Oct 6, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

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Investment Tip of the Day

Foreign Exchange Trading

Foreign Exchange TradingBetter known as forex trading, foreign exchange trading is a very popular investment activity done by intuitions and individuals. It is a market that swaps currencies among different countries with high hopes of turning a profit. For example, you can trade CAD dollars with USD dollars. “Going Long” is an expression when you place a buy order on a currency pair (e.g. CAD/USD).

Normally forex trading is done by a broker and because in today’s age of the internet it is a very simple process to make a buy/sell order on currency pairs.

Because of the 24 hour nature of forex trading exchanges are always happening at all times. However, they are not open on weekends. More specifically, markets are open based on the time in Australia on Sunday evening and closes based on the time in New York on Friday.

There is no time limit on how long one holds a trade. Trades can be held for minutes or years. It is up to the trader and their intended goals.

Foreign Exchange trading exists primarily for business transaction reasons. When companies do business outside their country they will normally have to exchange their native currency to the foreign country’s currency before the transaction can be completed.

But because of the boom of the internet speculative trading by individuals has become very popular. Especially since the cost to make a currency pair trade is very nominal.

For example, if a trader (or business) expects the EUR to rise relative to the USD they would place a “EUR/USD” trade. This is more like trading Euros against USD rather than simply buying Euros. This is known as going long because if the EUR rises relative to the USD then the trader can close the trade and make a quick profit.

Be warned though. Although it sounds simple to make exchange trades it takes years of experience to predict markets and ultimately profit from them. So entering the forex trading market is not for beginners. Most brokerage firms in Canada, like Questrade, offer forex trading and also provide demo accounts for beginners to learn the ins and outs to this field.

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Oct 5, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

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Investment Tip of the Day

Real Estate Investment Trust (REIT)

REITOriginally coined in the U.S., a Real Estate Investment Trust was adopted by Canada to describe a security selling just like an exchanged-traded stock but investing in properties or mortgages directly (real estate).

REITs are not taxed if they distribute their taxable income to investors and usually provide favorably high yields for these investors. In Canada it is not uncommon to see them distribute between 75%-95% of income to share holders and producing yields upwards of 7%-13%.

There are three types of Investments: Equity, Mortgage, and Hybrid.

Equity REITs have underlying tangible properties that it invests into and owns. Revenues from this type of REIT are directly linked to rental income earned from these properties.

Mortgage REITs are all about property mortgages. By owning and investing into mortgages this REIT loans money to real estate owners for mortgages or go about purchasing existing mortgages. Revenues come from interest earned on those mortgage loans.

Hybrid REITs are a mix of both equity and mortgage REITs.

Because these types of securities’ revenues are contractual-based and by law must pay out almost all of their taxable income to shareholders they are able to consistently hold and distribute high yields. Dividends from this type of instrument tend to be about four times higher on average than regular stocks.

Studies show that they can boost returns and/or reduce risk when combined into a diversified portfolio — helping to build a more stable long-term wealth future. It has also been shown to offer a good risk/reward trade off.

REITs are not without their risks. Because they are traded on the stock market they are at the mercy of market conditions. And because they are invested in physical property they are affected by real estate prices. So although this type of investment instrument does demonstrate impressive long-term gains there have been periods in history when it has severely underperformed. They also tend to take a beating during periods when interest rates rise.

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Oct 4, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

The Art of Short Selling

short sellingMost investing practices consist of buying with the hope that the underlying security will rise which then can be sold for a profit. Another strategy works in the opposite direction. It is known as “shorting”, or short selling, of a security whereby the intent is to have the price fall so that later it can be purchased at a lower value.

Short selling has had a long and controversial past spanning back into the American stock crash of 1912. During the 2008 financial crisis several European countries banned the practice with the thinking that it was part of the reason for compounding declining values in stocks. Most companies don’t like short selling activity because it reduces the value of the underlying shares.

Short selling does provide a way for investors to profit on a company who is experiencing declining fortunes. However, the practice can be abused and even potentially illegal. Naked short selling is one of these illegal approaches. It involves an underlying broker. A broker must ensure there are available shares in a stock that can be borrowed and then shorted. However, there have been many cases where markets have been manipulated on “nakedly” shorting shares that weren’t available to be shorted. This would tend to drive share prices down.

When all is said and done short selling leaves a bad taste in most people’s mouths despite its advantages. Short selling gives investors and brokers the ability to hedge their bets in the event that a company underperforms. It’s this reason that short selling bans usually result in less efficient markets.

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