Platformy forex ecn account
The robot will follow the trading rules until the balance runs out, and that can all happen very quickly if things start going wrong. Automated forex trading platforms are a domain for experienced trader only. Again, whether the availability of these as a deciding factor in opening an account or not will be down to the individual.
Level 2 or Level II data is one such tool, where preference might be given to a brand delivering it. Education Some traders may rely on their forex broker to help them learn to trade. From guides to classes and webinars, educational resources vary from brand to brand. However, a broker is not always the best source for impartial advice. Consider checking other sources too — such as our Education page. Deposits and Withdrawals There are some massive disparities between the costs associated with deposits and withdrawals from one broker to another.
Such disparities mostly result from the internal procedures observed by different forex brokers. At one platform, it can take as much as 5 times longer to fund an account than it does at another. The incurred costs differ quite a bit as well. Otherwise, the payment process largely hinges on the accepted money transfer methods. It would make sense for forex brokers to adopt as many such methods as possible, yet some still fall well short of the mark. This can act as an entry barrier to less experienced clients with less capital to invest.
The majority of forex platforms tend to accept Skrill and Neteller too. Forex brokers with PayPal are much rarer. The same goes for forex brokers accepting bitcoin. We are not talking about bitcoin trading, but actual deposits made using the top cryptocurrency.
You have to take this type of feedback with a grain of salt, to say the least. First of all: disgruntled traders are always more motivated to post feedback. They are not likely to be unbiased. Secondly: not all of this feedback is factually correct. Even sites like TrustPilot are blighted with fake posts and scam messages. There is no quality control or verification of posts. That said, it is still relevant.
To the trained eye, genuine trader reviews are relatively easy to spot. The utter lack of community feedback is a red flag as well. People always have something to say about forex brokers. Therefore, something is definitely amiss if there is no information available in this regard. Regulation Regulation should be an important consideration. Across the world, there are different regulatory bodies that govern the rules a forex broker must adhere to. In Europe, forex leverage is capped at or x Outside of Europe, leverage can reach x Traders in Europe can apply for professional status with their forex broker.
This removes their regulatory protection and allows them to trade with higher leverage. Forex brokers offering services in their jurisdictions must register with them to provide financial services legally. Sadly, this is not a sign that should instil confidence in the forex broker. Beyond a nominally available dispute-resolution system, such regulatory coverage offers you no protection.
Leverage Leverage can be a factor to consider when selecting forex platforms. However, regulation often takes the choice out of this. Leverage is capped at by the majority of forex brokers regulated in Europe.
Assets such as gold, oil or stocks are capped separately. Note that higher leverage increases potential losses, as well as profits. Security Most forex brokers will follow regulations and segregate client and company funds into separate bank accounts. This protects traders in the case of broker liquidation. Data protection is usually legislated at a government level.
This restricts what forex brokers can do with your personal data, offering that added level of protection. Account security also differs among forex brokers. Some platforms may offer the additional layer of protection of 2FA two-factor authentication which will protect against hacker intrusion. Many forex brokers will allow you to open a simulation account. This trading training software uses imaginary money to see how you would have performed had you made the decisions that you did on the real forex market.
This can be good for new traders looking to test the waters and ease their nerves, and it can also be useful for more experienced traders looking to trial new strategies and ideas in a risk-free environment. See our list of the best forex demo accounts. Company History A proper regulatory agency will not think twice about handing out cease and desist orders to dishonest brokers.
It will also likely blacklist them. You actually have to scour the archives of regulators to happen upon such relevant bits of information. Bonus Offers From cashbacks, to no deposit bonuses, free trades or deposit matches, forex brokers used to offer loads of promotions. Regulatory pressure has changed all that. Forex platforms offering bonuses are now few and far between.
Our forex bonus page will list them where offered, but they should rarely be a deciding factor in your choice. Always check the terms and conditions and make sure they will not cause you to over-trade. Many forex brokers with welcome, low or no deposit bonuses have time limits or turnover requirements. This is particularly crucial when assessing a forex broker offering a no deposit bonus. Often, bonuses that are given without the need to deposit are non-withdrawable.
Forex brokers use a number of different methods to execute your trades. Exactly which method it uses for a particular trade will be reflected in the price you pay for it. Some forex platforms only support certain order execution methods. For instance, your broker may act as a market maker and not use an ECN for trade execution. If you are looking for this method specifically, you will need to seek out an ECN forex broker.
ECNs are great for limit orders, as they match buy and sell orders automatically within the network. It is therefore extremely slow. The market maker handles trade execution. Some market makers pay brokers to send them orders. Thus, your order may not end up with the best market maker.
Internalization — When using this method, forex platforms match the order from its own inventory of assets. This execution method is therefore extremely fast. Order execution is extremely important when it comes to choosing forex brokers. It also goes hand-in-hand with regulatory requirements. Broker Reporting Regulators aim to make sure that traders get the best possible execution. Online forex brokers are required to submit data concerning their execution methods as well as execution prices on a trade-by-trade basis.
In this reporting, the prices paid by forex platforms are compared to those quoted to the public. If the broker executes trades at better prices than the public quotes, it has some additional explaining to do. These examples yet again showcase the importance of a proper regulatory background.
The differences can be access to 0 pip spreads, Level II data, settlement or different leverage and commission. Micro accounts might provide lower trade size limits for example. Retail and professional accounts will be treated very differently by both brokers and regulators. An ECN account will give you direct access to the forex contracts markets.
