One of the easiest ways to buy shares in Australia is through the CFD service of Plus500. CFD trading became very populair in last couple of years, mainly because it is possible to use gearing when buying CFD shares. CFDs are a leveraged product, and that means you can make greater profits than with regular shares.
An other popular way to profit from the stock market is to trade binary options. With a binary option you have to predict if the share price of a company will go up or down in a certain time frame. When you buy a binary option at a broker like Stockpair you know directly in advance how much money you will make if you made the right prediction.
An example of a binary option trade would be as follow:
- Telstra’s share price is at this moment AUD 5,-
- You think Telstra shares will go up in price in the next hour
- You buy for AUD 100 binary options on Telstra shares, with a quote of 80%
- In the hour that follows the share price goes up to AUD 5,05
- The shares went up 1%, so your prediction was correct
- You will earn a profit of AUD 80 with this trade