Financial Markets FAQ

Get ready to dive into our Financial Markets FAQ. welcome aboard, dear reader! Let's take a journey through the vast sea of ​​financial markets. Don't worry, it won't be a difficult journey. Actually, we will make it as fun as possible.


Financial Markets FAQ:

What are financial markets?

To the uninitiated, financial markets are busy markets, where such securities are traded, as shares, bonds, Currencies and derivative financial instruments. But why is it important to you? well, If you've ever dreamed of that, To increase your money, These markets can be your magic bean squash!

Why financial markets are important?

If you've ever wondered about the future, you have, probably, There were questions about, How to save and increase your savings. Financial markets play a key role in this process, Ensuring efficient allocation of resources. They are a bridge, connecting those, Who is looking for capital, with those, Who is ready to provide it.

What are financial markets?

Financial markets – These are the places, Where do the buying and selling of financial assets take place?. This includes promotions, bonds, currencies, derivative financial instruments and much more. They play a key role in the global economy, ensuring the efficient functioning of capital.

Why financial markets are needed?

Financial markets are important for economic growth and stability. They provide capital for investment, contribute to economic growth and create jobs.

Main types of financial markets

Stock market

Stock market – this is the market, Where shares of companies are bought and sold. It plays a key role in the economy, as it allows companies to raise capital for growth and development.

bond market

bond market – this is the market, Where bonds are bought and sold. Bonds – These are debt securities, which are issued by the government and companies to raise money.

Money market

Money market – This is a segment of the financial market, where short-term debt securities are traded, such as treasury bills and commercial bills.

Advantages and risks of financial markets

Financial Markets Offer Profit Opportunities, but also associated with risks. Knowing these benefits and risks will help you make informed decisions.

Understanding financial terms and concepts

Knowledge of financial terms and concepts is an important step in understanding the financial markets. This will help you understand better, What is happening in the market and how it can affect your investment.

Common investor mistakes

Even experienced investors can make mistakes. Understanding common mistakes can help you avoid them in the future.


Shares represent an ownership interest in a company. When you buy shares, you become a co-owner of the company and get the right to a share of the company's profits and assets.


Bonds – These are debt securities, which are issued by companies or the government to raise capital. When you buy a bond, you are actually borrowing money from the issuer, which promises to pay you back the loan amount plus interest.

Mutual Funds

Mutual Funds – These are investment funds, which allow investors to pool their money to invest in a wide range of assets.

Frequently asked Questions

How to start investing in financial markets?

To start investing, You need to open an investment account, choose the types of assets to invest in and develop an investment strategy.

What are the risks associated with investing in financial markets?

Investing in financial markets is associated with the risk of losing investments. Risks may include market risks, Exchange rate risks, interest rate risks and others.

Frequently Asked Questions About Financial Markets in Format “Question – answer”. It will be useful for those, who learns and gains knowledge on trading and investing in the stock market and the market.

Bond market: Safe Haven or Hidden Threat?

The bond market is the place to go, Where states and companies borrow money, By issuing bonds. Bonds are generally considered a safer instrument, than shares, But they are not without risks. Studying macroeconomic trends and issuers' credit scores can help you make informed decisions about investing in bonds.

Futures and Derivatives Market: Game for the future

The following contracts are traded on the futures contracts and derivatives market:, the price of which depends on future asset prices, such as goods, stocks or currencies. It's a tough market, which requires in-depth knowledge and experience. However, with the right approach, it can be a powerful tool for risk management and profit generation.

goods market: Underlying assets in action

A commodity market is a market, Where physical goods are traded, such as gold, oil, grain and many others. This market has its own characteristics and risks, but also provides interesting opportunities for portfolio diversification.

Financial Markets FAQ: Your main questions

In this section, we will discuss some of the most frequently asked questions about the financial markets.

How financial markets work?

Financial markets are a place, where buyers meet sellers to exchange securities. The price of each asset is determined by the forces of supply and demand. Sophisticated mechanisms and strict regulations guarantee, that trading is fair and transparent.

What types of financial markets exist?

There are several types of financial markets, including the stock market, currency market (Forex), Bond market, Market of futures contracts and derivative financial instruments, as well as the commodity market. Each of them has its own unique features and provides different opportunities for investors.

How can I start investing in financial markets?

Before you begin, important to understand, that investing entails certain risks. but, with the right strategy and conscious trading, These risks can be minimized. Start by learning the basics, Choosing a broker, creation of an investment plan and gradual investment of funds.

Dive into the details: Financial markets under the microscope

Now, When you have a basic understanding of the financial markets, Let's dive into the details.

Stock market: Gold mine or map for mines?

The stock market is a place, Where shares are traded - ownership shares in companies. But not everything is so simple, as it seems. Investing in stocks can bring huge profits, But it is also associated with certain risks. A proper understanding of the fundamental and technical aspects of the stock market can help you make informed investment decisions.

Currency market (Forex): World Currency Exchange

Forex or the foreign exchange market is a market, Where currency pairs are traded. It is the largest and most liquid market in the world, which makes it attractive to many investors. However, it is also important to be aware of the risks, associated with a high degree of leverage in Forex trading.


What are financial markets?

Financial markets – These are the places, Where does the purchase and sale of financial instruments take place?, such as shares, bonds, Currencies and commodities. These markets provide an opportunity to invest and trade a variety of assets.

What is the difference between investing and trading?

Investment – This is a long-term investment in order to profit from the growth in the value of assets or dividends. Trading – This is a short-term purchase and sale of assets in order to profit from price fluctuations in the market.

How to choose the right financial instrument for investment?

The choice of financial instrument depends on your goals, the level of risk and the period of investment. Stocks are suitable for investors, looking for an increase in the value of assets, Bonds are generally considered more stable and offer a fixed income, And currencies and commodities are suitable for traders, who speculate on exchange rate fluctuations.

What is portfolio diversification and why is it important??

Portfolio diversification – This is the distribution of your investments across different assets and markets in order to reduce risk. A variety of assets allows you to smooth out potential losses, Since different assets may react differently to market changes. Diversification helps protect your portfolio from significant losses and increase its stability.