So research what you need, and compare it to what you are getting at your current forex platforms. For special market closures on Monday please check Trading Breaks Calendar. Detailed market closures can be found here. This is also the first stable coin that the Bank is offering to its clients. To start the operations with Tether, the procedure remains the same as for Ethereum. The client needs to link a personal blockchain wallet to the MCA account and confirm the ownership with the signing method described here.
Once this step is completed, crypto-assets can be transferred between the MCA account and the linked wallet. The information about fees is available on the website of the Bank dedicated to crypto services: www. Dukascopy Bank's marketplace for P2P exchange can process any blockchain. Therefore, it provides a secure environment to transact in virtually any token given that there is a counterparty willing to take the opposite side of the trade.
For any questions regarding the use of Tether, P2P marketplace, or other services, please contact the Dukascopy Bank's Support team. Please be aware that this website is not controlled and does not belong to Dukascopy Bank, Dukascopy Japan or any other entity of Dukascopy Group. Do not trust any information to be found on the website www. This website is a clone of www.
It is organized as a bulletin board, whereby the clients can place their offers to buy or sell tokens against fiat currencies. Currently, the list of available tokens includes 12 major names with further plans to expand the accessible instruments to altcoins and NFTs. P2P crypto exchange service can be reached via the Dukascopy Connect app by clicking on the dedicated section.
Having an active MCA account is a compulsory prerequisite to use the Marketplace. The role of the Bank in the process of a P2P exchange between two clients is to ensure the security of the fiat settlement. This is achieved by blocking the fiat funds of the Buyer until the Seller successfully delivers the traded cryptocurrency to the Buyer's crypto wallet.
The detailed step-by-step description of the service can be found here. Other systems within the industry provide escrow to the crypto leg while in fact, it is the fiat leg that is more problematic and riskier to settle, harder to verify and control by an independent investigator.
To avoid the settlement risk, the users of Dukascopy P2P service need to strictly follow the rules of the P2P marketplace and not send fiat funds outside of its perimeter. In case of disputes arising between the parties, the Bank will initiate its own investigation of the transaction to secure the safe resolution of the issue. As part of future developments, the Bank intends to offer API-based connectivity to the P2P marketplace for more sophisticated customers who would like to get more automated order control and advanced trading functionalities.
In the meantime, the Bank encourages its clients to try the new P2P Marketplace. As always, the Bank is grateful for any feedback that may help us improve our services and that can be provided via our Customer Support chat.
Clients of the Bank may find the P2P service inside Dukascopy Connect app under the dedicated section. The fiduciary services are available for the owners of Savings accounts that enjoy all the benefits of Private clients. For any questions, please contact your account manager or the Support team.
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What is a Forex ECN Broker? Explained by Andrew Lockwood - [Quick lesson]
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STP accounts are twofold in their actions, which either initiates an order or rejects it according to the current buoyancy. On the other hand, ecn account forex are further direct in their method, which will ask you to squeeze your trading policy ever so lightly to combine the dynamic ECN states.
Take your chance to get happy with an ECN Forex agent by initiating a demo account. ECN Forex merchants cater to huge institutional investors and expert traders that have admittance to a notable trading centre. However, agents have begun to recognise the growing prevalence of ECN trading between miniature retail traders. Hence, ECN brokers now give restricted ECN Forex accounts that begin with a huge quantity of leverage to enable merchants to access the sales by holding meaningful positions in the market with a cheaper margin condition.
Some of the best ECN brokers give advantages as large as , which is incredibly unsafe in the subtle FX markets. Miniature dealers might see margin calls if they encounter contrary slippage, which can stimulate the disclosure rate by pips. Since ECN protocols relate traders to sizeable global liquidity providers, there will forever be a counterparty to a trade. Even if liquidity providers can view your order, your agent makes it impracticable to track requests to a distinct trader or a collection of traders.
This can greatly facilitate the trader's work, as well as his capital. Is the speed of trading and the number of applications so important? A trading robot can, of course, be used if a trader understands how it works, what settings and algorithms it has, regularly checks and adjusts it to the market. If not, then one day the algorithm can drain all the capital at its tremendous speed.
Besides, if someone has created a robot that can make the owner rich in a short time, why would the developer sell it? After all, the more users of the robot, the less they earn. And even if the developer really sold the robot with a profitable strategy that worked well in a certain market situation, the robot may not be adapted to another situation.
Deciding whether or not to use a robot is also the prerogative of the investor himself, and if something goes wrong, there will be no one to blame. Read more: What are stock trading robots and how do they operateStock market manipulationManipulations on the stock market can be carried out with both stocks, derivatives, and cryptocurrencies. Individual market participants are accelerating asset quotes to sell them at the peak. Advertising, mailing lists, groups-communities of investors in social networks, including paid, fake news, insider information are in use.
The object of manipulation is more often low-liquid assets of small capitalization, companies of the "last echelons" 2. There is usually little information on the financial condition of such companies. In the absence of market makers and regulators, lack of information, and given the low liquidity and value of the asset, it does not take a lot of money to pump up the price.
Manipulation schemes are often based on trading features and traders' strategies. As a result, manipulators earn money, and those who chased the hype and the crowd suffer losses. Manipulation is really fraud, for which a large fine or a real term can be threatened in America. Manipulations also happen in every country, mainly with third-tier stocks. They often end with a warning and a fine, however, in the case of a particularly large size or an organized group, criminal liability and imprisonment may also occur.
