What is a flat shop?

Flat trade is an investment that leads to any profit or loss. It is the equivalent of the financial world more common phrases "breaking even". Although financial professionals have more definitions for this term, it generally means the same.

The common definition of a flat type of trade is when the trader sells an investment for the same amount he bought for it to completely develop the transaction. Many of these flat shops are what is called a long position where the investor buys shares hope for long -term profit. If the investor becomes impatient before this investment in shares is profitable, he can be sold in a flat trade.

Another less common use for the term 'flat trade' is in bond transactions. When a bond trades an apartment, it is sold without any collected interest, so the bond capital holder is not covered by profit or loss. A flat trade in a bond can be relevant to the default scenario or other situation.

A lot of financial experts would say tklobouk PLOching traded capital is not a good trade for the investor. Most financial products are expected to generate certain profits. There is no positive growth in flat trade that corresponds to the work that was carried out when purchasing and selling shares or equity.

Commission

can also affect the flat type of trade. If an investment is traded without commissions for commissions, the investor will still owe these commissions to its mediation or money administrator. Many investors and traders are trying to avoid flat trade scenarios, but sometimes when they need their invested capital, a flat business can be the best solution. One of the reasons why someone can sell for a flat trade is when they need capital to give a better investment. For example, this often happens when an ordinary trader or investor wants to buy real estate.

Financial professionals Note that flat OBThe courses are more common in different types of long positions or long -term investments. Short -term investments, such as short sales, options or call options or other types of investment, can still occasionally lead to flat shops, but some of them probably do not create breaks because they are immediate results. Investors can study their own strategies to see if there would be no point in flat trading.