Cash transaction / Securities and stock exchange

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Page modified: wtorek, lipiec 12, 2011 14:28:27

Cash transaction, (often from English day trading, Daytrading, Intraday trade) is a kind of speculation at the stock exchange, with which daily fluctuations are used. Securities, derivatives or currencies within a very short period are bought and sold again. By the Daytrading the speculator tries to profit from smallest to. This kind of the speculation is high risky and can lead within short time to large profits, but just as also to immense losses.

This short term speculation can be very exciting, is however from the fiscal criterion on rather unfavorable. Because who within a yearly buys and sells, must pay duty the obtained profit.

Period

Depending upon length of time between purchase and sales different terms are used, then e.g. become. Arbitrage business frequently in the second trade completed.

Within a short time predictable strong fluctuations exhibits, is favourable it limits there certain courses, which bought (and/or empty-sold) securities within minutes again to sell (and/or buy).

Financing

Due to that depending upon security partly very small Intraday movements at the Daytrading often with a lever one works. Parts of the purchases become by short term credits, which finances so-called Margin. With the majority of the markets, which are acted Intraday, the trade without levers would not be interesting, since the transaction costs would make already a profitable trade impossible. In addition, the use of a lever with the Trading means that larger risks are involved. Due to its a cleanly prepared risk management is very important with the Daytrading.

Also the height of the transaction costs is of not small importance in this connection. American offerers are usually content with 10 to 20 US Dollar lump sums for a transaction. With German credit institutes against it frequently proportional commissions result with the completion purchase or of an order to sell. Depending upon quantity of orders means for the customer a substantial difference in prices.