Financial Literacy | What is trading?

We began with great enthusiasm the alliance with CARETAS, which will allow us to disseminate and teach about the world of finance and the foreign exchange market -forex-.

YouTrading specializes in financial education for traders Spanish speakers. It is a training and crucial information portal about the markets, dealing with macro, micro and other more related economic issues such as risk. It is completely free and seeks to combat financial illiteracy.

Perhaps many have never heard of the term trader o tradingor perhaps they relate it to a game or a marketing strategy.

Well, the practice of trading is becoming more and more common in the world,

It appears in the media, on social networks and even on advertising posters. Even so, it remains a great unknown for many people who seek information without forming a clear idea about what it is and what it is for. trading.

The beginning of trading It’s simple: it basically means buying and selling assets traded on financial markets to make a profit. If the price of the asset moves upward, the trader You will have to buy low and sell higher before it goes down again.

Who can engage in trading? Actually, anyone interested in the topic. There is no need to be an economist or financial expert. It also doesn’t matter if you are young or an older adult. The important thing is to have the desire to learn. The advantage and attraction of this profession is that you can do it from home or an office. The internet has made everything easier for trading.

What assets can be traded in Peru? In the national stock market there are financial assets that can be legally traded such as Stocks, Bonds, Mutual Funds and the so-called ETFs, which are a financial instrument consisting of a basket of stocks, bonds or other assets managed by experts in a single fund. These are listed on the main stock exchanges with exposure to various sectors, themes and/or regions, and replicate a stock index.

Within the framework of tradingmany financial instruments can be negotiated, this time we are going to talk about ADRs (American Depository Receipt)

What is an ADR?

They are stock deposit certificates of shares that can be traded directly on the New York Stock Exchange (NYSE). They are very attractive because they allow you to diversify investments in more exotic markets from the United States, which means that investors from the rest of the world can participate in their purchase in a larger volume market financed in dollars. Another characteristic of an ADR is that it is a company incorporated outside the United States. In Peru we have 4 very well-known ADRs, which we name below and which we will discuss in depth in subsequent publications.

1.-Buenaventura MIning ADR

2.- Credicorp

3- Intercorp Financial Services

4.-Cementos Pacasmayo ADR

It should be noted that these ADRs have their pair in soles that are listed on the Lima Stock Exchange, which is supervised by the Superintendency of the Stock Market (SMV). It is a specialized technical organization whose purpose is to ensure the protection of investors, the efficiency and transparency of the markets under its supervision, the correct formation of prices and the dissemination of all information.