An affordable way for many to earn money is trading on the stock exchange. Where to start and how to increase capital? Complete trading training to gain basic knowledge and take the first practical steps. As part of the course for a novice trader, you will learn the main strategies for trading on the stock exchange: how they are useful and what features are characteristic of each of them.

Exchange trading strategies: what is it and how does it work

Choosing the right trading strategy for a novice trader is the key to success. A direct path to disappointment for a beginner will be the idea that it is enough to take a ready-made trading strategy, apply it and make huge profits in your pocket. Following illusions leads away from reality and as a natural result: refusal to one of the most available ways earnings.

Trading gives a wide range of people a chance to increase their income, because neither gender, nor education, nor age is important in trading on the stock exchange. The main thing is to have personal qualities and a good knowledge base, which necessarily includes familiarity with trading strategies.

What are stock trading strategies? This is a system or a clear algorithm of actions by which a trader manages his trading on the stock exchange, makes decisions in order to make a profit during a certain market situation. Trading strategies help to understand the structure of the market, its mechanisms, but, alas, there are no universal strategies for trading on the stock exchange.

If we take complexity as the main criterion, then trading strategies are as follows:

• simple (efficiency and easy to understand make them suitable for beginner traders);
• main (basic trading systems that should be taken into account when creating your own strategy);
• advanced (used by experienced traders, while not operating with a large number of different indicators);
• complex (complex methods taking into account many factors that can only be used by traders with a large practical experience trading on the stock exchange).

When the time factor is taken as the basis, then trading strategies on the stock exchange are usually divided into:

• scalping ( a large number of transactions in one day with a minimum amount of profit);
• intraday trading (during the day, a trader can take profit due to a small fluctuation in the price of an asset or on a large intraday trend, while the transactions themselves open and close on the same day);
• medium-term (the transaction goes beyond one day, which carries the potential for large profits for the trader);
• long-term (applied major players to maximize profit).

Basic trading strategies on the stock exchange

Clear, simple, effective and yet profitable (when skillfully used under the circumstances) are the general criteria that characterize basic trading strategies. Trading education provides a detailed acquaintance with the main strategies, and yet in the future the trader will have to develop his own trading strategy on the stock exchange in order to receive income.

What trading strategies are classified as basic? The list is rather conditional and includes strategies that are known, tested and often used by experienced traders, and are also relatively easy to understand for beginners. Given these factors, the main trading strategies on the stock exchange include the following:

1. Pullback trading or counter-trend trading (price or trend movement in the stock market accompanies a rollback or correction period. On the chart, this is displayed as a complex broken line, where the trader needs to be able to find a short period when the price moves against the trend. take profit).
2. Trading without stops (the strategy itself is conditionally called, rather, it is an exit option, since the stop loss is a pending order. The choice in favor of this trading strategy involves serious risk control and experience in money management, trading psychology plays a huge role, so this trading strategy on The exchange is suitable for either professionals or experienced traders, but not beginners).
3. price action or price movement (it is based on price patterns, trend lines, candlestick patterns and no indicators, i.e. this effective trading strategy helps to predict the direction of price movement and when it is better to open a position).

Among other common and applied trading strategies in trading, there are the following:

• • Based on a combination of indicators;
  • moving averages;
  • Fibonacci levels;
  • Ichimoku indicator;
  • Japanese candles;
  • Fundamental.

Do you want to learn how to trade and practice trading on the stock exchange? Come to the courses at the Alexander Purnov Trading School, where phased program– for beginners from complete zero to professional. Not sure if you want or ready to do it now? Then subscribe to the blog of the Alexander Purnov School and read useful materials on

November 26, 2011 at Russian newspaper Federal law was published Russian Federation dated November 21, 2011 N 325-FZ "On organized trading" (hereinafter - the "Law on organized trading"), as well as the Federal Law of the Russian Federation dated November 21, 2011 No. 327-FZ "On amendments to certain legislative acts of the Russian Federation in connection with the adoption of the Federal Law “On Organized Trading” (hereinafter referred to as the “Law on Amendments”).

The Law on Organized Trading and the Law on Amendments shall enter into force on January 1, 2012, except for the provisions for which a different effective date has been established (from the date of official publication, or from January 1, 2013, or from January 1, 2014) .

