How to trade Stocks with Capital.com?

How to start trading Stocks with Capital.com?

To start trading Stocks with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.

Then you need to make a deposit to your account before starting trading Stocks.

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What is stock trading and why is it so important to traders?

Stocks are one of the financial products with the largest trading volume at the moment. Buying stocks issued by a company means holding shares in that company. Therefore, before buying stocks, you should have an understanding of the company and its industry.

Like other equity, quarterly reports, industry financial performance, and the relevant stock market situation are important influencing factors in judging the trend of stocks. There are two ways to trade stocks, one is to buy stocks on the stock exchange, and the other is to trade derivatives of the underlying assets.

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What are the stock trading hours?

If you choose to trade stocks on a stock exchange, you need to check the exchange’s trading hours because the trading hours of each exchange are different. For example, Barclays Bank (BARC) is listed on the London Stock Exchange. The opening period of the exchange is from 08:15-16:30 (Greenwich Mean Time) from Monday to Friday, with no lunch break, which is similar to that in Asia. The stock market is different. Generally speaking, most stock exchanges are open from Monday to Friday and closed on weekends; however, the opening hours of the Middle East exchanges are from Sunday to Thursday.

During the market close, you can create orders. However, since the market maker does not participate in the transaction during the closing period, your order needs to wait for a lot of liquidity to execute. The following is the opening schedule of some of the world’s major stock exchanges:

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How to trade stock CFDs?

There are two ways to trade stocks. The first way is to buy stocks on the various exchanges where the company is listed. For example, you can buy shares of Apple Inc. on the Nasdaq Stock Exchange, and buying means that you hold shares in the company. Usually, traders will hold stocks for several months to several years, so this type of trading is considered a long-term investment. Traditional stock trading is very popular, but compared with derivatives, it lacks liquidity and leverage. Since the beginning of online retail trading, more and more investors have chosen stock CFDs.

The second way is a stock contract for difference. You can trade a contract for difference (CFD) on a specific equity, speculating on changes in the price of the underlying asset (here refers to the stock) without actually owning the asset. CFDs are financial derivatives. Brokers usually pay traders the difference in value between the opening and closing positions of securities. Traders can go long (predict the price will rise) or short (predict the price will fall). The opening and closing time of CFD trading is usually from 1 day to 1 week, so it is often regarded as a short-term trading method, but this does not necessarily mean that they can only be short-term transactions. Some traders will hold positions for several months, but this will incur additional costs such as overnight fees (due to borrowing leverage).

The biggest difference between being long CFDs and buying securities directly is whether they support leveraged trading. CFDs are traded on margin, which means that traders can use less initial capital to open positions that are several times the value of the principal.

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Advantages of stock CFD trading

Compared with stock trading, stock CFDs have many advantages and operations are more flexible and changeable.

Leverage

CFDs are traded on margin, which means that traders only need to pay a part of the total transaction amount to open a position, and most of the remaining funds are paid by the broker. In this way, traders have the opportunity to enter more trading markets, gain greater market share, and the trading results are more prominent.

Hedge

CFDs can be used to effectively hedge existing investments. For example, Trader A holds a portfolio of stocks in a certain market and plans to hold it for a long time. However, the stock market is likely to plummet in the short term, which will definitely cause A’s capital to depreciate, so A uses CFDs to short existing assets to hedge potential risks. At that time, the stock market trend is expected, and the loss in the stock portfolio can be offset with the short position profit; if the stock price does not fall but rises, the profit of the stock portfolio can also make up for the short-selling capital loss.

Go short

When buying stocks, traders can only make a profit when the stock price rises; but when using CFDs to trade stocks, its short-selling function makes the falling market and the rising market a good investment opportunity.

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Why choose Capital.com for CFD trading?

Advanced artificial intelligence technology: Facebook-style news information flow provides users with personalized and rich information. When a trader makes a biased trading decision, the smart news stream will display a series of information to help the trader understand the trading blind spots and identify the trading bias. This neural network can optimize your investment strategy by analyzing in-app activities and recommending videos, articles and news.

Margin trading: On the Capital.com trading platform, you can use up to 200 times leverage for margin trading and use CFD to enter more financial markets.

CFD trading: Trading CFDs allows you to easily choose your favorite products without buying the underlying assets, as long as you speculate on the rise and fall of asset prices. In addition to supporting all traditional market strategies, CFDs can also support short markets. While CFD investors use short and long positions to profit from market trends, they can use stop orders and limit orders to set up capital protection for their investments.

Comprehensive transaction analysis: Traders can create personalized market analysis on the Capital.com web trading platform and use technical indicators to judge market trends. Real-time market dynamics, various charts, and multi-channel access platforms: web, iOS and Android.

Security: Capital.com has always been committed to providing security. Register with FCA and CySEC, fulfill all regulations and make user data security the top priority. User funds are stored separately, safe and secure, and the platform supports all-weather cash withdrawal services.

Trade Stocks with Capital.com