Brokers, their employees, and other market participants may be involved in manipulations. How can an investor protect himself from fraud and mistakes1. Careful selection of a broker. The broker must have a brokerage license. It must be posted on the broker's website. You can check the license on the regulator's website.
There are many other useful lists and registries on the same site: forex dealers, exchanges, trading systems, depositories, securities issuers and others Really evaluate advertising promises and offers. Investing is always a risk. And the greater the expected profit, the higher the risk. There are no guarantees in investments. Aggressive promising advertising, intrusive calls and "burning" super-offers should be treated with caution.
Do not follow links from advertising offers in social networks and messengers. Perhaps the link will lead to a fraudulent site. It would not be superfluous to check whether the connection on the site is protected: the image of the lock at the beginning of the address bar. If you fall for the bait of scammers, you can contact the competent authorities about fraud, and your bank about the possibility of a chargeback. The probability of a refund is low, but there is a chance, and a considerable one, to fall into the trap of scammers for the second time, trying to carry out a chargeback with the help of intermediaries perhaps the same ones who cheated the first time, but have already "retrained".
Select the tariff deliberately in accordance with your portfolio and strategy. Disable overnight in the broker's application settings, for greater reliability, especially in a volatile crisis market. Disable the ability to make margin trades if the investor does not have sufficient knowledge and experience for margin trading.
Everything can also be done in the broker's application or in the investor's personal account on the website. Carefully weigh whether it is worth using robot programs for trading and auto-research for investment. It may be much more effective for an investor to be trained to understand how to build and manage their investment portfolio. It is worth recalling Warren Buffett's quote again: "The risk comes from not knowing what you are doing.
Carefully evaluate the asset before buying. What is the idea in this asset, what is its value and source of profit, does it correspond to the investor's strategy, is the price for the offered value adequate? Fundamental analysis will avoid manipulating asset prices and buying a dummy at a fabulous price. Also, preference should be given to highly liquid assets with large capitalization, which are difficult and expensive to manipulate.
Invest in long-term debt. Traders are more susceptible to fraudulent manipulations, as they trade on news and price fluctuations. Technical analysis, signals, indicators, and often margin lending are the main tools of traders.
And this is always a much greater risk than a reasonable investment in long-term investments based on fundamental analysis and diversification. Be a reasonable and cautious investor. Listen to official sources of information and make important decisions on your own, relying on your own knowledge, calculations and analysis.
Do not follow other people's advice without passing them through the prism of your strategy. Do not give in to panic and hype. Do not forget that where there is money and the desire of people to get rich, there will definitely be scammers. Law enforcement agencies and mass media regularly warn about possible fraudulent actions.
Read more: What is Slippage in trading? ConclusionYou should not be afraid of cheating a broker if he meets the selection criteria: he has a license, a large number of active clients, large trading turnover, a certified trading platform, a convenient application, a tariff policy and a set of tools suitable for the investor, access to the trading platforms necessary for the investor, good customer service.
You should be more afraid of your own rash actions, unjustified risk, lack of knowledge. Buffett said, "The most important investment you can make is to invest in yourself. It is knowledge that will allow you to protect yourself from fraudsters and your own mistakes and self-deception.
Learning is not scary, not difficult and cheaper than losing capital on scammers and your own mistakes. You can start with free information, which in our age of information technology has become more accessible to everyone than ever. However, it is worth filtering the information and checking its sources. You should trust only those who have achieved success themselves, invest their own funds, and were able to save and increase capital not only during periods when everything is growing in the market, but also during periods of corrections and crises.
Oct 19, Read The market is falling. What should investors do In , there is a lot of talk about the crisis and recession. Everyone feels that something is wrong in the economy - the costs of habitual purchases have increased and, perhaps, what they have been saving for for a long time has become significantly more expensive.
In addition, many economically active people are also private investors. Moreover, a significant increase in the number of investors occurred in the last 2 years, when deposit rates were not pleasing, and investments in the stock market showed impressive results. After the growth of stock markets in the post-crisis period, has become a real test for investors. First of all, for beginners who have just joined the ranks of investors. Pros could also face certain emotional difficulties.
The stock market and the quotations of individual stocks can not only rise, but also fall. This is an axiom. Sometimes the drop can amount to tens or even hundreds of percent. Often investors do not understand what to do when quotes and the amount on the account "melts before our eyes". In this article, we, as practitioners whose investment portfolio has gone through a lot since , but at the same time has shown and is showing decent results, will share our experience.
We will tell you what is worth and what is not worth doing during the fall of the markets. Perhaps for someone these tips and recommendations will become a soothing pill when the first panic attacks appear. Calm, only calm! It is important to maintain psychological calm in a crisis, and it is doubly important for an investor — this will help avoid impulsive actions in the market, which you may regret later.
There are a few simple rules that a reasonable investor should definitely not doDo not cook in the flow of negative newsIn the modern world, for most of us, the main source of news is the Internet. One has only to click on the title on a certain topic once, the search engine will immediately helpfully fill up the feed with such news. The most "clickable" news is negative, so it is not surprising that the reader of the news feed turns out to be an unwitting prisoner of the flow of negative information.
The same principle works for the media — of all the events, journalists are more likely to talk about tragic ones or thicken the colors by placing the right accents. What can we say about the Internet or the philistine media, if even professional publications "sin" like this? You can even conduct an experiment by entering the query "crisis", "recession", "market collapse" and so on in the search engine.
