Traditionally, traders had to call the brokerage firm to make a trade on behalf of them. If they wanted to buy 50 shares, they need to call their broker and ask him to buy stocks of a particular company on their behalf. The broker would confirm the market price and place a buy order on behalf of the trader.
The order placed by the broker will receive by a system, which will deliver the order request to a particular stock exchange. If the order gets fulfilled, the investor will receive a trade confirmation via mail.
The development in technology has made trading more convenient; most of the traders are using the online trading platforms offered by their brokers to trade. The online trading platform serves as a place with multiple and useful tools for an investor or trader.
The investor can place a buy or sell order, place a limit order and stop loss according to him; check the status of an order; view real-time stock rates with charts; read the news and daily updates; go through the market outlook and also get some trade suggestions. He can also access his investment and confirmation statements using the online trading platform.
Major CFD categories to trade online
Online trading sites like Capital Street have made online trading so convenient. You can trade shares of blue-chip companies such as Apple, Google, Coca-Cola, Ferrari, Facebook, Disney, and L’Oreal–and these are just a few to name, but there is a whole range of companies from around the world.
Commodities include products such as crude oil, natural gas, wheat, sugar, and cotton and precious metal such as gold, platinum, nickel, and silver. If you trade commodity CFDs, you don’t actually own the physical product. Traders speculate on the price movement.
Currency trading is more popular by the name Forex trading. It stands for foreign exchange. Currencies are traded in pairs, for example, USD/JPY. In this example, the Japanese yen is being traded against the US dollar, i.e. USD is the base currency. On the capital street, over 200 currency pairs are available to trade. These currency pairs have been divided into three categories.
- Major currency pairs for e.g., USD/JPY, EUR/USD, GBP/USD
- Minor currency pairs, e.g.: EUR/GBP, EUR/AUD, GBP/JPY
- Exotic currency pairs, e.g.: USD/TRY, USD/SEK, USD/ZAR
Each index is a collection of financial instruments to measure the performance of the underlying securities market. In the case of a stock index, the index is made up of stock selected based on index criteria.
Trading index CFD can be a little tricky as there are many factors that can influence the price of an index. At Capital Street, we provide educational resources so that you can make a profit.
So now that you know about all trading instruments. You can select an instrument base on your knowledge and start trading online.
Remember each market is different, and it important to have proper knowledge before starting trading. We have a vast range of education resources if in case you want to expand your knowledge.