Stock trading with a small deposit

Stock trading on the exchange platform is gradually gaining popularity among traders. This is not surprising, as it offers many more opportunities than simply buying and selling securities.

First of all, it is that to actually buy ations, a fairly decent amount is required, which usually exceeds $10,000.

In online trading, there are also two types of participants: traders and investors. 

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

Long-term investments don't involve leverage, or it's limited to a minimum of 1:1 - 1:5.

Therefore, to achieve significant profits, an investor must have substantial capital. Furthermore, it's important to remember the specifics of stock trading:

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

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

• Deposit size – let’s use Google Inc. shares as an example. Currently, their price is around $1,000, which means that with a leverage of 1:1, you’ll need $10,000 to open a trade.

If you decide to take a risk and use a leverage of 1:5, $2,000 will be enough to open a trade.

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

• Choosing the right stock – surprisingly, not all stocks are as expensive as Google Inc.; if you wish, you can find a decent investment at a price of $20-50 per share.

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

At this price, the situation will change dramatically: with just $1,000 in your account, you can purchase several blocks of shares in large global companies

leverage Now, a 0.1 lot trade in Intel shares will cost you just $350.

Therefore, stock trading shouldn't be viewed as an investment option only available to those with substantial capital.

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