The Law on Organized Trading, among other things: (a) establishes uniform principles for organizing exchange trading securities, foreign exchange, precious metals and stones, goods, as well as exchange trading on the conclusion of contracts that are derivatives financial instruments; (b) establishes unified requirements for trade organizers; (c) defines the foundations state regulation activities to conduct organized bidding and control over its implementation.

The Law on Amendments amends the Federal Law of the Russian Federation No. 39-FZ of April 22, 1996 “On the Securities Market” (hereinafter referred to as the “Securities Market Law”) (including in terms of the rules on brokerage), Federal Law of the Russian Federation of December 10, 2003 N 173-FZ “On currency regulation And currency control» (in terms of the transfer of powers to regulate and control the activities of currency exchanges 1 from the Bank of Russia to the FFMS of Russia) and other laws.

This review discusses the following changes introduced by the Law on Amendments and the Law on Organized Bidding in relation to the regulation of organizing auction activities:

1) two types of trade organizer: stock exchange and trading system;
2) unified requirements for exchanges;
3) expansion of the list of participants in organized trading;
4) changing the rules for admitting securities to organized trading;
5) a new procedure for the entry into force of amendments to the exchange rules;
6) the right of the FFMS to suspend trading;
7) strengthening of administrative responsibility for violation of the legislation on organized auctions.

1. Two types of trade organizer: exchange and trading system

In accordance with the law on organized trading, the organizers of trade are divided into two types: the exchange and the trading system. Accordingly, two types of licenses are being introduced: an exchange license and a trading system license. According to the current legislation (without taking into account the amendments made by the Law on Organized Trading), the activities for organizing trading are carried out by various exchanges depending on the type of market (for example, stock exchanges, currency exchanges, commodity exchanges) on the basis of various licenses (licenses stock exchange, licenses to organize operations for the purchase and sale of foreign currency for rubles and settlements on transactions concluded on them, a license to organize exchange trading).

The stock exchange and the trading system have the right to conduct organized trading in goods, precious metals and precious stones, and foreign currency.

However, the list of permitted activities that the trading system is entitled to carry out differs from the list established for the exchange:

1) unlike an exchange, a trading system is not entitled to list securities (Part 7, Article 12 of the Law on Organized Trading);
2) the exchange is not entitled to combine its activities with brokerage, dealer and depository activities, as well as with securities management activities, while the trading system is entitled; however, the trading system, when combining its activities with clearing activities, is not entitled to combine such activities with brokerage, dealer and depositary activities in the securities market, securities management activities (part 5 of article 9, part 5 of article 12 of the Law on organized trading );
3) unlike the stock exchange, the trading system has the right to conduct organized trading where contracts that are derivative financial instruments are concluded only if this is directly provided for by regulatory legal acts and the FFMS of Russia (Part 4, Article 12 of the Law on Organized Trading).

2. Unified requirements for exchanges

The Law on Organized Trading establishes unified requirements for the exchange, regardless of the type of assets for which the exchange conducts organized trading. At the same time, these requirements differ from the current requirements that a stock exchange, trading exchange, currency exchange, stock exchange must comply with. precious metals and precious stones. In particular, this concerns the requirements for the legal form of the exchange, minimum size own funds exchange, licensing requirements, as well as requirements for the structure of share capital.

2.1. Change in the legal form of the exchange

The Law on Organized Trading establishes as the only organizational and legal form of the exchange the form joint-stock company(Part 2, Article 9 of the Law on organized auctions).

At the same time, before the Law on Organized Trading came into force, a stock exchange could be created in the form of both a joint-stock company and a non-commercial partnership (clause 2, article 11 of the Law on the Securities Market), a commodity exchange, a currency exchange and an exchange of precious metals and precious stones - in any organizational and legal form (Article 11 of the Law of the Russian Federation of February 20, 1992 N 2382 -1 “On commodity exchanges and exchange trading” (hereinafter referred to as the “Law on commodity exchanges”), paragraph 11, part 1, article 1 of the Federal Law of the Russian Federation of December 10, 2003 N 173-FZ “On currency regulation and currency control”).

2.2. Establishment of mandatory standards for the exchange

In accordance with the Law on Organized Trading (Article 8), the exchange must comply with the following mandatory standards 2:

The minimum amount of own funds of the exchange (not less than 100 million rubles);
- standard of sufficiency of own funds of the exchange;
- liquidity ratio.

