One variable that is often used to trade equity markets is the trading of publicly traded securities. They can give more than one clue to make the purchases and sales of the shares at a given time. From this general situation, it can be said without fear of error that depending on the negotiation in the stock market, a very reliable investment strategy. Both to open and close positions with a really very important level of satisfaction.
Of course, not all the securities that make up the equity markets, both national and international, have the same negotiation on the stock market. Of course not since the differences are really very appreciable, in one sense or another. Beyond other technical considerations and maybe even from the fundamentals of the stock market values. So that they can give a little indication about the technical aspect of them. In a way that provides a lot of security to operations in the financial markets.
While on the other hand, it cannot be forgotten that trading on the stock market is the result of greater or lesser interest on the part of small and medium investors. Not surprisingly, the volume of trading on the stock market that Banco Santander shares is not the same as that of Ercros. As proof that there is a greater negotiation of titles which is the equivalent that there is a greater exchange in the titles. With a higher volume of purchases and sales and therefore giving more liquidity in operations.
Negotiation of titles, what does it indicate?
A main effect of its increase is the fact that the market value of large capitalization. To the point that the most traded securities on the stock market are made up of the so-called blue chips. Where the highest values of national equities are integrated: Santander, BBVA, Iberdrola, Repsol and Endesa. With a very high contracting volume in all trading sessions and that stands out over the rest of the stock market proposals. Also this class of securities are characterized by the fact that they are more difficult to manipulate by the strong hands of the equity markets.
On the other hand, another of the characteristics that defines trading on the stock market is that which refers to the interest that is placed in the securities that make up the variable income, either nationally or outside our borders. In this sense, it is a very reliable indicator about where the money is going. Not only from the strong hands of the financial markets, but also from small and medium investors. To the point that it can offer you more than one clue about the money trail in the equity markets.
Why is money traded on the stock market?
One aspect that must be considered at this time is the fact that there is a greater or better negotiation in the securities of the stock market. Well, it indicates a very clear interest on the part of the different stockbrokers. But also that they have a very important money supply that is destined for trading. In this sense, you can see that there are some securities that generate very little liquidity and therefore it is very difficult for you to take positions at any time. These are securities known as very small capitalization and which are very dangerous to operate.
While on the other hand, it must also be taken into account to determine the size of the listed company. Not all are governed by the same characteristics. Not much less and the trading value is a small clue that helps you to decipher this little enigma in the stock market values. Beyond another series of technical considerations and even from the point of view of its fundamentals. If you do not want make no mistakes in your operations In the stock market, you should not forget these important aspects that we have indicated.
Corresponds to large companies
This variable coincides in all cases with the interests of large listed companies and that they are the best levels presented in all trading sessions. Whenever there are losses, it is a failure in the investor's strategy, but there are cases that can be avoided, or at least minimized, but for this it is necessary take a series of precautions that vary depending on the profile of each one of them. This is one of the reasons why this scenario must be taken into account when making a decision, one way or another. Which is, after all, what is involved in any profile of small and medium investors.
To avoid undesirable operations, it is advisable for the investor to previously carry out a self-diagnosis of their real investment needs, and thus detect if your profile is aggressive or defensive, and very importantly, the need for liquidity that it will have for the future.
In none of the cases should securities whose prices are at historical lows should be sold, although it is difficult to detect it, although technical analysis generally provides some “clues” about trend changes.
New trading system
The Executive Committee of the CNMV has agreed to authorize the creation of King & Shaxson Capital Markets, SV, SA, a Spanish entity that will manage Dowgate (Madrid), a new multilateral trading system based in Spain specialized in negotiation of public debt and derivative products. The regulations of this multilateral trading system have also recently been approved by the CNMV.
The new securities company will be part of the King & Shaxson group, which also operates Dowgate MTF, a London-based multilateral trading system. Multilateral Trading Systems (SMN or MTF, acronym in English) are a type of market or multilateral trading platform regulated in MiFID II. Currently, there are four SMNs in operation in Spain: MAB, MARF, SENAF and LATIBEX.