CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Disclosure and Terms of Business for further details.

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Why Do Stocks Move Up and Down So Much?

The intrinsic value of a stock is the number of dividends ultimately paid to you as a shareholder for that stock. This dividend depends entirely on how much money the firm makes. However, no one knows in advance how much a company can earn, they just have a lot of ideas and expectations in this regard. Every day, millions of day trading stocks investors and analysts seek information from stocks analysis websites, wondering how much each firm will earn in the future. This is a vicious circle, this is the system that applies to every stock and every stock market in the world.