How to trade stocks on NASDAQ
Keep up with Google’s and Apple’s frantic growth rates? Any thoughts on the future of Microsoft and Cisco? Planning to cash in on Facebook a bit before the collapse of the new dot-com bubble? Easy! Do not believe it, but it is perhaps even easier than buying shares of Sberbank.
So how do you trade stocks on the NASDAQ? Yes, as well as the shares of the NYSE. The New York Stock Exchange is different in that it has a physical location and control over the progress of each share is carried out by living people. But the shares of most technology companies are traded.
A small educational program.
')
NASDAQ (National Association of Securities Dealers Automated Quotation) - electronic exchange. It used to be the habitat of technology companies only, but now everything is in a row. Only three thousand companies. Here control is exercised not by one person per share, but by a whole financial institution for several shares. That is, the risk of an inadequate course of the action is much less than on the NYSE.
On both exchanges, ECN (Electronic Communication Network) plays a significant role. These are electronic systems that automatically carry out sales transactions. Roughly speaking, they are the ones who accept and execute your applications. Thanks to ECN, a similarity to equality and fraternity is created on exchanges (applications are executed according to the receipt queue).
In addition to the equality between bidders through electronic systems, the NYSE and the NASDAQ, of course, have a program of insuring funds and controlling the activities of the exchanges themselves and the largest financial institutions. SEC (Securities and Exchange Commission) strictly monitors every movement of each stock and makes a fair decision on each problem and claim. Thanks to this commission in America, the word “insider” has a slightly different meaning, and there is no such mayhem as in the Russian stock market.
So, you first need to open an account for trading. A couple of years ago, overseas markets were virtually inaccessible for residents of the CIS. But now there are a lot of sub-brokers with offices in major cities and more favorable terms than the best offers from and for Americans (the account can be opened and fully online). It is not necessary to use the services of giants like BCS and FINAM. They do not care, Nazdak or MMBB, they will do business in Russian. But there are many small competent companies for which this business is the main one. Each such subbroker provides you with a leverage of 20: 1 (i.e., by depositing $ 5000, you are lent $ 95,000 more for transactions). Here the first nuances appear. If you are going to invest (from 1 week), then the amount of commission on the transaction will be unnoticeable to you. It is quite another thing for speculators (several deals per day), but this review article is not for them. But investors, when using borrowed capital (leverage), will have to pay some interest for it daily, so be careful.
Within a couple of days after the application for opening an account, you can make the first transaction. You will be given a platform in which you can view charts, quotes, and click on the cherished buttons Buy and Sell.
Now, for example, you do your research on the company, you are one of the first to react to the latest news, or you stupidly buy Apple shares in September (introducing a new i-product line):
To be continued?
So how do you trade stocks on the NASDAQ? Yes, as well as the shares of the NYSE. The New York Stock Exchange is different in that it has a physical location and control over the progress of each share is carried out by living people. But the shares of most technology companies are traded.
A small educational program.
')
NASDAQ (National Association of Securities Dealers Automated Quotation) - electronic exchange. It used to be the habitat of technology companies only, but now everything is in a row. Only three thousand companies. Here control is exercised not by one person per share, but by a whole financial institution for several shares. That is, the risk of an inadequate course of the action is much less than on the NYSE.
On both exchanges, ECN (Electronic Communication Network) plays a significant role. These are electronic systems that automatically carry out sales transactions. Roughly speaking, they are the ones who accept and execute your applications. Thanks to ECN, a similarity to equality and fraternity is created on exchanges (applications are executed according to the receipt queue).
In addition to the equality between bidders through electronic systems, the NYSE and the NASDAQ, of course, have a program of insuring funds and controlling the activities of the exchanges themselves and the largest financial institutions. SEC (Securities and Exchange Commission) strictly monitors every movement of each stock and makes a fair decision on each problem and claim. Thanks to this commission in America, the word “insider” has a slightly different meaning, and there is no such mayhem as in the Russian stock market.
So, you first need to open an account for trading. A couple of years ago, overseas markets were virtually inaccessible for residents of the CIS. But now there are a lot of sub-brokers with offices in major cities and more favorable terms than the best offers from and for Americans (the account can be opened and fully online). It is not necessary to use the services of giants like BCS and FINAM. They do not care, Nazdak or MMBB, they will do business in Russian. But there are many small competent companies for which this business is the main one. Each such subbroker provides you with a leverage of 20: 1 (i.e., by depositing $ 5000, you are lent $ 95,000 more for transactions). Here the first nuances appear. If you are going to invest (from 1 week), then the amount of commission on the transaction will be unnoticeable to you. It is quite another thing for speculators (several deals per day), but this review article is not for them. But investors, when using borrowed capital (leverage), will have to pay some interest for it daily, so be careful.
Within a couple of days after the application for opening an account, you can make the first transaction. You will be given a platform in which you can view charts, quotes, and click on the cherished buttons Buy and Sell.
Now, for example, you do your research on the company, you are one of the first to react to the latest news, or you stupidly buy Apple shares in September (introducing a new i-product line):
To be continued?
Source: https://habr.com/ru/post/113587/
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