In the financial field, transaction types are fundamental concepts. Below are common entry-level transaction types:

Classified by transaction object

- Commodity trading: Direct buying and selling of physical goods, such as agricultural products (grains, cotton), energy (oil, natural gas), metals (gold, silver), etc., usually completed through spot markets or futures markets.

- Financial asset trading: Transactions involving financial instruments such as stocks, bonds, funds, foreign exchange, futures, options, etc. For example, buying and selling stocks in the stock market or exchanging different currencies in the foreign exchange market.

Classified by transaction method

- Spot trading: Payment is made and goods are delivered simultaneously, with immediate settlement after the transaction (usually within 1-2 working days), such as stock trading.

- Futures/Options trading: Agreement to buy or sell the underlying asset at a specific price at a future time, classified as derivative trading. For example, futures contracts can be used to hedge against price volatility risks, while options grant the buyer the right to choose whether to trade.

- Margin trading: Conducting transactions through borrowing, such as "margin financing"—investors borrow money from brokers to buy stocks (financing) or borrow stocks to sell (short selling), bearing leverage risks.

Classified by market type

- Exchange trading: Conducted at fixed trading venues (such as stock exchanges) through standardized processes, with strict rules, such as A-shares traded on the Shanghai and Shenzhen exchanges.

- Over-the-counter trading (OTC): Transactions conducted privately through brokers, banks, and other institutions without a fixed location, such as certain foreign exchange transactions or private bond trading.

Classified by investment strategy

- Short-term trading: Holding positions for a short duration (from a few minutes to a few days), profiting from price fluctuations, such as short-term foreign exchange trading.

- Long-term trading: Holding assets for a long period (from several months to years), focusing on value growth, such as regular investment in index funds.

- Arbitrage trading: Profiting from price differences between different markets or varieties, such as arbitraging the price difference of the same stock between A-shares and Hong Kong stocks.

Key points for beginners

- There are significant risk differences between different transaction types (e.g., high leverage and high risk in futures), so it is essential to understand the rules and one’s own risk tolerance first.

- Start with low-risk spot trading (such as funds, stocks) and gradually engage with more complex varieties. If you want to learn more about a specific type of trading, feel free to tell me the specific direction!