How to assess market risk?

Market risk is associated with the possibility of capital loss due to adverse changes in financial markets. You can assess market risk by analyzing historical data, understanding of macroeconomic factors, following market trends and using tools, such as stop-loss orders.

What is a stop loss order and how does it work?

Stop-loss order – This is an instruction to the broker to sell the asset automatically, when its price reaches a certain level. It helps to limit losses, if the price of the asset starts to fall. For example, If you set a stop-loss order for a stock with a price 100 Dollars, then broker will automatically sell the share, if its price falls to this level.

How to choose an investment broker?

When choosing a broker for investment, you should pay attention to the following factors:, As commissions, reliability and reputation of the broker, Services & Tools Offered, Quality of customer support and level of security. It's a good idea to do your research and compare multiple brokers before making a decision.

What analysis tools can be used to make investment decisions?

Fundamental analysis can be used to make investment decisions, based on an assessment of the financial performance of companies, as well as technical analysis, which analyzes charts and statistical data to identify trends and patterns in the market.

What is the role of emotions in investing?

Emotions can strongly influence investment decisions. Often, investors succumb to panic or greed, which can lead to irrational actions, such as selling assets during falling prices or making unreasonable purchases. It is important to learn how to control emotions and make decisions based on fundamental and technical analysis, and not under the influence of emotional reactions.

Where to begin, if i am new to investing?

If you are new to investing, It is recommended to start with education. Learn the basics of financial markets, Understanding of investment tools and strategies. Create a financial goal and develop an investment plan. It is also recommended to start with small amounts, to study the market and gain experience, gradually increasing investment as it is mastered.

What is day trading and how to do it?

Day Trading – This is a type of trading, in which a trader opens and closes positions within one trading day, in an effort to profit from short-term price fluctuations. To engage in day trading, active market monitoring is required, Make quick decisions and use technical analysis to identify trading opportunities.

What tools and strategies can be used in day trading?

Day traders can use a variety of tools, including shares, futures, options, currency pairs and other financial instruments. Commonly used strategies in day trading include moving averages, Support and resistance levels, trading by volume and various trading patterns.

What are the main benefits and risks of day trading?

The main advantages of day trading include the ability to make a quick profit in a short time, intensive trading and the ability to use margin to increase potential profitability. but, Day trading also carries a high level of risk due to short-term price fluctuations, rapid market changes and high volatility. Day traders need to be prepared for potential losses and have strict risk management in place.

How to choose a broker for day trading?

When choosing a broker for day trading, it is important to pay attention to the low commission for transactions, Fast order execution, Availability of the platform for active trading, A wide range of trading instruments and the reliability of the broker. It's also worth making sure, that the broker offers appropriate support and education For day traders.

What psychological aspects need to be managed in day trading?

Day trading requires good control over emotions and the ability to make rational decisions in stressful situations. It is important not to succumb to panic or greed and stick to a trading strategy. It is also recommended to set marginal damages (stop loss) and profitable levels (take profit) beforehand, to limit potential losses and lock in profits.

What are the basic requirements for a novice day trader?

A novice day trader is advised to have a good knowledge of financial markets and instruments, basics of technical and fundamental analysis. It is also important to have access to a reliable trading platform, have sufficient capital to trade and be ready to learn and continuously improve their skills.

What is margin trading??

Margin trading – This is the trading of financial instruments using borrowed funds, provided by the broker. It allows traders to increase their potential profits, but also increases the risks, since losses may exceed the invested capital.

What factors can affect prices in financial markets?

Prices in financial markets can be influenced by various factors, such as economic data, Political developments, News about companies, Changes in exchange rates, changes in supply and demand in the market and many other factors.

How you can protect your investment portfolio from losses?

One of the ways to protect your investment portfolio from losses – it's diversification, Distribution of investments across different assets and markets. You can also use stop-loss orders, Options to protect against falling prices, futures and other instruments to reduce risk.

What is an investment horizon and why is it important??

Investment horizon – This is a period of time, during which the investor plans to hold his investment. It's important, Because different investment tools and strategies may be suitable for different time horizons. Besides, Long-term investments can provide more time for growth and recovery from temporary downturns.

What is market capitalization?

Market capitalization – This is the total value of all shares of companies, included in the index or market. It is calculated by multiplying the current share price by the total number of shares outstanding. Market capitalization is an important indicator of the size and importance of the market.

What is a bond?

Bonds – It is a financial instrument, which is a debt obligation of the issuer to the investor. Buying a bond, The investor becomes a lender and receives a fixed income in the form of interest payments (coupons) before maturity of the bond.

What are the basic principles of successful investing?

The basic principles of successful investing include portfolio diversity, Long-term perspective, fundamental and technical analysis, risk management, rational decision-making and continuous learning and development.

What is an IPO and how does it relate to investments?

IPO (Initial Public Offering) – This is the initial public offering of the company's shares on the stock market. Investors can purchase shares of the company during the IPO and become its shareholders. An IPO provides an opportunity to invest in a company in the early stages and get potentially high returns.

What market indices exist and why they are used?

There are many market indices in the financial markets, such as S&P 500, Dow Jones Industrial Average, Nasdaq Composite and others. Market indices are statistical indicators, reflecting changes in the prices of shares of the group of companies and are used to assess the general direction and state of the market.

How taxes affect investment and trading?

taxes can have a significant impact on investment and trading. For example, Income from investments may be subject to income tax or capital tax. Certain investment products may also have tax benefits or benefits. It is important to consider the tax implications and consult with a tax professional when planning investments and trading.

What is the role of information and research in investment and trading??

Information and research are important tools for making informed investment and trading decisions. Investors and traders need to stay up to date with the latest news, data and financial performance of companies, and use technical and fundamental analysis to identify potential opportunities in the market.

What is the role of geopolitical events in financial markets?

Geopolitical events, such as political crises, War, Terrorist acts and international conflicts, can have a significant impact on financial markets. They can cause instability, increased volatility and changes in exchange rates, influence the prices of commodities and shares of companies, and create risks and opportunities for investors and traders.

