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 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