It turns out that everything will happen literally tomorrow, and you are not ready yet. It is important to understand that the objective picture of the world is often different from the one that is formed from the news. In addition, there are always more negative messages in a crisis, periods of falling markets, and due to the peculiarities of modern media, they usually fill the news feed.
Do not read the news too often - it can cause constant background stress. Therefore, one of the important psychological qualities of an investor is to be able to emotionally distance himself from bad news and remain calm. It is a calm and balanced state that will help you not lose your way and follow the chosen investment strategy. Of course, it is impossible not to be interested in what is happening at all. Moreover, in the modern information world, important information obtained from reliable sources can help you make the right decision in time.
Therefore, it is important to set up your sources of information in such a way as to weed out the unnecessary and not miss a really important event in the stream of momentary sensations. Do not look every hour at the changes in quotations, remember about long-term investmentOf course, an evergreen portfolio is fine. However, stocks cannot always show growth — their peculiarity is that they never grow in a straight line, although in the long term the market is always growing.
The investor should be prepared for the fact that some stocks in the portfolio are growing, some are falling. In a crisis, all stocks can fall. But the stock market, like the economy, is cyclical: a crisis always gives way to a boom, and a period of growth is followed by a recession. If we choose fundamentally reliable assets in the portfolio and are confident in our choice, the momentary market conditions cannot plunge us into panic.
If we look at the dynamics of the market over the past 30 years, we will see that there have been both corrections and collapses in history. The reasons and the depth of the fall were different, but what was the same was that any market decline ends, and recovery follows. Read more: Recession in the US in Don't be afraid and don't panicThe stock market and the economy as a whole are developing cyclically. Periods of boom and recession have followed each other throughout the history of mankind.
Of course, a lot of things collapse in a crisis, and even stable, well-developing companies may experience difficulties. However, you should not succumb to the influence of the crowd and panic, even if everyone around is just talking about the crisis. You will say it is very difficult.
Indeed, it is not easy to resist when, for example, all stocks fall by 20 or 30 percent. The only thing that can be contrasted with emotions is reason. When a person reasons logically, emotions recede into the background. The Council. It is important to maintain the ability to reasonably assess what is happening. Knowledge of the basics of investing and financial literacy and the ability to apply them in practice will help to preserve the accumulated capital.
Be critical of investment adviceWhat is most interesting, both experts and people who are far from investing can give advice. A separate category in the advice section is bloggers' advice. Currently, bloggers write and shoot videos about everything that subscribers read and watch, not counting explicit advertising. Investments are popular. Please, there are plenty of gurus on the Internet who give out content about investments every day.
There are two main trends in the information flow of bloggers, which are better treated critically, especially in a crisis It is profitable to invest - not for an ordinary person. Bloggers often write that only large investors can make good money on insiders and gray schemes at the expense of inexperienced "hamsters".
What is the interest of such an author, it is clear — articles and videos with revelations always collect more views. And a novice investor wants to avoid mistakes. Someone has already burned themselves on financial pyramids and similar scams and is starting to look for what the catch might be in investing. Especially a lot of such "sensational" materials appear in times of crisis — everyone is worried about the future, and in a crisis it is as vague as ever.
Therefore, bloggers write about conspiracy theories, subscribers are disappointed in the possibilities of the stock market, merge existing assets at any price and leave the market. If you sometimes find yourself reading another revealing article about conspiracy theories in the stock market, it is better to devote this time to learning the basics of investing. This is the only reasonable way out — it is fundamental knowledge that provides a solid foundation and helps to gain confidence in their actions.
It is important to choose professional training in the basics of the stock market, investments and financial literacy, because there are also a lot of training offers. Read more: How to participate in an IPO2. The second topic frequently encountered by bloggers is tips on which securities to invest in.
Such materials also collect a lot of views. Consulting an independent financial analyst is expensive, and bloggers give out advice for free — and the investor shifts responsibility for the final decision from his shoulders to the blogger. This is a common psychological trap of a novice investor: to look for someone who will confidently recommend what you can invest in profitably.
Of course, bloggers argue their choice one way or another, without this, the recommendations would be completely unconvincing. In addition, it cannot be said that advice on the Internet is useless — perhaps there is a rational grain in them. But in order to separate really professional advice from populist statements for the sake of views and likes, it is necessary at least to understand the basics of investing.
Today it is available to everyone. Moreover, investment literacy is currently a vital skill, as relevant as the ability to drive a car, for example. It is necessary to be clearly aware that only we ourselves are responsible for our investment decisions. The blogger got the right number of views — and has already earned. It does not matter to him whether those who used the voiced investment will eventually earn.
It is necessary to develop at least a basic level of expertise in investments in order to be able to adequately perceive information flows from different sources. And of course, to minimize the flow of unprofessional information is not to read or watch bloggers who give out daily content for the spite of the day for the sake of views and likes. What not to do when markets fallAbove, we tried to understand what behavior in everyday life is best avoided by an investor in order to maintain calm and the ability to rationally treat a crisis situation.
However, even if the above recommendations are followed, it is worth remembering that in no case should you do on the stock market in a crisis. Read more: How to make money in crisisDo not sell shares on emotionsWhen everything is falling, it may seem like a reasonable decision to save at least something and sell the shares right now. Objectively, this may mean fixing losses. Any investment decision should be balanced, and in a crisis — doubly so.