The value and methodology for determining the stock exchange equity capital adequacy ratios and liquidity ratios are determined by the Federal Financial Markets Service of Russia.

2.3. Obtaining a single exchange license

The Law on Organized Trading introduces a single license for the exchange, on the basis of which it is allowed to organize trading in securities, derivative financial instruments, foreign currency and exchange commodities. This license replaces such licenses as a license to organize exchange trading, a stock exchange license, a license to organize operations for the purchase and sale of foreign currency for rubles and carry out settlements on transactions concluded on them.

At the same time, according to the Law on Organized Trading (Part 1, Article 29), organizations that, as of January 1, 2013, have licenses of organizers of trading in the securities market, including licenses of stock exchanges, as well as licenses of commodity and currency exchanges, are required to obtain provided by law on organized trading license or terminate its activities before January 1, 2014.

2.4. Removal of restrictions on share capital

In accordance with the Law on Organized Trading (Part 1, Article 7), the current restrictions on the share of shares that may belong to one shareholder and his affiliates are excluded. Yes, in accordance with current law on the securities market, one shareholder of the stock exchange and its affiliates cannot own 20 percent or more shares of each category (type) (clause 3 of article 11). According to the current Law on Commodity Exchanges, the share of each founder or member of the exchange in its authorized capital cannot exceed 10 percent (clause 3 of article 11).

With the entry into force of the Law on Organized Trading, these restrictions on the structure of share capital are canceled and the obligation of a shareholder who has the right to directly or indirectly dispose of 5 or more percent of the votes attributable to the voting shares of the exchange is introduced, to notify the exchange and the Federal Financial Markets Service of Russia about this fact (Article 7 Law on organized auctions) 3 .

3. Expansion of the list of participants in organized trading

The Law on Organized Trading establishes that to participate in organized trading in securities, except for brokers, dealers, managers and Central Bank Russian Federation (as provided current legislation), management companies may also be admitted investment funds, mutual investment funds, non-state pension funds and central counterparty 4 .

4. Changing the rules for admission of securities to organized trading

The Law on Organized Trading amends the rules for admitting securities to organized trading.

In accordance with the current Law on the Securities Market (without taking into account the amendments made by the Law on Amendments), the admission of securities can be carried out both with the passage of the listing procedure and without the passage of the listing procedure. From January 1, 2012, in accordance with the Securities Market Law (as amended by the Amendment Law), securities will be admitted to organized trading only by listing them.

In addition, the Amendment Law gives trade organizers the right to refuse admission of securities to organized trading or to terminate the admission of securities to organized trading without giving reasons. At present, the stock exchange has the right to refuse admission of securities to trading only if the securities or their issuer do not comply with the requirements established by regulatory legal acts of the FFMS of Russia and the stock exchange 5 .

5. New order the entry into force of changes in the rules of the exchange

The Law on Organized Auction provides for the procedure for the entry into force of changes made to the rules for organized auctions.

Currently, such a procedure is provided only for the rules of the trade organizer on the securities market (changes and additions to them come into force no earlier than 3 days after the trade organizer on the securities market discloses information about these documents in the manner prescribed by regulatory legal acts FFMS of Russia).

According to the Law on Organized Trading, changes to the rules of organized trading come into force as follows 6:

In addition, special rules have been established for the entry into force of changes related to the exclusion of the provisions of an arbitration agreement from the rules for organized trading or a change in the arbitration court - such changes come into force no earlier than 3 months after the day the exchange discloses information about this (part 10 of Art. .4, part 3 of article 24).

6. The right of the FFMS to suspend trading

The Law on Organized Trading gives the FFMS of Russia the right to suspend for a period of up to 6 months or terminate organized trading in cases provided for by this Law (Article 25). In particular, in cases where the trade organizer has not complied with the order federal body executive power in the region financial markets if violations by the trade organizer of the rights and legitimate interests of investors or if the actions taken by the trade organizer pose a threat to the rights and legitimate interests of investors are revealed.

7. Strengthening of administrative responsibility for violation of the legislation on organized auctions

The Law on Amendments strengthened administrative liability for violation of the legislation on organized auctions (Part 2, Article 13).

Yes, in accordance with current Code about administrative offenses(without taking into account the amendments made by the Law on Amendments) the amount of administrative fines for legal entities ranges from 20 thousand to 50 thousand rubles, for officials- from 3 thousand to 5 thousand rubles.

