Buy has a particular significance in relation to IG's platform. Here, we define buy in general investing and explain what it means to you when trading with IG.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Buying a financial instrument means taking ownership of it from someone else.
Often in trading, buying an asset will not result in taking possession of it in physical form. Buying can also be referred to as ‘going long’, depending on the security being traded.
A buy recommendation is one of five ratings generally given by a research firm or broker. It states that the firm or broker believes that an asset’s price will increase in the near future. It is more positive than a neutral rating (also known as a hold rating), but less so than a strong buy. The other ratings given are sell or strong sell.
When trading derivatives on our platform, choosing the buy option means opening a long position on a particular asset. You will not then own the asset in question, but will be able to profit from an upward move in its price.