What is a portfolio appraisal and how is it done??

Portfolio valuation – This is the process of evaluating the value and performance of an investment portfolio. It includes an analysis of portfolio returns, Risk profile, Diversification, Asset allocation and other indicators. Portfolio valuation can be performed using a variety of methods and tools, such as profitability indicators, Sharpe Ratio, beta coefficient and others.

What investment strategies exist?

There are many investment strategies out there, including growth strategies (investing in growth stocks), Price Value Strategies (value investing), Dividend investment strategies (dividend investing), Passive investing (passive investing) and others. Each strategy has its own characteristics and is suitable for different investors depending on their goals, risk tolerance and time horizon.

What are the main characteristics of stocks?

Shares represent shares in the ownership of the company and are one of the main investment tools. They have the following characteristics:, as the price, Dividends, market capitalization, Beta coefficient, profitability and others. Shares offer an opportunity to raise capital


Financial markets play an important role in our economy and society. We hope, that this Financial Markets FAQ has helped you better understand, what are financial markets, how they work and how to invest in them. Remember, investments are always associated with risk, therefore it is important to conduct research and develop a strategy, that fits your goals and level of comfort with risk.

In the stock market, the number of securities traded is limited. The issuer issued a certain circulation of shares, and some of them got on the stock exchange. Additional promotions will appear only after, how the organization decides to expand their output. The same goes for bonds..

With futures and options contracts, the situation is a little different..

The actual issuers at the time of the transaction are the players themselves. This example clearly works with futures. Seller and buyer make a deal, according to which on day N one of them will buy, and the other will sell the underlying asset. Precisely because, that fixed-term contracts (limited time) do not have a limited edition and are created instantly, the trader does not pay commission to the broker for borrowing funds in case of trading with leverage, or opening a short. The broker does not need to lend something.

What are derivatives?

Derivatives are derivatives, the price of which is based on the value of other assets, which are called basic (stock, currency, goods).

The most common derivatives are futures and options..

Settlements for such assets are carried out in the future. Wherein, the price of the instrument will change following the price of its underlying asset (if stock futures, then the futures price will repeat the stock chart). There are derivatives, which in their pricing have several basic tools at once. Buying derivatives typically requires a much smaller amount of cash (about 10% real value).

The first transactions with derivative instruments were conducted in London since the middle of the 19th century..

Can an individual trade on the stock exchange?

Individuals do not have access to trading on the exchange. There must always be a broker (an intermediary), who is a professional bidder and has the appropriate license from the central bank, or other supervising organization.

Actually, working in the market, an individual has complete freedom of action with all financial instruments and is limited in transactions only by the charter of his broker and the law. From the legal side, all transactions are made by the broker himself, fulfilling the orders of their client. In addition to individuals, legal entities are actively working on the exchange. Recently, more and more organizations use the foreign exchange market to convert their assets, bypassing bank exchangers.

What is a futures?

Futures is a contract for the delivery of a certain underlying asset at a specific time..

The buyer of the futures undertakes to purchase this underlying asset from the counterparty by the end of the term of this security. Salesman, in its turn, undertakes to sell this asset. Initially, futures were used as an insurance instrument., however, now they have become extremely common among speculators due to low commissions from transactions with them. Nevertheless, it is still a very profitable tool. It works as follows.

Let's admit, You are an oil producer. It will take some time for you to sell this product. Even perfect logistics will not allow you to sell raw materials instantly. In the same time, price changes all the time, and not always in your direction. As a manufacturer, your task is not to sell oil at the maximum rate, but to cover the cost of production and generate some profit, higher than annual inflation. At this point, futures come to the rescue.. Let's admit, that the current price is quite adequate and suits you. Until a buyer is found, until the deal is done, price may change, right? At that moment, When black gold just filled the reservoir of the enterprise, a producer can already sell several hundred oil futures in an instant, in proportion to the extracted raw materials. After that, it does not depend on fluctuations in the market.. If, after the sale, oil begins to fall in price, You will profit from the sale of futures, equal to the magnitude of this fall. If growth begins, then the futures will show a loss, which will be covered by the sale of real raw materials at an increased price.

It's the perfect insurance tool.. When it comes to speculation, then the situation is no different from trading any other instruments: bought cheaper - sold more expensive, and pocketed the difference.

How much money do you need to trade on stock exchanges?

The amount of funds for the initial deposit depends on those conditions, offered to the client by his broker. In fact, the minimum amount is limited by the cost of one lot of the cheapest instrument on the exchange. Technically, it is not limited in any way.. Such capital can be suitable for training. After opening an account, the investor can deposit those amounts of money, which he deems necessary (starting from one cent and pumping hundreds of millions of dollars). For the comfortable implementation of trading strategies and the compilation of investment portfolios, capital in the area is considered optimal. 5 000 – 10 000 Dollars (or their equivalents).

What are bonds?

Bonds are a form of lending through securities.. Issuing bonds, state, or commercial organization, seek to attract free funds to cover their own needs. The bondholder is owed a certain percentage, which is his income.

This is a relatively conservative financial instrument, allowing you to receive a fixed income on a par with a bank deposit. Bonds can be quoted both in the national currency of the issuer (for the Russian Federation it is rubles), as well as in foreign currencies (Eurobonds – USD, EUR, etc.).

What are Commodity Markets?

Commodity markets are trading platforms, which provide the opportunity to buy and sell physical goods, most often the raw material. Such markets are of interest to manufacturers, who can always sell their finished product or purchase raw materials for its production. Besides, these exchanges have a pricing function. Many retailers traditionally focus on the market quotations of their goods on the stock exchange.

For instance, Russia's leading oil companies, such as Rosneft, LUKOIL, GAZPROM and so on., determine the price of gasoline at gas stations and in wholesale trade, based on quotes, broadcast from the St. Petersburg Commodity Exchange.

What are Eurobonds?

