Home Business, Personal Finances, Money and Investing Tips

Home Business Small Business Art of Marketing Negotiating Skills Selling Tips Office Furniture Employment Credit Cards Forex Trading Personal Finances Money
 

A Little Bit About Affordable Trading Options

Make big moves without spending thousands of dollars

There are quite a few different financial markets where an individual can trade – from the traditional stock market to securities market, from derivative market to forex market. Depending on how much money you can invest, as well as some other factors, you will choose different types of markets to play. For those people who are not exactly swimming in money, there are a few markets where they can still make big moves without spending thousands upon thousands of dollars.

Choose affordable trading options
If you are not a large investor with thousands to spend, there are other, more affordable trading options available on the stock market to play with.

Penny Stocks

As their name suggests, penny stocks are stocks that can be bought at lower prices, with most experts agreeing that all stocks whose price is under $5 are to be considered penny stocks. They are also only traded on certain exchanges, such as Pink Sheets and OTCB. Due to their low prices, even a modest trader can purchase enough penny stocks to make a killing on the market.

Unfortunately, penny stocks do come with certain risk. For example, they are not as liquid as more traditional stocks, meaning that traders sometimes have troubles buying or selling penny stocks. In addition to this, the penny stock market tends to be quite volatile, meaning that it is often to incur significant losses before one is able to act on the latest market movements.

That being said, penny stocks are definitely an attractive concept and potentially a very lucrative market for smart and patient traders, especially if they have brokers they can trust.

Binary Options

The binary option market is arguably the easiest market to invest in and it requires no formal education. Of course, this does not mean you should just start throwing money at binary option trading platforms, wasting your money in the process.

With binary options, you are effectively purchasing call options which mature after a very brief period of time and which can have only one of two possible outcomes – in the money or out of money. More precisely, when purchasing a binary option, you are deciding whether a certain commodity will be worth more or less than the price that was established at the time of purchasing the option.

For example, you purchase a call option that the value of a company's stock will be worth over $50 at its maturity date. If it ends up being worth over $50, you are in the money and you earn a fixed amount of money, usually many times the invested sum. At no time do you own any stocks and you are essentially predicting value of certain commodities after a certain amount of time has passed.

One of the most important things to keep in mind when trading in binary options is to find a reputable, regulated trading platform, like for instance 24Option, the largest platform of its kind.

Checking stock market via iPad
Modern technology devices make it easy to keep a tab on your stock trading indices
and the state of your investment portfolio. (Image by Pixabay.com)

Forex

Forex is short for foreign exchange market which was in the past unavailable to individual traders. After some regulation changes and the emergence of the internet as a venue for trading, the forex market because available for individual traders who still have to go through brokers, but who can finally trade currency pairs.

Namely, in the forex market, you purchase a certain currency, betting that its value will grow in relation to the currency you paid in. If you are able to predict movements of different currencies and especially currency pairs against each other, you can make significant profits.

Once again, it is a market where large profits can be made very quickly, but where one can also lose large sums of money if they are not careful. One of its advantages is that this market cannot be manipulated even by large national banks and that it is open 24 hours a day, unlike other financial markets.

So, there you have them – the three most popular affordable trading options for novice traders with limited budgets. Be careful, learn as much as you can about trading in these markets and good luck.

   Forex Trading Tips and Advice
Affordable Trading Options
Affordable Trading Options
Beginner Forex Traders
Beginner Forex Traders
Best Days for Forex
Best Days for Forex Market
Binary Options Strategies
Binary Options Strategies
Donchian Channel Indicator
Donchian Channel Indicator
Forex is Not Gambling
Forex Is Not Gambling
Forex Market Explained
Forex Market Explained
Forex Tips for Newbies
Forex Tips for Newbies
Forex Trading as Business - Part 1
Forex Trading as Business - Part 1
Forex Trading as Business - Part 2
Forex Trading as Business - Part 2
Forex Trading Beginners
Forex Trading Beginners
Elliott Wave Principle
The Elliott Wave Principle
Fundamental Analysis
Fundamental Analysis
Head and Shoulders Pattern
Head and Shoulders Pattern
India Based Trading
India Based Trading
Main Approaches to Forex
Main Approaches to Forex
Moving Averages Trading
Moving Averages Trading
Picking a Forex Robot
Picking a Forex Robot
Safe Forex Trading
Safe Forex Trading
Scalping vs Position Trading
Scalping vs Position Trading
Trade GBP USD Pair
Trade GBP/USD Currency Pair
Trading Outside Comfort Zone
Trading Outside Your Comfort Zone
Understanding Correlations
Understanding Correlations
Using Forex Calendar
Using Forex Calendar
Zero Bound Interest Rate
Zero Bound Interest Rate