A Little Bit About Affordable Trading
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.
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|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
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.
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.
|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 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.