Everything To Know About Trading Stocks In Nigeria

Posted on February 26 2020 , at 04:19 pm
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Stock Exchange: Know It’s Definition

Organized financial markets have existed for over a century. To date, the market for financial instruments with varying maturities is represented by trading stocks, debt instruments, commodity contracts and currency. The process of reforming capital markets, including money markets, continues to intensify. To regulate all market participants, the Securities and Exchange Administration was created which also regulates all financial transactions of stock trading in Nigeria, South Africa and other African markets where trade is gaining momentum. The publication of the decree on the depositories establishment was an attempt to eliminate one of the system weaknesses.

Meaning Definition and Features

Nigeria remains the emerging-market world’s most positive story, in large part because the People’s Democratic Party (PDP) facilitated the free-market policies and limited government regulation since 1999. There is one major stock exchange in Nigeria: The Nigerian Stock Exchange (3rd place in terms of the number of transactions and capitalization as well as, takes 1st place in terms of GDP on the African continent.) All this provides a favourable environment for the brokers’ development whose sites are created for an English-speaking audience from around the world.

Almost all the major African firms near you are listed on both exchanges. The NST exchange is already competing with larger exchanges for the flow of orders, commodities, which leads to lower costs, market efficiency and innovation. The presence of arbitration courts keeps prices in a very narrow range.

Intraday Trading

The Nigerian securities market is now among the world leaders in the technology modernization and development. The country is one of the few countries that have not been affected by the negative effects of the 2008 Asian crisis. Analysts attribute this to the slow and cautious pace of capital account liberalization. Local regulators take all necessary actions to bring the market to the international level. They strive to make Nigeria a model for emerging capital markets.

Several online sites facilitate intraday and day trading in the stock markets. Alpari is one of such online trading companies offered by the Afribank. In addition to the usual features, the site keeps track of the day the stock was purchased and the speed at which it was acquired. This is useful for calculating any reserves and capital gains from a particular transaction.

Traders discuss intraday trading strategies using the terminology described above. Although not all of their strategies work, constantly following the advice of stockbroker in the initial stages will give an idea of normal trading strategies. On average, losses will be minimal if you follow the strategies proposed by the broker.

Day Trading Tips and Strategies

Intraday trading is a label for a certain type of exchange trading. You do not hold stocks and do not wait for ups and downs for many years in the hope of eventually getting a significant income. It is classified as intraday because its actions occur within one day; opening and closing of a position in securities occur on the same day.

This may mean a few things. It may be that they buy and sell during the day to capitalize on a possible increase in the value of securities. They benefit from small ups and downs of stocks, rates that occur daily. This is a risk, like a game on any of the other stock markets, but they conduct intraday trading mainly through borrowing money.

Regardless of strategy, playing in the stock markets is always risky. Many traders research Forex signals, history, charts, data and intraday trading indicators. This helps them understand what trends and signals to look for, and see what happened in the past. Almost all day traders rely on trading charts.

Trading has become much easier with technological advances. Traders can find trading strategies and tips on the Internet when opening a deposit on the sites of trading platforms or blogs. There are many books on good trading strategies. You can even find out how to trade without leaving your home with trading software.



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