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  • What Are Fractional Shares, and How to Use Them for Investments?

    Author: Maks Artemov


    Every day more and more people get interested in investments and the stock market. However, not every investor has a sum substantial for a starting capital. Naturally, you can borrow money from your friends or a bank, but in this case, psychology will work against you, and if you make a mistake, you will have to return the loaned money as well.

    Future and beginning investors have a stereotype that they need a serious sum to get started. However, nowadays this idea is not completely fair.

    Clearly, a million dollar is more efficient and nicer to invest, but what beginners with a modest capital should do? Here is where fractional shares come to the scene: they let you buy a share even in expensive companies for the money you actually have.

    This means you buy a part of a share and become a co-owner of the company. Of course, such a way of shareholding has certain details, and in some cases there is no way to give a voice to a holder of a fractional share, yet there are advantages as well.

    What is a fractional share?

    A fractional share is a normal share broken down into several parts. There are several reasons for and goals of such a split and one of them is to give small investors an opportunity to buy a share in the company, driving more money into the company.

    The share price of many companies is much more than 1,000 USD, which sifts away a lot of potential investors. This is the problem that stock split is to solve.

    Where do fractional shares appear from?
    • Consolidation of shares is the process of uniting several shares in one. In this case, so-called remainders appear sometimes. They cannot be united in one share for some reasons and turn into fractional shares in the end.
    • During additional issue of shares new shares get to the market, and shareholders can buy new shares in proportion to those they already have. In this case, fractional shares can also appear.
    • As a result of merger or acquisition of companies fractional shares can also appear. They trade and participate in all other processes as normal shares do, only proportional to their volume.
    • Stocks split of a broker: a broker gathers applications from those who want a certain share, buy it when possible, and spreads it between the participants. However, the share itself is kept by the broker, while fractional shareholders own their parts and can sell it to the broker at any moment.
    How to trade fractional shares

    There is nothing supernatural in trading fractional shares. The quotations are the same as with a normal share, and you can use any trading strategy.

    For example, you can use fundamental analysis alongside tech analysis. If you invest medium-term and long-term, you will have to study the work of the company carefully and spread the money in the portfolio wisely.

    Trading fractional shares imposes the same obligations on you and the same risks as when you trade a share or a pack of shares.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Comment


    • RoboForex: upcoming changes to the trading schedule in view of Martin Luther King Jr. Day in the US


      We are informing you that due to the public holiday in the USA, Martin Luther King Jr. Day in the US, there will be some changes to the trading schedule*.

      MetaTrader 4 / MetaTrader 5 platforms

      Schedule for trading on CFDs on US indices (US30Cash, US500Cash, USTECHCash) and Japanese index JP225Cash
      • 17 January 2022 – trading stops at 7:45 PM server time.
      • 18 January 2022 – trading starts as usual.
      Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on oil (Brent, WTI)
      • 17 January 2022 – trading stops at 7:45 PM server time.
      • 18 January 2022 – trading starts as usual.
      Schedule for trading on CFDs on US stocks
      • 17 January 2022 – no trading.
      • 18 January 2022 – trading starts as usual.

      R StocksTrader platform

      Schedule for trading on US stocks, CFDs on US stocks, and ETFs
      • 17 January 2022 – no trading.
      • 18 January 2022 – trading starts as usual.
      Schedule for trading on CFDs on US indices (US500, US30, NAS100)
      • 17 January 2022 – no trading.
      • 18 January 2022 – trading starts as usual.
      Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)
      • 17 January 2022 – no trading.
      • 18 January 2022 – trading starts as usual.

      cTrader platform

      Schedule for trading on Metals (XAUUSD, XAGUSD)
      • 17 January 2022 – trading stops at 7:45 PM server time.
      • 18 January 2022 – trading starts as usual.
      Please take note of the above trading schedule changes when planning your trading activity.

      * - This schedule is for informational purposes only, and may be subject to further change.

      Sincerely,
      RoboForex team

      Comment


      • How to Trade USD/CAD Currency Pair?

        Author: Victor Gryazin


        USD/CAD – US dollar vs Canadian dollar – is a major currency pair, popular in the Forex market. Let us see, what influences its quotations and what the main trading methods are.

        Some history

        Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

        Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

        The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

        Trading characteristics of USD/CAD

        USD/CAD demonstrates the relation of the US dollar to the Canadian dollar. The quotation demonstrates how many Canadian dollars you will need to buy one Us dollar. The growth of USD/CAD means that the USD becomes stronger on the expense of the CAD. And when the USD/CAD falls, the CAD becomes stronger against the USD.

