What is online stock trading?.

Comparing modern trading to how it was conducted thirty years ago, the only thing that remains the same is the essence of executing trades.

The technical side of things has changed beyond recognition – trading has become remote, 24/7, electronic terminals have emerged, and many other innovations have emerged.

As for the practical side of things, there have also been significant changes – the sums required to execute trades have decreased, and leverage has increased significantly.

Now let's talk more specifically about what online trading is.

1. The process:

Buy low and sell high, or sell high and then buy low. The trading process becomes clear with a simple example of an exchange office. Imagine the dollar exchange rate rising every day. Today, it's selling for 30 rubles per dollar, and tomorrow, it's buying for 35. This means you can earn as much as 5 rubles per dollar in a day.

2. Why is Forex more profitable than real currency trading?

Leverage allows you to turn your previous 5 rubles into 500. This is achieved by the broker providing an interest-free loan to its clients. This is expressed as 1:100 or 1:500. In the first case, your amount is increased one hundredfold, and in the second, by as much as 500.

Convenience – you don't need to leave home; everything is done via your computer and the internet. A new trade opens in literally seconds, and you can even set the order conditions in advance.

3. Technical aspect:

To become a trader, all you need is a computer and internet access. A special program is installed on a computer (laptop) to open orders.

4. Organizational details:

Trading is conducted through Forex dealing centers , where accounts are opened and all necessary trading software (a trader's terminal) is downloaded from their websites.

For a beginner, the process may seem a bit complicated at first, but learning the basics of online exchange trading can be done in just a week. Most dealing centers offer online courses for this purpose.