It is important to conduct a fundamental analysis of the portfolio once again. If the company retains its potential and continues to develop even in a crisis, do not sell, but, if possible, average the position. Do not violate the rules of diversificationIn a crisis, even fundamentally attractive stocks can be very cheap.
Investors are tempted to buy the paper they like for a large share in the portfolio. However, no one guarantees that the selected stock will recover or even increase in price, that the company will successfully cope with the crisis. In a period of uncertainty and high risks, it is more important than ever to diversify investments as much as possible so that the possible fall of one asset does not drag down the entire portfolio.
We are talking more about stocks now - they attract everyone's attention in times of crisis. Of course, a balanced portfolio should also include bonds and, possibly, other financial instruments. You can read more about the diversification of the investment portfolio here.
The same principle also applies to property as a whole: it is in a crisis that the temptation is great to shift capital into shares in the hope of profitably acquiring cheaper assets. Do not bring "last money" to the marketAll crises end sooner or later. However, this may not happen tomorrow or the day after tomorrow.
In no case should you invest money in stocks that you may need in the near future, even if the price seems very attractive. Recovery after the crisis may take several years, and during this time the invested funds will be "frozen". This is another extreme that can trap investors during a crisis.
Of course, it is worth taking advantage of the opportunity to profitably acquire good assets, however, first of all it is necessary to adhere to the principles of reasonable investment. In times of crisis, fundamental analysis will help to protect against buying unreliable assets. It is important to analyze and understand whether the selected company will be able to survive the crisis, and only after that plan to buy shares.
Do not expect that the market will grow tomorrowUncertainty at the moment is characteristic of the stock market as a whole — you can never predict for sure the further movement of quotations. In a crisis, the volatility of securities is even more unpredictable: when it seems that the bottom has been reached, the fall in stocks may continue remember the well-known investor saying "To buy at the bottom - the second bottom as a gift".
Conversely, when an investor expects a further decline in prices, a market reversal may occur. Do not use margin dealsIn times of crisis, investors are tempted to bet on rapid growth or vice versa, on the continuation of the fall in quotations, and conduct transactions with leverage for a significant amount for the portfolio:borrow shares from a broker and sell them now a "short" transaction in the expectation that the price of the paper will fall further, and it will be possible to purchase it at a lower price and return it to the broker;borrow money from a broker and buy shares now long or long position long sale in the expectation that the price of the paper will rise, and it will be possible to get a positive difference after its sale.
Leverage multiplies the result of the transaction - the investor can significantly increase profits or losses compared to the result that he could get from the transaction at his own expense. Of course, borrowed funds are provided by the broker at a certain percentage. Transactions with leverage are risky, they must be treated with the utmost care.
Especially in a crisis, margin transactions can be a "disservice" to the investor. If the trend is guessed incorrectly, a large volume of margin transactions can lead to a margin call, that is, to the forced sale of assets by the broker to repay the debt on margin lending. The sale will be carried out at the market price at the time of sale, which may be unprofitable for the investor. Therefore, it is absolutely not necessary to use margin transactions in a crisis in the expectation that the market will grow or fall in the near future.
Read more: Leverage on the stock marketConclusionIn this article, we have considered a few simple recommendations that will allow an investor to save capital in a crisis. To maintain emotional calm, you need:Do not cook in the flow of negative news. Do not look at the price changes every hour, remember about long-term investment.
Be critical of investment advice. Don't be afraid and don't panic. There are also several principles of reasonable investment, which are especially relevant in a crisis:Do not sell shares on emotions. Do not violate the rules of diversification. Don't bring all the money to the market. Do not buy assets without fundamental analysis. Do not expect that the market will grow tomorrow. You can learn to be calm in a crisis situation, you can take financial literacy training and gain a certain level of expertise in investments.
However, the stock market in a crisis is fraught with some temptations that can even encourage a relatively experienced investor to violate the basic principles of reasonable investment. Therefore, in order to preserve capital in turbulent times, it is necessary to strictly observe the principles given in the article.
Only by understanding how to prevent the loss of existing wealth, you can move on to the next step — to increase capital. Read more: Basic knowledge of fundamental analysisAs you know, in a crisis, many assets are very cheap.
Therefore, the famous phrase of Winston Churchill is the best fit for reasonable investors: "Never let a good crisis go to waste. You can read a lot of articles or blogs about reasonable approaches in choosing reliable and promising securities, and it's better to see and hear.
Oct 18, Read Description of Stock Market in India India is one of the fastest growing countries in the world by many indicators, primarily by the dynamics of the parameters of the economy and population. In terms of GDP, India is already the 6th economy in the world at the moment and continues to develop, both due to internal sources of growth and by attracting external investment due to an attractive working environment.
All this is accordingly extrapolated to the stock market, which shows impressive results even in the conditions of a global correction. So far, investing in the Indian stock market for an ordinary investor can be considered exotic, but the same thing happened recently with Hong Kong stocks. In this article, we will take a closer look at the stock market of India, study its parameters and structure.
Since the stock market is an integral part of the economy of any country, first of all we will study the parameters of the economic development of the region. Economy of IndiaIndia is a country with an emerging economy, therefore, it is characterized by faster growth. Moreover, India's economy shows a stable outstrip of the global average GDP growth, and is currently the fastest growing in the world with an estimated growth of 6.
