1. Spot transaction
Spot trading means that the seller of stock transfers the stock to the buyer in a short time to obtain cash payment. There are two types of spot transactions: delivery on the same day, where the buyer and seller of stocks complete the delivery procedures on the trading day; And regular trading, that is, both the buyer and the seller of the stock complete the trading procedures on the regular date specified by the exchange. This trading method is suitable for institutional investors and individual investors with small investment amount in the international stock market.
2. Futures trading
Futures trading refers to the long-term trading between the buyer and the seller of stocks at the price agreed by both parties, generally from one month to six months. In this form of transaction, the buyer and seller must sign a contract at the closing time to determine the stock price and delivery date. However, due to the long trading time of the stock, it also provides the buyers and sellers of the stock with the convenience of hedging or speculation. If the stock market rises on the date agreed by both parties, the buyer of the stock will receive a premium;Otherwise,the buyer will have to bear a series of losses.
3. Credit trading
Credit trading means that the investor pays only part of the price when buying a certain number of shares and the rest is temporarily advanced by the exchange broker, or the investor pays a certain amount of margin for the opportunity to sell the shares from the broker. When the shares are sold, the broker refunds the principal and interest on the loan to the bank, minus his own commission and interest on the advance, and returns the balance to the client. Conversely, if an investor is pessimistic about the future of the stock market, the investor can enter into a financing and financing transaction. This type of trading allows the investor to buy and sell shares without paying the full price and potentially making a larger profit.
4. Option trading
An option transaction is a contract between two parties that allows the option buyer to purchase or sell a certain number of shares of stock to the option seller at a price specified in the contract within a certain period of time. There are three types of stock options: (1) when profits rise, it is the contractual right of the option owner to purchase shares at the price and quantity specified in the contract; (2) when profits fall, it is the contractual right of the option owner to sell shares at the price and quantity specified in the contract; and (3) two-way options, a combination of the first two. This type of option transaction increases the opportunity for the investor to make a profit, while the seller of the option takes on more risk and therefore needs to demand a higher option premium as compensation.
