Trading might seem complex at first, but once you get the basics, it starts to make sense. At its core, trading is simply buying and selling assets—like stocks, cryptocurrencies, or commodities—with the goal of making a profit. The most common trading operation is a market order, where a trader buys or sells instantly at the current market price. This is useful when speed is more important than price.
Another key operation is the limit order, which lets a trader set a specific price they’re willing to buy or sell at. This gives more control but may not execute right away. Stop-loss orders are also popular—they automatically sell an asset when it drops to a certain price, helping traders minimize losses.
Some traders use margin trading, borrowing money to increase potential gains, though it also increases risk. Altogether, mastering these basic operations is the first step to becoming a confident trader.