What is Stock Trading?

Over the last few decades, stocks trading, which is one of the most widely known forms of trading, has gained an unparalleled amount of interest. Those, who are new to the concept of investing often want to start on their road to financial freedom by investing mainly in stocks since a stock is considered to be one of the greatest financial instruments ever invented for making money. However, besides being perfect financial tools for creating massive amounts of wealth, stocks are also very risky and for being able to resist the market changes and overcome the possible obstacles, each novice stock market trader needs to have sufficient knowledge and understanding of how the stock exchange market works.

Stock Exchange trade: how it works?

A stock is simply defined as a small piece of a company that every individual can buy. When you purchase the stocks of a company, you purchase the small piece of it, thus becoming a co-owner of a company and having a right to part of its profits. When a company decides to sell its shares to the general public, it means that a company makes an IPO. So, what is an IPO?

An Initial Public Offering or IPO is the process when a company sells its stocks to the public for the first time in order to raise money, expand and develop. In other words, by doing an IPO, companies go from the status of private to the statues of public, thus giving individuals the opportunity to purchase and trade stocks of various companies and generate profit on the fluctuations of stock trading prices.

As it is known, stocks are traded on stock exchanges, which are places where the general public can buy and sell stocks of publicly listed companies. There are various stock exchange markets existing in the world and some of them have physical locations, where trading is conducted on a trading floor, while others are virtual, where trading transactions are made electronically. In fact, the existence of a stock exchange market has made the exchange of securities of various companies between buyers and sellers easier and what the most important is it has reduced the risks of investing.

The two biggest and most popular stock exchange markets in the United States and perhaps in the world are the New York Stock Exchange (NYSE) which was founded in 1792 and is also known as “Big Board”, and the NASDAQ, a global electronic marketplace, which was founded in 1971.

Stocks trading with IFC Markets

IFC Markets, a leading FX and CFD broker in the international financial markets, provides its customers with a wide range of trading instruments: currency pairs, precious metals, CFDs on stocks, indices and commodities, Gold instruments and a unique opportunity of creating your own trading instruments (PCI - Personal Composite Instruments). By choosing IFC Markets, traders and investors will get access to the world’s most popular stock exchanges such as the New York Stock Exchange, London Stock Exchange, NASDAQ, Australian Stock Exchange, Hong Kong Stock Exchange, Tokyo Stock Exchange and Xetra Deutsche Boerse. Alongside with the above mentioned advantages, IFC Markets offers its own stocks trading platform NetTradeX, which stands out among other trading platforms due to a number of distinguishing features: trading in all major financial markets, real - time transactions, the opportunity of opening positions of any volume, NTL+ language for automated trading, instant execution, the opportunity of creating and trading your own trading instruments through an innovative GeWorko Method, multiple stock trading charts with individual settings and templates and many more. IFC Markets always does its best to meet all traders’ expectations and needs.