Fundamentals of Equity Trading

FinanceTrading / Investing

  • Author Amit Kothiyal
  • Published December 29, 2009
  • Word count 483

Equity trading market is a lucrative field for investors. It generally refers to the universe of stock and option in public market, which empowers the traders’ investments, needs and can be gainful, expensive and enjoyable. The key to enjoy this business is doing proper homework and know what sources to believe. If you are looking forward getting into the equity trading field, then you need to have a good knowledge of the basics of equity trading.

Equity generally means an ownership value in a property which eliminates the debt trading. This type of trading usually takes place in the public markets, primarily involve many different securities, and require diverse strategies and trading skills. The most interesting aspect of equity trading is that it can take place at nearly any time of the day or night. It is not only profitable for big investors but also for traders who desire to have short term benefits. It can be easily performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner.

Equity trading market offers bid and ask price for all trade. A bid price means the price at which a broker purchase stock position and asks price generally refers to the price at which broker sells a stock position. However, it is also important to realize that the bid price and ask price can’t be equal. Ask price will be always higher than the bid price. It means that if an individual buys the stock, he or she pays the higher price and if sells the stock, the individual receives the lower price.

Equities trading also offers numerous benefits that can be explained as follows:

  • Equities Trading exist in both domestic as well as international public market and traders can trade equity through futures markets.

  • Equity trading market is open 24 hours a day and so traders don’t need to wait the market to open.

  • There are many forms of Equity which usually refers to options, warrants and convertible preferred stock.

  • By utilizing certain equity trading techniques, equity trader can decrease the losses. In addition to this, with the help of technical analysis tools a trader can involve in equity trading market and may even avoid extreme losses.

Nowadays, many brokers from all across the world and in countries like UK, Ireland, US, Canada is offering online equity trading on a wide range of equity and options markets. In recent times, many people aim to trade equities and put everything on the shoulders of fundamentals. Though this is not a terrible approach, but it is better for investing rather than trading. Although every investment can’t be always profitable, but on the basis of trading skills and experience, there are always good chance and scope for you as an investor to earn the huge amount of profits from the equity trading market.

STIFX, a leading forex trading broker provides online forex trading services along with Equity Trading, CFD trading, money exchange and transfer, currency trading, commodities trading and more. Visit StifxOnline.com for more detail.

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