Knowledge is a investment
By combining easy-to-understand information with actionable insights, Our company helps make the market seem less daunting—and more approachable.
Trade Forex Markey
You can the effortly trade forex market, why you should be a part of it.
Trading Tools
Familiarize yourself with advanced strategies and Btrade's trading toolset. Take your trading to the next level.
Stocks and CFDs
Discover the world of CFD trading: The ins & outs of the CFD market, relevant information and market dynamics.
What is day trading?
Day trading is the practice of buying and selling financial instruments within the course of a day. A day trader typically starts trading when the market opens and finishes when the market closes. The idea is to speculate on small price movements.
- Day trading involves opening and and closing a position within the same market session.
- Day traders speculate on an asset’s short-term price fluctuations.
- Day trading is highly risky, so traders should do their own research, remember that prices can go down as well as up, and should never trade with more money than they can afford to lose.
Things to watch out for when day trading
The are a few mistakes traders could avoid when day trading
- Not doing their own research: A trader who does not do their own research is at risk of losing their money because they are not as well informed as they could be.
- Trading illiquid assets: If a trader’s assets are not liquid enough, then they may not be able to sell them.
- Not controlling their emotions: Traders who keep their emotions in check may be more likely to make rational decisions than those who let their hearts rule their heads.
Swing trading explained
Swing trading refers to the medium-term trading strategy that involves taking a position in a security for a period of a few days to a few weeks, aiming to profit from price swings. Swing trading strategies employ fundamental or technical analysis to determine whether a particular security could go up or down in price in the near future.
Swing trading explained
Swing trading refers to the medium-term trading strategy that involves taking a position in a security for a period of a few days to a few weeks, aiming to profit from price swings. Swing trading strategies employ fundamental or technical analysis to determine whether a particular security could go up or down in price in the near future.
- Swing trading is a trading strategy that involves taking trades over a period of days or weeks, in an attempt to profit from expected price swings in the market.
- Swing traders use fundamental and technical analysis to identify potential trading opportunities.
- One of the key differences between swing trading and day trading is time. Swing trading tends to be more medium-term with positions kept open for days or weeks, while day trading positions are opened and closed on the same day.
Highlight
Swing trading strategies and techniques
How do you swing trade? There are several different swing trading strategies often implemented by traders. Below are some of the most popular.
Breakout
A breakout technique is an approach where a trader takes a position on the early side of the uptrend, looking for a market or stock that is most likely to ‘break out’. The trader gets into the trade as soon as they see the desired level of volatility and movement of a stock that breaks a key point of stock’s support or resistance.
A breakdown strategy is the opposite of a breakout. The market price goes lower than a defined support level and the chart points toward lower prices. Then, traders monitor the same fundamentals as with breakouts.
This swing trading technique uses price-changing momentum when its growth or fall slows down before having a complete reversal.
A concept that is quite similar to reversal. Retracement is applied when the price reverses within a larger trend, but not to its high or for any length of time. A stock temporarily retraces to an earlier price point and then continues to move in the same direction later.
Note
Day trading is considered one of the most speculative strategies as traders attempt to profit from very short-term movements in the stock market, selling at a predetermined price to hedge against the risk of any counter moves that might happen during out-of-hours trade. Each trading strategy has its advantages and disadvantages. On a surface level, day trading could have a higher chance for gains as day traders would make a higher number of trades in the same time frame as swing traders. However, in actuality, factors such as the strength of a trader’s strategy, their knowledge of the market and the strength of their research may have a much greater effect on the gains or losses they make.
Trade major world indices
A stock market index is a measurement of a section of the stock market. It is calculated from the prices of selected stocks. Stock market indices are used by investors to describe the market and compare the return on specific investments. Follow all the major world indices live with Capital.com.
What are some popular indices?
CFDs provide opportunities to trade the world’s most popular indices. Capital.com offers CFDs on a wide range of indices from all over the globe ranging from iconic indices like the US Tech 100, Dow Jones and FTSE 100 to more particular indices such as the Wig 20 or the IBEX 35.
Take a look on this page to discover all the indices you can trade with us. You can organise the entirety of our indices instrument table by the most traded, most volatile, top risers and top fallers. Our interactive table displays prices in real time as well as shows the past two days percentage change. Follow live indices prices and charts here. Trade CFDs on indices We offer indices like the Germany 40, which compiles the largest German stocks, and the US 500, listing the most-capitalised US stocks. Traders often choose indices because of their potential for diversified risk compared to single stocks. Indices also offer the potential for volatility, although volatile market conditions can mean pronounced losses as well as profits. Dividends and positions on indices Dividends will be accrued to clients who hold positions on indices.
What is a dividend?
The distribution of a section of a company’s earnings to its shareholders is known as its dividends. Dividends are a portion of earnings chosen by the company’s board of directors and can be issued in the form of shares of stock, cash payment or property. When a company makes a profit it can reinvest this money back into the company and/or distribute the profits to its shareholders. If a company decides to pay its shareholders dividends, a fixed amount per share is designated and shareholders will receive this amount at a specific date. The ex-dividend date determines when trading in the underlying stock no longer includes an entitlement to the upcoming dividend payment and therefore on the ex-dividend date the value of the underlying share will decrease by the approximate dividend value. Anyone already holding a position in the underlying stock prior to and going into the ex-dividend date will be entitled to receive, or required to pay, the dividend depending on whether they are long or short. Anyone opening a position on the ex-dividend date will not be entitled to, or required to pay, the dividend.
An index typically reflects the weighted average share price of several underlying stocks trading on the same exchange, therefore if one of these stocks declares a dividend payment then the underlying share price will decrease by the dividend value and the index will also decrease by the equivalent weighted average value of the same dividend on the ex-dividend date. Clients that hold positions on indices will receive or pay the equivalent weighted average value of the same dividend on the ex-dividend date.