An overview of stock trading and commodity trading

An AvaTrade Review could let you wonder about the different financial trading markets mentioned in it. In this article, let us discuss something about stock market trading and commodity trading in brief.

Stock trading
When a company is not having enough money for its operations such as debt repayment, expansion, and purchase, they would decide to raise money from the public by going public. If a company becomes a public company, its shares will be listed in the stock exchanges with some value set by the national stock market authorities depending on several factors. If approved by these authorities, the company’s shares would be available in the stock market. People who have money and are thinking to grow their savings can buy these shares if they think that the company has a better future. So, let us assume that you buy ten shares of a company for $100 when it comes to the market. The amount generated by the initial public offering would go to the company directly so that it could use it for the operational costs. After that, you can send those 10 shares whenever you want to get the current price of the stock multiplied by ten. So, your money would have grown if the stock has moved up in the market. If the stock’s value is $20 when you sell it, you can make a profit of $200.
Commodity trading
Not only stocks are being traded in the market but also the commodities like gold, silver, agricultural products, energy, and the likes are also available for trading. The process of buying and selling these commodities is known as commodity trading. However, you would not get these elements on hand when you buy them. Instead, you can have them in digital form.