MARKET EDUCATION
October 2025
What Are Securities and How Do You Trade Them?
The securities market offers one of the strongest paths to growing capital. Most investors know stocks and bonds, but in today’s digital era there are multiple security types. Understanding them in detail is essential to becoming a successful investor.
Investing Basics
Stocks & Bonds
Department
Research & Education
Category
Capital Markets
Author
One Trading Markets Academy
What Are Securities?
The term securities refers to any tradable financial instrument. Common examples include stocks and bonds. Securities can also be defined as financial contracts that give the holder a stake or claim on a specific asset and that can be bought and sold.
Definition of the Stock (Securities) Market
A securities market is the venue where shares and bonds are issued and exchanged, enabling buying and selling either at a physical exchange or—more commonly today—online via electronic networks.
Different Types of Securities
As global economies evolved, a wide range of securities became available. Broadly, investors focus on equity securities and debt securities.
Equity Securities
Equity securities are the most familiar and refer to publicly traded company shares (e.g., Dell, Microsoft). When companies need to raise capital to grow, they can borrow, seek private investors, or issue shares on a stock exchange.
By purchasing a share in a publicly listed company, you are buying ownership in that business. As the company earns profits, you may benefit through dividends and potential share-price appreciation.
With an MT5 trading account via OTM, you can buy and sell shares on major global exchanges and, where applicable, collect dividends as side income.
Fixed Income, Mortgage-Backed & Marketable Securities
Fixed-Income Securities: pay interest on a schedule until maturity, when principal is repaid (bonds are the most common).
Mortgage-Backed Securities (MBS): investments backed by pools of mortgages that can be bought and sold on the secondary market; they played a notable role in the 2008 crash and remain debated.
Marketable (Short-Term) Securities: highly liquid, short-dated instruments (typically < 1 year) used by companies to earn a return on cash reserves while keeping access to funds (e.g., short corporate notes, some equities/ETFs).
How to Buy and Sell Securities
You can trade stocks and ETFs in three simple steps:
Open a securities trading account.
Download the MT5 platform.
Place a trade and execute your first order.
Open your securities investment account by completing the application, uploading required documents, and passing verification. Once approved, download MetaTrader 5 for equities.
Platform Download: from the homepage, scroll down and select MetaTrader 5 – Windows or MetaTrader 5 – Mac, then follow your device instructions.
Buy & Sell With OTM—benefits include:
Invest in thousands of stocks & ETFs across 15+ major exchanges.
Low minimum deposit and competitive trading fees on US & European shares.
Real-time market data with no delays or extra cost.
A multi-asset MetaTrader 5 platform recognized worldwide.
Have questions? Submit your details and one of our financial consultants will contact you as soon as possible with clear answers and practical guidance.
Debt Securities (Bonds)
Debt securities are commonly called bonds. When a company or government wants to borrow, it can apply for a bank loan or issue bonds. Investors who purchase bonds are lending money to the issuer and are repaid principal plus interest (coupon) at maturity. Bond investing is often more complex than stock investing, and the corporate bond market is largely institutional—however, individuals can gain exposure via ETFs.
