Learn more about the main trading ways ICCampaign provides and use this information to find the way it is suitable for you. Start trading in the financial markets through buying and selling, futures, ETFs, and Spread Betting.
Buying and selling a security
Buying and selling securities in the financial markets is all about buying an asset and hoping to sell it later at a higher price to make a profit. That involves commodities, indices, and shares. Meanwhile, buying and selling in the digital currency and forex market means exchanging a currency with another.
The process involves looking for a digital currency or forex pair to perform a crypto-to-crypto exchange or exchanging two currencies such as USD and EUR together. The buy and sell are executed in opposing directions to complete a trading cycle to benefit from it.
Futures are financial contracts that bind the actors involved to trade an asset at a set future date and price in the contract. Traders speculate about the future asset’s prices and agree with a buyer or seller that they will buy or sell the asset at a price they see profitable according to their prediction. For instance, if a trader predicts that the price of an index will rise after a month, they can make a contract with a seller to buy it after a month at a lower level compared to their prediction. After a month, if the price has increased, the trader will buy the index at a lower price and sell it right away at the market’s price. Underlying securities include physical commodities, indices, shares, forex, and other instruments.
Exchange-traded funds (ETFs) are investment funds that investors can trade. They have two qualities that every investor likes in an asset: low risk due to the diversification and easy trading process, just like shares.
Here is how ETFs work. An investor who owns some assets designs a fund to follow their performance. After that, they sell shares in that fund to other traders. Those who buy shares of an ETF own a portion of it, but they don’t own the assets in the fund. Despite that, those who have bought shares of a stock index may get dividend payments, or reinvestments, for the shares that compose the index.
“Spread Betting is a trading way where traders do not buy securities but instead bet on their price movements. There are two prices for spread bets, a price at which the buyer is willing to buy and a price level where the seller is willing to sell.
Traders bet on the bid price if they believe the market will rise and on the asking price if they think it will fall. Spread betting includes the use of leverage, the ability to go both long (buy) and short (sell), and the wide variety of markets available.