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.
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Buying a financial instrument means taking ownership of it from someone else, whether it is a commodity, stock or another asset.
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 (such as CFDs), 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.