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INTRODUCTION
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Forex market

It is important to understand that in the forex market you are trading currency pairs as a single unit. These pairs consist of two different currencies and are priced based on the value of one currency divided by the other. Technically you are making two trades when you trade any forex pair. You are buying one currency while simultaneously selling the other. For example: with the AUD/USD you are buying the AUD while selling the USD when you go long the pair. _______________________________________________________

Thursday, March 5, 2009

Stock Trading

Stocks are shares of ownership in companies. People who buy a company’s stock may receive dividends (a portion of any profits).

Stockholders are entitled to any capital gains that arise through their trading activity—that is, to any gain obtained when the price at which the stock is sold is greater than the purchase price.

But stockholders also face risks. One risk is that the firm may experience losses and not be able to continue the payment of dividends.

Another risk involves capital losses when the stockholder sells shares at a price below the purchase price.
Posted by: Gardo @ 2:52 AM

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