Stock Operation Summary

In the stock exchange market you can operate in a diversity of ways, among which, the most important are the following:

in cash: in which the buyer and the vendor receives money and securities immediately.

At terms: in which the buyer or vendor receive the money and securities after a consented period of time.

In cash with credit: in which the buyer and the vendor receive the money and securities immediately, but in which one of the them has received as a loan the money or the securities.

Operation of doubles: which is when a cash operation (for example, the purchasing of securities) and a negative sign term operation ( sale of securities, if they have been acquired in the former operation) coincide.

Option: it gives you the right to buy or sell a determined asset in exchange for a premium at a determined term or date. It is also used for covering risks and to speculate.

Future: it is a compromise for buying or selling in the future a determined asset at a prefixed price. As with the option it is used to cover risks and to speculate.

First, the buyers think that the security is going to rise in its quotation and on the other hand, the vendors think that the security is gong to fall in its quotation. Either way, you have to remember that if a deal is done it is because the view of the counterparts coincide with their way of thinking.

With the former operations you can assume important risks when investments without funds are done (credit operations) due that you can loose what you have and what you do not have. It also supposes a high risk to use futures or options to speculate, instead of using them to cover your risks. These riskier operations are which permit you to obtain the maximum stock exchange leverage, due that with a minimum investment you can generate great profits, although it can also produce important losses if the markets evolve in a different way than that which the investor had predicted. But the most conservative operations are usually that of doubles because at the same time a cash operation is being closed (for example, a purchase) along with a term operation ( a sale, if the other operation is of purchase). In this way, the investor is closing the purchase price at the same time that he is fixing the sale price.

The enlargement of capitals the convertible debentures the public offers of acquisitions and the sales public offers usually offer important profits to the investors.