The Margin Trading is  simple to say in single word were for other type of trading you should use credit which seems to be complicated compared to Margin Trading. The features of Margin Trading are as follows

1 Get over draft protection

2 Possess short sell securities

3 Buy new securities 

4 Access credit

If you own security by using this you can pledge the security.But Margin Trading may be a risky for that too specify it, newly-popular day trading technique involves a lot of risk. Those who are well versed in it or who are a professional trader can try out this Margin Trading as it is highly risk for the beginner.

The good time for investing the amount in Margin Trading is bull market where the country is economically good because you need to invest a large amount, if the market status is good you get double the amount of what you have invested initially. So many expert never recommend beginner to invest their amount in Margin Trading.

Trading on safer is the best way to reduce loss in trading. Regarding trading there are various way to avoid risk which pay a way for smooth trading. By being on safer side you can trade without fear of risk. Let has have a brief outlook on some of the important tips to be followed while trading.The first and most important thing you need to do is have a good analysis on how to avoid risk.then figure out the right one and follow it which will pay you the way for getting the upper hand.The trader who like to invest a small amount initially can switch on to short term plan were fundamental knowledge about trade is more than enough to trade without any fear. Concerned with long term investment one should take in to account the historical events as well look it in technical point of view.

While you undergo a research you may may find many hot tips do not look into that as some may be right and some may not be. In such case concentrate only in your research never let your mind to go on to hot tips that may really perplexed your mind in framing out a correct analysis of your research.If you are analyzing technically be aware that the company liable in a law suit will last for longer days so be aware of investing in it is not a fair thing to do.So be clear in your thought never allow your mind obsessed with fear and carry on your trade prudently

stock Market Crash actually occurs in case of bear market where the country is economically very poor with more unemployed person and poverty prevails all over the country. This situation seems to be more critical than it was before characterizing a bear market. In trading the fluctuation is one which is a fact as such of ups and down in life. In such cases it is better to avoid risk as various risk management are at your hand you can use it at need. Stock Market Crash can be prevented to certain degree by applying the various risk management such as Short Term Investment Plan which help you to exit the market before the market goes down.

Most people fear to get into the market as losses are also possible through trade. But this is not the right decision you must analyze the market trends properly and follow the right procedure to get the upper hand in trading . So before stepping into this field be sure that you have profit in it beside various risk factors involved in it. Do not allow your mind to be obsessed with the loss, shed out all your fear and make a right choice for your life.

Initial Public Offering is mostly abbreviated as IPO which is offered by the company so that the investors can purchase the share which is sold in public. Mostly primary shares are sold in form of Initial Public Offering but in rare case secondary shares too take the same route as of primary share. An investment banker and a corporate lawyer has been hired in this case who underwrite the offer. The regulators generally fix the actual price of a share. The financial status of a company is assessed well so that the investors could know the status of that company which make investors to predict whether that company is a right choice to pick up.

The definition of Initial Public Offering would be more enough for you to analyse the correct offer. Just understanding the meaning of it would rather help you in picking up yhe right choice, as a begginer you no need to worry you can survive with the fundamental knowledge while moving on with it you learn more. Regarding Initial Public Offering is not more expensive and you can get profit easily through it.

Regarding stock trading the most enticing one to the traders is Online Stock Trading and it has won the hearts of many traders and its fame is reaching the peak. Online Stock Trading made the work of a trader easier as of now just by clicking a mouse everything is made possible within a few minutes or seconds. Before and all traders has to depend on the brokers who are the one aware of all the rules and regulations of trading. Now everything has been changed just by browsing all information about what you quest is displayed on your system. All details come to our home through system. If you want to avail online brokers you can get them through online itself and the commission you need to provide is affordable.

You can subscribe the software which suits your trade by clicking the option button and any doubts regarding it you can get it through browsing. For swing traders company like scottrade will be suitable. But you should have basic knowledge of stock trading before stepping into the field of stock trading. Its not that just opening an account in the trading will get you rich. If you have basic knowledge it would guide you in choosing the right stock.Above all you can look into the details of what you want through net so no need to hassle for information every thing is in your hand you can go ahead without any fear

The Stock Psychology is the important part in trading but it is considered as monotonous one by traders instead they focus on other subject and avoid it often. To me it is the blunder mistake that we do in trading which should be avoided to certain limit. One should be able to control its emotion in whatever circumstances he is, But in words you can easily say in action its quite difficult to follow it. Regarding trading you may face ups and down which is a fact , in such case you may find very tough to make decision as decision making matters the most in picking up the right stock. While you make decision your mind need a relaxed state to select a right choice so for relaxed mind you need to control your emotion, tf that happens your choice may not be wrong.

