How To Trade Securities

Table of contents:

How To Trade Securities
How To Trade Securities

Video: How To Trade Securities

Video: How To Trade Securities
Video: HOW TO TRADE FOR BEGINNERS | STOCK MARKET 101 2024, December
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A security means a document that certifies borrowed, property or other obligations and rights, the implementation of which is possible only upon presentation of this document. Securities have their value expressed in cash. Classic securities include bills of exchange, stocks and bonds. In addition, there are securities such as options, strips, depositary receipts and many others.

How to trade securities
How to trade securities

Instructions

Step 1

Any security can be bought or sold. Together with the sale, all obligations and rights are transferred to the new owner. The same result is obtained by will, donation and act of exchange. Partial transfer of the rights indicated in the security is not possible. Securities can be invested in an enterprise, but then the investor loses his obligations and rights.

Step 2

Today there are a lot of people who want to buy and sell securities, this is not surprising, since the assortment on the exchanges is quite wide. To trade securities, you can contact an investment company, but the amount of funds invested is regulated by the procedures of this company. No one will open a trading account for a small investor. For its services, an investment company can set a commission in the amount of 0.01 to 1% for each transaction, the total amount depends on the complexity of the operation and the amount of funds spent.

Step 3

In addition, the investor has to pay a percentage of the exchange itself, and sometimes make other payments, for example, pay a commission for the purchase of even one share. Each stock exchange has a different commission.

Step 4

You can also trade securities with the help of a broker, who will help you draw up documents for opening an account, send them to their destination, if the client wants to trade foreign securities. And only after that it will be possible to start trading.

Step 5

You can pay taxes from trading in securities on your own, but if an account is opened in a foreign bank, then this is not related to the depository system of our country, therefore, it is problematic to legalize such income afterwards. You will have to use offshore zones or spend funds in the country where the account is opened.

Step 6

The simplest method of trading securities is long-term investing, which implies buying based on fundamentals or long-term growth expectations. This method is used by most investment funds that form long-term portfolios taking into account growth prospects.

Step 7

You can also trade on the basis of technical or fundamental analysis, but these methods cannot be applied without specialized knowledge. Technical analysis consists of many approaches: from neural networks to mechanical trading systems. The methods of trading on corrections are also considered popular, that is, for a certain percentage, you can get reliable information. Each investor chooses his own trading method, which is the most acceptable for him.

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