About Stocks Trading
Stocks is a term that is commonly used by stocks investors and traders to describe trading activity in the stocks market that is carried out by traders, investors and speculators.
In stock trading a stocks trader can buy or sell a stocks. A trader will buy a stocks instrument if they think the value of the stocks trading instrument is likely to appreciate in the future. A Stocks Trader will sell a stocks instrument if they think the value of the stocks trading instrument is likely to depreciate in the future.
The Stock Market is an over the counter market which means trading is carried out through a network of the big international banks; this stocks network is commonly referred to as the interbank network. This interbank stocks network consists of banks and stocks brokers which are in different locations. These interbank network is responsible for providing the stocks prices at any particular time to the stocks traders and other stocks market participants who want to buy or sell stocks. In stock trading the stocks price is constantly changing and this stocks price is denoted by what is known as a Stocks Quote. In Stocks the Stocks Price is displayed as a Stocks Trading Quote. This stocks quote is constantly changing and the interbank network will update automatically the current stocks quote and traders can then trade the stocks trading instrument at the current stocks price.
Stocks Quotes
stock trading prices of stocks instruments is displayed using Stocks Quotes. This is the stocks price at which any stocks trader wanting to trade this stocks instrument will trade at.
Because stocks instrument stocks prices are constantly changing it means that stock traders can take advantage of these stocks price movements to make profits by trading these stocks price movements. The stocks price of any stocks instrument will keep moving because of demand supply. This is because there are many participants stocks trading instrument in the open stocks market and therefore this means that the stocks price quotes will get determined by the current market forces. These market forces may be determined by factors such as an increase in demand for stocks.
Stocks Pips
In stock trading the stocks price moves are measured in points commonly known as Pips in the stock market. The pip is used to calculate the profit or loss that a Stocks Trader makes in a particular trade. For example if a stocks trader makes a trade which moves 50 pips in his direction, then the profit of the stocks trader will be calculated as 50 stocks pips. Pip in stocks is represented as the second last decimal point in the Stocks Quote and it is made up of pipettes - pipettes are fractions of a Stocks Pip.
Stocks Lots
In stock trading - stocks trading instruments are traded in units known as stocks lots or stocks contracts.
Stock Leverage
Because not many traders can afford to trade large units of stocks contracts, there is stocks leverage in stocks which means that stock traders can borrow money and use the borrowed money to make trades with. For example stocks leverage of 100:1 means that a stocks trader with capital of $10,000 can borrow up to 100 times using the 100:1 leverage option and therefore after borrowing using this stocks leverage the stocks trader will have a total of $10,000 multiplied by 100, which means the stocks trader will have a total of $1,000,000. This stocks leverage is what makes Stocks Trading accessible to retail stocks traders because retail traders can start with little capital of their own and use stocks leverage to borrow the rest of the money required for trading. The money that the stocks trader deposits is referred to as the stocks trader’s margin and a stocks trader can continue borrowing money using this stocks leverage option as long as they have the required stocks margin in their stocks account. This is why stocks traders must have the required stocks account balance in their stocks account to open the trades they want to.
