Get started

Tradingquestions

What if your trading position is halted? What happens if your trading position is halted? There are a few possible outcomes for this scenario. First, when a stock is halted – this means trading that market will be suspended. You will not be able to open, adjust or close your position during that time. The best-case scenario is when the position will just be removed from your account and you will lose whatever the margin (deposit) you put into the trade. The worst-case scenario is, if the market resumes trading but the share price drops over 99%, the next day. Either, the company will release news that it’s currently undergoing facing financial difficulties or fraud. Or it has failed to meet the regulatory requirements. This can result in the stock heading to zero and being delisted from the main index. That’s why it’s important to only look to trade markets that are quality blue-chips, highly credible stocks with a great track record. This way you’ll have a much higher chance at picking stocks that are NOT susceptible to heading to zero. But to be safe, you’ll need to get more accurate information about the specific procedures and outcomes of your trade. It's crucial to consult your trading platform, CFD provider, or your broker directly. They will give you more details about what happened to the stock, the market regulations, and the specific terms and conditions that apply to your situation. If you have any more questions I'll be happy to help where I can. Comment your question below.
TVC:SA40Education
by Timonrosso
3
Traders Help the Economy in 4 Ways!When you trade and invest, there are many elements that you will continue to help contribute to. I can think of 4 main ways including: Way #1: You help with liquidity (volume) Remember, you are the intermediary in the markets. When you exchange money and buy and sell, you’re helping provide liquidity and volume. This makes it easier for other market participants to trade and manage risk. No matter how small or big the account size is, every trade counts. (Similar to the butterfly effect). Way #2: Helping our fellow brokers and managers Yes I know most people can’t stand the fact of the fat cats making millions of rands off other portfolios. But in South Africa, I find that most brokers are very small and don’t earn a lot of money. (Some small brokers earn under R25,000 per month). So when you buy and sell trades, you will help pay the small brokerage fees, which will aid to the salaries of the brokers you are using. Way #3: When you pay brokerage and fees, it creates more jobs When you pay the brokerage and trading platform fees. You are not only helping the brokers. But also the company they work for. The more money that goes into the firms, the more jobs that are created for other employees (Facilitators, marketers, support staff, risk managers, accountants, analysts, domestic workers, etc…) Way #4: This brings growth to your broker or market maker When your broker is doing well, as they have good clients and investors – this gives them a bigger incentive to help build and grow the company further including: · Better technology. · Better innovation · Better efficiency · Better features in the business This will also improve your experience with their growth developments. And so, I’m sure you can see that even if you want to trade for yourself, you will still be helping many companies, people and the economy as a whole… Nothing to feel bad about.
TVC:SA40Education
by Timonrosso