        Here are several trading characteristics of the USD/CAD:
        • Trading time: the pair trades 24/7 except weekends and holidays. Its trading volumes and volatility reach their peaks during the American trading session when important economic statistics from the USA and Canada is published, influencing the quotations of the pair.
        • Volatility: USD/CAD is a quite volatile pair. Its average daily movements are about 80-100 points. Strong surges bring the volatility to 200-300 points a day for a short while.
        • Spread: this pair is a major, popular and liquid enough for the spread to be small. On popular ECN accounts in normal market conditions it amounts to 1-1.5 points.
        Trading USD/CAD

        To trade the pair, you can use fundamental analysis, tech analysis, and indicators.

        Fundamental analysis
        This approach analyzes various fundamental factors: economic statistics, expectations of changes in the interest rate, or the current trend in global currency and commodity markets.

        Example:

        In 2020, when the stock market collapsed due to the pandemic, global oil prices were falling fast. At that time, two negative factors at once influenced the CAD: the US dollar was growing because investors were fleeting from risks, and oil prices were falling. As a result, the USD/CAD pair was growing fast; one could buy it and hold until its growth stopped with the end of the acute phase of the crisis and the beginning of economic recovery.

        https://blog.roboforex.com/wp-content/uploads/2021/12/usdcad-fundament-1020x630.png

        Closing thoughts

        Thanks to good liquidity, volatility, and a small spread, USD/CAD is actively used by Forex traders. Trading decisions are based on various methods, including analysis of economic statistics, price charts, and indicator signals.

        To get started, use a demo account so you could practice and only then switch to a real account with minimal risks.

        Read more at R Blog - RoboForex

        Sincerely,
        RoboForex team

        Comment


        • How to Profit from Growing Uranium Prices?

          Author: Eugene Savitsky


          Market players already understand that in 2022, the QE monetary policy will be coming to an end, and the US Federal Reserve System will increase the interest rate.

          This understanding makes investors every time less optimistic and sends stock indices down. For example, NASDAQ Composite (NAS100) has lost 4% since the beginning of the year, and S&P 500 (US500) – 1.5%. Dow Jones Industrial Average (US30) is the only one to withstand the troubles: its decline remains within 1%.

          In such a market, do not hurry to buy even those shares that look promising. Their prices may fall even deeper down. However, we still need to look for efficient investment ideas. So, in this article I am driving your attention to the green energy sector and another one that is somewhat connected – the atomic energy sector.

          Some history

          Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

          Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

          The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

          Looking for clean energy

          Renewable energy sources (sun and wind) cannot replace hydrocarbons yet because the humanity has not figured out how to store lots of energy for a long time.

          Using solar and wind power, people become dependent on weather.
          Meanwhile, hydrocarbons are more user-friendly and reliable, as well as economically efficient. However, it has a negative influence on the environment. Ecological concerns and the threat of global warming make people look for replacements for hydrocarbons.

          Options are few:
          • Solar energy
          • Wind energy
          • Sea wave energy
          • Water energy
          • Atomic energy
          • Thermonuclear energy
          Why we do not use thermonuclear energy

          Thermonuclear energy is a dream of the humanity. First attempts to get electricity from thermonuclear reactions were made as long ago as in 1950. yet, scientists fail to achieve any satisfactory results: they still spend more energy on carrying out those processes than they get in the end.

          This sector is developing actively anyway. A good example is the International Thermonuclear Experimental Reactor project, originating back in 1980. Nowadays, no one can confidently say when the dream will come true, while we need electricity every day, and the need for it is growing constantly.

          The EU plans to consider atomic energy “green”

          Some steps have already been made in this direction. On January 1st, the Euro Commission presented to member countries a draft bill where it is suggested to consider atomic energy ecologically clean. This means financing of nuclear energy plants construction at least until 2045.

          Germany opposes constructing nuclear energy plants

          Germany speaks against this project, referring to the consequences of nuclear power plants accidents. German government does not only speak against this project – it takes actions.

          By January 1st, it had shut down three nuclear power plants, leaving just three more in the energy system of the country, that are also going to be shut down by the end of 2022.

          Read more at R Blog - RoboForex

          Sincerely,
          RoboForex team

          Comment

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