Eurobonds are securities, which inherit the mechanics of ordinary bonds, but are denominated in foreign currency, most often US dollars and euros. Such assets will be of interest to those, who are looking for a conservative foreign exchange income. The issuers of such securities are various companies, and even the state. The largest corporations of the Russian Federation (Sberbank, VTB, GAZPROM) have many Eurobond issues, which can be purchased by anyone.

How much can you earn on the stock exchange?

With the proper measure of luck, a trader can earn an unlimited amount of interest on his deposit. but, relying on chance, it is very easy to lose your capital. Speaking of stable income, a novice trader should be able to at least catch up with the level of the key rate and inflation. Profitability in the Russian market, advanced bank deposit, is already considered good (30% per annum). We are talking about a stable income in the stock market. In the foreign exchange market, it is 50-100% per annum. There will be a lot of emotional investors, who earn by 300-400%, and even per month, especially if you take FOREX. They exist at best for a few months and eventually, That concept, which gave them a huge income in the short term, will stop working.

What is an option?

Option is the right to sell or buy some underlying asset in the future (stock, currency, futures). This is a pure derivative, which is some kind of futures. Only in this option, the buyer and seller are not obliged to buy or sell the subject of the agreement, but only have the right to do so. Roughly speaking, This is a pass to a private club, where perhaps you can make money. And at the time of receiving the ticket, you still do not know for sure, but, The closer that day is, When will it take place?, the clearer you see, Does this campaign promise you profit?. Ultimately, you can decide for yourself, Whether you go there or not.

Everything can be done 4 type of transactions with an option:

  • Buy call option.
  • Buy put option.
  • Sell call option.
  • Sell put option.

The option itself is worth a certain premium, which the buyer pays to the seller. Respectively, the seller receives this premium as his income.

It is worth buying a call option if, if the trader is confident in the subsequent growth of the asset.

It is necessary to buy a put option, if the investor predicts a fall.

You should sell put and call options if, if sideways price movement is expected.

Options are extremely complex instruments., which are used in their arsenal exclusively by experienced traders. Such assets belong to the last stage of studying the stock market.

What assets can be bought on the exchange?

The variety of instruments on the exchange is limited only by the imagination of the organizers of this platform. Fairly traditional assets are represented in the Russian Federation, such as: stock, bonds, Mutual funds, currency, futures and options. The following commodity assets are traded on the leading commodity exchanges:, how: grain, oil, electric power, gold, silver, platinum, nickel, copper and other sought-after goods.

The following instruments remain the most liquid, As currency and indices. Emerging financial instruments include cryptocurrency and electronic money.

In the United States, even futures for weather and heat are traded during peak hours of thermal power plants..

Who is a shareholder?

This is a private person, company or other institution, who owns at least one share of the company and receives its share of its income.

Who is a trader?

It's a face, which deals with the purchase and sale of financial assets in any financial market (As for yourself, and on behalf of another person or institution). The main difference between a trader and an investor is, that investors work in the long run, while traders tend to hold assets for shorter periods of time, to use short term trends.

Traders are divided into categories:

  • Scalpers – they acquire valuable assets at the ask price and immediately try to sell them at the ask price.
  • Swing traders - take advantage of market fluctuations, by investing in liquid stocks and holding the position open from several hours to several days.
  • Day traders - turn trades in one day. Their main tool is securities with high liquidity and volatility.
  • Position traders – make money on trends, which can last from a few days to months. The bottom line is, to keep the trade open only until, as long as it makes money.

How much can you earn on the stock exchange?

Even buying several shares with the money saved (provided they grow) in a couple of years you can get good dividends. In this case, the cumulative effect works - if you do not spend your earnings immediately, rather skillfully reinvest it in the purchase of other shares, then the amount of profit will grow more and more rapidly.

Below is a graph of capital growth with $3000 to $1 000 000 behind 11 years, subject to profitability 50% annual and monthly fees $300 during the first 10 years, profits are also reinvested:


The total was contributed 39 000 Dollars, and eventually came out $ 1 001 032.

Warren Buffett's earnings chart is very similar to this trend., only the score went to tens, hundreds of millions, and then billions:


What is a stock index?

A stock index is a collection of the value of several stocks (usually, 10-500), which reflects the general dynamics in the market. Indices can be divided into sectoral, currency and technical. They are made for, so that the investor can understand the direction of the market, looking at only one common value, without examining dozens of individual price charts. The most famous indexes are: American S&P 500 (500 enterprises), Dow Jones (30 enterprises), domestic RTS (50 enterprises), Japanese Nikkei 225 (225 enterprises), Chinese SSE (1075 enterprises).

Most liquid indices have futures and options, which allow you to make money on changes in these trading indicators.


How to choose stocks to buy?

You can choose stocks based on several approaches.. When it comes to speculation, then the trader will be interested in the most liquid instruments, which can be bought and sold at any moment. Besides, these should be sufficiently volatile assets, so that in a relatively short period of time they show good dynamics of growth or decline.

To date, such securities include shares Google, Tesla, Ford, Apple, Sberbank, VTB, MMC Norilsk Nickel, Surgut Oil and Gas, MAGNET and other blue chips.

If an investor is looking for a long-term investment, then dividend yield and long-term growth prospects come to the fore. It is best to buy such securities after pronounced corrections, using weekly or daily charts to find an entry point.

What are blue chips?

"Blue chips" are the most liquid stocks of the stock market, which are in high demand among traders. On the Moscow Exchange, the following shares can be distinguished:, how: Sberbank, GAZPROM, Rosneft, etc. On the U.S. stock exchange, Apple shares are considered top, Intel Corp., Coca Cola, McDonalds. Depending on the region, The names of the shares will change. The very name "Blue Chips" came to the stock market from the casino. Blue chips have the highest value in the game.

What you need to do, To buy stocks?

You need to register with a broker, Replenish your account, Install the trading terminal on your computer (A special program from the broker), choose the right promotions there, Specify the volume and buy. In the same terminal, you can sell them. Each broker offers different programs, the most famous are ROX, TRANSAQ, QUIK, MetaTrader 5.

