Why you should consider trading in major markets
While anyone can make the argument that the internet has not been the most socially positive tool to have entered our lives, it’s here to stay and it certainly has advanced many causes, spawned numerous innovations, made communication a lot faster and given us as a species access to more information that we’ve ever had access to. To speak lightly of the influence of the internet would be to a mistake. It has entrenched itself in almost everything we do. It’s even changed the way we meet significant others. While its innovations have far reaching consequences, one of the industries it’s changed the most is that of finance. From the ways banks operate to their implementation of artificial intelligence and it’s role in the collection of big data and screening clients – a lot has changed in the financial sector. The major markets of the world have within a few short years availed themselves to almost anyone with a smartphone and a solid internet connection. The are numerous online brokers operating all round the world and providing would-be traders with the digital tools and opportunities to trade on the major markets of the world at a fraction of the cost.
London Stock Exchange Group
The London Stock Exchange is home to over 3 000 listed companies, many the likes of which most people know to be well-established financial power houses. Prominent big companies listed on the UK market include British Petroleum (BP), Royal Dutch Shell and TotalEnergies SE – three of the biggest commodity companies in the world. Oil is but one of the many commodities traded around world including sugar, coffee, timber and natural gas.
The Tokyo Stock Exchange
The The Tokyo Stock Exchange (TSE) comprises over 2 200 listed companies and sports a market capitalisation of US$4.09 trillion. It is the largest stock exchange in Asia surpassing even the likes of Hong Kong. Major companies listed on the TSE are of course Japan’s own Toyota Motor Corporation and the Sony Corporation
Major markets and indices
When it comes to online trading, what is commonly known as spread betting is probably the most preferred way to trade, especially due to its low start-up capital. Most brokers and by way of the SEC (Securities Exchange Commission) will request that you have at least $25 000 in your trading account for the purposes of leverage. However, if you’re going to partake in spread betting, online brokers will allow for $500 in your account that you can leverage up to the value of $25 000 due to a 50: 1 ratio. This also means that when you trade in the major markets, you don’t have to buy stock and can instead speculate or bet on price movements of stock, which means you spend a lot less. Every major market has a major indices or a market index, and this means that the entire market is assigned point score – something you can also speculate on through spread betting.