Professional trading platform in Somalia
What is a professional trading platform?
The Internet has made it easier for a huge number of people to access stock exchanges and now everyone can do online trading. If you decide to trade or invest your spare cash in Somalia, the first thing you need to do is to choose a reliable online broker with whom you will feel comfortable.
A broker provides you, as a client, with all the tools you need to handle the financial markets.
Through a professional trading platform (trading software), you as an investor will be able to quickly receive, process and analyse all the information before you execute the trade.
Such software is a kind of personnel office, where a client can see his account status, investment portfolio structure, history of all his deals, etc.
The software places orders to buy or sell financial products such as stocks, bonds, currencies and commodities.
Trading platforms differ in types of trading, time intervals, different trading tools and other built-in features such as technical analysis charts, signals, etc.
To make sure you do not make a mistake when choosing a professional trading platform in Somalia, you should consider the following criteria.
So for a trading terminal, performance is important. The program should work equally well on any computer/tablet, with dozens or hundreds of trades per day, with large-scale movements on the market.
Also, important is the possibility of using the stop-loss, take-profit and trailing stop orders. Such orders are used for protection of open positions - if the price declines sharply, the losses will be limited and profits will be fixed.
The trading terminal must be convenient: it is important to keep all the standard charts and the main instruments always visible, and it is possible to adjust the system to your own needs. Therefore, the interface of the system should be easy to understand.
The availability of a mobile application also plays an important role. It is perfect for those who want not only to get the most out of stock quotes, but also to read the latest news and recommendations from analysts at global investment houses. Plus a news feed from leading news agencies. All of this becomes very handy, especially if you're on the road or travelling.
Finally, the electronic platform should work without technical glitches, as delays in processing trading orders can lead to lost profits.
Also, when choosing software, decide which strategy you are going to follow. Will you be an investor or a trader? The trading style will determine the volume of commissions for transactions, availability of brokerage account and custody fees.
There are universal and highly specialized trading terminals designed for trading with any single trading instrument.
Platform for online stock trading
The high level of volatility of the stock market's main instruments offers great potential for earnings, both on the part of large investors and small players.
But to trade stocks you need to know at least on a basic level trading strategies, technical analysis, risk management, fundamental research and much more.
The best equity trading platforms allow traders to trade in their chosen market, both long and short.
Trading long simply means that you think the stock will rise in value. It is therefore no different to buying a stock the traditional way. Short trading, on the other hand, means that you think the stock will fall in value.
If you want to trade short and use leverage, you will need to use a CFD contract. These contracts are convenient, but it is important to remember that when trading CFDs with leverage, there are fees for carrying a position overnight, i.e. fees for each night that your position remains open.
CFDs allow you to speculate on an asset or group of assets without owning the instrument. Thus, you simply speculate on the future price of the asset.
Platform for online forex trading
Trading on the foreign exchange market is a set of operations to buy and sell foreign currency on specific terms and conditions, which are carried out between the participants of the foreign exchange market.
The general principle of Forex trading can be described as - buy low, sell high, to put it simply, changes in the value of a particular asset are used to make a profit.
On the trading platform, traders trade currency pairs. A currency pair is a ratio between the prices of two currencies. When buying one currency, a trader always sells the other currency. The first currency in a pair is called the base currency and the second one is called the quote currency.
The most popular currency in the market is the American dollar (USD). It is used in most transactions, and other currencies are evaluated in relation to it. The ratio of any country's currency to the US dollar is a direct quotation. The relation of the dollar to the currencies of other countries is an inverse quotation. Remember that currency pairs are constantly changing in relation to one another because forex trading takes place 24 hours a day, five days a week.
And do not forget that in order to get the best result in currency trading, you must apply both fundamental analysis of important economic events and technical analysis of the charts.
Platform for online options trading
An option is a contract to buy a specific asset at a specific time at a clearly defined price.
Transactions with option contracts can be concluded both for hedging risks and for making profit. Different option strategies are used depending on the expectations of the investor - whether the market will rise or fall.
An option is an obligation only for the seller of the asset, while for the buyer it is a right. Thus, the seller is obliged to fulfil the terms of the contract, while the buyer can decline the direct purchase of the asset at the time of expiry of the transaction, but in this case, the buyer loses the amount he paid as a deposit (option premium):
- Call options allow the holder to buy an asset at a stated price over a specified period of time.
- Put оptions allow the holder to sell an asset at a stated price within a specified period of time.
Depending on the underlying asset, there are the following basic groups of options:
- Commodity options.
- Currency options.
- Stock options.
- Interest rate options.
There are European/ American options. The former can only be redeemed on a specified date. The latter can be redeemed any day during the option period.
Low entry thresholds (only a small deposit to start trading) and the possibility of using leverage make options attractive for traders.
Platform for online commodity trading
One of the most popular asset classes is commodities. Commodities traded tend to fall into four main categories: metal, energy, livestock and meat, and agriculture.
The commodities market is one of the most convenient markets where you can add value to your investments in a relatively short period of time. For many traders and investors, trading commodities is the preferred way to protect funds and reduce the overall risk to their portfolios.
Because commodity prices tend to move in opposition to stock prices, some investors also rely on commodities during periods of market volatility. In the broadest sense, the basic principles of supply and demand are what drive commodity markets. Changes in supply affect demand - low supply means higher prices.
