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Trading On Stock
Allocating Stock is a way for companies to raise capital in exchange for awarding partial ownership. But trading on stock has long since advanced from this basic concept, stocks today are financial products which many traders choose to trade on since they hold great potential for profit.
In order to trade on stock successfully, a trader must work to identify stocks which they believe are going to rise in value. Opening a trading position when such stocks are worth a certain amount and then selling when they are worth more will award traders a profit, many times a very substantial one (since stocks may sometimes rise in value very rapidly). Of course, a bad choice may lead to trading on stocks the value of which then drops thus causing traders to suffer losses.
We've gathered for you some useful information which will help you get to know stocks better, allowing you to make more informed decisions as to which stocks trade on, when to buy, when to sell, how to minimize risk and much more.
Online Trading Platforms
As will be elaborated on later there are stock exchanges all over the world in which stocks of local as well as international companies and corporations are traded. There are also stocks which are bought and sold directly, i.e. not via any stock exchange. Every day billions of U.S dollars' worth of funds (in different currencies) exchange hands as stocks are bought and sold as well as traded on through use of online trading platforms.
There are numerous advantages to trading on stock by way of an online trading platform. Advanced platforms, such as ours, offer traders not only a convenient way to engage in trading on stock, but also an abundance of information and useful trading aids which go a long way towards helping traders end up making profits.
One of the tools available to traders who use an online trading platform is the setting of limits. Even before a trading position is opened (i.e. the order to buy is given) a trader may set a limit, ensuring the trade will be closed if and when the stock traded on reaches a certain value. In this way, a trader may know in advance just how much capital they are risking.
The World's Main Stock Exchanges
Most of the stocks which Traders using online platform trade on are ones traded on a certain stock exchange, most likely a major one. Therefore, it is a good idea to learn a little about such stock exchanges. In the following paragraphs, you'll find basic facts about all the major stock exchanges operating around the globe.
The two main North American stock exchanges are:
- NYSE- the New York Stock Exchange was formed in 1792. It is located on Wall street in, and most of the trading still goes on at the actual trading floor. New York, for over a century, is considered to be the financial capital of the world. It is therefore not surprising that the NYSE is one of the most important stock exchanges in the world (if not the most important one of all), stocks of some of the world's biggest companies are traded there. The NYSE operates Monday - Friday from 0930-1600 EST.
- NASDAQ - This stock exchange's name stands for the "National Association of Securities Dealers Automated Quotations", as its name suggests it is not a physical stock exchange (such as the NYSE) but rather an electronic one, nowadays the trading is carried out mainly over the internet. NASDAQ trading volumes are second only to those of the NYSE, stocks of leading technology corporations, such as Apple, Google, Tesla Motors, Microsoft and many more, are traded there.
NASDAQ trading hours coincide with those of the NYSE, i.e. Monday - Friday 0930-1600 EST.
Other major stock exchanges outside North America are:
- The London stock exchange which is the largest one in Europe.
- The Hong Kong stock exchange which dominates trade of metal related financial products. Stocks of many large South East Asian companies are also traded in this stock exchange.
- The Japanese Exchange Group (JPX) is the world's third largest stock exchange. Stocks of many giant Japanese corporations are traded there, among them Mitsubishi, Honda, Sony, Toyota and many others.
Before deciding to trade on certain stocks it is important to do some research, see how their value has changed over long, as well as short term periods, check for any developments which may influence the value of the stocks you are interested in trading on and finally make informed decisions as to which stock to trade on, how much to invest, the best time to buy, when to sell, whether to utilize trading tools such as limits or leverage, etc.
Our platform is one of the most advanced of its kind. It was created with traders' interests in mind and so offers not only an extremely friendly user interface but also a vast array of trading options, clearly presented useful information as well as an plenty of easy to use trading aids, all in order to help traders maximize their profits, we invite you to create a trading account and check out what we have to offer, we're certain you'll discover that it's a platform which holds even more in store than you could hope for.