The world Equities market combines all traded stocks and shares of different companies across the globe. Assets traded in equity markets are bought and sold either on stock exchanges or over the counter. It is one of the largest and most important markets in modern capitalism.
Synonymous with the stock market, global equity markets help companies raise funds for their business’ development and help investors benefit from the success of the company in which they have invested.
More in equity markets
At first, companies will register as private companies, but when they want to raise more capital, they will carry out a procedure called IPO (initial public offering). This complex and expensive procedure ultimately allows the company to become a public company whose shares are indexed and traded on global stock exchanges. Also at this time some common stocks have private status and belong to the company’s co-founders, employees and private investors who buy them over the counter.
By selling part of the company to investors in the form of shares, the organization receives the necessary capital for its business needs: expanding its market, increasing its production capacity and more.
An additional source of funding is the issue of bonds, which the company borrows from investors at a certain interest rate. Debt markets are often referred to when we talk about bonds, but in reality, they solve the same problem as stock issues: attracting liquidity.
Trade on World Equities
The basis of trading in the stock market is that a trade is made when a seller and a buyer match an order to trade at the same price and with the right volume. This means that for equity markets, liquidity – the ability to buy or sell shares at a profitable price – is a very important component. If the trading volume is missing, there will be slippage and the final price of the trade will be different. This usually happens when trading unpopular stocks.
There are three ways to trade stocks on Olymp Trade: Forex, FTT and Stocks.
In Forex, you trade CFDs on a stock, which allows you to open both Up and Down, and position size can be increased using a multiplier. Forex is suitable for traders who want to profit from downtrend trading and trading in the short and medium term.
In FTT, you can also open Up and Down trades after predicting where the stock price will be in the future. This mode is perfect for those who like day trading.
In Stocks, traders can buy a stock at the current price and then sell it later. It’s great for those who want to profit from the long-term growth of a stock. The ability to buy a fraction of a stock makes early investments more affordable and accessible than ever before.
Trade by your
Now that you know the equity market and stock market are the same, you can move onto other basic trading terminology and start deciding which trading style suits you best. And whether you decide to trade in Forex mode or Stocks mode, you’ll leave classic slippage problems behind, as trades are opened at the quote you choose and in the volume you want.
Traders who are just starting out might feel a little overwhelmed at first from the influx of data, price movements, price charts and oscillators. That’s why Olymp Trade Blog provides free educational resources to help ease you into the vibrant world of trading. Realize new investment opportunities and trade on the world equities market with Olymp Trade!