IQ Option is a comprehensive trading platform that provides its users with a wealth of alternatives, and after starting out as a binary options broker, IQ Option now allows customers to trade Contracts for Difference (CFDs) on stocks, Cryptocurrencies, Exchange Traded Funds (ETFs), Forex, and a range of various digital options.
With the emergence of online brokers, you can now buy a stock as you shop online. Some of the best online brokers to buy stock are listed here.
Trading Glossary: 5 Terms Every Trader Should Know
Here is a list of five trading terms you should know before immersing yourself into the world of trading. Do you know what they mean?
Reversal
Reversal (also known as trend reversal) is a point on the price chart that marks the end of one trend and the beginning of another. Reversal points are of great value to any trader and traders are looking for them when exploring trading opportunities. According to some, the beginning of a new trend could be considered a possibility. However, in order to trade them correctly, traders should know the difference between a new trend and a retracement, which is a short-term deviation from the general trend.
Volatility
Volatility is a measure of the intensity of the price change. When the asset price changes rapidly and to a great extent, volatility is said to be high. When the market is flat and no substantial price movement is observed, volatility is said to below. But isn’t the trend direction more important than volatility? There are several reasons to keep an eye on this metric. 1) Volatile markets, as well as periods of high volatility on otherwise calm markets, offer numerous trading opportunities — and traders don’t usually open deals when the market is flat. 2) Traders open or close positions based on the volatility of the assets they are trading with. When volatility is low, lots of traders prefer not to open new deals.
Trading strategy
A trading strategy is something most traders claim they use, yet not all of them truly understand what it is. Put simply, a trading strategy is a set of entry and exit conditions used by a trader to eliminate randomness and emotional aspects in their trades. Market conditions, asset-specific conditions, price patterns, technical analysis readings and external events all can become a part of a trading strategy. A trading strategy is something a trader should develop on his own and constantly improve.
Risk management
Risk management is a set of measures aimed at risk and loss management. All traders lose. How much and how often they lose, however, will depend on the risk management strategy they utilize. Conservative traders allocate no more than 2% of their entire trading capital to a single position. Risk-takers may go for 5% instead. But under no circumstances should a trader allocate his entire capital to a single deal. Remember that when there is no capital left, there is no more trading.
Multiplier
A multiplier (also known as leverage) is a tool that a trader can use to increase the potential upside of his trades at the expense of additional risks. It is widely used in the Forex market due to relatively low price dynamics. A multiplier is one of those tools you can call a double-edged sword, as it can deplete your account in no time if the market goes against you but also bring payouts if you predict the direction of the trend correctly. Note that it is only available for certain asset types.
You are required to open a trading account with a brokerage firm which has its presence in India and USA. Your broker will help you in all completing all the formalities and you will be required to fill a Kyc form applicable in USA.
You can also trade in US markets from India by opening your trading account with a broker in US. You will have to get approval from RBI to open your direct trading account in US. While the whole process may take some time but it is worthwhile.
Transfer of funds
You will be required to fill a declaration form along with A2 form, Sign Foreign exchange management act form, etc. and then you would be able to transfer the funds.
You are good to go and now you can buy the shares of any company you want.
Some Indian brokerage firms that allow you to invest in Foreign markets are: ICICI Direct, Kotak Securities, India Infoline, Reliance Money, Religare, etc.
INDmoney brings you access to US stocks at your fingertips with ZERO commission charges. That means you do not pay a single penny while opening an account, buying or selling within the app, or any other miscellaneous charges.
Moreover, you can begin trading with as little as $1.
It also gives you access to fractional trading. To simplify this, we can purchase fractions or parts of one whole share. On the app, we can even purchase as little as 0.00000001 of a share, i.e. up to the eighth decimal!
Let us understand why should we invest in US stocks.
4X more returns than Indian markets: US stocks pay 4 times larger dividends than their Indian counterparts. Some of the reasons are due to the presence of high-growth innovative companies like Tesla, Google, Amazon, Facebook, Apple, Netflix, etc, and gains that are made from $ (US dollar) appreciation.
Start your journey with US stocks or diversify your existing portfolio with INDmoney today!
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