Online Trading: How to Trade Online in the UK
Online trading is not the same as investing. When investing, you’ll actually buy and own the asset. In the case of shares, for example, this entitles you to voting rights and dividend payments if the company grants them. You can use our share dealing platform to invest in a wide selection of leading stocks and funds.
But, investing also means that you can only profit from price movements if you sell the asset for more than you paid for it. Because the price of your investment asset must appreciate in value, you are restricted to ‘going long’.
When ‘going long’, you believe that the price of an asset will rise over a certain timeframe, so you buy it with the intention of selling it later to earn a profit – ‘buy low, sell high’.
If you’re trading online using spread bets and CFDs, however, you can speculate on both rising and falling asset prices (go long or short)….