How Can You Increase Your Capital by Online Investments?
There are different methods of investment available today including Stocks, bonds, ETFs (Exchange Traded Funds), Mutual Funds, Commodity trading, securities, rare coins and collectibles. Binary options are another new form of online investment which can guarantee high return on investment. It is one of the recent techniques which have minimal risk and higher returns. The various online investment technique to increase your capital include:
Stocks
Stocks and equities are the primary methods of investment for any trader. Here you become a shareholder of particular business by investing your money into it in form of shares that you purchase. The profit obtained in the business is distributed among shareholders in form of dividends. Stocks provide partial ownership in the business and allow you to share the assets and earning of the business in which you have invested. As a beginner you should start investing in twenty to thirty well-known company stocks so that have good level of diversification and also minimize your risk. Also you should spread the investment across companies from different sectors like technology, health care, energy, big cap and small cap etc. Before purchasing the stocks, you should learn the fundamentals of market trends and invest in the right companies.
Commodities
Commodities are also preferred method of online investment which can assure reasonable returns with minimum risk and capital. Commodities involves investing in any of energy/power resources such as crude oil, natural gas or precious metals like Gold, silver and various agricultural products like rice, wheat, cotton, pulses etc. Advantage of investing in commodities is the fair price detection and transparency in commodities market due to participation from a wide range of audience. Due to the participation from all sectors of people like processors, producers, importers/exporters and traders there is a generalized view on price expectations and any common man will be able to make speculations on price movement. You can invest in commodities online and increase your capital by purchasing futures contract which is agreement to sell/buy any commodity at future date for a specific price.
Binary Options
One of the recent methods of investment is known as binary options which are also called Digital options or all-or-nothing options. Investing in binary options with high ROI is definitely a motivating idea for any beginner who does not have expertise on stocks or market trends. Binary options are relatively simple and easy to understand when compared to investing in stocks, commodities and bonds. As the name indicates, Binary options can result in any of the two outputs; your option expires “In the Money” and you will get as high as 81% returns on your investment or it can expire “out of the money” and you will lose the money you had spent on that particular trade. Binary Options allows traders to make money by speculating on price movement of various underlying assets and across global markets.
Forex Trading Online
Another easy way to invest online is trading on Forex Currency pairs. Forex market is considered the most liquid and volatile market and traders can make money by exchanging currency pairs and profit based on the value difference between two currencies. Forex trading can be either spot trading/Futures trading. In spot trading currencies is exchanged based on current value while futures trading involves purchasing a contract that agrees to sell/buy the currency for specific value. Forex market is highly volatile and traders can invest on 24/7 basis.
Bonds, Securities and ETFs
Bonds are debt securities and by purchasing them you lend money to Government, Federal Agency, company or Corporation. In return for your investment, the bond promises certain interest on the amount and you will also receive the principal repaid eventually when the bond matures. There are different types of bonds such as municipal bonds, U.S. Government securities, mortgage bonds, corporate bonds etc. Each one of them has their own merits and de-merits. Many investment advisors and experts recommend the purchase of bonds to diversity the portfolio and also to minimize the associated risks with stocks. Apart from that you can also invest in Exchange Traded Funds (ETFs), mutual funds and securities online and increase your capital.
