What to know about equity and commodity trading?
If you look at the IG Review, you would come to know that the brokerage offers various trading activities in various financial markets. Let us discuss two of these financial markets in brief in this article.
Share trading or equity trading
Shares and equity are the same and some people confuse the two words often. Share trading is the process of buying and selling stocks or shares of a company among the traders for money. Each share will have pricing set by the company and the stock market authorities depending on some factors. For instance, let us assume that a company’s stock is at $10 per share. If you have $10, you can buy that share using any of the brokerages out there. So, you own a tiny part of that company now. If your shareholding is high in any of the companies, your power over the operations of that company would increase. The companies that are operating as public companies in the stock market would hold a majority of their shares themselves and would release the remaining part for common investors. Brokerages would gather the investors and make them trade with these stocks or shares. Depending on the demand of the shares and the market factors, the prices of the shares will be changing constantly. So, it is difficult to predict the future price of the stock.
Commodity trading is nothing but the buying and selling of commodities that are of some value in real-life. For instance, you could trade agricultural products, metals like gold, energy, and much more. Similar to stocks, the exchanges will have these elements also for public trading. You can own the commodity digitally and sell it whenever you want to make some cash depending on its price at the moment.