The Lloyd Markets platform has exciting features that simplify and make your investment journey magnificent. The platform has a watchlist feature that enables you to list securities you want to monitor their performance before making decisions. You can also monitor the performance of your portfolio on your mobile phone. Download and complete the account opening form and start investing today.
An equity investment is money that is invested in a company by purchasing shares of that company. For public companies, these shares are typically traded on a stock exchange like JSE Investing in equities gives you ownership in that company and voting rights at the company’s Annual General Meeting as a shareholder. Equity investors purchase shares of a company with the expectation that they will rise in value in the form of capital gains and generate capital dividends. If an equity investment increases in value, the investor will receive the monetary difference when they sell their shares. The main benefit of an equity investment is the possibility of increasing the value of the principal amount invested. This comes in the form of capital gains and dividends.
An ETF (Exchange-Traded Fund) is a pooled investment vehicle that works similarly to a mutual fund. ETFs often track a certain index, sector commodity, or other asset, but unlike mutual funds, they can be bought and sold on a stock exchange just like any other stock. An exchange-traded fund (ETF) can be designed to track specific investment strategies.
A mutual fund is a financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Structured products are investments which provide a return based on the performance of an asset. This asset can cover the equity, index, fund, interest rate, currency, commodity, or property markets. The payoff and level of capital at risk can be pre-defined. Payoff profiles can be designed to take advantage of rising, falling or range bound markets, and delivered in a way that can be tailored to the needs of investors.
A contract for difference (CFD) is a contract between a buyer and a seller that stipulates that the buyer must pay the seller the difference between the current value of an asset and its value at contract time. CFDs allow traders and investors an opportunity to profit from price movement without owning the underlying assets. The value of a CFD contract does not consider the asset’s underlying value: only the price change between the trade entry and exit.
Margin trading in the forex market is the process of making a good faith deposit with a broker in order to open and maintain positions in one or more currencies. Margin is not a cost or a fee, but it is a portion of the customer’s account balance that is set aside in order trade. The amount of margin required can vary depending on the brokerage firm and there are several consequences associated with the practice.
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