Fear and greedy makes one to loose their money in market. If one mind is predominated with fear then he may exit the market before getting the profit. There are cases where some stay for a longer period as his mind is haunted with greediness which may also lead to failure .So itry to control your emotion when you involve in decision making so that you can select the best stock that would earn profit.

Let has have a brief outlook on the difference between the common stock and preferred stock. The main difference you could point out at glance is that it serve more than that the common stock serves the traders. First of all the preferred stock owners distribute the dividend obtained by the company among themselves.

To add to its advantage the the preferred stock owner get the share as they hold it even if the company goes down preferred stock owner never frustrate as they get the share whatsoever the state of company . But taking common stock into account the share holders has to wait till the last minute with their mind predominated with fear as they hassle for money in case of company bankruptcy. In case of preferred stock the share holders are on the safer side as they get the money in any state the company are. The common stock holder cannot be cool in bear market as they fear whether they have loss or gain.

Moving on with next benefits, it is really advantageous one for preferred stock holders as they pay more amount initially, resting on the safer side they get the amount higher than the common stock holder as their payment received are predefined.

A set of stocks in an equity market constitute Stock Market Index. In this type the exchange are mostly specific and the exchange take place between the region or country. While analyzing Stock Market Index it gives out a clear cut figure of performance of region or country. It is region specific or country specific. Stock Market Index is an essential one in comparing and bench marking but does not serve as an absolute measure. Stock Market Index helps one in measuring the relative prices of a predefined group of stocks but measuring with a predefined index gives you the mutual fund performance. Commencing from base date the weighted average of prices to the expressed relative is taken into account. So when the value of the index goes down the whole constituent does not falls. But by the movement of the trend you can predict the nature of the market as a whole.

Stock Option are the choices for the investor to buy a stock which gives more profit to them. The investor should select the stock at specific time as there is a stipulated period for it. If time passes off you may not be able to purchase the right stock. Employees and executive who works in a company are provided with this stock option. By discount method the stock are sold which pays the way for earning more money in a shorter period. Thus Stock Option beckons the most traders as it create the chance for getting profit quickly. To create awareness about the benefits of the Stock Option many resources has been arranged.

The company provide the price which is a actual price and it may mot amount to more than what is in the market. It may be a discount or special price as it is offered by company the amount is somewhat less and you can get profit when company get the upper hand. The amount you need to invest is small you can invest it without any fear as risk taking is reduced to certain degree. If you get profit you can carry on with it or cease in case of failure.

When capital of a concern is small, it can be categorized into Small Cap Stock and it can also be abbreviated as SQCs and its expansion is Smaller Quoted Companies. Small Caps is the other name for SQCs.

Market capitalization usually act as a major factor in assessing its growth. But mostly people think that number of employees and profit earned by the company determines the size of a company which is not the thing happening as it is a wrong assumption. Number of outstanding shares and number of shares in the issue plays a vital role in determining the market capitalization. Reckoning of market capitalization is done by multiplying the current price of the share with number of outstanding shares and number of shares in the issue. When capital of a company is lower then it is called as small companies and stock are known as Small Cap Stock.

In United States a company with a market capitalization of $300 million to $2 billion are categorized as Small Cap and stock from those companies are said to be as Small Cap Stock. Regarding amateur investors SQCs are really beckoning one as they can invest a low amount and may sometimes get double the amount they invest even they may get 3-fold or more than that.

Forex is a global market with enormous size provide more profit to the trader even though losses exist. It is really a beckoning one to the trader as this market help the trader in managing the risk that they come across while trading.

Exit the market at profit target

As Forex trading provides you with disciplined methodology, it is quite easy to avoid risk. You can place a limit order which help you to move away from the market and this is one way to get rid of risk. Just you can fix the limit which may be your profit target you can remain in the trade till you reach the profit target after you reached you can leave the market as limit order will hellp you in it. By this option you are not allowed to stay longer in the market and you no need to fear for the risk as limit order is by your side .

Limit your looses

As said before another option which never allow you to stay for onger period and help to control the risk is stop/loss command. By placing this order in advance would help you in managing the risk you may come through trading.

