Exchange trading of shares with a small deposit

Gradually, exchange trading of shares in the trading platform is increasingly gaining popularity among traders. And this is not surprising, because there are many more opportunities here than with simply buying and selling securities.

The first is that to actually purchase shares, you need a fairly decent amount of money, which usually exceeds $10,000.

At the same time, there are also two types of participants in online trading – traders and investors. 

The former use high leverage and make money on short-term transactions, while the latter invest for the long term with the least risk.

Long-term investments do not involve the use of leverage or its size is reduced to a minimum of 1:1 - 1:5.

For this reason, to make a significant profit, an investor must have significant capital. In addition, we should not forget about the very specifics of stock exchange trading:

•    Volumes – the minimum volume that you can purchase on the stock exchange is 0.1 lot, which is actually 10 shares of an enterprise or company.

And not all stock market brokers allow you to use 0.1 lot, often the minimum transaction size is 1 lot (100 shares).

• Deposit size – let’s look at the example of Google Inc. shares.

At the moment, their price is about $1,000, that is, with a leverage of 1:1, in order to open a deal you will need $10,000. If you still take the risk and take a leverage of 1:5, $2,000 will be enough to open a trade.

This amount is still quite significant for a novice trader, because to diversify investments, you should purchase shares of more than one company.

• Choosing the right stock – surprisingly, not all stocks are as expensive as Google Inc. If you want, you can choose a decent investment at a price of 20-50 dollars per share.

For example, Bank of America shares are now worth $24, Coca-Cola – $45, Intel – $35, Pfizer – $34.

At this price, the situation will change dramatically; with only $1,000 in your account, you will be able to purchase several blocks of shares of large global companies

leverage Now a transaction with Intel shares with a volume of 0.1 lot will cost you only $350.

Therefore, you should not perceive stock trading as an investment option available only if you have significant capital.

You will learn how to open a demo or real account for trading securities from this article - https://time-forex.com/vopros/otkryt-demo-fondovy