Let's consider the features of trading on the stock market. First of all, let's define what it is. The stock market trades so-called securities, which are the equivalent of the market value of the issuer (the company that issued the securities into circulation). The history of the stock market goes back to the Renaissance and the East India Company, which gave rise to the concept of a share (a security giving the right to own a part of a company).
Shares are traded on the stock exchange (the company that ensures the functioning of the securities market). Today, shares can also be traded through over-the-counter alternative trading systems.
The main difference between the currency and stock markets is the different ideology - what we buy. In the first case, we buy an instrument (money), and earn on the difference in rates today and tomorrow. As we have already said, we earn on the needs of various funds and international companies. In general, trading on the currency market is to find a discrepancy between supply and demand for currency (cryptocurrency).
On the stock market, we actually invest in a company, hoping that it will grow and bring us income not only in the change in the share price, but also by receiving dividends.
At the same time, the functionality of trading terminals is the same. You see the same charts and the same opportunities in terms of trading. In fact, you can trade in one terminal on the stock, currency and cryptocurrency markets. Modern companies simply negotiate with different exchanges, acting as a dealing center.
What is traded on the stock exchange besides shares. First of all, let's clarify the definition - a share is a physically existing security, essentially an agreement between its owner and the issuer company. A share has two values - the so-called par value (indicated on the share form) and the current market value. Market positioning for shares is buying (long position) and selling (the so-called short sale - its peculiarity is that you borrow a share from a broker under the obligation to return it). The stock is the so-called underlying asset.
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