Stock Trading
Stock trading is like owning a piece of a company’s future. It is a well-known source of income and an investment channel often used by traders to diversify their portfolio.
Types of Stock
There are two types of stocks. Common stock and preferred stock. The holder of common stocks has voting rights that can be exercised in corporate decisions; the holder of preferred stock doesn't. However, preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.
Why should you trade stocks?
The stock market is a risky environment. However, if handled correctly, trading stocks can yield significant returns.
Stock trading through CFDs
GMOTrading allows you to trade stocks through CFDs. CFD or Contract for Difference is a contract that lets traders speculate on the future movement of stocks, whether they will rise or fall. CFD is an easier way of settlement wherein the gains and losses are paid in cash.
Trading stocks through CFDs allows you to trade on both long and short side of the market without the restrictions that comes with the short sale of stocks. When trading stocks through CFDs, you are able to diversify your trading strategies as well as exploit numerous opportunities all across the global market.