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There are many stock exchanges located in just about every country around the world. A stock trader refers to a person or entity engaging in the trading of equity securities, in the capacity of agent, hedger, arbitrageur, speculator, or investor. American markets are undoubtedly the largest, but they still represent only a fraction of total investment around the globe. The two other main financial hubs are London, home of the London Stock Exchange, and Hong Kong, home of the Hong Kong Stock Exchange. International stock trading -In our global economy even average investors have access to world markets. I focus on opportunities outside of the traditional US stock exchanges, including Asia, Europe, Russia, bonds, and commodities.You don’t need to know all of the technical details of how you buy and sell stocks; however it is important to have a basic understanding of how the markets work. If you want to dig deeper, there are links to articles explaining the technical side of the markets.
Most stocks are traded on the exchanges, which are places where buyers and sellers meet and decide on a price. Before we go for Stock Trading, we should distinguish between the primary market and the secondary market.
Trade means to buy and sell in the jargon of the financial markets. How a system that can accommodate one billion shares trading in a single day works is a mystery to most people. No doubt, our financial markets are marvels of technological efficiency.
The primary market is where securities are created (by means of an IPO) while, in the secondary market, investors trade previously-issued securities without the involvement of the issuing-companies. The secondary market is what people are referring to when they talk about the stock market. It is important to understand that the trading of a company's stock does not directly involve that company.
Trading on the floor of the New York Stock Exchange (the NYSE) is the image most people have thanks to television and the movies of how the market works. When the market is open, you see hundreds of people rushing about shouting and gesturing to one another, talking on phones, watching monitors, and entering data into terminals. It could not look any more chaotic. In this fast moving world, some are wondering how long a human-based system like the NYSE can continue to provide the level of service necessary. The NYSE handles a small percentage of its volume electronically, while the rival NASDAQ is completely electronic.
Contra in stock trading
When you buy some stocks, from actual stocks and get delivered to your trading account only after 3 business days. Then you will pay for the stocks only when they are delivered but you are already the owner of the stocks BEFORE they are delivered /PAID FOR. If you sell those stocks within those 3 days, a cash difference of your profit or loss will result in your account without ever owning the stock or paying for them. This is known as stock contra.