India's GDPIf we look at the dynamics of India's GDP in comparison with the indicators of some countries, we immediately notice a clear upward trend without significant fluctuations, which cannot be said about most other countries. Let's also look at India's GDP growth compared to other countries.
This time, let's take strong economies for comparison. This is a more objective and realistic indicator. GDP PPP takes into account the price level in the relevant country and allows you to determine the increase in real volumes of goods and services.
There are very interesting data here: China already occupies a leading position, which it will only consolidate in the future in terms of GDP at current prices, the first place is for the United States , and India is in 4th place and has the greatest potential with the ability to overtake the United States by If we base on the forecasts of GDP PPP of the international consulting agency Pricewaterhouse Coopers, then by the growth of this indicator over 18 years, India can outpace China by more than 2 times and the United States by more than 3.
India shows really impressive results achieved due to the synergy of several factors:A competent economic policy aimed at diverse development and elimination of weak points of the economy. Industry and especially pharmaceuticals, including biotechnologies, are developing with renewed vigor. In this direction, India has become one of the industry leaders in a short period of time. Population is probably the main factor. About 1. India is also now a leader in outsourcing thanks to cheap labor and competent specialists.
In India, with the development of new industries, production is actively growing, which leads to an increase in exports and greater independence of the region from the global economy, which we already see in the absence of a drop in GDP in crisis years. But for now, the country is still dependent on energy imports. The huge population of India is not only an advantage, but also brings some problems.
India is the second country by population, while by area it is the seventh. Another consequence of the excess population is food shortages and unemployment. But here, too, the state is looking for various ways to solve the problem, trying to avoid the path of China, where the opposite situation has now arisen due to excessive birth control. But often impressive economic results can be crossed out by high inflation. For comparison, the current inflation in the US is 8.
It was founded in and is currently the largest financial market in India and the 4th trading platform in the world in terms of stock trading volume. The exchange is the main trading platform for companies preparing for listing, and is highly technologically advanced modern equipment with automated trading, settlement processes, etc. Founded in as an Association of Local Shareholders and based in Mumbai. BSE is the first stock exchange in Asia, it was she who launched the development of the equity capital market in India.
It was formed in and is the oldest stock index in India. In general, both exchanges are similar to each other, as they work on the same trading mechanism, settlement process and trading hours from to Indian time. There is a similarity in the list of traded instruments - almost all major issuers of India are listed on both exchanges.
Also, exchanges have a common industry structure. At the same time, unlike the US market, the structure is multilevel — with more detailed details:The macroeconomic sector is the business activity of a company at the macro level. Sector is a more specific sector of the company. Industry — the industry classification of the company. The main industry is a classification at the micro level, indicating the main activity of the company.
Interestingly, there are no market makers on the exchanges, and trading is carried out through an open electronic book of limit orders, which makes the market more transparent, but less liquid. Due to the fact that all large companies are listed on both exchanges, the main indices of trading platforms are very strongly correlated with each other.
Let's start with the industry structure of the entire stock market of India. In general, the Indian stock market has been overvalued for a long time due to the growth of the economy as a whole. Let's look at the top 5 most expensive companies in terms of capitalization.
Their list is the same for the indices of the main trading platforms of India. If you look at the structure of the entire index, the financial sector companies are also larger than the rest. India's economy is showing the brightest growth among other emerging economies. This growth is expressed by the positive dynamics of financial indicators of companies and forms a corresponding trend in stock market quotations.
Of course, this increases the risks of a possible correction, which are already overstated in a developing country. Today Hong Kong is a kind of "state within a state". That is, until , Hong Kong has full economic and political independence from China. The city can independently exercise executive, legislative and judicial power, and China is responsible for foreign policy and defense.
Basically, the attractiveness of Hong Kong lies in:independence and freedom of financial institutions;free market;low taxation;absence of import duties;low level of corruption;a stable financial system;independent currency regulation, etc.
All these advantages allow Hong Kong to be considered an international trade center and the global financial center of Asia. The presence of such statuses contributes to the wide spread of the national currency - the Hong Kong dollar. The Hong Kong dollar first appeared in , and today it is among the most stable currencies in the world. Today, investors are increasingly eyeing the Hong Kong dollar as an alternative to the usual US dollar and euro.
Currency regulationUnlike most currencies, Hong Kong commercial banks, not the authorities, are engaged in issuing Hong Kong dollars. There is no Central Bank familiar to the world in Hong Kong. The control functions are carried out by the local supervisory authority Hong Kong Monetary Authority, which is part of the Hong Kong Administration.
The main task of this supervisory authority is the regulation of the exchange rate and, if necessary, the implementation of currency interventions from reserves. Fixed rateThe Hong Kong dollar has a fixed exchange rate. Since , the Hong Kong dollar has become fully pegged to the US dollar, the exchange rate is regulated using the "currency board" regime, in which the Hong Kong dollar exchange rate can fluctuate against the US dollar within a narrow corridor from 7.
The figure below shows a chart with the historical value of the US dollar to Hong Kong dollar. As we can see, indeed, for a long period, the quotes of the Hong Kong dollar against the US dollar are in a narrow range from 7. The fixed exchange rate of the Hong Kong dollar is an attractive condition when applying for a loan for large capitals: the stability of the exchange rate eliminates the risks of interest rate growth, i.
This, of course, allows the Hong Kong dollar to be an attractive international instrument of saving and investing capital for several decades. Currency securityThe security of the currency, as a rule, is determined by the availability of foreign exchange reserves from the issuing local regulator. The size of Hong Kong's foreign exchange reserves is about billion US dollars, which gives it the 7th place in the world ranking of the most secured currencies.
