If you think of online trading, the first thing that comes to mind is probably shares or stocks – the parts of a publicly traded company you can both invest in and claim a right to either the profits or voting.
Before purchasing stocks, interested investors look to the price of a stock and this depends on market activity. Whether the price of a stock goes up or down is determined by a multitude of factors: the media, opinions of top traders, supply and demand, the economic situation of a country and many other factors.
While it often takes a bit of time and practice to develop a solid trading strategy, the only things you need to do to start trading are: choose a company you want to invest in, buy the amount of shares you want and then wait until the stocks appreciate.
Stock trading explained
There are two main types of shares: common and preferred. Common shares usually entitle you to vote at the shareholders’ meetings - often with one vote per share - and to receive part of the company’s profits known as dividends. However, the payout of dividends depends on the capital growth of the company. Some companies choose not to pay dividends to common shareholders at all.
Preferred shares receive a fixed dividend and in the event of bankruptcy are paid off before common shares.
The prices of shares are set in an auction where buyers and sellers place their bids and offers to buy and sell.
How to trade
To start trading simply create an account with Double.Trade, deposit funds to the account, sign-in to the app and go for it. Next, obtain a stock quote, which will tell you the current bid and offer, the last price and the number of shares traded. If you want to buy shares, you make a bid to sell- an offer. Then when both the bid and offer prices match a trade happens.
Why trade Stocks?
Double.Trade makes sure you trade under the most advantageous conditions
When you buy shares you become licensed to receiving dividends – a share in the publicly owned company’s profits. The more shares you own the larger the amount of profit you get.
If you, as an investor, held on to the shares of a company for more than six months, all the profits you made on changes in the stock value are tax-free.
Free of Charge
Trading stocks with Double.Trade is free of additional charges. The broker’s profit is determined by a spread – the difference between the buy and sell price of the asset. It usually ranges from 0% to 0.0012% of the transacted volume.
Personal trading assistant
Highly qualified Double.Trade’s trading assistants are there to answer your questions 24/5. Moreover, you can speak to an assistant in your preferred language.