Placing of stop and limit order

Placing the stop and limit orders plays a vital role in trading, you must be very cautious of placing stop and limit order as it should placed accurately at the right time. Be aware of not placing it closeto the normal market price. By larger proportion this option are of highly advantageous one.

Here are few tips for Forex Trading.

Usage of stop loss order

It is essential to use this as it will help you in avoiding risk . You can move away from the market when you feel it is not fair to be in this trade as market fluctuation are most commonly occurring one . When your entry points are below or above 30 pips stop loss order is highly recommended.

Loss of more than 5-10 % of capital is not recommended

If you are about to loose more than 5-10% of capital then you can adjust by using stop and loss order and leverage which are of highly help regarding this case. Be authentic about running the profit rather than leaving it in loss. Trailing Stop usage can help you to prevent loss . This is made possible by setting stock price at 30 pips, if you find your entry exceed above or go below 30 pips you can be away from the market for safer side so that you never loose any money.

Online Forex Trading has been an enticing to the traders as the possibility of getting more profit is more here in comparison with other. It has been asserted that prices goes up and down regarding currency it is same. Number of currencies reported so far are 164 and the leading currency in the market seem to be of US green bank. Now let us look on to its merits and demerits in details.

Merits of Online Forex Trading

• The barriers reported so far in the trading market does not exist in Online Forex Trading so the trader can trade at any time without any limitation .
  
• The trading is done around a clock and 7 days a week.
  
• Usage of system and net made the trade quite easier.
• System throw out the in disciplined traders and by and large reduce the poor trading strategies
• Technical facilities in net allow the flow of trade with more profit. Stability can be assured when the traders get maximum profit.
• Middle man transaction has been reduced, what you need is the network and you can work at home which never consume time as well as cash.
• If you want any information about trade it is quite possible through net, just by browsing you can get all you need. if there is any change in the market you an get through net.

Demerits of Online Forex Trading

• As lot of sites are there to provide you information you must select the right site.
• Online Forex Trading is of complicated type and very costly.
• Sometimes you could loose the good clients as prolong transaction in Online Forex Trading seems to be the major draw back.
• The trader trade lonely without the help of middleman so he have to decide on his own and there is no one to help him in selecting the correct one.
• If traders lack technical knowledge then he consume more time to learn and accustomed to technical approach.

Before stepping in to Online Forex Trading keep all these pints in your mind so that you never get hassle while trading and select a system that quite fits Online Forex Trading so that they can have a goodtrading strategies and can facilitate quick access to the market.

Here is the way to become rich without putting up more effort. The luck comes in form of Forex Robot where one can trade smoothly without any hard work. Forex Robot is an automated one were there is no room for manual operation and specially designed to trade automatically. Market analyzes are done through a developed algorithms and are backed so that trade are not only made simpler but they could get more profit through this automated trading device.

speaking about the advantages of Forex Robots , really a lot to say , but let me restrict myself to the most important and common one as I am running out of time .You can make more money and this method never consume more time as you need not observe the trade around the clock and work on it. Yours work are made very quicker and it has been made more confidential and reliable. The users are quite minimum which never let you in scam but get you in quick-rich scheme. The professional traders and person making money through computer are really benefited by forex robot in one word its is a boon to them.

Just as you are aware market is not a stable one, fluctuation has been the common one occuring in the market and more people find it harder to predict the correct one and hassle for selecting the best and get into trouble when the market is of bear type. In this case Forex Robot helps you a lot.

Forex glossary are just the common terms used by forex brokers,traders and investors. The terminology of forex market are listed below which would quite help you not only in comprehending the terms used in the forex market but also covers the basics of forex trading market.

Ask price / offer price
In forex trading market when price are fixed the traders can purchase or sell. As market fix the price the quotes will be distributed to the traders by forex brokers. On seeing the quote trading is done.

Base currency
Listing out the price first in the currency pair is termed as base currency.

Bids
The investor accept the price and are ready to get the stock. The price which are accepted by the investor are known to be bids.

Bid / ask spread
It can be alleged as difference in pips as well as in purchasing and selling prices in addition shows variation in bids and offer price

Brokers
Brokers work for the traders and helps in linking the buyers and sellers. They get the commission for their work and take responsibility for guiding the traders.

Counter currency
Listing out the currency second in the the currency pair is known to be counter currency.

