All of the stock market
As a general definition, the stock market - is an organized securities trading market. Simply put, it is a meeting place for those who have free money to those who need these tools.
Both categories have always been, therefore, all human history is, in fact, the history of the stock market. However, Moscow was not built, and the stock market did not appear suddenly. Brick by brick, through trial and error, our ancestors since the 16th century, staged what today we call the modern model of trading in securities. Stock market
Stock market securities
Under the concept of the stock market means the combination of mechanisms and actions that are intended to trade in securities (such as stocks, bonds, etc.). The stock market is an integral part of the capital market. The stock market is often confused with the stock exchange. Meanwhile, the two concepts are different from each other. Stock Exchange - an organization that has as its aim the reduction of the buyers and sellers of securities in a specially the space provided. Stock market securities
Stocks and shares views
Action - is a security which gives the holder the right to receive part of the company's profits in the form of dividends and a portion of the company's assets. Some shares also entitle the shareholder to participate in the management of the company.
Some semblance of shares existed in ancient Rome and even in the ancient Egyptian state, but recent history has shares of about four centuries.
The prototype of the shares appeared in the 17th century in one of the world's centers of trade in the Netherlands. Merchants and bankers started to give loans to businessmen against securities. Unlike IOUs for these securities was recorded no interest rate, and the share of the company's profits, which would qualify the person who invested their capital. Stocks and shares views
The structure of the stock market
Stockbroker - financial intermediary engaged in the purchase and sale of securities for the account and on behalf of a client. The broker must be officially registered by the exchange. According to the law, in the process he does not become the owner of the securities and is not responsible for the execution of the transaction. Occupation broker came later than the exchanges began their work. Initially, merchants preferred to do to find buyers of their products, but it gradually became clear that can not do without professional intermediaries. The structure of the stock market
The stock market and its structure
One of the most authoritative dictionaries of the past gives this definition - Exchange, a place or a building where the going part time sales people and brokers "stock broker" for transactions on securities or commodities.
There are the stock exchange for trading with securities and commodity exchange, for transactions in goods (grain bread, alcohol, sugar, wool, etc.).
More enlightened descendants have made a significant clarification to the definition of this concept. Modern Exchange - a company with rights of legal entities involved in the formation of the wholesale market, goods, raw materials, goods, securities, currencies, etc. through the organization and regulation of stock trading in the Form of vowels, a public auction held by the rules set by the stock exchange. The stock market and its structure
Term futures - means that the contract is for the supply of a certain product, but not now, and in the future. Its main difference from the options that the parties have an obligation to exchange up to the execution of the contract. Although such a contract is determined by the purchase price, the asset until the date of delivery is not paid, however, by the seller and the buyer is required to pay a refundable insurance fee at the time of signing the contract. In a futures contract, is specified due date, but prior to that date can be freely to get rid of the obligations assumed by selling or buying futures. Execution of the futures contract is carried out in two ways. For supply contracts by supplying the set amount of the underlying asset, and for payment by the difference in fees at the time of conclusion of the contract prices and the last trading date. Futures
Futures, forwards, option
Province of derivative financial instruments of interest for non-professional speculators and professional portfolio manager. Today, in developed markets total derivative instruments market turnover more than seven times the total stock market turnover. Futures, forwards and options, are the main types of fixed-term contracts. The essence of the futures contracts is to ensure that the two counterparties, the buyer on the one hand and the dealer, on the other hand, agree that the seller delivers to the buyer a certain amount of, a particular asset, called a base, at a certain point, and the buyer pays for the supply of this product on certain price. Futures, forwards, option
A trader in the market of futures and options
Futures and options market today is of great interest to those who are looking for unconventional ways in augmenting their own savings, or income lungs. However, the work of a professional trader in the derivatives market, requires special qualities due to the speculative nature of this market. In addition to the focus on success, commitment, and persistence are needed to handle stress and the knowledge of the basic rules of construction of mechanical trading systems. To effectively sell futures and options, it is necessary, first of all, learn to look at the market a special look. It should be remembered that psychological certainty, an important component of the work, comes only with experience that formed a certain system of trading decisions. A trader in the market of futures and options
Crude oil futures
Main article national Russian exports - is, of course, oil. If its value is growing, the economy is made up favorably, and if falls, the budget deficit and other problems can not be avoided. The price of oil is formed market way, due to supply and demand. Oil is traded via futures contracts with delivery on a certain date called "expiration date."
The oldest stock exchange instrument, futures on oil, for several decades, determines the course of the global economy. Crude oil futures
The forward contract and its price
Derivative financial instruments (derivatives) in recent years are very popular with investors as an attractive tool for speculative trading. On the other hand, they do not go with the first pages of the world's business media, because of their direct relevance to the scandalous losses and the collapse of some financial institutions. It may seem that the sale of the lot only sverhopytnyh professional traders largest financial services companies, but in practice it is not the case. The forward contract and its price
The word "hedge" is derived from the English "hedge", which literally means "fence" or "barrier". Only the stock market, it is not a physical barrier, and financial techniques that can protect investor capital from unfavorable market conditions. In general, hedging transactions are intended to limit the financial losses and reduce risks. For the practical implementation of such a strategy, it is necessary to combine an ordinary transaction and futures markets. Derivatives markets are, the inversion of so-called derivatives, or in other words, derivative contracts, ie futures and options. This contract for the supply of assets in the future at a fixed price in advance. Hedging
Throughout its history, humanity needed tool allows you to insure risks. The term "hedging" is derived from the English word "hedge", ie, "to protect" is used to refer to a variety of risks insurance and investment methods. Hedging is used in various fields. Manufacturers are hedged, ie the fear of falling prices for their products. Investors are hedged against falling stock prices, which have been invested in their funds. It should be noted that along with the reduction of risk hedging and reduce the profitability of transactions. If you insure their positions, and they bring loss, they are covered by the income that you received in the futures market, but this same relationship is maintained and in the opposite case. Intermarket hedge
The page discusses issues such as: Hedging currency risk, How to play on the stock exchange... and many other useful articles for Traders...