Why trade stocks & indices on Deriv?

Trade global stocks of your favorite household brands and international stock market indices on Deriv.

Deriv’s stocks & indices offer competitively priced equities and asset baskets that you can trade outside the regular hours of major stock markets.

• Minimal capital requirements, limited risk
• Extended trading time, up to 18 hours a day
• Fast and secure deposit and withdrawal options
• Responsive, easy-to-use platforms
• Smart and friendly support, 7 days a week

CFD trading allows you to bet on the price movement of the underlying asset without purchasing it.

On Deriv, trading CFDs on leverage lets you pay only a small fraction of the contract’s value and amplify your potential profit, similarly increasing your potential loss.

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Advantages of the stock market

When people hear about stocks, they must be imagining Wall Street, a noisy stock market, thousands of people shouting and trying to get a piece of the commission. Admit you think the same! But is that true? Are there other possibilities for working with stocks? Of course there is. In this article we will tell you how to trade stocks without hassle and stress.

Trading of Real Stocks

There are two options: you buy the real stock or trade the difference in price.

Buying real stock is a slightly tricky transaction. First you need a lot of money. Second you need to have a representative who can help you with all the procedures and act for you. Or even more stressful is that you have to engage in real transactions and experience the stress of trying to get lots of stock at the right price.

Now you have the question: what if I don’t want to be involved in all the trouble and I don’t have much money to buy stocks? In this case you have a good chance.

You will not get real shares but you are able to predict price movements in the stock market. When you trade in this way, you are not buying real stocks, but you are only predicting prices and trading based on your predictions. You can open an order to buy or sell and the broker will make the transaction on your behalf.

Maybe you wanted to own real stocks and now you’re sad, but that shouldn’t be the case. The first advantage is that you don’t need a lot of money to get started. Furthermore the broker always helps you by offering good leverage. Second you are stress free. You have time to analyze, make decisions and open positions. What’s even more interesting is that you can profit from an increase or decrease in stock prices.

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What affects stock prices?

Each market has its own criteria that define its direction. There are four main factors that you must follow to accurately predict stock market movements.

1. Company Revenue

It is no secret that the amount of income from a company has an effect on its share price. Revenue is the profit of the company. This profit explains the financial health of the company.

How to follow it. In the United States, companies that sell shares must report their financial status quarterly according to applicable law.

How to trade. Before companies release data, analysts predict the outcome. All predictions are obtained from research on estimated company earnings on a regular basis. Check the estimate and follow the original value. If the real value exceeds the prediction, then their share price will go up. On the other hand, if the original value is lower than predicted, their share price will fall.

2. Internal issues

One of the most important factors is internal issues. Problems or uncertainties of the company will affect the value of its shares as well. Changes in CEO, speakers, and comments from company members, possibly joining or being taken over will create high volatility in the share price.

Let’s consider an example. Do you remember Elon Musk’s tweet that he wanted to buy Tesla’s private stake for $420? After the tweet, Tesla’s stock price rose so much that the NASDAQ had to temporarily suspend Tesla’s stock. The funniest thing is that it’s just a message on twitter but it can immediately panic the market.

Demand / Supply (S/D) should also be included in the internal issue.

The S/D factor is considered by traders and analysts no matter which market they analyze. If the company states it will buy its shares back, then it will support the increase in the share price. Conversely, if the company offers more shares, the value of the shares may fall.

How to follow. Follow the news related to the company whose shares you want to trade.

How to trade. Estimate the impact of the news, wait for the market reaction, and follow the market sentiment.

3. Industry news

It is not only the internal situation of the company that affects its share price, but external factors can also influence it. News related to specific sectors can affect the stock price of the company. That is why traders should also monitor industry news. For example if you want to trade on Facebook shares, then you should also monitor news in the technology sector.

How to follow. Monitor news related to your chosen sector.

How to trade. Determine whether the news is important or not and what impact it will have on the company. Open an order position following the market sentiment.

4. Analyst rating

Analysts consider many factors that affect stock prices. Then they provide recommendations to buy or sell or they can hold the stock. Even if you are not buying real stocks, these recommendations can help you to trade based on price differences as you can capture market sentiment.

How to follow. All you need is to look at recommendations from reliable sources.

How to use. Analyst ratings are very useful material. If the analysts provide a detailed explanation of their predictions by including the factors that can affect the stock price then that is a big advantage. First you don’t have to do your own research. Second, you can use that information to make your own predictions. The rest, as we explained above, by using the recommendations, you can predict market sentiment yourself and use it for your benefit.

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How to predict stock prices?

Different stock markets also have different factors that have an impact on the price of their shares but do not have differences in how to analyze and predict market movements. Have you ever tried trading in currency pairs or commodities? Do you use fundamental analysis or technical indicators? If the answer is yes, then you will have no trouble trading stocks. Place your favorite indicator and follow the fundamentals.

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Why you should invest in the stock market?

Stocks are a highly volatile subject and you can use them to your advantage. High volatility means the possibility of getting a large profit. But don’t forget you can also suffer large losses due to high volatility. To be successful in stock trading, you must follow market sentiment, always know the latest news that can affect stock prices, act quickly on important news, and of course use stop losses.

The stock market deals with big names like Apple, Amazon, Facebook, Google, etc. Do you feel proud to be close to these big names? And of course the opportunity to become an expert in stock trading sounds interesting, doesn’t it?

In conclusion, we can say that trading of price differences in the stock market is an attractive option. First, you can always make a profit whether the stock price goes up or down. Second, the market is highly volatile which gives you the opportunity to increase your profits quickly. Third, this market is interesting because it is full of stocks from the world’s biggest names that bring you closer to Wall Street!