Currency symbol
There are some of the currency symbol listed below

AUD Australian Dollar
GBP British Pound
CAD Canadian Dollar
EUR Euro
JPY Japanese Yen
CHF Swiss Franc

Day trading
If the trading occurs within a single day it is known to be day trading

Foreign exchange
Foreign exchange is done in an over-the -market counter also known to be FX or forex. Foreign exchange means exchanging the currency when one buy the currency he get the other as an exchange.

Leverage
In simple word it could be said as the ratio of amount invested to the amount traded in the forex market.

Limit order
Limit order help the trader in crisis period by facilliating the option to withdraw from the market when market goes down thereby preventing the trader from loosing money.

Liquidity
Liquidity does not have impact on price stability as far as market is concerned it give a way for fat transaction.

Margin
In forex trading margin means the initial amount for the trader to start a forex account which should be invested before stepping in to this trade.

Pip / point
While commencing the trade they bid at lowest rate this is known as pips and prices as well as quotes are expressed in terms of pips.

Stop loss order
When you are aware of low stock price you can get rid of the trade . By this way you get the chance of limiting your great loss. This is highly advantageous to the traders as it controls the loss and helps the trader in critical situation.

The Saxo bank offer the most visceral and complete multi - product online trading platform which is the most advanced trading platform in the market. You are a beginner or an experienced trader, nothing to worry about it you can avail this trading platform as it is of highly advanced one and pay a way for smoother trading. Saxo Trader as a multi - award winner links a comprehensive and massive choice of trading product with a security trading environment.

Advantages of trading platform

a) Stocks from 22 exchanges, complete product range - 160 + FX crosses (incl gold/ silver spot offer), 6000 + CFDs, 16 index tracking CFDs, with future contracts and other derivative in addition to it FX options are also included.

b) All index tracking CFDs and double leverage available on range of single stock CFDs.

c) Market analyzes, charting functions, data and news modules, prices and technical analyzes are complete with fully personalized trading environment.

d) Streaming news service and extensive market analyses.

e) One click trading for quick execution and full range of trade orders with excellent liquidity.

f) Direct accessing to trader is made possible as it is a two-way dealer chat.

g) Since it is a regulated

European bank with license trading is reliable.

The largest market in the world is forex trading which is also known as forex exchange or abbreviated as FX. Regarding its trade it amounts to more than USD three trillion per day. Interbank market conduct this trade where for other trade central exchange take charge of it. Two counterparts involves in the trade and often direct approach mostly through computer or telephone trading is done. OTC (Over The Counter market) is the other term for it and is basically speculative working around the clock. The main centres are NewYork, Sydney, London, Tokyo and Frankfurt.

There are various reasons for people to move on with forex trading The common reason beckoning the traders to forex market are listed below.

a) Working around clock

b) Superior liquidity

c) No commissions

d) 100:1 leverage

e) Profit potentials in falling market.

Bull

A bull market can bloom only when economic conditions are good, gross domestic products are improving and more people are being employed. To say in concise form, bull market is a sign of a good and prosperous economy were everything moves on without any hurdles i.e smoothly. But you cant say that bull market last for ever. If a person is optimistic in approach, then that person attitude can be of bullish type.

Bear

Bear market is characterized by a low stock rate, economically very poor and more people being unemployed. The investors feel very tough pick the stock as only poverty prevail in the country and stock price goes down. Only by short selling method they can make money i.e they sell it only when the stocks rate goes down. Pessimist people can be called as a bear.

Farm

Chicken and pigs are two other animal on the farm by which markets are further categorized. Mostly money market security can turn off or on as every day you can see fluctuation of stock price in a market. There are a category of people who are obsessed with money market security, being worried about the stock all time and scared to get in to the market. People with this type of attitude can be categorized under chicken.


People who are ready to face every thing as a challenge love to take risk can be categorized under pigs . These type of people like to get more profit within a short span of time. Most of the professional traders comes under it as they are the high risk investors.

Stocks are usually purchased by two ways, one is by using a brokerage and another way followed is using DRIPs and DIPs, Let us have a brief outlook on these two types.

Using a Brokerage

The common method of purchasing stock is done using a brokerage. In this type we can categorize brokerages into two types namely full-service brokerages and discount brokerages. Full-service brokerages provide expert advice. But one thing you have to do is to pay the amount for their service . If you pay for them they will manage all that is necessary for you. You can avail them as they work around the clock. Regarding discount brokerages you could avail them at low rate. They pay only little attention to your trade.

