What are the functions of stock trading in the investment?

What is meant by stock trading?

Stocks trading is one of the platforms for buying and selling the shares in a particular company if you are having the own the stock you will own a piece of the company.

What are the key basics for stock trading?

Every investor must know about the stock trading key basics for their success in the marketing. They are given by,

  • Haircut: It is one of the simplest terms in the stock market. This is an extremely thin spread between the bid and asks the price of the given stock. 
  • High: It refers to the market milestone which reaches a greater price point than previously. 
  • Index: It is used as a reference market for the traders.
  • Initial public offering (IPO): It is the first sale of the stock by the company to the public. The securities exchange commission (SEC) has a strict rule for companies.
  • Leverage: It is used to increasing your profit.
  • Low: It is opposite to the high. It will represent the lower price point of the stock and index
  • Margin: The margin account is they borrow money from the broker to purchase an investment. 
  • Moving average: The stock average price per share during the specific time period is known as the moving average. 
  • Open: It is the time for the opening of the market to buy or sell the stocks.
  • Order: An investors are interested to buy or sell a certain amount of stock which is known as an order.
  • Pink sheets stock: The term pink sheet is referred to as penny stocks. You can stay away from the pink sheets stock.
  • Portfolio: It is the collection of investment which is owned by the investors.
  • Quote: It tells about the stock’s latest trading price and information. 
  • Rally: It is the rapid increase in the general price level in the market is known as the rally.
  • Sector: It is the group of stocks in the same industry that belong to the same sector.
  • Spread: It is the difference between the bid and asks the price of the stock
  • Stock symbol: It represents the publicity traded company 
  • Volatility, volume, share market, and yield.

What are the advantages of stock trading?

The advantages of stock trading are given by,

  • Higher liquidity
  • Versatility
  • Higher returns in the shorter period of time
  • Acquire the ownership and right to vote
  • Regulatory environment and framework
  • Convenience

You can check more from https://www.webull.com/quote/etflist before stock trading.

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