From January 1, 2013, in accordance with the Code of Administrative Offenses (taking into account the amendments made by the Law on Amendments), the amount of administrative fines for legal entities will be increased and will be from 300 thousand to 1 million rubles, for officials - from 10 thousand to 50 thousand rubles. For officials, liability will also be established in the form of disqualification for a period of 1 to 2 years.

The largest administrative fines(for officials in the amount of 30 thousand to 50 thousand, and for legal entities - from 700 thousand to 1 million rubles) will be established for the following administrative offenses:

Violation by the trade organizer of the procedure for disclosing information established by the legislation on organized trades;
- obstruction by the trade organizer of the FFMS of Russia from conducting inspections or avoiding such inspections;
- violation established restrictions to combine the activities of holding organized auctions with other types of activities;
- non-fulfillment by the trade organizer of the obligation to exercise control over participants in organized trades, goods admitted to organized trades, securities and their issuers, as well as over operations carried out at organized trades.

The review was prepared by the lawyers of Liniya Prava.
Our specialists will be happy to consider other issues of interest to you as part of the weekly review of legislation.
Please send your questions and suggestions for improving our work to Yury Tuktarov, partner of Liniya Prava ( [email protected]).
More detailed information about the services you can get on the website www.lp.ru.

1 It must be borne in mind that with the entry into force of the Law on Organized Trading and the Law on Amendments, the concept of “currency exchange” will no longer bebe applied, and activities for organizing foreign exchange trading will be carried out by exchanges on the basis of a single license of the exchange (see belowpresent review).
2 These requirements also apply to the trading system.
3 These requirements also apply to the trading system.
4 The concept and functions of a central counterparty are defined in Federal Law of the Russian Federation No. 7-FZ dated February 7, 2011 “On Clearing andclearing activity”, which comes into force on January 1, 2012.
5 See clause 1.13 of the Regulations on Organizing Trading on the Securities Market, approved by Order of the FFMS of Russia dated December 28, 2010 No. 10- 78/pz-n.
6 These rules do not apply to changes, the introduction of which is mandatory due to the requirements federal laws and adopted in accordancecompliance with them by regulatory legal acts, as well as by virtue of the instructions of the Federal Financial Markets Service of Russia.

There are many stock trading strategies. Some traders trade on indicators, others on candlestick formations, some on Elliot waves. In this article, we will talk about two main strategies that are based on price and price levels. This is a rebound from the level and a breakdown of the level. These are fundamental strategies to which volumes, price level tests, trading signals - false breakdown and mirror level, indicators and Elliot waves. Within the framework of fundamental strategies, two more strategies can also be distinguished: trend and counter-trade trading strategies.

In my trading, I use only price, volumes, level tests, as well as horizontal and mirror levels, false breakouts. In addition, I look at trend lines and open interest as additional information. In most cases, I trade a rebound from the level.

1. Rebound from the price level

2. Breakdown of the price level.

1. Rebound from the price level (support and resistance level)

Rebound from the price level is buying or selling near a support or resistance level, where it is possible to put a short stop.

Strategy: intraday trading (closing trades at the end of the trading session)

More risky, counter-trend strategy, with a short stop of 300 points.

So let's look at two examples rebound from the level:

1. shorts (sales)
   
2. long (buy)
   

The first option is short (sales)

Daily schedule:

Using the RTS index futures as an example, consider a rebound from the resistance level of 89,500 points. On 11/05/2015 there were sales, a red daily bar was formed, there was a rebound from the resistance level of 89,500 points. A weak short signal was formed, as the daily bar did not close below 88,000 points.

Before that, on October 12 and 16, 2015, there were sales from the level of 89,500.

A strong short signal is a close below 88,000 points on the daily or hourly timeframe.

We are waiting for a short signal on the hourly timeframe.

Hourly chart:

On the hourly chart, we see a close below 88,000 points and a fixation behind this level, which consists of several hourly bars.

We turn to the 5-minute chart and look for the entry point to short from the level of 88,000 points.

Five minute chart:

On the 5-minute chart, we see that there is a trade from several bars, all bars close below 88,000 points. We enter short with a stop of 150-300 points.

Second option —long (purchases).

Buying (long) on ​​the example of a futures on the RTS index from the resistance level of 81,500 points.

