How does Trading Work? I can say you that take a look at this site ( http://forexsignal.kyma.info ) may be it can help you. It 's one of the best course about trading. It seems like Trading is almost totally based on Macro-economics. It also strikes me that since there are not nearly as many currencies as there are stocks/bonds/derivatives etc etc, there must be a large number of market players in each currency bracket. So logically, currencies must be very liquid true? Also, what is the risk of Currency trading, high or low? When I read the business section every day I notice that the Canadian loonie moves hardly a tenth of a cent on a regular basis (in comparison to the US dollar). So it seems like theres very little room for growth in currencies unless you leverage. On that note, whats the maximum leverage permitted for forex trading. I know in stocks its x2, and in derivatives its x10. Anyway the only way to know how to start a profitable buisness is by following some methods like the one that I suggested.
The price of a stock is what someone is willing to pay for it. The last trade is the price someone was willing to pay.
Someone is offering the stock for sale at the Ask price. Until someone else pays that price, it is not the stock price.
Define financial terms at Investopedia or Wiki.
Getting Started In Stocks
http://www.investopedia.com/articles/bas...
No. There are always two prices for a stock. That is the BID and the ASK. You would sell to the BID and buy form the ASK
The BID is always lower than the ASK (otherwise you could buy and sell at the same time and make a profit!). What you are referring to as the share price is probably the middle of the BID and ASK.
Not entirely. The Ask price is the price you buy shares at (the price you must pay to be able to obtain the shares). The stock price (as you see on most finance websites) is simply the Last price of the last trade made. It can sometimes be an average, if the trades are mixed. The Bid price is the price you sell your shares at, which is always lower than the Ask price.
Yes
Is the share price/stock price the same as the ask price? Thanks :)
