Trading stock holds great potential for making fast as well as long term profits. But knowing which stock to buy and when to sell requires understanding of how stocks work.
It is a good idea to learn about things such as the different kinds of stocks there are, how to tell in what shape the company which issued the stocks is, what state is the market in general and particularly so far as the field relevant to the stock you're trading on is concerned.
If you're taking your first steps at trading stocks or if you want to make sure that you're taking into account all that you should be, you'll find a lot of useful information below.
Ways To Trade Stock
In stock exchanges all over the globe trillions of dollars exchange hands each and every day. There are also stocks which are not traded via any stock exchange at all, unlisted stocks which are bought directly from the company which issued them.
Trading on stock using an online platform allows you to invest in stocks the value of which you believe is going to rise. You can set, in advance, the value at which you want to sell the stock or allow yourself a dynamic choice regarding when to close the trading deal.
If you've made a wise investment the value of the stock you bought will indeed rise and you will make a handsome profit.
You can also set a minimum value at which to end the trading deal so that the risk you take is limited, there will only be a certain sum you stand to lose if the stock you buy depreciates in value.
If you plan to trade on stock you should know the main stock exchanges where stocks you may decide to trade on are bought and sold.
- The two main American stock exchanges are NYCE (New York Stock Exchange, the biggest stock exchange in the world) and NASDAQ (National Association of Security Dealers Automated Quotations, the world's second largest stock exchange).
- Large stock exchanges outside the U.S, such as the London stock exchange, Japan Exchange Group (JPX, formed in 2013 when the Tokyo Stock exchange and Osaka Securities Exchange were merged) and the Hong Kong stock exchange (in which stocks of large Asian companies are traded).
Formed in 1792 the NYSE is a physical stock exchange located on Wall Street in New York. Most of the trading is still conducted on the actual trading floor. The stocks of some of the world's largest companies are traded on the NYSE which is open Monday through Friday from 9:30AM to 4:00PM EST.
Created in 1971 for companies which could not be traded on traditional stock exchanges. NASDAQ does not have an actual trading floor, all trading is carried out electronically, these days over the internet. Some of the world's leading technology firms are traded on NASDAQ, among them are Google, Apple, Microsoft, Tesla Motors, Netflix and many more. NASDAQ trading hours are the same as NYSE's, i.e. 9:00AM - 4:00PM EST, Mondays through Fridays.
Foreign Stock Exchanges
It's true that the two largest stock exchanges in the world, NYSE and NASDAQ, are both located in the U.S. but there are several other important stock exchanges all over the globe. Among these are:
- The London Stock exchange, England's primary stock exchange, the largest one in Europe.
- Japan Exchange Group (JPX), the third largest stock exchange in the world and where stocks of some giant Japanese firms are traded, such as Toyota, Mitsubishi, Honda, Sony and others.
- Hong Kong stock exchange dominates the world metal exchange and is also where stocks of many large Asian companies are traded.
Stocks - Contracts For Difference
Trading in Stocks is a way to invest in stocks without actually buying or selling the stocks themselves. Stocks are issued by private trading firms. When buying Stocks you are entering into an agreement with the investment company which issued it, the investment company is obliged to pay you the difference between the buy and sell price of a stock, this difference is called the "spread")
There are distinct advantages to Stocks such as:
- Trading in Stocks is free of brokerage charges. The investment company finances operation of the trading platform solely from "spreads" in their favor.
- Trading in Stocks is simple, there's no need to process transactions through a brokerage or the stock exchange.
We invite you to take your first step towards successfully trading on stock by way of buying and selling Stocks, create your user account and start making use of our cutting edge trading platform which makes trading stock easier and more worthwhile than ever before!