Archive for Online Trading

Stocks - Online Stock Purchasing - Get The Facts

The Internet has made it possible for investors to be in a constant contact with the stock market in order to be updated with the volatile ups and downs of the stock industry.
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Online Stock Market Daytrading Services - Online Stock Market Day Trading Services

Stock market, day trading stock, day trading stock broker etc. used to be some complicated terms just a few days ago. Well, lots of people want to get up to date knowledge on day trading system but most of them fail to get the required information due to lack of a credible day trading firm.

Stocks - Examining Online Stock Investing

The stock market can be traced back to the late 1700s, in the infancy of the United States. Beginning in Philadelphia, the first American stock exchanged was founded in order to bolster commerce in this new world. Before long the New York Stock Exchange was born which soon gave rise to the New York Stock and Exchange Board which led the now frenetic pace that exists today on Wall Street.
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What are “Futures Contracts”?

Future contracts, also known as futures, are standardized legally binding agreements between a buyer and seller to receive (known as taking a “long” position) or deliver (known as taking a “short” position) a commodity or financial instrument sometime in the future, at a price that has been agreed upon today. These contracts are identified according to the previously agreed maturity date an example can be, an August 2008 Wheat futures contract or a June 2008 S&P 500 stock index futures contract.

Futures are often traded in open-outcry and auction-style trading pits, at designated stock exchanges. Electronic trading systems like, Chicago Mercantile Exchange’s (Globex System are also used, in certain exchanges. Chicago Mercantile Exchange was the first to introduce futures trading. The exchange clearinghouse guarantees the performance and counterparty risk elimination, by substituting itself as the buyer to the seller and as seller to the buyer. The futures trade customers are required to post margin deposits, not against the market value of the commodity in the futures contract but as a performance bond or “good-faith deposit”, with an exchange member firm which, in turn, must deposit margin with the exchange, which ensures the market participants’ ability to honor their financial commitments and cover any obligations which might arise out of their trading activities.

A “long” position is the one in which we buy, i.e. receive a futures contract, and selling, i.e., delivering a futures contract is referred to as taking a “short” position. A long futures position profits when the futures price goes up, and a short futures position profits when the futures price goes down. Maturing futures contracts expire on specific dates, usually during the contract month. The futures trader may also offset or exit his obligation at any time before the contract matures, by selling what was previously bought, or buying what was previously sold. This way, a trader is relieved of any obligation to make or take delivery of the underlying commodity or financial instrument.

Futures contracts have standardized terms and trade on centralized exchanges. Its participants in futures trading can be divided into two broad categories: Hedgers, who actually deal in the underlying commodity or financial instrument and seek to protect themselves against adverse price fluctuations, and Speculators, who seek to profit from price swings.

The vast majority of futures contracts, in fact, are closed out by offsetting market transactions prior to their maturity, rather than through the delivery process.

Futures trading also carry significant risk, since; the futures contracts generally entail high levels of leverage. Due to this they have been at the heart of many market blowups. The most famous of all may well be Long Term Capital Management (LTCM); despite of having the best financial brains on their payroll, LTCM managed to lose so much money so rapidly that the Federal Reserve Bank of the United States was forced to intervene and arrange a bailout to prevent a meltdown of the entire financial system. Enron, Nick Leeson and Barings Bank have also faced the brunt of “futures” mismanagement.

In the United States, futures transactions are regulated by the Commodity Futures Trading Commission.

Stock - Unit Investment Fund (Uif) And Internet-Trading What Is In Common?

Every second more or less informed person, if doesn’t know thorough mechanism of the investments and the principles of unit investment trusts’ work, but the words ‘UIF’ and ’share’ heard for sure. As for internet-trading - its popularity is not the same. Fund shares are considered as one of the most popular investment instrument.
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Successful Forex System Day Trading: Risky Behavior

The term “day trading” refers to the practice of buying and selling stocks, and other immediately available trading assets, in the same day. Originally, day trading was only possible with brokerage houses that have been able to trade electronically with the NASDAQ since technology was introduced in 1971. However, day trading was brought to the masses with the exponentially exploding popularity of the Internet in the late 1990s when world financial markets enabled online trading.

Day-trading probably experienced its height of popularity during the tech-boom of the late 1990s when stock prices for tech stocks soared, often without any financial foundation. These unfounded high stock prices and bloated market capitalizations were realized after the enormous tech-bubble burst in 2000 and 2001.

For this reason, day-trading is a very risky practice that should be left to professionals. However, there is no licensing required so the practice still enjoys tremendous popularity. Day trading requires special research about the trends of the market during the immediate time period. These traders will search for news releases, hoping to find trends that will come to play that trading day. Often, day traders will join together in groups, sharing tips with each other. To have a chance of becoming a successful day trader, the investor must have the necessary time available to do proper research. Day trading is a full time job.

Another asset commonly focused on by day traders is the marginable stock. Marginable stock is simple stock approved for buying on margin. Buying on margin is purchasing on borrowed money from an established margin account at a brokerage. The SEC established new rules in marginable stock in 2001 by requiring that $25,000 must be maintained in an account solely for the purpose of margins trading. The SEC, in fact, advises strongly against day trading. A notice on their site reads, “Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status.” Obviously, this is a risky investment but day traders seem to thrive on the ultimate investment thrills.

Online Trading - Online Trading: Where Should I Start?

New to the trading scene? Overwhelmed by all the trading jargon out there and don’t know where to start? Don’t worry, you are not alone! Virtually all traders go through this experience! Allow me to share my opinion with you.
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Stocks - 5 Tips On How To Trade Stock Online

Online stock trading has created a boom in the industry of stock market. It has made everyone to enjoy the excitement and thrill of stock trading by using your computer system. It has made possible to continue trading even if you are out of town, therefore, you can have a proper check over the market scenario from any corner of the globe.
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