The Stock Market and Stock Market News

THE STOCK MARKET AND STOCK MARKET NEWS

The stock market or equity market is a public entity for trading in company shares (shares) and derivatives at an agreed price. Shares listed and traded on a stock exchange which is an entity of a company or mutual organization specifically in the business of bringing buyers and sellers of the organization to the list of shares and joint securities. Participants in the stock market include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also public companies that trade their own shares. Their orders usually end with a professional on the stock market, who executes a buying or selling order.

The purpose of stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a (virtual or real) market. Exchanges provide real-time trading information on registered securities, facilitating price discovery. Some exchanges are physical locations where transactions are carried out on the trading floor, with a method known as open protest. This type of auction is used on stock exchanges and commodity exchanges where traders can enter offers and verbal offers simultaneously. Another type of stock exchange is a virtual type, consisting of computer networks where trading is carried out electronically through traders. Actual trading is based on the auction market model where potential buyers bid a certain price for a stock and potential sellers ask for a certain price for the stock. When the supply and demand prices match, a sale occurs, based on who comes first to be served first if there are several bidders or askers at a certain price.

A few decades ago, worldwide, buyers and sellers were individual investors, like wealthy entrepreneurs, usually with a long family history for certain companies. Over time, institutions such as pension funds, insurance companies, and mutual funds …

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Forex Trading Based on Real Time News

FOREX TRADING BASED ON REAL TIME NEWS

Forex trading relies on the valuations of currencies against one another, or their exchange rate, measured in ten thousandths of a unit of currency. Drivers for changes in the valuation of an exchange pair can be strongly driven by financial news events, and one sort of strategy for forex trading is to make hedged guesses on how various financial news events will affect trading pairs. It’s not without risks.

For Forex news in the financial sector, the large banks that make the spot markets where forex trading happens pay a premium to get their information first, before it even hits the market. If you’re trading from home, or through a broker, you’re going to be behind the information lag curve, which usually means you’re a trailing trader, not a leading one. This isn’t the end of the world and a lot of sound investing can be done this way, but for a day trade strategy, seconds can mean thousands of dollars.

When there are events that destabilize currency pairs, the changes in the markets can be swift – and brutal. The banks that run the markets can capitalize on small swings through the use of leveraged assets. Private investors should look at volatile markets as a chance to lose big, and play accordingly.

There are longer term news patterns that can be played out. For example, hurricanes on the American gulf coast will drive the value of the dollar up relative to other currencies, because the bulk of the Western Hemisphere’s oil refinery capacity is there. Likewise, anything that impacts the security of oil production will have an impact that can be predicted on the currency markets.

What you do need to be certain of is that you’re reading a news item, and not making a bet because the news …

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