Trading is the act of buying and selling financial assets like stocks, bonds, commodities, currencies, or other financial instruments. The goal of trading is to make a profit from the price differences over time.
Here are some key types of trading:
1. Stock Trading: Buying and selling shares of publicly listed companies on a stock exchange, like the New York Stock Exchange or NASDAQ.
2. Forex Trading: Trading currency pairs (like EUR/USD) in the foreign exchange market, which is the largest and most liquid financial market in the world.
3. Commodity Trading: Involves trading raw materials like oil, gold, or agricultural products. These are often traded in futures contracts, which are agreements to buy or sell a commodity at a set price on a future date.
4. Crypto Trading: Trading cryptocurrencies like Bitcoin, Ethereum, and other digital assets on cryptocurrency exchanges.
5. Options and Futures Trading: Involves contracts that give the buyer the right (but not the obligation) to buy or sell an asset at a predetermined price in the future.
Traders use different strategies and timeframes based on their goals, from day trading (buying and selling within the same day) to long-term investing (holding assets for years).