Most of them are looking to make profits.
Especially the fifth method below may make many friends suddenly understand.
1. Buying and selling stocks of listed companies. This is the most common way of investing in stocks. Investors who open a securities account through a securities company can buy and sell various stocks listed on the exchange, following the principle of buying low and selling high. Profit based on principles. Under this investment method, the subject of the transaction is a real stock. After purchasing a certain stock, the investor will become a shareholder of the listed company and enjoy voting rights and dividends.
2. Invest in stock funds, which is an indirect method of stock investment, that is, investors invest money into a fund and let the fund manager manage the investment, and the stock fund manager A majority (or all) of the fund's capital will be invested in a number of different stocks. Investors can open accounts at fund companies or subscribe for funds through sales agencies, or they can buy and sell ETF funds listed on exchanges through securities accounts.
3. Stock options. Stock options have always been used as a way for companies to motivate employees (an internal agreement signed between the company and employees). However, in my country's A-share market, they have not yet been opened. Stock options that can be publicly traded on an exchange. What currently exists is the pilot SSE 50 ETF option. Stock options also support leveraged trading, and the direct leverage can reach about 10 times. It is also a two-way transaction, so it is mostly favored by professional traders.
4. Stock index futures. The investment target of stock index futures is stock index, not stocks. It is a derivative of stocks. my country's CICC currently has three stock index futures products: CSI 300 stock index futures, CSI 500 stock index futures, and SSE 50 stock index futures. The minimum margin ratio is 8% (maximum leverage 1:12.5), and two-way trading is also supported. However, stock index futures also set a series of investment thresholds for ordinary investors, such as the capital threshold: the available fund balance in the margin account for 5 consecutive trading days before applying for account opening shall not be less than RMB 500,000.
Here comes the point! What we want to mention here is the fifth stock investment channel-stock CFD. Until now, stock CFD is a completely unfamiliar concept to many investors. Stock CFD is an emerging financial derivative, which generally refers to a transaction method that does not involve the exchange of physical commodities or securities and is settled in cash using only the difference between the settlement price and the contract price. It can be combined with various floating price asset targets (such as gold, futures, stock indexes, individual stocks, bonds) to form a new financial investment variety (such as gold CFD, futures CFD, stock index CFD, individual stock CFD, bond CFD).
Stock CFD is one of many CFD products