How Does Global Trading Work

Looking to learn everything you need to know about global trading quickly? You’re in the right place. In this article, we’ll give a brief intro to international trade.

If you’re in the market for some global stock trading you may be a seasoned trader or new to trading altogether. That’s why we’ve made sure to simplify share trading and refresh your understanding of stock trading. 

Anyone with enough US dollars and trading access can trade internationally. Below we’ll uncover some common questions on international stock trading. Keep reading to learn more.

What Is Trading?

For those of you that are new to the world of trading, let’s give a little context. Trading is buying a stock and selling it within a short period of time. The goal is to buy a stock at a low price and sell it at a higher price to generate a profit.

Trading is focused on short-term gain. Generally, trading stocks are only held for a matter of minutes or days before they are sold at a higher price. 

Trading is often confused with investing, and they are not the same thing. Investing is about long-term gain.

The goal of investing is to build wealth over time. Investors will buy a stock and not touch them for months or years to allow the wealth to accumulate.

What Is Global Trading?

Now you understand what the difference between trading and investing is. Global trading is simply trading at a global scale, which involves trading with international stocks. 

However, there are some rules when it comes to global trading. For example, international stocks have to be sold within the same country they were purchased in.

If you buy French stock, you can only sell it in the French market. This is true even if the company sells stock in other country’s markets. 

In addition, sometimes traders face trading fees due to exchange rates. Global trading can get confusing due to the increased amount of rules and regulations. If you find yourself with questions on a trade, it’s a good idea to ask an experienced stock broker

What Is Currency Trading?

Another kind of global trading is currency trading. This kind of trading takes advantage of exchange rates. For example, the Euro is worth $.13 more than the US dollar.

If traded in bulk, this can yield high returns for currency trade.

Global Trading Demystified

Global trading is not too different from regular domestic trading. It’s about noticing trends to yield short-term gains of about 10% or more a month. The main difference with international trading is it involves certain fees.

Some fees are international commissions, currency transfers, exchange rates, and stamp duties. It is important to make sure your trade is worth all the extra fees associated. A stockbroker can also help you avoid any taxation or transfer fees.

This will ensure your trades are as profitable as possible! For more finance tips, continue reading out the blog!