Trade Stocks Trading

Learn Stocks Trading

About Stock

Stock Trading is a term that is commonly used by stock trading investors and stocks traders to describe trading activity in the stocks trading market that is carried out by traders, investors and speculators.


In stock trading a stock trader can buy or sell stock. A stock trader will buy stock if they think the value of the stock instrument is likely to appreciate in the future. A Stock Trader will sell stock if they think the value of the stock instrument is likely to depreciate in the future.


The Stock Trading Market is an over the counter market which means trading is carried out through a network of the big international banks; this stock trading network is commonly referred to as the interbank network. This interbank stock trading network consists of banks and stock brokers which are in different locations. These interbank network is responsible for providing the stock prices at any particular time to the stock traders and other stock market participants who want to buy or sell stock. In stock trading the stocks price is constantly changing and this stocks price is denoted by what is known as a Stock Trading Quote. In Stock Trading the Stock Price is displayed as a Stock Quote. This stock trading quote is constantly changing and the interbank network will update automatically the current stock trading quote and stocks traders can then trade the stocks at the current stocks price.



Stock Trading Quotes

trading stock prices of stock trading instruments is displayed using Stock Trading Quotes. This is the stocks price at which any stock trader wanting to trade stock will trade at.


Because stock prices are constantly changing it means that stocks traders can take advantage of these stocks price movements to make profits by trading these stocks price movements. The stocks price of any stock trading instrument will keep moving because of demand supply. This is because there are many participants trading stock instrument in the open stock market and therefore this means that the stocks price quotes will get determined by the current market forces. These market forces may be determined by factors such as an increase in demand for stock.


Stock Trading Pips

In stock trading the stocks price moves are measured in points commonly known as Pips in the stocks trading market. The pip is used to calculate the profit or loss that a Stock Trader makes in a particular trade. For example if a stock trader makes a trade which moves 50 pips in his direction, then the profit of the stock trader will be calculated as 50 stock trading pips. Pip in stock trading is represented as the second last decimal point in the Stock Trading Quote and it is made up of pipettes - pipettes are fractions of a Stock Trading Pip.


Stock Trading Lots

In stocks trading - stock is traded in units known as stock lots or stock trading contracts.



Stock Trading Leverage

Because not many stocks traders can afford to trade large units of stock trading contracts, there is stock trading leverage in stock trading which means that stocks traders can borrow money and use the borrowed money to make trades with. For example stock leverage of 100:1 means that a stock trader with capital of $10,000 can borrow up to 100 times using the 100:1 leverage option and therefore after borrowing using this stock trading leverage the stock trader will have a total of $10,000 multiplied by 100, which means the stock trader will have a total of $1,000,000. This stock leverage is what makes Stock accessible to retail stock traders because retail stocks traders can start with little capital of their own and use stock trading leverage to borrow the rest of the money required for trading. The money that the stock trader deposits is referred to as the stock trader’s margin and a stock trader can continue borrowing money using this stock leverage option as long as they have the required stock trading margin in their stocks trading account. This is why stock traders must have the required stock trading account balance in their stocks trading account to open the trades they want to.

 

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