawdown Free