How To Trade Stocks and Stocks: The First Step for UK Beginners | Personal Finances | Finance
But the world of commerce can be a minefield, and newbies will have a lot of questions. When investing, capital is at risk and that means making informed decisions is crucial.
How to trade stocks (2,400 monthly searches)
âAs with any investment, research is the first step,â Ms. Charalambous said.
âFrom choosing the right broker (you will need to consider fees, liquidity, stock selection and, of course, reputation) to finding the right markets to invest in, you should always know why you are investing. in a particular action.
“Some factors worth considering may include analysts’ projections for stock performance, the company’s financial results (or earnings), released quarterly, as well as the dividends it pays.”
What is options trading? (8,100 monthly searches)
“Options are financial contracts which give their holders the possibility – but not the obligation (therefore the option) – to buy or sell a security at an agreed price on a fixed date, thus protecting themselves against the risk market price fluctuation. “
What is a CFD? (6,600 monthly searches)
âA CFD, or Contract for Difference, is another type of trading contract, in which you speculate on the direction in which an instrument can move, without owning the underlying asset.
“So you trade on price movement – ‘buy’ if you think its value will increase over time, or ‘sell’ if you anticipate a decline.”
What is forex trading? (5,400 monthly searches)
âForex, from foreign exchange, refers to the buying and selling of different currencies to profit from the difference in their values.
“The foreign exchange market is the largest in the world, with a volume of over $ 6 trillion a day – everyone from vacationers to the big banks participate in the foreign exchange market.”
What is scalping? (2,900 monthly searches)
âScalping is the act of placing trades that you intend to keep open for a very short period of time, ranging from seconds to minutes, to capitalize on high volatility or sharp spikes in the market.
“While there are brokers who can allow scalping to a certain extent, it is a form of market abuse if done frequently.”
How are commodities traded? (2,400 monthly searches)
âRaw materials are generally finished physical products that have fluctuating values. There are both hard and soft raw materials, ranging from gold, silver, oil, and other natural resources to coffee, wheat, corn, and even orange juice.
“Their value depends on supply and demand and can be influenced by everything from weather to politics.”
How to trade cryptocurrencies (1,900 monthly searches)
âLike forex and stocks, cryptocurrencies can be traded as CFDs or bought and held in a virtual wallet. Although more volatile than other traditional assets, cryptocurrencies can be a profitable investment if, like any instrument, you enter at the right time.
“When you trade crypto CFDs, you can sell short or sell, which means you can profit from declines and not just increase in value.”