We’ve answered some of the most frequently asked questions here.
Trading is a fundamental economic concept that involves buying and selling assets.
These can be goods and services, where the buyer pays the compensation to the seller.
In other cases, the transaction can involve the exchange of goods and services between
the trading parties.
In the context of the financial markets, the assets being traded are called financial
instruments. These can be stocks, bonds, currency pairs on the Forex market, options,
futures, margin products, cryptocurrency, and many others.
Investing is allocating resources (such as capital) with the expectation of generating a profit.
This can include using money to fund and kickstart a business or buying land with the goal
of reselling it later at a higher price. In the financial markets, this typically
involves investing in financial instruments with the hopes of selling them later
at a higher price.
The expectation of a return is core to the concept of investment (this is also known as ROI).
As opposed to trading, investing typically takes a longer-term approach to wealth accrual.
The goal of an investor is to build wealth over a long period of time (years, or even decades).
There are plenty of ways to do that, but investors will typically use fundamental factors to
find potentially good investment opportunities.
Due to the long-term nature of their approach, investors usually don’t concern themselves
with short-term price fluctuations. As such, they will typically stay relatively passive,
without worrying too much about short-term losses
Both traders and investors seek to generate profits in the financial markets.
Their methods to achieve this goal, however, are quite different.
Generally, investors seek to generate a return over a longer period of time – think years
or even decades. Since investors have a larger time horizon, their targeted
returns for each investment tend to be larger as well.
Traders, on the other hand, try to take advantage of the market volatility.
They enter and exit positions more frequently and may seek smaller returns
with each trade (since they’re often entering multiple trades).
Portfolio management concerns itself with the creation and handling of a collection of investments. The portfolio itself is a grouping of assets – it could contain anything from Beanie Babies to real estate. If you’re exclusively trading cryptocurrencies, then it will probably be made up of some combination of Bitcoin and other digital coins and tokens.
Day trading is a strategy that involves entering and exiting positions within the same day.
The term comes from legacy markets, referencing the fact that they’re only open for set
periods during the day. Outside of those periods, day traders are not expected to keep
any of their positions open.
Cryptocurrency markets, as you probably know, are not subject to opening or closing times.
You can trade around the clock every day of the year. Still, day trading in the context
of cryptocurrency tends to refer to a trading style where the trader enters and
exits positions within 24 hours.
In day trading, you’ll often rely on technical analysis to determine which assets to trade.
Because profits in such a short period can be minimal, you may opt to trade across a wide
range of assets to try and maximize your returns. That said, some might exclusively
trade the same pair for years.
This style is obviously a very active trading strategy. It can be highly profitable,
but it carries with it a significant amount of risk. As such, day trading is generally
better suited to experienced traders.
Regardless of your investment portfolio size, we will consult with you to figure out the services right for you.
Yes we do, depending on your choice of investment plan
Yes. We are regulated by the UK government.
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