On November 13, 2015, we approached the support level of 81,500, where there was a strong trade in August. The day closed with a red bar, but if by candles, then a doji candle was formed - not certainty. There is no signal to go long on the daily bar, as they closed with a red bar, but the sales progress on 11/13/2015 was not great, they did not go down much. Since we are at the support levels of 81,500, where there was a strong trade earlier in August, we will wait for a signal to go long on the hourly timeframe. Close above 82,500 points and fix above given level, consisting of two or more hourly bars, will be a long signal.

Daily chart 1:

Daily chart 2:

Hourly chart:

On the hourly chart, we see that there is a trade and closing of several bars above 82,500 points. We are looking for a long entry point on a five-minute chart.

Five minute chart:

On the five-minute chart, we also see a trade and enter a long position from the level of 82,500 with a stop of 150-300 points.

2. Breakdown of the price level.

In short, when the price level breaks through with the closing of the daily bar above or below the level, it is not recommended to buy and sell immediately, you need to wait for the price to return to the level, and then look for an entry point.

Daily schedule:

Examples were given on the daily charts. But these strategies work on any timeframes. Let it be an hourly, five-minute chart. All examples are shown in history and you can see how the situation developed further. But the purpose of this article is not at entry points, like I would enter here, I would exit here. And in what you should pay attention to in the search for and understanding the pattern of walking a trading instrument (futures). Having understood which, you can calmly wait for your signal and open positions without emotions. More likely to make a profitable trade.

Happy trading everyone.

Regular readers of this blog know that I enjoy building trading systems with Amibroker; which allows me to test various investment strategies according to historical stock data.

In my opinion, trading systems are extremely valuable because they allow you to trade without emotion. Today I came across a strategy that is simple yet incredibly powerful and if you keep reading you will see the rules of this amazing trading system.

Belittling Warren Buffett 🙂

Between 2000 and 2012, the trading system produced an average annual return of 172.45% with a drawdown of 14%. Which gives her a CAR/MDD ratio of 12.34.

The Sharpe ratio is 3.91 and the profit ratio is 9.29. This is a truly remarkable result that can make you the richest person in the world in just a few years!

As you can see from the stock chart and the monthly results table, this trading system is producing amazing results in the US stock market.

Starting with a capital of $10,000, the system has generated over $1.6 billion in just 12 years. In this case. you'll be richer than Buffett in no time. You can even become the very first trillionaire!!!

So what exactly are the rules for this system?

//Start System Code
SetFormulaName("APRIL FOOLS");
SetOption("InitialEquity", 10000);
PositionSize = -100;
Buy = Cross(EMA(C,2),EMA(C,5));
Sell ​​= Cross(EMA(C,5),EMA(C,2));
BuyPrice = O;
ClosePrice = O;
//End

[hide]

Unfortunately, the trading system is a “joke”, that is, it is an unrealistic trading strategy (alas, today is not April 1, but I think I amused you).

Trading results and curves equity are real and have been produced by Amibroker. However, the system code was designed in such a way that the results cannot be relied upon, but it does a great job of showing that tests alone cannot be relied upon, and strategy re-optimization is also important.

This system has at least five major weaknesses.

1. Curve fitting

First of all, the trading system was tied to existing data. The parameters for the moving average crossover have been optimized to find the values ​​that will result in the strongest performance in the test period. If we use these options in the future, there's a good chance they won't work as well.

2. Future leak

Secondly, this system really looks to the future. On line 5 (above), we instructed Amibroker to buy the stock when the 2-day EMA crosses the 5-day EMA. However, this EMA (exponential moving average) is calculated using the closing price and Amibroker actually buys the shares at the open price (line 7). In other words, we buy stocks ahead of the EMA crossover knowing that it will happen later. And this is definitely impossible.

3. Zero fees

Thirdly, this system does not use any commissions or slippage. In real life, it costs money every time you make a trade. You are also not guaranteed to be executed at your desired price, especially for large orders. No commission or slippage is unrealistic and can make a big difference to simulation results, especially when trading on shorter timeframes.

4. Evasion of the right to inherit

Fourth, this system suffers from aggravation. The system is buying stocks from the S&P 500 universe, however in this case we have not included historical constituents or delisted stocks. This means that our results are a victim of heir rights bias.

