Covid has been a boon for online trading worldwide. Online retail traders now account for 20% of all US stock orders, according to Bloomberg Intelligence research, as stay-at-home workers look for ways to supplement their incomes.
IG allows traders to sign up in minutes and practise different trading strategies using a demo account before committing real money. Clients can trade a type of derivative known as contracts for difference , which give the purchaser the benefit of the underlying price movement in a financial asset, rather than physical ownership. For example, buying a CFD on Apple allows you to benefit from any price movement in the underlying stock, without you ever owning the stock.
A third benefit is the ability to leverage your position. This means you can purchase a large exposure with a small amount of capital – otherwise known as trading on margin. This is a double-edged sword – it’s great when the market moves in your direction because your profits are amplified, but losses are also amplified when the market moves against you. At IG Markets, our maximum leverage is 30:1, meaning R1 or $1 will buy you R30 or $30 of market exposure.