The money supply of Hong Kong is about 5 times the size of foreign exchange reserves, i. Advantages of the Hong Kong DollarStable exchange rate. Reliable linking of the exchange rate to the US dollar allows the Hong Kong dollar to protect funds from the depreciation of the ruble.
Hong Kong is a global financial center. This contributes to the wide spread of the Hong Kong dollar in the world. Disadvantages of the Hong Kong DollarLow currency prevalence. It is not used often in trade relations, which makes the prospects of the currency more uncertain.
In general, the Hong Kong dollar is a good instrument for long-term conservative investments in order to protect capital and can be part of a widely diversified investment portfolio. But, unfortunately, the Hong Kong dollar will not be able to fully relieve investors from infrastructure risks. The main reason is the stable exchange rate, which is actually pegged to the US dollar.
For more than 40 years, the Hong Kong authorities have been ensuring a stable exchange rate of the local currency, avoiding devaluation by conducting currency interventions. Oct 18, Read Stock tickers on the stock exchange All stocks traded on world stock exchanges have a lot of parameters. Some change every second or with a certain frequency the value of the paper, the dividend yield, the number of shares in circulation, the number of securities in the lot, the level of listing, etc.
This is her ticker. A ticker is a short name of a financial instrument. A fairly clear parameter. It can be said that one of the basic parameters of practical investment. But there are points that will be interesting for both beginners and practicing investors to learn about. Ticker: its meaning and functions, tickers on different exchanges, mistakes of investors "with the participation" of tickers — we will tell about this in our article. What is a tickerTicker comes from the English word ticker, which means a symbol.
A ticker is a symbol or a short name that is assigned to a security at the time of its registration on the exchange platform. The ticker is its unique identifier within this exchange platform. Ticker is a combination of letters of the Latin alphabet. Sometimes a ticker is an abbreviation of the name of the issuing company:Apple's AAPL tickerAMZN - Amazon's tickerIBM — ticker of International Business MachinesFor the most part, tickers are created as similar as possible to the company name in order to minimize the time of paper recognition in the windows of terminals and brokerage applications.
But still there are tickers of some stocks that are completely out of tune with the name of its bearer the issuing company. This may be due to the rebranding of the company when it changed its name. A ticker is a parameter that is given at the issuer's IPO initial public offering on the stock market , it is stable throughout the "life" of the stock.
Exceptions are reorganization processes, as a result of which a new business is formed — mergers and acquisitions the issuer is part of another public company , the separation of individual companies from their holding. This is one of the reasons for the discrepancy.
But there may be others. Each case is different. The stock ticker, trading code, Ticker symbol, Stock symbol are all one parameter that allows the investor to find the necessary trading instrument in a quick way. Also, it is the ticker, and not the full name of the financial instrument, that is more convenient to use in various infographics. For example, news resources, running information lines with trading results contain a ticker.
On the websites of stock market players and news agencies, you can find a similar scheme - a market map on which companies are represented by their tickers and the block size corresponds to the market share of the security. The color shows the change in the value of asset quotations for the reporting period: growth - green, red - fall. Tickers on different exchangesA ticker is a conditional short designation of a company's stock within the framework of one trading platform. If the shares or depositary receipts of one company are traded on several trading platforms, then the tickers may be both identical and may also have cardinal differences.
But there are many examples when the ticker consists of only one letter. Such examples are not found on the stock market, but there are enough of them on American stock exchanges. Usually, large well-known companies with an impressive history have a short one-letter ticker:F - Ford Motor Company, a well-known global automaker. C - Citigroup Inc. V — Visa Inc is one of the world's leading companies in the field of payment technologies.
M - Macy's, Inc. A ticker consisting of a set of Latin letters is the most common practice. But there are a lot of differences in the world. So in Japan and China, tickers are written in hieroglyphs. Since Asian markets are international — both local and foreign investors, including large institutions, are present in them, such a designation could have an extremely negative impact on the definition of securities.
Therefore, in addition to the hieroglyphic ticker, Asian colleagues have additionally provided an alternative system of digital codes for foreign investors. So, for example, the shares of Asian companies would look like on the stock exchange of Taiwan or Japan:Ticker and ISINA ticker is a conditional short designation of a company's shares within a specific trading platform. An attentive investor may wonder: "Can two completely different companies, but with the same or similar names, get the same ticker, for example, in Europe and the USA?
After all, no one and nothing can prevent two exchanges from assigning the same ticker even on the same day? The answer is that there is no centralized control over all world exchanges in this matter. Therefore, there are real examples of public companies from geographically different trading platforms that have the same or similar short trading parameter:In order to avoid confusion, securities are additionally assigned a unique code within the overall global financial system.
It consists of 12 characters:The first 2 digits are the country code. The next 9 digits are NSIN or the national identification code of the security. The last 1 digit is a check digit. The ISIN code is also used to identify bonds, futures and options. The tickers of securities on each exchange may be similar, but the ISIN of each paper is unique. All broker applications for mobile devices, exchange terminals and websites of stock and currency market participants support the general rules for identifying securities and using their attributes.
Read more: What is a stock split? Why do companies split their sharesInvestor mistakes involving tickersThe trend of increasing the number of investment securities on the stock markets, on the one hand, provides more opportunities for choice, on the other hand, the complexity of choosing the best instruments in all this diversity increases, as well as the risks of making technical errors when submitting applications.