Where are the purchased shares stored??

The shares purchased by the investor are kept in the depository. Depending on the storage conditions, this service can be provided on a paid or free basis. At the request of the investor, Securities can be withdrawn to an external depository. If the shares went to a person through work or connection with any enterprise, then in order to sell them, he must first withdraw them from the registrar to the broker's depository, And only then sell.

What is a depository??

A depository is a shareholder accounting base. Today, after buying shares, you do not receive paper certificates, Instead, you get an entry in the depository and shareholder registers that, that you own a certain number of securities of this issuer. This data is used not only by the companies themselves, but also exchanges to control the value of securities and regulate the market.

What is a securities quote??

A quote is the value of a security at a given moment.

Who is the issuer??

Legal entity, which develops, registers and sells securities to finance its activities. Issuers can be commercial companies, corporations, Investment Trusts, national or foreign governments. An issuer is a company, which issued shares.

What are dividends?

Dividends are the accrued share of a company's profit to its shareholders at the end of a financial year or quarter.

How to get dividends?

To receive dividend profit, the investor must be the owner of the shares at the time of closing the register. This date is different for each company. Due to the specifics of trading on the stock exchange, the owner becomes the actual owner only on the 2nd day after the transaction. In this way, The investor must buy the securities two days before the cut-off date. In order not to worry and for sure to receive dividends, The transaction can be carried out in a week, so that there is a margin of time.

What is T+2?

T+2 is a globally accepted form of asset delivery on the exchange. Closing the deal today, Physically, the instrument will appear on the investor's account only in two days. However, the settlement of the transaction will take place regardless of this factor. To buy or sell the same shares multiple times, No need to wait two days every time. Profit or loss is fixed instantly after closing the position.

What is emission??

This is a legally approved scheme of actions of the issuer for the placement of securities, In fact, this is the issue of securities and the calculation of their value.

What is an IPO?

An IPO is an initial public offering of shares by a company on the stock exchange. The stock market is divided into: 2 Sort of: Primary and secondary. In the primary market, the seller is the issuing company. In the case of GAZPROM, it will be OAO GAZPROM. The buyers are private investors and legal entities. After the placement, GAZPROM's shares begin to circulate between ordinary participants of the exchange. This is called the secondary market. Those promotions, which can be seen on the market every day (Sberbank, Ferrari, Procter & Gamble, etc.), They are traded in the secondary market. I.e, buying Rosneft shares, You don't buy them from the oil company itself, and from an anonymous counterparty. Placing securities on the IPO, Organizing company, usually, plans to earn money, Therefore, it sells shares at an extremely inflated price. Only in rare exceptions do securities continue to grow after the initial public offering.

How much money is needed to buy stocks?

It all depends on the value of the shares themselves. For instance, Yandex shares are worth 1900 rubles, stock Microsoft – $73. Of more than 10 thousands of shares on the international market, There is a wide range of prices from a few dollars to several thousand. For the amount of $500-1000 You can buy one share at a time 10-15 companies, By building your own portfolio.

All trading terminals publish the exchange rate per share. but, on the Russian market, trading is carried out in lots, which include shareholdings in 10, 100 and more pieces. This is done to standardize and reduce the number of inefficient transactions of extremely cheap shares, which cost tenths of a penny. Only on American stock exchanges, shares are sold individually.

What are depositary receipts?

Depositary receipts are securities, which certify, that the issuer's shares are held in the depository of that country, where it is located and belongs to the owner of the receipt. Having owned such a paper, its holder has the right to receive all privileges, which are due to him as a nominee shareholder.

Such a tool has been created in order to, so that investors in other countries can also trade shares of companies, who are registered abroad. For instance, American-type receipts circulate in London (ADR) on Russian stocks. Traders in the UK are free to trade these securities. They are denominated in local currency, But their rate itself does not differ from the value of their underlying asset.

At what time can you buy shares?

The process of buying shares takes place at the moment, When exchanges are open and up, Although the order to the broker can be given at any time. On the Moscow Exchange, shares are traded during the day, with 10:00 to 19:00 by Moscow time. In the same way, exchanges open in other countries during daylight hours. A feature of trading may be the time difference, for example, Toyota shares can only be bought at night Moscow time, when it's day in Tokyo and the stock exchange is open. The working hours of exchanges are about the same for everyone, in the interval from 8 morning until 7 evenings.

What is the minimum amount you can buy shares for??

The minimum amount is limited only by the price of the shares themselves, which changes every day. Of the "blue chips" can be identified VTB shares, one lot is worth 700 rubles. Also for example, Microsoft and Tesla shares are within 45 And 700 dollars respectively.

Speaking of second tier, As an example, we can cite the shares of the metallurgical company Mechel. One lot is equal to the value of one share and is 65 rubles.

Binary options

What the binary options?

Binary options are derivative financial instruments, which have clear boundaries of profit and loss. Initially, Such a contract is bought for a fixed amount. If, by the time of its expiration, the asset is in the profitable zone, the trader wins a certain premium (70-85%). In a mirror situation, the investor loses the value of the option.

How much money do you need to buy a binary option?

As well as on FOREX, You don't need a lot of capital to trade binary options. Starting from 250 dollars, you can plunge headlong into the world of binary options trading. Minimum trades are limited only by the broker itself and can be equal to 10-15 долларам.

How much can you earn on binary options?

Earnings on binary options are not limited by anything. Each profitable trade bring a fixed profit in 70-85% of the investment amount. The percentage of profit depends on the broker and the asset.

What are the assets of binary options??

The underlying assets of contracts are:

  • The most liquid stocks (American, European, Russian, asian)
  • Commodity futures (oil, gas, gold, sugar...)
  • Stock Indices (also from all over the world)
  • Currency pairs (more 30)
What is expiration??

Expiration is the expiration time of a binary option. In other words, This is the moment when the deal is closed, in which the price of the asset is calculated, whether it has become higher / lower than the price at the time of purchase.

For how long can you open a deal?

