Five Types of Stock Trading Services Available in California

Stock trading has a wide variety of options available to the investor. Each option has a different set of risks and rewards associated with it. This article discusses some of the available stock trading services.

Options Trading

This type of trading involves buying and selling options contracts. An option is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. Options trading can be used to speculate on the future direction of a stock or to hedge against downside risk.

Margin Trading

Margin trading allows investors to borrow money from their brokers to buy securities. The loan is collateralized by the securities purchased. Margin trading can be used to increase the size of a position or take on more risk to earn higher returns potentially.

Day Trading

Day trading is buying and selling a security within the same day. Day traders typically take advantage of small price movements in stock to earn quick profits.

Swing Trading

Swing trading is similar to day trading, but positions are held for longer periods, typically one to two weeks. Swing traders look for stocks in “trends,” – meaning they are moving in a particular direction over time.

Position Trading

Position trading is a longer-term strategy, where trades are typically held for months or even years. Position traders look for stocks that they believe are undervalued and have the potential to generate large returns over time.

Contact for Guidelines

Trading Genie Inc. offers the best quality stock trading services to its clients and has been in this business for more than a decade. They offer professional advice to make the clients feel more comfortable with their services. Contact them today or visit tradegenie.com for details and guidelines.

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