When compared to other investment options, commodity exchange trading stands out because of:
- The high level of liquidity of virtually all objects or commodities that are traded;
- Diversity of commodities;
- High stability;
- Relatively low risks.
On an online marketplace, you can trade commodities via CFDs and use leverage with caution. Remember that trading CFDs offers additional flexibility in your trading, but also increases your risk exposure. Another trading option is ETFs, which track several types of commodities and also invest in or trade shares of companies that produce commodities.
ETF online trading platform
ETF exchange traded funds are a fairly safe and transparent investment tool that has been proven over time. It can be used to invest in a variety of assets around the world. Through ETFs one can invest in securities, precious metals, oil, financial services, health care, biotechnology, etc.
An ETF consists of shares of several companies. By purchasing one share of an ETF, you are investing in the securities of all companies in any given country or industry at the same time. This is advantageous for investors with a modest initial capital base.
An ETF is less volatile than an individual stock because of broad diversification - the downside of one company's basket is offset by the upside of another.
These funds are based on a specific stock index and trade essentially like regular securities, also not actively managed. That is, ETF funds can earn exactly as much as the market as a whole will earn within the index to which they are pegged.
Exchange-traded funds are a convenient and easy solution for investors who want an "all-in-one" solution. For example, they don't want to compile a portfolio themselves or buy index assets individually. This instrument is easy to buy and sell at any time.
A platform for online cryptocurrency trading
Electronic digital money trading platforms are designed for buying, selling and exchanging popular and rare coins. Functionality includes creation of simple and complex orders, storage of funds in the account, deposit and withdrawal, etc. Some platforms offer 20-30 coins, while others offer several hundreds. Still the most popular of all is Bitcoin, but it is not the only asset that has prospects.
Do you have to decide whether you are an investor or a trader? Will you hold and store the cryptocurrency or actively trade it? Are you interested in trading with leverage?
Please note that cryptocurrency trading is available 24/7. You can trade on the rise or fall of the asset.
Here are a few rules for novice traders to follow:
- Diversify risks (don't invest in one single asset).
- Follow your chosen strategy closely.
- Apply both technical and fundamental analysis.
- Use stop loss and take profit orders keeping risks to a minimum.
Platform for online index trading
A stock index is an indicator that shows the performance of a group of securities. Assets are grouped according to a particular characteristic: country, economic sector or profitability.
It is not possible to buy an index directly. It is not a security, just an indicator. But it can be used to work with CFDs or the shares of the respective exchange-traded funds to make money by changing the quotation.
CFDs are good because they make active trading easier and lower the entry threshold to a minimum.
Investors use indices such as the Dow Jones, S&P 500 and many others to evaluate their investments. But the index will also tell you what you need to change: You might want to sell bad assets or buy promising ones, or improve your diversification.
How to start using a professional trading platform in Somalia?
Every customer choosing a broker to trade with should determine for himself whether the broker is suitable or not.
For some people it is the credibility of the brokerage company, for others it is the user-friendly interface. And someone chooses a platform with minimal deposit.
But if your choice is made, and you are ready to use a professional trading platform in Somalia, the next step is registration on an electronic platform.
This is a relatively simple and straightforward procedure, which does not take much time.
In the online application form provided, the customer must provide the required data.
It is important to give all the correct information from the beginning and to check all the data carefully before submitting it.
If mistakes are made or information is incorrect, the brokerage company may ask for supporting documents or other information when withdrawing funds. Such a procedure is required in order to verify that the client is withdrawing his money and not some fraudster or a third party.
So, in order to register you need to enter an email address and, of course, a password of your choice. Once you have filled in and submitted the form, you will receive an email. To activate your account, follow the link in the email.
Be aware that some electronic platforms allow traders to choose whether to verify or trade without verification, but keep in mind that verified accounts are safer and give the participant more trading options.
An automatic and free demo account can be opened as soon as you sign up.
Demo account is similar to brokerage account for trading on the exchange. Its main feature is that the money on it is not real.
This option gives you the opportunity to explore all the features of the trading terminal, without losing any real money. Setting up a platform, viewing data on assets, reading news, using technical analysis tools - all these things can be learned by using a demo account.
Shares, bonds, currencies - each of these instruments has its own peculiarities that you need to familiarize yourself with in detail before you trade on a real account. By using a demo account you will detect any weaknesses in your market analysis, trading decisions and strategy.
A real trading account is a personal trading account opened by the client with a brokerage company, through which the client gains access to trading on the financial markets.
So, to deposit the account, choose the Deposit tab and deposit the amount, which is set on the platform. You can deposit more money if you want, it all depends on your goals.
Having chosen the deposit system, amount and currency of payment, press the button "Deposit to account" to complete the procedure, after that your funds will be credited to your trading account within the terms specified for the chosen method of deposit.
As soon as you have funds on your brokerage account, you can place orders for trading.
You should not make a deposit of too much money at once.
After the first successes - after making a profit - you should not lose your head or raise bets too much. It is better to move gradually, so as not to lose everything at once.
When choosing a partner company, pay attention to its reputation, the feedbacks of more experienced participants, and the availability of free educational materials. Technical support is available 24 hours a day on quality platforms. This ensures that you can always get in touch with a support agent, no matter where you are.
Cooperating with a reliable and proven online platform allows you to make the most of the financial market opportunities for profit.