Tag Archives: broker

Trading Strategies

Trading is a system of buying and selling with a lot of risk, only suitable for the most qualified. It is not properly an investment, but rather speculation. Apparently it is very attractive and gives the option to earn large sums of money in the very short term, but also to lose it. The amount of commissions to be paid, added to the high probability of performing erroneous transactions mean that only 10% of traders earn money and few of them do so during the first months. However, when the rules of the game are well known, the performance of trading operations is usually very high, with benefits of dizzying figures.

It should be noted that to be a successful trader it is not necessary to know the market thoroughly and the rules of the game specific to trading. A curve, a simple drop or momentary rise is more than enough to generate profits, even ignoring the direction in which markets move. For this there are a number of strategies with which the risk of launching this adventure is relatively small. Combining a good trading psychology, an adequate risk management and a good strategy, success is assured.

Are some IPOs designed to cheat?

That seems to be the conclusion of some investors who chose to sue Facebook and several operating banks that led the company’s IPO in recent days.

It accuses Facebook and the big operators of having hidden information that finally led to the IPO was a big failure that led thousands of investors to lose a lot of money in a short time.

In addition, it is speculated that the exit value of the shares of Facebook (38 dollars) was overvalued, fictitious, which led to that value was quickly placed below 30 dollars infringing huge losses to those who bought large amounts of shares on day when Facebook debuted on Nasdaq.

And is that the only ones who lost money were the unsuspecting investors who believed to make their August, because Facebook won a lot of money at the exit, money that is still in your bank accounts.

Advantages of placing shares on the stock Market

Companies can access the capital market when they are institutionalized and have good corporate governance, whether medium or large. The transcendence of the placement of shares shows the potential of a market for medium-sized companies, for example, to finance their growth.

Some of the advantages of entering the stock market are:

– The company may access financing at lower rates compared to the banking sector.

– It is a way of financing productive projects without increasing indebtedness.

– The image of the company is improved before the investors, because once they issue shares they will have to present periodic information to the market.

– It improves the image before the market because they have to adapt to the principles of good corporate governance (if they were SMEs).

What is a stockbroker and what is its function?

You have probably wondered many times what exactly a stockbroker is, what exactly he is engaged in and what qualities he must fulfill. Well, let’s try to explain how you can recognize a good stock broker. To begin, we will say that a stockbroker is a person who has extensive knowledge in finance and who plays a very important role in the stock market.

Its main mission is to advise other people with less experience than them about any operation to be carried out in the different financial markets. Actually, we can say that the stockbroker. It is a mere intermediary, a person who is between the broker and the investing person who is interested in buying and / or selling. Therefore, the stockbroker is the person who, through his advice on finances, tries to offer the best returns to his clients.

What are brokers and brokers and brokers doing and what do they do?

The brokers are entities in charge of acting as intermediaries between buyers and sellers through a commission, which can be fixed or variable through differentials. It is necessary that they have a license to be able to carry out financial brokerage operations.

In the world of finance, the terms “broker” and “agent or broker” are constantly confused.

In principle, “brokers” are people who operate under the orders of the clients of the company that hires them. The broker, on the other hand, performs functions of financial advice to their clients, in addition to being able to work on their own. The terms are confused because many “brokers” also exercise an advisory function, which are agents’ own tasks.

Types of Binary Options

1- According to the moment when the liquidation can be carried out
a- European or Expiration
This type of option exists when the predetermined condition is fulfilled or not, only when the chosen term expires and not at any time prior to it.
Example: You buy an option based on the fact that Apple’s stock will rise at the close of the day. If at the end of the day that condition is met you will be creditor to the total of the predetermined sum. Otherwise, your option will be zero.
b- American or Liquidation prior to expiration
This type of binary option is the one that allows its settlement at any time before the expiration term, once the predetermined condition has been fulfilled.
Example: You buy an option based on the criteria that Apple will drop 10 points before 16:00 CET.