Choosing the best assets is the topic of a separate and far from one article. And in this error statistics there are real examples of errors due to the similarity of tickers or company namesThe following case is known. Ford, whose securities are traded under the ticker F, is often confused with another less powerful company, Forward Industries, Inc.
Her ticker is FORD. And therefore, when a car manufacturer comes out with good news, the stock price, the latter gets an impulse to grow. The thing is that at that time the IPO of Twitter was planned. There is also a known case when during the day of February 6, , the capitalization of the little-known American IT company SNAP Interactive now Paltalk, Inc tripled due to the fact that investors mistook the securities of this company for the papers of the owner of the famous Snapchat messenger, Snap Inc , whose IPO was just expected.
How not to make a mistake with the tickerErrors may be related to the consonance of company names and tickers. Because of such confusion, the investor may not buy exactly what he wanted. From the outside, such mistakes seem absurd, but as they say, "you can't go against statistics.
Zoom Video Communications, Inc. ZoomInfo Technologies Inc. Globaltrans is a company operating in the freight rail transportation industry ticker GLTR. The list can be continued further. If you have something to share, perhaps even your experience, tell us about it in the comments under this article. Read more: How to invest in stocks and what you need to knowConclusionSecurities have a lot of parameters.
Ticker, ISIN, lot content, listing level are parameters that do not characterize the paper quality in any way. We have considered such a parameter as ticker and ISIN. These metrics are used to identify a security in a wide variety of financial instruments. For an investor, a ticker is important for quickly searching for a paper, searching for information on it in various sources usually the ticker acts as a hashtag for searching.
For the investor, the quality parameters of the stock are of primary importance. How reliable it is and how promising it is, what are the sources of growth. And these parameters are not public data that is available to all investors. This data is the result of deep analytics of the company's business. Such an analysis includes both an analysis of the external, internal environment, and an analysis of the financial results of the company's activities.
This work may seem extremely difficult, but its result is worth it. In addition, investors currently have a lot of tools at their disposal that facilitate the task of conducting a comprehensive analysis. Oct 16, Read What is Overnight Receiving passive income is the "blue dream" of everyone, and not only the investor. We wrote about the options for passive earnings in our article "How to receive passive income monthly": buying and renting out housing, deposit, accumulative and investment insurance, investments in the stock market.
Each of these options, in addition to its pros, cons, risks, has certain time parameters — months and even years. At first glance, this option seems absurd and even similar to fraud. And in most cases it is. But there is also a completely legal one — overnight transactions. The overnight option is one of the parameters known to almost every investor. It seems tempting - "money works while you sleep, and markets don't trade. In this article, we will try to understand the internal component of overnight transactions, the benefits and risks for the investor.
What is OvernightBefore we begin to dive into the terminology, let's clarify what is "investment"? In a general sense, investments are reduced to the investment of free cash in order to increase them - due to the increase in the exchange rate of securities, as well as as a result of the payment of dividends on shares if they are provided or coupon payments on bonds. It would seem, why tell the obvious things, and what does the overnight deal have to do with it?
The connection here is the most direct. The investor invests free cash, and with a competent investment, he makes a profit. At the same time, each owner of "securities" can carry out the necessary financial transactions "Buying" and "Selling" their assets in securities right during trading, but as soon as trading on the exchange closes, the assets actually remain "frozen" before opening without the opportunity to work with them.
And so I want them to always work, even when we sleep. It is during the "downtime" of assets that the opportunity arises to earn overtime on them by resorting to overnight transactions. Overnight is a financial term referring to short trades. In the banking sector, these are loans or deposits for 1 day. For investors — short-term lending to a brokerage organization - when an investor lends his valuable assets or free cash to a broker overnight. Each of the parties benefits from such short transactions:The one who provides free funds receives a reward in the form of a certain percentage.
The one who borrows funds covers short—term needs for liquid funds or simply earns using borrowed funds. Thus, an overnight transaction for an investor is an additional earning tool while he is "sleeping". The term "overnight" is most often used in the banking environment. This term means short-term interbank lending and short-term deposits for a day.
Loans for one day are not provided to individuals, but the overnight service can be considered as a one-day deposit for citizens placed in a bank. Overnight in the banking sectorInitially, overnight transactions originated in the banking sector. When a large credit institution needs additional funds, then one of the options for closing this need is an interbank overnight.
An overnight transaction is the best solution for a credit institution to attract borrowed capital for a short period. Interbank loan overnightSuch a loan is granted for one day or night. In fact, this is a super-short-term loan. As a result, one bank issues a loan to another bank.
This is convenient for all participants in the transaction, because the lender organization makes a profit from the loan issued, and the borrower organization solves its temporary financial problems at the expense of the funds received, without wasting time on additional registration.
A short loan period and sufficiently large loan amounts - measured in tens and hundreds of millions of rubles - are the main "trump cards" in such transactions. Interbank loans on loans are issued only in Russian rubles, because the exchange rate can change very much overnight. A stable overnight interest rate allows market participants to maintain access to short-term liquidity, plan liquidity management and its redistribution.
The central bank ensures that the deviations of the overnight rate from the interest rate of the central bank itself are small, and keeps the overnight interest rate within a narrow interest corridor, not allowing it to go beyond it. The current rate on overnight loans can be found on the website of the Central Bank.
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