Binary options can be bought for periods – 30 seconds, 1 min, 2 min, 5 min, 10 min, 15 min and then up to a month. Most often, popular terms are from 15 minutes to time.

When to buy a "CALL" option?

The CALL option should be bought then, When a trader predicts the growth of an asset.

When to buy a "PUT" option?

PUT option should be bought then, when a trader predicts a fall in an asset.

What if the forecast doesn't match?

If at the time of closing the transaction the price did not coincide with the direction of the forecast, The investor will lose funds in the amount of the value of the option and no more.

What does "In Money" and "Out Money" mean??

The "In Money" option is that option, which is in profit during the transaction and during expiration, That is, the price coincides with the forecast. "Out Money" is the other way around, the price of the asset went against the Call/Put condition of the option.


What is ETF?

Exchange Traded Funds (ETF) is an investment fund, whose shares are traded on the stock exchange. The value of these securities changes in proportion to the change in those assets, which were acquired by the management company of this ETF. For instance, if the fund has purchased for its use a package of several shares of different corporations, then its value will grow, If these stocks are rising. Most often, funds copy the composition of stock indices, for example, Composition S&P 500, That is, the investor does not need to buy shares 500 companies, he can buy one share of an ETF fund that copies the index.

ETFs are often referred to as ready-made portfolios, since they contain a large stake in other companies.

How to choose an ETF?

Most of the funds are inspected by the regulator of that exchange, on which they address. Nevertheless, The reliability of the fund is of no small importance for the investor. To choose an ETF, a trader must study the ETF regulations, See the list of those tools, in which this fund invests and decide for yourself, in which market sector he wants to invest.

What are the risks of an ETF?

The management of traditional exchange-traded funds takes place, most often, passively. This means, that managers do not make too frequent transactions, by purchasing or disposing of the securities included in the ETF in order to, to receive income from short-term changes in quotes on the stock exchange. but, investing in such funds carries a certain amount of risk..

The price of the ETF itself may fall, if the tools in its composition similarly fall. Consequently, investing in foreign funds should be compared with investing in standard stocks or futures, traded on the market. The underlying risk of investing in ETFs is the downside risk. In our case, the exchange risk of funds is a fall in asset prices, included in it. The money of a foreign fund may not be fully invested in the market for a certain period of time.

ETF capital can be invested in shares of a specific company, which belongs to the narrow sector of the exchange. With the range of fluctuations in the value of ETF shares on the exchange, the fund's money will remain invested in these assets at the discretion of the management company.


Who is a broker??

A broker is a professional participant in the exchange market, which provides intermediary services for entering the stock exchange to individuals and legal entities. For the implementation of this activity, he charges his customers a certain fee. (commission, spread…).

Besides, many brokers are engaged in analytical and investment activities, conduct training sessions.

What is a single account with a broker?

A single account is an account from which you can trade on different markets and exchanges. Previously, in order to trade on the NASDAQ exchange and, say, XETRA, Separate accounts were needed, The same applies to the securities market, futures and other instruments, as well as the currency of the account. Single account eliminates the need to open different accounts, while saving on costs.

What commissions do brokers have?

Brokerage commissions are completely dependent on the financial policy of the broker. Nevertheless, in the Russian Federation, most companies offer roughly the same level of commission.

For active traders, it is approximately 0,03% for the stock and currency market. Over-the-counter transactions are usually much more expensive.

By purchasing derivative financial instruments, The trader pays the broker approximately 1-2 ruble per contract (1 A contract is something like 1000 Dollars). Besides, the client may be charged for the use of certain trading terminals from the company's arsenal.

How to choose a broker?

In this matter, the reliability factor plays a major role.. The trader must be on 100% Be sure, that his company will fulfill its obligations. There are several points, that will help a novice investor make the right choice.

  • One of the main criteria is the presence of a regulator at the broker, And the more of them, the better.
  • The broker must provide support in your native language.
  • It is good if the broker has an office in your area.
  • A good broker is an old broker. The more years the broker has been operating, the better.
What is a trading platform??

A trading platform is a trading program, which the broker provides to its clients for conducting transactions on the exchange, bypassing phone calls and using the Internet.

Why verification is needed?

The broker must be sure, that no one else will be able to use your funds and conduct unauthorized trading. That is why there are many levels of protection, starting from commonplace passwords and ending with two-factor authorization using one-time SMS passwords.

How can I replenish my deposit??

The deposit can be replenished in cash at the company's office or by electronic payment by means of a bank card or EPS (electronic payment systems). Usually, Brokers provide a large list of details for replenishing your account in any convenient way for you.

How to withdraw money? (ways, Commission, Time)

Withdrawal of money takes place, As well as input. The withdrawal is made in cash at the office or by electronic payment to your same details, from which you replenished your account.

What is electronic money??

Electronic money is an alternative to real money, which is used in the calculation on the Internet.

Who are regulators?

Regulators are the highest authority on the exchange, which keeps track of, that all bidders fully fulfill their obligations. Actually, on most trading floors, the main regulator is the state, Using intermediate organizations, such as the Central Bank.

Is it worth using the broker's analytics??

Brokers can provide market analytics and trading signals. It is beneficial for the broker for you to trade and make a profit, thereby increasing your turnover and giving more commission to the broker. Therefore, the broker provides relatively high-quality analytics and signals. But do not forget, that it is carried out by people, who may be wrong, Therefore, all responsibility for the decisions made still remains with you.

You can focus on the broker's signals and analytics, but checking it with your sources.

What if I forget my password?

If the customer does not remember their password, naturally, He will not be able to log in to his personal account and trading platform. According to the broker's rules, The password can most often be recovered, by using the password recovery service via a mobile phone or by making a visit to the broker's office.

Is it possible to open multiple accounts??

A client of a brokerage company can open several accounts both within one company, and in several. However, this rule does not apply to accounts IIS. One such account can only be opened by an individual, resident of the Russian Federation.


What is technical analysis?

Technical analysis is a mathematical reflection of price charts, which allow you to make very accurate predictions about the movement of quotes in the future. Specialists, Using this method, deny the influence of such factors, Like economic and political news, macroeconomic statistics and fundamental analysis.