DRIPs and DIPs

The individual companies issues two types of plans DRIPS and DIPS at a minimal rate. The extension for DRIPs is Dividend Investment Plans. It helps the share holder a lot as they can invest a small amount of money. Here the investors has to pay it at regular interval. The extension for DIPs is Direct Investment Plans. These two plans are really an advantageous one to the share holder as they could buy stock from the company directly.

Every day there is a fluctuation in stock price. If there is a demand then the purchasing will be more. There will be hike in price. In contrary if supply is more then the stock price would go down.

It is easy for us to understand what supply and demand mean for. But complexity lies in the apprehending what makes one to avert a stock or make a favorable stock to the eye of people. Market capitalization represent the value of a company which includes stock price and shares outstanding. Depending on the company value, investors select the company to invest. If more investors invest on a particular company then the stock rate for that particular company go up.


The profit earned by the company also determine the value of a company. Just you can not say that earning matters the most, but it can be said in one word as a case.

Concerning with stock exchange two types are most popular in comparison with other types of stock exchange. New York Stock Exchange (NYSE), NASDAQ, American Stock Exchange (AMEX) and London Stock Exchange are the various types of stock exchange prevailing in this world.

New York Stock Exchange

The New York Stock Exchange was founded in 1972 lasting to two thousands years ago and it is the most prestigious exchange in the world. Stock exchange is done on trading floor. The other name for the New York Stock Exchange is known as listed exchange. Brokerage firms issues the order and the brokers on the floor get the order from the firm brokerage, distribute orders to the traders on the floor.

Specialist persons are there to match buyers and sellers and finally fix the price by auction method. Sellers will commence the bidding at lowest rate and as the bid reaches the highest rate prices will be fixed. The buyers buy it. When trade is over brokerage firms get the details then reckon the investors who place the order. The above said was the method followed before computer age i.e in stone age . Now trade is done through computers.

NASDAQ

It is the second type of exchange and also termed as OTC market. The expansion for OTC is "over the counter". It is basically a virtual type and most popular type of exchange. It is done through computer. It is the market maker for all stocks. Next to NYSE and NASDAQ we can rank American Stock Exchange and London Stock Exchange

Stock trading are mostly done by exchanges. Buyers and sellers meet on one place and then decide to fix the price. This is one type of exchange and other type of exchange are done through electronic. It is virtual type with network of computers.

In brief you could say that stock market links buyers and sellers. The purpose of stock market is to reduce risk of investing and give securities between buyers and sellers. Just in one word it can be said as a Super-sophisticated Farmer Market.

It is essential to know about primary and secondary market before stepping on to trade in details. Concerning primary market you have IPO ( Initial Public Offering ) which give security but regarding secondary market, issuing company doesn't involve in it. They trade with already issued securities.

Stock are of two types namely common and preferred stock. Let has have .a brief outlook of two types of stock.

Common Stock

The implication of the name itself will tell that stock is common one. Most people come forward to common stock. For many years it has been noted that the best returns comes only from the common stock, whether the company liquidates or rises above, the shareholders get their amount until bond holders, creditors and preferred shareholder get it.

Preferred Stock

Regarding preferred stock their ownership is not to a full extent. To some degree they own it as their rights to vote vary. Fixed dividend is forever for preferred stock which is a guaranteed one. To add to its advantage they get the pay even if company liquidates. Optimistically if one thinks it can be said as its state is in between bonds and common share.

There are cases where company fall into financial crisis as ups and down are the formula of life. When concern faces such critical condition, need of money matters the management of that particular company pushing it to sell the part of the company or borrow money from bank. This occurs are not often, changes may be soon approaching ,so that particular company borrows money from the bank or sell the stock to compensate the down going trade.

Issuing Bond

If the company get the required amount from the bank that particular company is forced to pay money. This is known as issuing bond and it can be categorized under debt financing.In this type the concerned company has to pay in return for the borrowed amount from the bank.

Issuing Stock

The particular company in need of money issues the Initial Public Offering (IPO) and sell the stock and those who are in need of stock buys it and in this way the company sell its part of the company until the condition comes to normal . This is one way of escaping debt as there is no need to return the money . in other words it may be called as equity financing.
Issuing bond and issuing stock can be categorized under debt financing.