Among the stocks of the largest British and world companies listed on LONDON LSE: Vodafone Group, British American Tobacco, Barclays, HSBC Holdings and others.
In order to develop a trading strategy for trading shares of the largest world companies, a trader has to take into account fundamental factors, including the prospects of the industry the company is a part of, its financial statements, debt burden, geopolitical factors, investor sentiment, as well as currency rates and commodity prices if the product of a company depends on them.
CFD LONDON LSE is based on the principle of margin trading, where the investor receives income through leverage provided. This makes it possible to operate with higher amounts while only having the required deposit on the account. Thus, the LiteFinance traders are able to work with CFD LONDON LSE stocks and earn from them without having the full amount of money to buy the relevant assets.
LiteFinance clients can use the opportunities of margin trading with CFD LONDON LSE instruments, and make a profit in both rising and falling markets. If a stock decreases in price, then you can open a short position and make money on the difference in prices between the opening and closing value of the trade. Vice versa, if the stock is steadily rising in price, then you can make a profit by opening a long position. Moreover, LiteFinance allows its clients to put forward a margin of only 2% of the value of one share when opening a long or a short trade.
After a short or long position on shares is opened, the value of the asset may change, and when the contract is closed (i.e. when a trade is closed), the trader receives the difference between the initial price and the current price of the asset.
Let's take as an example the long trade in CFD LONDON LSE for 300 shares of Vodafone Group PLC (#VOD) at 74.02 USD per share. The amount of funds on the trader's account required to open such a contract would not be the full price of shares, 22206 US dollars, but only the 2% margin, which would amount to 444.12 US dollars. After a while, the share price may increase to 84.02 US dollars, and then the contract will be closed with a profit of (74.02 + 10 - 74.02) * 300 = 3000 US dollars.
LONDON LSE is a London-based stock exchange. In addition to providing a platform for trading financial instruments, the exchange also conducts initial public offerings (IPOs). Trading instruments include stocks, bonds, derivatives, ETFs, ETPs, structured products, warrants etc. The exchange is one of the TOP 10 largest exchanges in the world and is second largest in Europe by market capitalization. LONDON LSE also calculates the FTSE 100 index based on the stock prices of the 100 leading companies listed in the exchange.
Get access to the trading instruments of LONDON LSE stock exchange through LiteFinance and discover the benefits of margin trading in stocks.