What is fundamental analysis??

Fundamental analysis, on the contrary, is based on that information, which is in the public domain. Usually, These are corporate statistics, Macroeconomic indicators of states and individual companies. The main problem of fundamental analysis is, It does not give clear signals, It is necessary to enter the position and when to exit it. All news and reports can be interpreted in two ways.

What is the best way to conduct an analysis??

If we talk about profitable and constant trading, which the trader will devote at least a few hours a day, then the best option would be technical analysis. This approach does not allow for uncertainty in the investor's plans. There is always a clear plan, who will always tell you, How to get out of this situation. The only problem is the implementation of this financial plan.. To eliminate the human factor, many traders are moving from manual trading to algorithmic, using special computer programs, who cannot emotionally and interfere with trading.

What is the advantage of indicators??

Technical indicators always provide accurate information, expressed in numbers. Here is a striking example.

Figure 1 cannot be described in any other way. A digit is a digit. No matter how much they talk about it, it will not become a deuce or a zero. The reverse situation is observed in the field of fundamental analysis. If news comes out, that oil producers did not agree on a program to reduce its production. The person to the left of the trader will say this:if production is not reduced, oil will continue to fall and sell oil futures. And the person to the right of the trader will say: if they don't want to cut production, means, expect growth in the near future, they will not work at a loss and will buy oil futures. So the trader is left alone with his thoughts.

What should he do? Buy? And can sell? Who is right, The Man on the Left, or the person on the right?

For now, he will be tormented by these questions, The technical analyst will see, that his indicator showed the number "1". He'll pick up his battered notebook, in which it will be written in black and white: 1 – means to buy, and he will buy. Will he be right? Far from a fact. But he deprives himself of painful choices and reflections, which purely physically do not make any sense.

What is a trend??

A trend is a directional price movement in one direction. They can be both upscaling, and lowering.

What is support and resistance??
  • Support is the price level on the chart, from which an upward movement most often develops, or, at least, at which the decreasing ends.
  • Resistance is a mirror image of support. At the resistance level, the price stops rising and very often starts to fall..
What is liquidity?

Liquidity is the ability of an asset to quickly convert into real money. Well-known stocks can be bought and sold quickly, But the shares of the third tier can be put up for sale, but long wait for buyer.

What is volatility?

Volatility is the range of price fluctuations over a certain period of time.. If the price is actively moving, constantly moving between lows and highs, this instrument can be considered volatile. If the reverse situation is observed and the price has been standing still for a long time, then there is no volatility for the asset.

Speaking, the exchange has a market volatility index, which can also be bought or sold.

Who are bulls and bears?

This is classic trader jargon.. Bulls, - these are those investors, who buy assets and are in a long position.

Bears are those, who predominantly open short positions and sell assets, In hope, that the fall will continue.

What are macroeconomic indicators??

Macroeconomic indicators are information, which is published by various international and national financial institutions. These include unemployment statistics, Indicators of the real estate market, the volume of increase or decrease in industrial production and the overall credit burden on various states.

What does market sentiment mean??

Market sentiment is a metaphor, which is used in the jargon of traders. It is intended to characterize, which participants in the trade are more: sellers or buyers. If the market mood is positive, expect growth. Otherwise, if the market mood is bad, sales are expected.

Forex and CFDs

What is FOREX?

This is the interbank foreign exchange market., which is used to exchange currency at the market rate. There is no specific regulator here., and this site does not have a centralized trading venue. FOREX is a collection of trading participants around the world, who independently reach out to their counterparties. This market became extremely widespread among the population in the 90s of the twentieth century with the advent of computers in every home.

What is the essence of CFD?

CFD is a contract for difference. As a matter of fact, it is a dispute between buyer and seller. The one, who wins the argument (seller or buyer), receives the difference as his income. Therefore, such contracts can be drawn up for anything: on promotions, on currency, on indices, etc.

In fact, CFDs do not differ from forex transactions, The difference can only be in assets, since there are CFDs not only for currencies, but also for shares. The trader makes a profit depending on the change in the price level. The basic essence of trading remains the same - buy low - sell high.

What is leverage??

Leverage is borrowed money, which the broker provides at a percentage to the trader to increase the maximum position on the account. This money is only used to open a trade, and there is no other way to use them..

What assets does the FOREX market have?

All currency pairs, as well as some rates of commodity assets against the dollar, e.g. gold.

What does long mean?

A long is a purchase, Designed to increase prices. Long (from English long - long) – the entrenched notion of that, that growth is slow. Long is a position on price growth.

What does short mean?

Short is the sale of assets, borrowed from a broker. Trader sells assets, like he has them, getting a negative amount of assets, and then buy them back, balancing the balance and returning the assets to the broker. Short (from English short - short) – the entrenched notion of that, that the fall is fast, therefore it is also called a short position.

What are trading advisors?

Expert Advisors are programs integrated into the trader's working terminal, That, based on mathematical algorithms, signal entry and exit points from the market. Trading advisors are able not only to issue signals, but also automatically open and close trades for the trader, Fully automating work. Therefore, they are also called "robots".

What is the disadvantage of a DEMO account?

Working with a demo account cannot show one of the most important aspects of market trading - psychology. When a trader loses virtual assets on his screen, it's just numbers for him.. But when he loses his money in the market, it's a loss for him.. A demo account cannot teach a trader how to deal with drawdowns on their account, and since there are no drawdowns in trading, demo account can lead you in the wrong direction.

You can often hear, that on the demo everything is fine with the trader, but in a real account it did not work, beginners in this case begin to blame the broker, although in fact it is not the broker that has changed, And the trader himself.

What is spread?

The spread is the distance between the best buy price and the best sell price in the order book.


Being a trader means understanding and feeling market movements and being able to make money on them.

What assets does CFD have?

Most CFDs have the most traditional assets as their underlying instruments. An example is common stock and preferred stock., raw materials assets (gold and oil), stock indices (RTS, MIX, SandP500 etc.), currency pairs (US Dollar, euros), bonds and any other instruments, which the broker wishes to provide. The assets listed above are only the most popular.

