TRADEORO provides his clients a broad range of equities to choose from when trading. One of the two biggest advantages of CFD Stock trading is the ability to “Short” any of the offered stocks, without the need of owing them. This tool makes TRADEORO a perfect place for traders who are seeking to trade price changes.
The second advantage is the ability to enhance your trading capacity by adding leverage to your trades.
How does leverage work?
The simplest definition of leverage is having the ability to access a large amount of capital using only a small fraction of your own capital and borrowing the rest.
Let’s assume that you wish to open a $400,000 (four standard lots) trade. TRADEORO will ask you deposit only $1000 to your account.
This means that TRAEORO is giving you a 400:1 leverage on your deposit.
Now, let’s increase the numbers. If you were to deposit a $10,000, you would be able to control $4,000,000.
However, if you would trade with no leverage at all (1:1) you would require to deposit $100,000 to your account just to open one standard lot (100,000).
If you don't use leverage (1:1) and make $1000 profit on your $100,000 deposit, you made only a 1% gain on your deposit.
But you can make the same amount of profit with only a $250 deposit (400:1), then your profit will be 400% on your initial deposit.
Just remember that Leverage is a two-way street, you can enhance your profits but at the same time you can also enhance your loss.
Factors affecting stock prices
· Earning season is four times a year
· Regulations & laws that has a direct effect on a specific industry
· Company credit rating and their bond rating
Stocks trading on MetaTrader 4
To execute a trade, it is sufficient to select the stock code of the company you are interested in on MT4 platform and to observe the price changes and to issue purchase and sell orders in the right place.