In real life, enterprises go bankrupt, they are removed from the stock exchange, some merge with other companies. These changes are not always reflected correctly in historical databases. Thus, it is always important to use data that is free from inheritance bias. Such data can be obtained from Norgate Premium Data, for example.

5. Liquidity

Finally, the system relies on unrealistic liquidity. When you buy shares in real life, your position size and entry price will be determined by how many shares are available for purchase at that time, also known as volume. As a rule, you would not want to buy more than five or ten percent of the total volume, otherwise, for obvious reasons, this would put the price of the stock against you. This system has a limit of 50%, meaning it is able to buy half of the daily volume without any movement towards the purchase price. It's unrealistic.

Starting the system - again

Now that we know what the main shortcomings of this trading system are, we can fix them, move the dates forward, and run the system again using objective out-of-sample data between 2012 and 2016.

Incredibly, the trading system actually made money in out-of-sample testing even though the rules were closed. However, as expected, it did not achieve the same level of performance.

In truth, you will never find a trading system that makes 170% in a year. Despite the fact that thousands of traders are deceived every year, I buy such systems from scammers.

So, sorry for putting your hopes on the dream of a 170% APR trading system. But I hope you have at least learned to look for something when you are building or analyzing a trading system.

Thanks for reading. And have a nice day 😉

The Russian Trading System (RTS) is a large exchange structure on which securities are traded, available to both private investors and large companies and investment funds.

RTS was established in 1995 after the merger of several regional trading floors into the organized stock market. Initially, the RTS was created as an over-the-counter alternative. Bidders agreed on a deal by phone, after which they put their bids in electronic system.

Now the RTS is a full-fledged stock exchange, where hundreds of different securities are traded. From the trading system, RTS has grown into a group that not only organizes trading, but also provides a wide range of additional services(clearing, depositary, settlement).

Structure of the RTS Group

• JSC Stock Exchange "Russian Trading System" (exercises control over the activities of all other structures);
• NPO ZAO RTS Settlement Chamber;
• COMPANY " Clearing Center RTS";
• CJSC "Depository Clearing Company";
• OJSC "St. Petersburg Exchange";
• OOO " Technical Center RTS".

In addition, the RTS Group includes a number of foreign exchange organizations located in Kazakhstan, Ukraine and England.

RTS activities

RTS currently operates several trading platforms, both exchange and over-the-counter, as well as futures market. Let's consider each of them in detail.

Stock market

As part of stock market RTS operates 4 platforms: RTS Classic, RTS Standard, RTS Start and T+0 market.

Classic stock market

The RTS Classic market is the oldest organized platform for trading securities in Russia (it has been operating since the exchange was founded in 1995).

Features of the FORTS market

• relatively small expenses for the implementation of transactions for the purchase / sale of assets;
• lack of additional indirect costs(settlement service fees and depository fees);
• great opportunities to use different trading strategies;
• the possibility of insurance against fluctuations in prices for certain assets (, dollar exchange rate);
• partial deposit of funds (initial margin);
• carrying out transactions with guaranteed income (for example, we sell futures - we buy shares).

Among the main market opportunities that are available to everyone, it should be noted the conduct of speculative transactions with urgent securities, as well as hedging (insurance) of existing risks.

Let's take a closer look at how these strategies are implemented for stock futures.

Speculation

Stock futures are a great tool for making a profit: you can play on the increase or decrease in stock prices in order to make a profit.

For example, you expect that in the future the shares of a certain company will grow in price, so you need to buy a futures contract for the shares of this company. If, on the contrary, you expect that the shares will fall in price, then you enter into a contract to sell the futures.

The advantage of making transactions on the derivatives market is also that when concluding a transaction under a futures contract, the investor contributes only a small share of the asset value (guarantee security, which is about 10-20%).

Consequently, the investor saves on transaction costs.

For example, you want to buy a futures contract for Alfa shares, total cost the contract is 100,000 rubles.

However, you will not have to pay the entire amount of the transaction, but only the amount of the collateral, which is 15,000 rubles (this is what the broker will write off from your account). That is, having spent only 15,000 rubles, you actually bought a contract for 100,000 rubles.

Hedging

IN this case the investor's actions are aimed at reducing the possible risks associated with a fall in the price of his shares. To minimize possible losses in the stock market, the investor enters into a futures contract to sell.

As a result, possible losses in the stock market are compensated by the profit received in the FORTS market.