What is margin?

Margin is the amount of money, which the broker can provide as collateral to the trader, to receive a loan to open additional positions on your account. A margin loan differs from a regular loan in that, what is the amount of money, provided by the broker, several times higher than the amount of the deposit itself.

What is Take Profit and Stop Loss?

This is the name of special applications, which are attributes of risk management of professional traders. They forcibly limit the profits and losses of an open position, according to that trading strategy, which is used by the investor.

How much money do you need for a minimum transaction?

The minimum cost of a lot on the FOREX market is 100 000 dollars or euros. However, brokers provide an opportunity to trade thousandths and ten-thousandths of lots. In this way, You can even open a position on 1 dollars.


What is the difference between a trader and an investor??

A trader is an active participant in trading. The operations of buying and selling tools are a real job for him. Daily or monthly, But the work, from which he receives income.

The investor occupies a slightly different niche in the stock market. For him, the purchase of shares is a form of placement of existing capital, not work. The investor is not faced with the task of earning a conditional amount of money in the market in a short time and withdrawing it. From his point of view, the top managers of the company should work, whose shares were bought on the stock exchange. The increase in the issuer's profit will affect the amount of dividends paid and the growth of the market price.

What is the essence of the strategy "buy and hold"?

This is a fairly common approach among investors. It consists in a one-time purchase of assets and the subsequent long-term retention of these instruments in your portfolio. Wherein, The investor will not close his position, no matter what. No matter what negative news comes out, And no matter how the technical indicators "shout", The paper will remain in the portfolio until the physical bankruptcy of the issuer.

Despite the conditional simplicity of this method, He often beats most scalpers and active traders.

The position should be as diversified as possible, so that the investor does not depend on only one paper or one industry. Closing in profit occurs with a substantial profit (least 100-300%). The disadvantages of this strategy include the fact, which is completely unknown, How long will you have to be in position?, To see the profit.

Warren Buffett, The world's richest investor, adheres to this view of trade.

What is a PAMM account?

PAMM-account (Percent Allocation Management Modul) this is a special account, which is an alternative to trust management of capital. A PAMM account is a special trader's account, to which other people - investors - can transfer funds. Profit from trading is distributed in proportion to the contribution. Thus, the trader gets the opportunity to increase the turnover of transactions and his profit, And investors get their percentage of the profits, As a rule, these are: 50-70%.

What is an individual investment account?

Individual Investment Account (IIS) is a unique opportunity for residents of the Russian Federation to exempt their income from taxes on the stock exchange or receive a deduction for that amount of money, which was entered on the IIS. In the second case, the tax must have already been paid on some form of earnings. (for example, salaries).

An investor opens an IIS with his broker, deposits funds and starts trading. Income from transactions will not be subject to personal income tax. This method is suitable for active traders. An alternative is, to deposit some capital, from which personal income tax has already been withheld. This makes it possible to contact the tax office and return the paid 13%. If you buy the simplest bonds on such an account with 5-6% profitability, The holder of such an account will receive: 18-19%, without making any effort at all and without trying to predict movements in the market.

The investor has to choose only one type of benefit: or exemption from taxes on profits in the market, or the return of personal income tax from the profit already received.

One of the important conditions is that, that such an account should last for three years. If you do not wait for the end of this period, then when withdrawing funds from the IIS, taxes will be withheld in the usual manner.

The maximum bar for depositing funds into the account is 400 000 rubles annually. At the end of the three-year period, it is not necessary to immediately close the account and withdraw money. IIS does not have a maximum lifespan and can be closed with a benefit at any time after a three-year period.

What is a manager's offer?

The manager's offer is a list of conditions, which the client accepts, To connect to portfolio management. Modern trading systems allow even ordinary traders to create their own trading strategies based on the functionality, which is provided to them by a broker and draw up their own offers.

Why you need an investment portfolio?

An investment portfolio is a well-formed set of various assets, which are traded on the stock exchange. The ownership of such assets will protect the investor's capital from inflation and help increase his savings.

What is portfolio diversification?

Diversification is the reduction of risk by diversifying the portfolio across different industries, Markets, Exchange, currency.

How much can you start investing?

The minimum deposits at most brokers do not exceed $300. But for normal trading with low risks, it is advisable to start with the maximum amount for you. It's not just a whim or words, for example, How does this affect the risks of binary options?. If the minimum trade 25 Dollars, then with a deposit in 100 Dollars, you can open everything 4 deals. If you have a deposit in 300 Dollars, then you will be ready for 12 transactions. This does not mean that you need to open trades at the same time., but shows the essence of your risks in case of unsuccessful trades, That is, the ability to continue trading without slowing down at the first loss.

To reduce risk and diversify in the stock market, The optimal amount is considered to be from 5 000 – 10 000 U.S. dollars or its equivalent.

What are investment ideas?

An investment idea is a subjective vision of a group of analysts or even one specialist regarding the development of prices of certain instruments in the market in the future. Such information may be provided by analytical agencies, broker and ordinary investors. More often, This is technical or fundamental information, built on some statistical facts, which have already been published. For instance, rising unemployment in the United States will have a negative impact on the stock indices of the United States. Consequently, Under this news, you can open short positions on US indices or stocks. It is worth noting, that most of the ideas, distributed free of charge, do not carry any practical value and can lead to serious losses in the investor's portfolio. Besides, The creators of such forecasts are in no way responsible for the consequences of their assumptions.

Why invest, if you can trade on the stock exchange yourself?

If the investor has a working business at his disposal or holds the position of a highly qualified specialist, then it is much more profitable for him to continue to engage in his main activity, and transfer the accumulated capital to the management of specialists, who have extensive experience in the market. Many people mistakenly believe, that trading on the stock exchange is not something complicated. Even more widespread is the misconception that:, that you can successfully combine official work and active trading. In fact, it is not so. If a private investor starts making money on the stock exchange, it will take 90% of his time, which will make it impossible to continue the main work.

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