What are tokenized shares and how do I trade them?

What are promotions?

A stock is a security. Its owner receives the right to a share of the profits and to vote when managing the issuing company.

Companies issue shares to raise additional funds for business development. According to the World Bank, in 2020 the volume of trading in equities amounted to $ 61 trillion…

Where can you trade stocks?

Shares are traded on major markets like the New York and London Stock Exchanges. However, most securities can only be bought on local stock exchanges. For example, Apple shares are traded on the American Nasdaq, and the shares of the Chinese SPD Bank are traded on the Shanghai Stock Exchange.

Stock exchanges work on a schedule – in the afternoon local time. Trading in stocks stops at night, on weekends and during the holidays. For the transfer of a position to the next day, traders pay a commission – overnight.

To trade shares on the stock exchange, you need to open a brokerage account with a bank or on a special trading platform like eToro, and also go through KYC… Shares are traded in lots – in packages of 10, 100 or more. A trader cannot buy or sell less than one lot.

The amount of the trading commission depends on the broker. For example, Tinkoff investment account holders pay 0.3% from the transaction amount and overnight from 25 rubles per day. They cannot buy shares in installments and trade them around the clock. For example, foreign stocks are traded from 10:00 to 01:45, with the greatest liquidity available only during the main session from 15:30 to 00:00.

What are tokenized shares?

Tokenized shares are tokens whose price is pegged to a security. They are similar to stablecoins: a custodian firm buys shares and issues tokens against their backing.

Stock exchange FTX provides trading of tokenized shares with a regulated financial firm CM-Equity AG from Germany. Through it, FTX users can exchange tokenized shares for securities.

The holders of tokenized shares receive dividends just like ordinary shareholders. FTX credits them to the trading accounts of token holders according to the issuing company’s schedule.

FTX users pay up to 0.07% of the transaction amount for the execution of market orders and up to 0.02% for the execution of limit orders. They can buy shares in parts and trade them around the clock.

What tokenized shares can you buy on FTX?

Tokenized shares are traded on FTX 47 companies… Among them:

• tech giants: Google, Apple, Tesla;
• cryptocurrency companies: Coinbase, Grayscale, Square;
• e-commerce service providers: Amazon, Alibaba;
• leaders of their own market niche: Uber, Pfizer, Airbnb;
• popular among crypto enthusiasts: Nvidia, GameStop, Robinhood.

In addition, FTX launched quarterly futures contracts on all tokenized shares and added the TSLA / DOGE trading pair.

Users can vote for listing new tokenized shares on the page Vote… To vote, you must have at least 10 FTT tokens on your account.

How to Trade Tokenized Stocks on FTX?

First, the trader must go through the second level KYC on FTX: confirm the identity and address of residence, indicate the source of income. Then – pass a similar test in CM-Equity and pass the test to understand how stock trading works.

Almost all tokenized shares on FTX are dollar-traded and the trader needs to deposit in fiat dollars or stablecoins: TUSD, USDC, PAX, BUSD and HUSD. An exception is the TSLA / BTC and TSLA / DOGE pairs.

The process of trading tokenized stocks does not differ from cryptocurrency spot trading. Traders can trade with market orders, place limit and stop orders, and buy shares in installments. The minimum order size is one hundredth of a share.

In addition to the spot market, where traders buy tokens and receive them for deposit, stock futures are traded on FTX. With their help, a trader can capitalize on falling stock prices and trade with leverage.

Trading tokenized shares on FTX goes around the clock, but outside market sessions, the liquidity of the order book drops from tens of thousands of shares to several hundred. Because of this, the price slips even with small transactions.

Why buy tokenized shares when you can buy bitcoin?

Stocks are less volatile than cryptocurrencies, and stock market trends last longer.

Due to limited trading sessions in the stock market, morning volatility spikes occur. During off-market hours, traders watch the news, make decisions, and simultaneously enter the market in the first minutes after the opening.

Are there any downsides to FTX stock trading?

FTX does not support stock trading on the most popular stablecoin USDT. The trader needs to keep fiat dollars or stablecoins TUSD, USDC, PAX, BUSD and HUSD on the trading account.

At the time of this publication, 47 companies are listed on FTX. Traditional brokers offer on average 1000 companies to buy securities.

Outside of trading sessions, the liquidity of stocks drops dozens and hundreds of times. Traders should follow the trading schedule so as not to lose money on slippage.

