The Ins and Outs of Stock Trading

Nowadays, investors are given lots of opportunities to choose from. There is forex, futures, blue chips, stocks etc. Picking a single choice from these options is not that easy, all of them have their advantages and pitfalls. However, stock trading is one of the popular options among them. I have a stock trading account with Mega Trader FX, one of the best trading brokers out there.

While stock market is a limited time market, it is possible to trade some pre-market and after-market trading too. The market remains most liquid during the regular trading hours. Off-hour business tends to be slow and time-consuming. The orders of selling or buying stocks are fulfilled by exchanges. Some of the most common exchanges are NYSE, NASDAQ, AMEX, OTCBB etc. Mega Trader FX allow trading on all of them along with lots of other exchanges.

Like forex trading, news trading plays a big part in stock trading too. Nevertheless, the big players get the most movements in news trading in the stock market, while the general investors have to act quickly according to the market trend. Major investment corporations and banks employ professional analysts who gather the most current information about various companies, which provides them with a big advantage against the ignorant ordinary investors.

Investors can use leverage in stock trading, but the interest rate tends to be a bit high. If your stocks come to a certain limit and you will get a margin call. Generally, most brokers fix the margin rate at 50 percent of the available capital.