Trade stocks from
around the world
The fast-moving stock market is an excellent opportunity to trade. Learn more about stocks and why you should trade them
along with the factors influencing stocks trading. Also, discover the most popular stocks that we offer.
What are stocks?
A stock is defined as a share in the ownership of a particular company. Stock traders normally capitalize on daily fluctuations of the stock prices.
Our traders have the opportunity to trade on more than 20 stocks from some of the world’s biggest companies in the world. Some of the stocks available on our platform are from big multinationals such as Adidas, Barclays, HSBC, BMW and Rolls Royce.
Share prices on the stock market can be set in numerous ways, but the most frequent way is through an auction process where buyers and sellers place bids to buy or sell. When the bid price and the ask price of a particular stock coincide, a trade is made.
Why trade stocks?
Easy to access
With the internet, stock trading has become accessible. This makes it easier for traders to enter the market. All that is required is an internet connection and a computer.
Low investment required
To start trading stocks, you don’t need to have a huge sum of money. Potential payouts for stocks are fixed and known ahead of time. Payout amounts can also be chosen ahead of time.
Stocks and indices are priced differently. The price of an index is the average of the stocks in the index. Which means if a company stock goes up or down, the trader will be at the mercy of just one company share movements.
Availability of information
Since the market features high volatility, keeping in touch with what’s happening in the stock market is therefore important. Thanks to the internet traders can find all the information they would like to stay up to date with the market and place trades accordingly.
What factors influence stock trading?
Generally speaking, the stock market will reflect the economic conditions of an economy. If an economy is growing then output will be increasing and most firms should be experiencing increased profitability. This higher profit makes the company shares more attractive – because they can give bigger dividends to shareholders.
The interest rate that moves markets is the federal funds rate.The federal funds rate is the way the Fed attempts to control inflation. Basically, by increasing the federal funds rate, the Fed attempts to shrink the supply of money available for purchasing or doing things, by making money more expensive to obtain.
Interest rates does not directly affect stocks but it creates what we call the ripple effect. For example, if interest rates rises, it will cost more to borrow money than to save. As a result people prefer to save and as a result trade less./p>
Economic and political shocks
Stock prices can be affected by various economic and political changes around the world. A rise in the price of gold, for example, can lead to lower sales. Low sales further leads to lower profits and prices of stocks decreases. Another example can be an act of terrorism which can also lead to a downturn in economic activity and a fall in stock prices.
Here are some of the world’s most popular stocks available to trade at Trader.Online:
Adidas is the world’s second-largest athletic gear manufacturer. One of the major reason why Adidas is a good stock to trade is because of its growth potential in several areas.
Rolls Royce Holding has always been a stand out performer. In 2017 stocks rose by almost 40%. The future looks bright for Rolls Royce stocks, making it a wonderful opportunity for traders to trade.