Stock Trading News
Moneta Markets Introduces New Index CFDs: SGP20 & TWINDEXMoneta Markets has expanded its suite of index CFDs with the Singapore 20 Index (SGP20) and Taiwan RIC Index (TWINDEX). The broker now provides opportunities on three of the four ‘Asian Tigers’ – Singapore, Taiwan and Hong Kong – with South Korea being the fourth. Key Takeaways The SGP20 and TWINDEX are available on the […]
How to Generate Leverage in a PortfolioThe concept of leverage involves using borrowed capital for investment and amplifying the potential returns. While leverage can magnify profits, it also magnifies losses. Below we focus on how you can generate leverage in your portfolio, through options, futures, borrowing, shorting, and more. Key Takeaways – How to Generate Leverage in a Portfolio Leverage […]
Negative Carry in TradingNegative carry is a situation where holding an investment or trade costs you more than the income it generates. This concept is important for investors and traders to understand as it can hugely impact their overall returns and portfolio performance. It’s especially relevant in futures and margin trading, but has various other applications as well. […]
Market MicrostructureMarket microstructure is a specialized area within finance that explains how assets are exchanged in markets. Market microstructure affects liquidity, transaction costs, and price discovery. It’s applicable to both real and financial assets, but the latter has seen more extensive research due to the readily available transaction data. The primary focus of market microstructure research […]
Stocks That Are MonopoliesThere are very few true monopolies in the stock market these days the classic sense, as antitrust laws and regulations aim to promote competition. Nonetheless, there are some companies that enjoy a dominant market position or quasi-monopolistic advantages in their respective industries. Key Takeaways – Stocks That Are Monopolies Stocks that are monopolies (examples) […]
What Happens When a Stock Goes to Zero?When a stock’s price falls to zero, it means the company has gone bankrupt or its shares have become essentially worthless. This situation typically arises from severe financial distress that leads the company to bankruptcy or a similar outcome where the company’s assets are insufficient to pay off its debts and obligations. Key Takeaways […]
13 Top Mistakes Traders Make [And How to Avoid Them]Trading is largely a process of making mistakes and learning from them to get better. Unfortunately, of course, these mistakes can be very costly. As such, trading can be risky. But risky things are not inherently risky if they’re understood and controlled for. For example, flying an airplane is very risky if you don’t know […]
Third Time Lucky: Robinhood Opens Its Doors To UK TradersRobinhood, which rose to fame following its role in the GameStop mania, has officially launched in the UK. The firm made unsuccessful efforts to enter the UK market in 2020 and once more in 2022, following discussions about acquiring the trading app Ziglu. Key Takeaways Robinhood is now available to British investors, offering commission-free trading […]
What Is a Buy to Cover?A “buy to cover” is a transaction in the financial markets used primarily within the context of short selling. Short selling is the practice of selling securities that the seller doesn’t currently own, with the expectation that their price will decrease in the future and allow them to be bought back at a lower price. […]
S&P 500 – Average Percent Gain in Up Year vs. Down YearBased on historical data for the S&P 500 index going back to 1928: In up years (when the index has a positive annual return): The average annual percentage gain is around +20%. Up years occur around 72% of the time. In down years (when the index has a negative annual return): The average annual percentage […]
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