ATFXAnalysis: What does stock discount trading mean and investing away from fraud

In recent years, bank deposit interest rates have continued to decline, and wealth management products have gradually entered people's vision. Many people are starting to invest their idle funds in financial markets such as the stock market, and stock trading is gradually becoming popular. So, do you know what stock discount trading means in the stock market?Let's take a look together.

What does stock discount trading mean?

Stock discount trading refers to the transaction price of a stock being lower than the market price. Simply put, in the stock market, investors can purchase the stock at a price lower than the normal price in the stock market. It is equivalent to that when people buy something in the supermarket, users discount the original price of the product and then purchase the item at the discounted price.

Of course, in addition to stock price discount trading, stocks also experience premium trading, where investors buy the stock at a price higher than the normal stock market price, and stock premium trading generally occurs in bulk trading.

Is Stock Discount Trading Positive or Negative?

Stock discount trading is generally bearish. Stock discount trading generally occurs in bulk trading, and bulk discount trading often means that large funds are not optimistic about the stock, so this group of investors will continue to sell the stock at a discount in the bulk trading market, cashing out at a price lower than the market. Therefore, there is a higher likelihood that the stock will follow a decline or increase in volatility in the future.

When investors face this situation, they need to pay special attention, as the stock price in this situation is often accompanied by a long-term downward trend.