Most stocks are traded on traditional stock exchanges. In simple terms, these are places, nowadays virtual and physical, where speculators meet to buy and sell stocks. A physical stock exchange is an actual location where transactions or trades are carried out on a trading floor, while a virtual stock exchange is composed of a decentralized network of computers where trades are conducted electronically. Stocks Trading is well known.
What are securities?
Securities are financial instruments that represent ownership positions in publicly-traded companies. A security is an exchangeable, negotiable financial instrument that represents a financial value of sorts and include stocks, bonds and options. Securities are traded on the global financial markets.
Reasons for stock and financial markets
The main reason for the development of the global stock markets is the facilitation of the exchange of securities between buyers and sellers. The price of a security is determined by the age-old supply and demand principle. If a seller has stock or security that a number of buyers perceive has value, then he/she will be able to get a higher price for that stock or security. On the other hand, if the seller is trying to sell stock that no one is interested in, he/she will have to reduce the price until it attracts buyers. Simply stated, and in a nutshell, what distinguishes a stock market from a farmer’s market where buyers and sellers get together to exchange products for financial remuneration, is the presence of ‘services’ in the list of things on offer. Stock markets themselves have become producers of financial services.
Another reason for the issuing of stock options by a publicly-traded company, is to gather investment capital in order for the firm to grow and develop. Investors who purchase a company’s stock receive the right to vote for the board of directors of that company, influence its operations and ensure that dividends are paid out to the stockholders.
Binary options and stock trading
As a binary options trader, one does not buy the asset linked to the trade. Instead, the trader trades on the price movement of the underlying asset within a specified time. Therefore, utilizing binary options trading as a financial instrument is quite different from traditional stock market trading where traders actually buy and sell shares in any publicly-traded company.
In order to trade on the global financial markets via the binary options trading instrument, it’s important to open an account with a registered, reputable brokerage. It is important to do your homework thoroughly before deciding which broker to sign up with.
I have completed just such an exercise and I found that Stern Options is the right partner for me. Not only are they registered with the relevant financial authorities in their country of origin, but they also fulfil the legal requirements of the country I live in.
Secondly (and reader please note), I believe that they are the right trading partner for me because they offer a wide variety of assets for me to trade on. Stern has a hugely comprehensive list of stocks available to trade on on its platform, included among them, Microsoft, IBM, Apple, British Petroleum, Reuters, Tesco, Nike, and HBSC Holdings.
A third reason why I believe that Stern Options is the best online trading broker for you to partner with, is that, not only do they have an extensive free-to-use online education centre, they have employed a retinue of financial analysts with over a century of experience between them. This is all within easy reach for me by phone, chat and by email through Stern’s customer support centre. Stern’s customer support team is also multi-lingual, which is nice to know!
Stern’s education centre comprises a trading academy with an all-inclusive set of instructional videos to help the beginner exploit trading on the price movements of stocks on Stern’s trading platform.
Their trading academy contains videos and manuals on everything you need to know and learn for success on binary options trading. They offer training courses for everyone from introductory videos for the beginner trader to advanced training programmes for the more experienced trader.
Final thoughts on Stocks Trading
Stock markets today are treasure stores for binary options traders and it is always worth bearing in mind that it makes no difference whether the stock price moves ‘up’ or ‘down’, you can always make profits from stock prices on the binary options trading platform.