How to Trade Shares
Also known as stocks, shares give you partial ownership of well-established and financially sound companies. They are popular due to the amount of information available from both the companies themselves and news outlets, allowing traders to find opportunities and avoid risk.
You can trade shares as a CFD on easyMarkets intuitive proprietary and non-proprietary trading platforms and easyMarkets app.
This type of derivative product lets you take advantage of tools and trading conditions such as free guaranteed stop loss and take profit on easyMarkets platform and app, leverage , and negative balance protection when trading. We are also one of the few brokers to offer CFD shares trading without any slippage, on our proprietary platform and app.
What are CFD Shares?
CFD is an abbreviation for Contract for Difference. This specific type of financial vehicle allows you to trade the price of a share without the obligation of owning it. The main advantage of trading CFDs (no matter what the nature of the underlying asset) is that you can potentially benefit from both the upwards and downwards movement of the share’s price. If you owned the share, you would only benefit from an increase in price. Here are a few things you should consider before trading CFD shares.
CFD Trading vs. Shares
CFD shares, allow you to speculate on market’s price and buy and/or sell the underlying share of the company of your choice, without having to hold the physical product. The value of shares rise and fall in connection to the company’s value, which provides a basis for speculation in stock market. The traditional way of investing in the stock markets, non-CFDs, involve purchasing the shares of the company on a stock exchange and owning the underlying asset.
When trading CFDs there are also multiple powerful trading conditions available to you, which aren’t available when you are trading shares on the stock market. These trading conditions can protect you against temporary volatility and run-away losses. For example, stop-loss, closes your trade at a pre-defined rate to protect your account. Take-profit does the same but instead closes the trade positively, to avoid a sudden reversal in the price. Please note that the stop-loss and take profit limits are only guaranteed on easyMarkets trading platforms and app.
The easyMarkets online trading platform also features no slippage. Slippage is a disparity between the requested and executed price. easyMarkets is one of the only brokers to guarantee no slippage on shares, giving you price transparency at all times, on the proprietary platform.
CFD Shares
Traditional Shares
Stock markets can also be day traded. Much like other instruments, shares or stocks are volatile during the market openings and overlaps.
Volatility may present more opportunities, but it also carries more risk. Rapid movements not only go up but also go down. This can be a precarious situation for inexperienced traders.
Of course, shares (or stocks) aren’t immune to the classic trading strategies – like buy low and sell high or finding a company that outperforms the market consistently. And although it’s possible to only trade shares, most traders and investors use shares as part of a more diversified portfolio.
When trading, a great way to manage risk is through knowledge – share or stock traders have access to immense amounts of data – both fundamental and technical. Shares are some of the most popular ways to invest. Market news websites such as Bloomberg, The Wall Street Journal and more cover stocks exhaustively, and some even give recommendations for public companies to watch.
How To Trade Stocks With easyMarkets
We offer multiple shares, in various industries including automotive, technology, banking, telecommunication, cosmetics, pharmaceutical apparel, and hospitality. Each industry and company is different and moves in a different way; make sure you have knowledge of the company and its industry before you trade.
Decide What and When to Trade
First decide which company's shares you would like to trade. Different industries and even companies within the same industry can have vastly different performance. All markets have moments when volatility is high. Some traders trade during these periods, while others prefer to trade during more predictable periods.
Monitor Your Position
Markets are always moving so keeping tabs on your positions is crucial. This is even more important when you are trading short term – because shares are generally considered to be less volatile over the long term.
Initiate Your Trade
Whether you’re using our easyMarkets or MT4 platform, you can place your trade in just a few steps. Decide your amount to trade, the amount to risk (taking into consideration the leverage) and whether you think the price will increase or decrease. If you think it will increase you will “buy”, and if you think it will drop you will “sell”.
Exit
Once you have your strategy set up and have calculated your risk appetite, potential profit/loss, and entry point, you have to close your trade. A significant movement can cost you potential profits or even worse.
Decide What and When to Trade
First decide which company's shares you would like to trade. Different industries and even companies within the same industry can have vastly different performance. All markets have moments when volatility is high. Some traders trade during these periods, while others prefer to trade during more predictable periods.
Initiate Your Trade
Whether you’re using our easyMarkets or MT4 platform, you can place your trade in just a few steps. Decide your amount to trade, the amount to risk (taking into consideration the leverage) and whether you think the price will increase or decrease. If you think it will increase you will “buy”, and if you think it will drop you will “sell”.
Monitor Your Position
Markets are always moving so keeping tabs on your positions is crucial. This is even more important when you are trading short term – because shares are generally considered to be less volatile over the long term.
Exit
Once you have your strategy set up and have calculated your risk appetite, potential profit/loss, and entry point, you have to close your trade. A significant movement can cost you potential profits or even worse.
Shares by easyMarkets
easyMarkets has curated a selected list of the market’s most exciting, interesting and dynamic shares. You can choose from automotive, energy and fuel, technology, e-commerce and hospitality industry shares – ensuring that you can create an optimal portfolio to achieve your goals.
