Trading Other Instruments
Pairmetric clients can trade far more than just currency pairs through a single trading account, since commodities, stock indices, individual company shares and precious metals are all readily available through CFD trading alongside traditional Forex pairs on the very same MetaTrader 5 platform. This lesson introduces each of these additional instrument types in turn, explaining how their underlying price drivers, typical volatility levels and practical trading considerations differ meaningfully from the currency pairs you've focused on throughout this course so far.
By the end of this lesson, you should have a clearer sense of how diversifying across multiple asset classes, rather than trading Forex exclusively, can open up new opportunities while also introducing risk factors worth understanding before you start trading them with real capital.
Commodities and Metals
Commodities such as crude oil and agricultural products, along with precious metals like gold and silver, are priced mainly by global supply and demand rather than by the relationship between two competing currencies. They often behave quite differently from currency pairs.
This is a large part of why many experienced traders diversify across several asset classes rather than focusing on Forex exclusively. Gold in particular is often viewed as a safe-haven asset during periods of financial or geopolitical uncertainty.
- Commodities: Commodities are raw materials such as crude oil and agricultural products, with prices driven mainly by global supply and demand rather than by currency-specific news.
- Precious Metals: Gold and silver are traded both as industrial materials and as a store of value, often gaining appeal during periods of financial uncertainty.
- Independent Price Drivers: These instruments often move quite differently from traditional currency pairs, reacting to news that has little direct connection to any economy's monetary policy.
- Diversification Benefit: Trading across multiple asset classes rather than Forex alone can help smooth out the overall volatility of your combined trading portfolio.
Indices
Trading a stock index, such as the US SP 500 or Germany 40, gives you exposure to the combined performance of dozens or even hundreds of companies at once. This built-in diversification avoids needing to research and manage many separate individual shares.
This makes indices a useful way to take a broad view on an entire economy or sector, such as technology, without needing to be right about any single company. Major indices also serve as a valuable barometer of overall investor confidence.
- Broad Market Exposure: An index tracks the combined performance of many individual companies at once, rather than exposing you to the fortunes of just one business.
- Sector or Economy View: Trading an index lets you take a directional view on an entire economy or sector, such as technology, without picking individual company winners.
- Simplified Diversification: A single index position effectively spreads your exposure across many underlying companies, reducing the impact any one of them can have alone.
- Popular Global Indices: Major indices like the US SP 500 and Germany 40 are widely traded via CFDs and closely watched as barometers of investor confidence.
Shares
Trading individual company shares through a CFD lets you speculate on a company's rising or falling share price without ever needing to buy or hold the underlying shares outright. It uses the same leverage and margin principles that already apply throughout your Forex trading.
Because of that shared foundation, the core skills you're building in this course - position sizing, stop loss orders and account risk - transfer directly across to share trading as well. This makes expanding into shares a natural next step for a comfortable Forex trader.
- Speculating Without Ownership: Trading a share CFD lets you speculate on a company's rising or falling price without ever needing to buy or hold the underlying stock.
- Same Leverage and Margin Principles: Share CFDs use the same underlying leverage and margin mechanics you've already learned throughout your Forex trading, making the transition considerably easier.
- Transferable Risk Management Skills: Position sizing, stop loss orders and overall account risk management all transfer directly from Forex trading across to trading individual shares.
- One Account, Many Markets: A single Pairmetric trading account gives you access to shares, commodities, indices and Forex side by side on the same MetaTrader 5 platform.