Today, the London Stock Exchange, also known as LSE, is one of the most popular stock trading platforms. The market capitalization of this exchange equals $53.06 billion, the exchange itself is owned by the London Stock Exchange group and ranks eighth on the list of the world's largest stock exchanges.
The London Stock Exchange was first opened in 1571 with Queen Elizabeth I taking part in the opening ceremony, thus it was given the "Royal" status. Initially, just like many other stock exchanges, it was supposed to be a commodity exchange. However, in 1695 the exchange allowed for trading stocks and government bonds. Three years later, in 1698, commodity traders started complaining about noise and "bad behavior." After that, stock traders moved to Jonathan's coffee shop, where the terms "bulls" and "bears" were subsequently born. Moreover, it was the stock traders who collected the money and built the stock exchange in 1773, which was originally named "New Jonathan" (later it became simply the Stock Exchange). The Royal Exchange was closed in 1923, but the exchange under the name of London Stock Exchange continues to operate to this day.
Today, to start trading shares of any company on the London Stock Exchange, you don’t need to physically go to London and engage in trading. Instead, you can buy and sell shares online with a few simple steps without leaving your home. You can also open accounts in different currencies, even in precious metals like gold or silver. LSE consists of the three following divisions:
One of the ways you can trade LSE shares is in the form of CFDs, meaning Contract for Difference. It is a derivative tool that allows you to trade financial instruments without the need to own the underlying assets or shares. This type of trading also allows you to take long or short positions on stock indices, for instance, FTSE or other popular indices. CFDs offer certain advantages to traders. Moreover, if you are a UK resident or live there, you are eligible for not paying a stamp duty of 0.5% charged for buying shares outside of the UK. Plus, you can access a wide range of tradable assets via CFDs that are not available from traditional stock brokers. UK brokers that offer CFD trading include IG, AVA Trade, City Index, and Plus500.
As we mentioned before, usually you will be able to start trading in a few simple steps.
As can be seen from the article above, there is nothing difficult in trading on the stock market. The rule of thumb is to follow your intuition and experience, but when it's cheap, sell when it's expensive. But different traders find different areas difficult in trading – and this is a skill you can learn.
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