Welcome to SharpDeal’s Education Center. Whether you are just beginning to trade or you are a seasoned investor looking for new trading strategies, this Centre provides a wealth of information on the most relevant topics.
Company shares are probably the most well known
financial instruments in the world. When you buy a
stock, you are purchasing a given number of a company’s
shares that represent ownership of a corporation. Every
incorporated company has stock, but only those that are traded
on a public exchange are of interest to investors.
Stock market exchanges are found all over the world, from New York to Copenhagen and Hong Kong.
Our expertise lies mainly on US equity markets.
Typically, a North American exchange will trade US companies and an Indian exchange will trade Indian companies, but larger companies are often traded on more than one exchange. The trading takes place on the exchange itself where prices fluctuate according to the laws of supply and demand.
SharpDeal provided online trading platforms allow you to obtain
stock quotes from a range of North American exchanges like NYSE,
NASDAQ, AMEX which are real time.
For example, if Apple (AAPL) is quoted at $116.00 on NASDAQ, you can just type in the symbol for Apple shares and view streamed quotes that are updated regularly in level 2 window. If the quoted price is bid 115.87 and ask 116.12, for example, you can see that the current price for the stock will mostly be between those two prices.
Since the process of buying stock through our online
platforms is fully automated, trading is carried out
almost immediately for stock.
Placing an order to buy a stock is as simple as typing in the symbol in the online trading window, entering the number of shares and then selecting Buy or Sell and then clicking on “Buy / Sell”. In a few seconds, the order will have been executed. Because stock trading has to go through an exchange, you will not necessarily get the stock for the most recent price you have seen for the stock, because the market can move for or against you, even in the seconds it takes to fill an order. But if you place a market order, you will get the stock.
Instead of trading the current market price, you can place a limit order.
If you use a buy limit order, you are saying that you don’t want to buy the stock until its price has fallen to a specific level. Let’s say that you are interested in buying Google stock, which is currently trading at 808.00. But, you think the price will go somewhat lower and therefore you don’t want to buy at the current level, but at 802.00. Instead of having to watch the screen and wait for the market price to descend to 802.00 (if it ever does), you can place a limit order to buy at 802.00 that will automatically execute when the market reaches that price.
Note that the trade is only triggered when the market reaches that price, it does not guarantee that your trade will be executed at precisely 802.00. Especially in fast moving markets, the actual price at the time of execution may be slightly or significantly lower than specified in your limit order, depending on the speed of the market’s movements.
The risk of owning company stock consists of:
The business risk is the risk related to the prospects for the
type of business the company is involved in, and the financial
risk depends on its financial structure; i.e. a lot of debt, for
example, increases the risks. By creating portfolios consisting of
several stocks from different industries it is possible to reduce your
overall risk significantly. For intraday trading we do not need to take
care of this in greater detail.
In order to trade stocks you need sufficient information about the market, the news, market trends and access to quotes on all stocks.
To know more on US equities or shares, you can avail our training course. Contact us for the same.
Trading foreign exchange and futures on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange- and futures trading, and seek advice from an independent financial advisor if you have any doubts.
Any SharpDeal advice is general advice only.