For example, you have shares of the same Alfa company, which are now worth 100 rubles apiece. You are afraid that in a month these shares will fall in price, in order to insure against possible losses, you enter into a futures contract to sell securities at the current price.

Then, if in a month the price of the shares really falls, you will compensate for the losses by selling the shares at the price of 100 rubles, which was indicated at the conclusion futures contract.

However, there is one thing, but if the price rises, then on the contrary, you will lose the opportunity to make a profit. That is, hedging is a kind of insurance, a tool that is aimed only at preventing possible losses, but not at making a profit.

OTC activity of RTS

The off-exchange activity of RTS includes the organization of the work of two indicative securities quotation systems: RTS-Board and RTS Global.

RTS Board

RTS Board - special Information system, which began its work in 2001 and is intended for indicative quoting of securities that were not admitted to trading on the RTS Stock Exchange.

Unlike the exchange market, here we are dealing with quotes that are not based on actually completed transactions. Indicative quotes show that the given security could be sold at a certain price stated by the issuer.

The actual price of the security at the time of the transaction, if any, will depend on a number of additional factors(transaction volume, settlement date, buyer status, etc.).

That is, the RTS Board is not a trading, but an information system that allows potential investors to get acquainted with information about securities that are not admitted to public trading on the stock exchange.

For small domestic issuing companies, the RTS Board is a tool for the initial increase (speed of sale) of the securities they issue, as well as an opportunity to draw the attention of potential investors to new and promising securities.

RTS Global

RTS Global is an RTS project that started its work in 2008. The system allows investors from Russia to access securities foreign companies.

RTS Global is based on the technologies and principles of operation of the RTS Board system, only here investors have access to information about indicative quotes of not domestic, but foreign securities.

In addition, with the help of the RTS Center for Electronic Agreements (CED) and Depository Clearing Company CJSC, Russian investors can, through the RTS Global system, enter into over-the-counter transactions with shares of a number of foreign companies, mainly companies from the CIS and Europe.

Thus, CJSC DCC has access to a number of foreign depositories, including:

• Clearstream Banking S.A. Luxembourg;
• Euroclear Bank S.A./N.V.;
• National Depository of Ukraine;
• "Republican Central Securities Depository" of Belarus;
• Central Depository of Kazakhstan.

The appearance in Russia of the over-the-counter market for foreign securities has significantly expanded the boundaries and possibilities of the domestic stock market.

RTS Index

Since the RTS is a stock exchange, you should definitely talk about stock index RTS, which has been calculated on the stock exchange since the beginning of the first trading in September 1995.

The RTS Index is the main indicator general condition Russian stock market, reflecting its growth or fall.

The principle of operation of the index is the same as that of the index - it reflects the total change in the value of a certain set of securities based on the results of the trades.

But unlike , which takes into account changes in the price of shares of 30 companies, the RTS Index is calculated based on the dynamics of the securities of the 50 largest Russian enterprises, including:

• Aeroflot;
• Bashneft;
• Severstal;
• Gazprom;
• MMC Norilsk Nickel;
• INTER RAO UES;
• LUKOIL;
• Sberbank of Russia;
• Surgutneftegaz;
• and others.

It should also be noted that the RTS Index shows the total market capitalization (value) of the shares of the companies included in the list, expressed in relative units (points). At the same time, unlike the MICEX Index, the value of shares in US dollars is taken for calculation.
Capitalization in this case is defined as the number of outstanding shares multiplied by their actual market value. She reflects total cost enterprises at a given point in time.

Accordingly, if the value of shares of enterprises included in the list for calculation increases, the value of the RTS index also increases, if the value falls, the index falls. The index itself is easy to calculate.

Suppose the initial capitalization of companies was $100,000, the initial value of the index is 100 points. The capitalization of the companies at the present time is $500,000. Therefore, the index will be equal to 500,000/100,000 * 100 points * 1.0752559 = 537 points (1.0752559 is the established adjustment factor).

It is by this scheme that the value of the RTS index is determined, the dynamics of which reflects the state domestic market shares.

What do you need to become a bidder on the RTS?

Only legal entities who have licenses to carry out transactions with securities.

If you want to participate in trading on the exchange as a private investor, then to carry out operations on the RTS exchange, contact accredited professional intermediaries (brokers, dealers, management companies) who have the appropriate licenses and experience in performing such operations.