What are promotions?

A stock is a security. Its owner receives the right to a share of the profits and to vote when managing the issuing company.

Companies issue shares to raise additional funds for business development. According to the World Bank, in 2020 the volume of trading in equities amounted to $ 61 trillion…

Where can you trade stocks?

Shares are traded on major markets like the New York and London Stock Exchanges. However, most securities can only be bought on local stock exchanges. For example, Apple shares are traded on the American Nasdaq, and the shares of the Chinese SPD Bank are traded on the Shanghai Stock Exchange.

Stock exchanges work on a schedule – in the afternoon local time. Trading in stocks stops at night, on weekends and during the holidays. For the transfer of a position to the next day, traders pay a commission – overnight.

To trade shares on the stock exchange, you need to open a brokerage account with a bank or on a special trading platform like eToro, and also go through KYC… Shares are traded in lots – in packages of 10, 100 or more. A trader cannot buy or sell less than one lot.

The amount of the trading commission depends on the broker. For example, Tinkoff investment account holders pay 0.3% from the transaction amount and overnight from 25 rubles per day. They cannot buy shares in installments and trade them around the clock. For example, foreign stocks are traded from 10:00 to 01:45, with the greatest liquidity available only during the main session from 15:30 to 00:00.

What are tokenized shares?

Tokenized shares are tokens whose price is pegged to a security. They are similar to stablecoins: a custodian firm buys shares and issues tokens against their backing.

Stock exchange FTX provides trading of tokenized shares with a regulated financial firm CM-Equity AG from Germany. Through it, FTX users can exchange tokenized shares for securities.

The holders of tokenized shares receive dividends just like ordinary shareholders. FTX credits them to the trading accounts of token holders according to the issuing company’s schedule.

FTX users pay up to 0.07% of the transaction amount for the execution of market orders and up to 0.02% for the execution of limit orders. They can buy shares in parts and trade them around the clock.

What tokenized shares can you buy on FTX?

Tokenized shares are traded on FTX 47 companies… Among them:

• tech giants: Google, Apple, Tesla;
• cryptocurrency companies: Coinbase, Grayscale, Square;
• e-commerce service providers: Amazon, Alibaba;
• leaders of their own market niche: Uber, Pfizer, Airbnb;
• popular among crypto enthusiasts: Nvidia, GameStop, Robinhood.

In addition, FTX launched quarterly futures contracts on all tokenized shares and added the TSLA / DOGE trading pair.

Users can vote for listing new tokenized shares on the page Vote… To vote, you must have at least 10 FTT tokens on your account.

How to Trade Tokenized Stocks on FTX?

First, the trader must go through the second level KYC on FTX: confirm the identity and address of residence, indicate the source of income. Then – pass a similar test in CM-Equity and pass the test to understand how stock trading works.

Almost all tokenized shares on FTX are dollar-traded and the trader needs to deposit in fiat dollars or stablecoins: TUSD, USDC, PAX, BUSD and HUSD. An exception is the TSLA / BTC and TSLA / DOGE pairs.

The process of trading tokenized stocks does not differ from cryptocurrency spot trading. Traders can trade with market orders, place limit and stop orders, and buy shares in installments. The minimum order size is one hundredth of a share.

In addition to the spot market, where traders buy tokens and receive them for deposit, stock futures are traded on FTX. With their help, a trader can capitalize on falling stock prices and trade with leverage.

Trading tokenized shares on FTX goes around the clock, but outside market sessions, the liquidity of the order book drops from tens of thousands of shares to several hundred. Because of this, the price slips even with small transactions.

Why buy tokenized shares when you can buy bitcoin?

Stocks are less volatile than cryptocurrencies, and stock market trends last longer.

Due to limited trading sessions in the stock market, morning volatility spikes occur. During off-market hours, traders watch the news, make decisions, and simultaneously enter the market in the first minutes after the opening.

Are there any downsides to FTX stock trading?

FTX does not support stock trading on the most popular stablecoin USDT. The trader needs to keep fiat dollars or stablecoins TUSD, USDC, PAX, BUSD and HUSD on the trading account.

At the time of this publication, 47 companies are listed on FTX. Traditional brokers offer on average 1000 companies to buy securities.

Outside of trading sessions, the liquidity of stocks drops dozens and hundreds of times. Traders should follow the trading schedule so as not to lose money on slippage.