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How To Trade in The Stock Market?

    Shiimaa Mohamed
    By Shiimaa Mohamed

    Categories: Business, Forex


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    How To Trade in The Stock Market?

    The stock market differs from other financial markets where there is no commodity or currency sold or bought. The Stock Exchange contains securities or financial assets whose price and value are determined by the seller and buyer in this market and are traded electronically.

    Another type of trading is the virtual trading, which simulates the real stock market, but with virtual funds and the goal is to gain experience and skills, and you can do what you cannot do in the market realism, the main objective of the stock market, whether real or virtual is to facilitate trade Between buyers and sellers.

    There are two basic forms of stock markets:

    The primary market and the secondary market, the primary market or the "market issue" is a public offering of shares of the company in the sense that the company distributes its shares on the stock exchange for the first time, the secondary market or "trading market" and the sale and purchase of securities between investors without being the exporting company Is a party to the trading, and the price of the asset is determined based on the forces of supply and demand.

    Stock markets

    Over time, many stock markets have sprung up. The New York Stock Exchange is one of the largest and largest international stock exchanges in the United States. It was established in 1792 and includes many major international companies such as Coca-Cola and McDonald's.

    There is a "New York Stock Exchange" trading room. The expert makes buyers and sellers agree and prices are determined through an auction.

    NASDAQ is the largest stock exchange in the United States, such as Oracle, Dell and Microsoft. It was founded in 1990 under the technological advances. The exchange does not contain a trading room or even a central place. It is traded electronically through the computer. Nasdaq is the New York Stock Exchange in its acquisition of major companies, while the US stock market "AMEX" falls under the shares of small companies.

    There are several major international exchanges, the most important of which are the Hong Kong Stock Exchange (SEHK), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE).

    But the New York Stock Exchange is at the forefront of stock markets in terms of volume of funds traded and has greater market value than Nasdaq, London Stock Exchange and Tokyo Stock Exchange.

    How to Trade Stocks?

    Following the recent technological development, the shares are traded through electronic communication networks (ECN), which is known as "electronic trading". These networks enable communication between traders and trading companies directly and without interference to a third party as was the case in the past, Retailers open an account with brokerage firms, so traders can make their trades and earn profits securely through the Internet.

    The US Securities and Exchange Commission (SEC) requests that the accounts be registered with intermediaries, while trading individuals and institutional traders are given prompt execution of their transactions as well as electronic trading.

    Brokerage firms allow all people to trade shares through the Internet, and enable traders to easily access many equity markets and trade on a wide range of bonds and equities through their trading platforms.

    But the trader is subject to a number of basic rules that must be adhered to such as the minimum account, the minimum amount to be traded, fees and currencies, and the inactive accounts will be subject to a fine, so the trader should read the terms and conditions of trading before the introduction.

    For example, from a trading condition, at least 50% of the value of the balance is used to invest in securities. After you purchase your transaction, you must maintain a balance above 25% of the value of the stock.