Welcome to StockMarkets.co.uk – the best place for investment advice in the UK. Whether you’re interested in Forex trading, stocks and shares, or a number of alternative markets, we can provide you with the advice you need to leverage your capital – and get the best ROI!
Interested in learning more? Check out a brief rundown of the markets we work with – and see which one is the best for you!
When you think “investing”, you probably think of the stock market – and for good reason. Stocks and shares are easy to trade, and can be very profitable. However, investing in the stock market is always inherently risky – there is no guarantee that you’ll choose the right company.
Stocks can be thought of as a tiny “share” in the company you’re investing in. When the company is doing well, the price of your stock goes up – and if it does poorly, the price will go down.
Stocks are traded on a stock exchange. These exchanges bring together buyers who want to purchase stock, and sellers who want to get rid of stock. You can purchase stock through an online broker, or by telephone.
Investing in stock can be high-risk, medium-risk, or low-risk, depending on your approach. Day-trading has the highest risk, and can result in short-term profits or losses.
Medium-long-term investments involve buying stock in a company, and holding onto it for multiple years, to take advantage of long-term market changes. You can also minimize risk by spreading risk, and purchasing stock from a variety of different companies.
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Forex is a form of currency trading. Because global currencies fluctuate in price, they can be used as an investment vehicle.
For example, say that your purchase £1,000 worth of Chinese Yuan at 7 Yuan/British Pound. If the Chinese economy is doing well, and the Yuan becomes more competitive, and the exchange rate become 6 Yuan/British Pound, you’ve made money, because your Yuan is now worth more. You can trade them back in for pounds – and make a profit!
By finding out which global economies are thriving, and monitoring things like trade, politics, and economic growth, you can make money by purchasing foreign currency on a Forex exchange.
Forex trading is usually a short-term investment strategy. Currency exchange rates can vary wildly in even 24 hours, so most Forex trading is quite risky, but can lead to great short-term profits.
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Spread betting involves betting on whether a certain stock, foreign currency, or other financial instrument will rise or fall. This makes it a type of derivative trading.
You will open an account with a broker, and decide whether you’re interested in commodities, stocks, or Forex trading.
There are two prices at which assets can be bought or sold. The bid price and the offer price. The actual value of an asset is somewhere in-between this price. If you think that an asset will rise in value, you purchase it at the offer price. If you think the value of an asset will fall, you purchase it at the bid price.
Essentially, if the value of an asset moves in the way that you predicted, you will make money. If you predict that the value will fall and it does, you will profit. But if you think that the value will fall and it rises, you will lose money.
Spread betting can be very risky, because you can leverage capital to “bet” more money than you have. Done properly, this can result in very high profits – but it can also lead to you owing your broker money, which is not possible in most other trading methods.
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Commodity futures are essentially an agreement that allows investors to profit from future increases in commodity prices. In essence, a “trade” is set up for a future date – and the market price at the end of the contract dictates the profits.
For example, you could set up a futures contract on oil. It’s going for $50/barrel now, and you think the price will rise. You create a contract that lets you sell 1000 barrels a year from now. If the price is $75/barrel at the time your contract ends, you will make $25,000 in profit. Conversely, if the price sinks to $40/barrel, you still have to sell – and you will lose $10,000.
The market for commodities can be quite volatile. However, commodity trading is very popular as part of a diversification strategy. By investing in commodities, stocks, and a variety of other stable assets, you can create a diversified financial strategy that will result in a profit.
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Anything that you believe will increase in value can be an investment. Two of the most popular alternative investments today are cryptocurrencies and real assets.
Cryptocurrencies such as Bitcoin function similarly to other currencies. Bitcoin can increase and decrease in value – and by buying low and selling high, you can use Bitcoin and other cryptocurrencies as an investment vehicle.
Real assets are another option. A real asset is any physical object that has a value that exists outside of a market.
By purchasing valuable items that you think will increase in value – examples include artwork, antiques, gold, collectible items such as stamps, wine, or even luxury/vintage cars – you can make a return on investment as the value of these items go up.
Alternative markets have the same risks as traditional investment markets. There is never a guarantee that you’ve invested in the right things – and you could end up losing your investment.
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Don’t wait – invest yoday!
With so many investment options available, there’s never been a better time to get into the markets. Think about which option appeals to you – and get started with StockMarkets.co.uk today!
