The exchange has seemed synonymous with “success” for several decades. In the public mind, there is an opinion - to get on the stock or financial market means to achieve success. Unfortunately, this view is incorrect. Let's take a closer look and find answers to the question “What is trading and how to make money on it”. We will pay attention to both the classic “game” on the stock exchange and to online platforms of various sizes.
The modern info-field is abuzz with advertisements for brokerage companies, training courses, etc. Users are regularly offered to subscribe to thematic resources, and the "brokerage kitchen" has long gone beyond professional circles. But it is not so easy to find a detailed answer to the surprisingly frequent question “What is trading, how does it work? And is it really possible to make money on it? ”. But we'll try.
First, we need to define the basic terms. An exchange is a trading platform, its activities are regulated by the laws of the market and the state. It trades literally all goods and sizes. Whether it's securities (stock exchange) or future transactions (futures). Each trading platform has its own conditions for concluding transactions. For example: only brokers can participate in trading on Forex exchanges. They “open the way” for traders to raise their assets and represent their capital. Investors cannot use their funds directly, they can only trust the brokerage companies. But this applies to the so-called "market intermediaries". Let's take a look at who exactly provides the funds and how it all works.
Trading is a kind of “game”. At first glance, you can find in it a lot in common with sports betting or other gambling entertainment. But in reality, trading is, first of all, an element of the business. The value of the company's shares directly affects its level of capitalization. “Why is he?” - an inexperienced reader will ask, and the answer is simple. It is the level of capitalization that determines the value of everything that a corporation has, from the salaries of employees to the value of the company for the state. And also the possibility of further growth. Capitalization is the future of the enterprise, and each of them seeks to increase it. We will come back to it later.
The “game” on the stock exchange is always at the expense of the trader. It is he who is a full-fledged subject of the market. His funds are the blood in the veins of the trade. The trader is not represented in the financial markets. This limitation exists to create safe and independent trading, since the funds of the national bank can be presented on the exchange. In this case, de facto, the state can also bid on the platform. And this creates many paradoxes in the system itself and will allow various government services to interfere with the operation of the platform.
Moving on to the modern realities of doing business on the stock exchange, we recommend that you pay attention to the basic techniques in trading.
At first glance, making deals may seem chaotic, perhaps illogical. Do not be afraid, they are all conditioned by one thing - the search for benefits. True, not everyone understands this correctly, so you can often find newcomers who blindly follow the trend and, out of inexperience, buy assets at their peak. Trading on the stock exchange is, first of all, a complex system. To start the "game" you need to understand - everything that happens on the Fibonacci levels chart is supply and demand. Although it simultaneously displays the value of an asset, first of all it is the most accurate graph of the latest changes.
Those who know how to correctly calculate trends on the chart - usually invest funds on time and also withdraw them on time. But if you dig deeper, you can see an interesting picture. Every rise and fall is the result of broadly two categories of brokers. Namely bulls and bears.
The first use the so-called longs - deals concluded for a long period. They lead to stabilization and an increase in the value of assets (since funds are invested for a long time).
Bears oppose the bulls. They often use "shorts" - short-selling. These transactions are concluded for a short period of time. They are usually limited to hours, rarely when such contracts are signed for several days. Oftentimes, shorts lead to an undervaluation of assets.
The above techniques are relevant not only for bulls and bears. For example, short-selling is especially popular on the forex markets.Since it allows you to quickly buy and sell currencies at a specific rate. It also makes time manipulation deals possible. Due to the division of the Earth into time zones, the following comes out: where it is daytime, on the other hand, it is nighttime, money is needed where banks work at the moment, the broker transfers the amount, and if everything is successful, the funds are returned with interest. But this technique, although popular, is not devoid of an element of risk, because in case of loss, there is a high probability of losing everything.
There are many more complex and efficient methods. We wrote about them in the corresponding article, and if you are looking for an answer to the question “What is a“ fork ”on the stock exchange” or “Why a chart is called Fibonacci levels” - we recommend that you familiarize yourself with it. Back to trading.
Thanks to pop culture, the stock market in the public mind looks like the stock market on Wall Street: a tall building, brokers scurrying everywhere, shouting and trading. This does exist, but it is somewhat rash to assume that all trading floors look like this. With the development of technology, the spread of broadband Internet, millions of people have gained access to web projects all over the planet. Among them are online exchanges. Although they do not offer those opportunities and services - which the same stock market has, they quickly gained popularity and at the moment almost all trading platforms (commodity, futures, securities, currencies, etc.) are presented in digital format. Let's talk about them, as well as about future prospects in more detail.
Over the past 10 years, stock exchange activity has gained amazing popularity. There has never been such a display in pop culture as it is now. Today, hundreds of sites offer to invest money and “gamble” on the purchase / sale of various assets. This activity is not always official, but for the most part - web pages predisposed to trading are licensed and completely legal. But let's take a closer look at the market and give an answer to the questions: “What is Internet trading? Is it really possible to make money online?”
Speaking about trading, it's hard not to mention one important fact. It can be formulated in the question “what is online trading”? And the answer is both simple and complex at the same time. Trading on the Internet is often either Forex exchanges of various sizes, or a “game” for conventional units. Let's consider both options in more detail.
In the CIS countries, back in the early 2000s, the forex exchange gained popularity. Then currency trading seemed to be a uniquely profitable business. True, the "game" was mainly on local stock exchanges and was a standard arbitrage. Depending on fluctuations in the exchange rate, brokers either bought or sold financial assets. But all the popular exchanges grew, acquired contact information with foreign partners. The possibility of short-term transfers quickly appeared, and short-selling became one of the foundations of the “game”.
Along with the Forex exchanges, binary options also appeared. At the moment, this is a system in which the broker has already calculated two possible developments of events. Namely, fluctuations in demand / supply of assets.It remains for the trader to “place a bet”. This scheme is absolutely legal, but relatively small. Binary options are often used by novice traders, since the risks are not so great in comparison with conventional exchanges. But those who are interested in making big money usually use the Internet options of the official, large markets. For example, stock exchanges exist in virtually all countries of the world, each trader (with both funds and legal capabilities) can participate in trading.
In the field of online trading, you can make money not only as a trader. An excellent investment is the organization of your own exchange. Of course, this will require spending time and money to collect the necessary documentation and obtain its licensing. Otherwise, the platform will turn out to be illegal and its owners can be brought to administrative (or criminal) liability.
But when all the necessary procedures are passed and the platform starts working, there is a high probability of getting into an extremely competitive environment. As mentioned above, hundreds of online exchanges operate in the vastness of the network, most of them have already established business contracts, both people with their own capital and banks “play” on them. What do you need to keep “afloat”?
First of all, it is necessary to provide user-friendly tools. If your Internet platform is dedicated to stock or trading activities, then it is advisable to develop a toolkit, a security system, so as to guarantee the convenience of doing business for both traders and brokers. To attract a new audience, it is advisable to conclude agreements with other platforms, thereby organizing an inter-exchange arbitration system.
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Lead generation can be divided into two types:
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