Finance 101: Trading Stocks
Stock trading does not literally mean trading or exchanging stocks but it involves buying and selling of stocks. There are basically two known ways of stock trading and these are: the exchange floor and electronic or online trading. This article is to provide us with a basic understanding on the difference and the characteristics between the two.
The exchange floor is the place where brokers can be seen. It is the place that we often see on TV which consists of chaotic and energetic shouting. Trading stocks in the exchange floor works like this: the client calls up his broker and informs him that he wants to buy a certain number of shares. The broker finds a floor trader who is willing to sell the equal amount of shares. The exchange floor features a giant screen where the status of the market is open for all to see.
Electronic Trading or online trading is where a client can have direct access to traders via an Electronic Communication Network. Through the use of the internet and an exclusive account, you can directly contact a trader who is likewise online. You may communicate through the use of a specific portal that can serve as the exchange floor. Your broker may also be linked at your account so he can track down the shares for you. It is advisable to research more about the online broker that you plan to employ.
Trading stocks always involves risks. If you are the type of person who hates risks and has a fear of losing what you invested then the game is not for you. In stocks trading the higher your share, the bigger are the risks that you are faced with. Keep in mind that playing it safe will always leave you with minimal amount of returns from your investment; it is because you opt for maximum security more (ex. investing in banks).
If you are now ready to invest in stocks, you may research more about the two methods to know which will work for you. - 23211
The exchange floor is the place where brokers can be seen. It is the place that we often see on TV which consists of chaotic and energetic shouting. Trading stocks in the exchange floor works like this: the client calls up his broker and informs him that he wants to buy a certain number of shares. The broker finds a floor trader who is willing to sell the equal amount of shares. The exchange floor features a giant screen where the status of the market is open for all to see.
Electronic Trading or online trading is where a client can have direct access to traders via an Electronic Communication Network. Through the use of the internet and an exclusive account, you can directly contact a trader who is likewise online. You may communicate through the use of a specific portal that can serve as the exchange floor. Your broker may also be linked at your account so he can track down the shares for you. It is advisable to research more about the online broker that you plan to employ.
Trading stocks always involves risks. If you are the type of person who hates risks and has a fear of losing what you invested then the game is not for you. In stocks trading the higher your share, the bigger are the risks that you are faced with. Keep in mind that playing it safe will always leave you with minimal amount of returns from your investment; it is because you opt for maximum security more (ex. investing in banks).
If you are now ready to invest in stocks, you may research more about the two methods to know which will work for you. - 23211
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.
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