#TradingTypes101

spot trading: requires the total capital upfront to purchase the asset.

futures trading: requires less initial capital due to leverage, allowing control of larger positions with smaller investments.

day trading: involves opening and closing positions within the same day, capitalizing on short-term price fluctuations.

position trading: holds positions for prolonged periods, potentially weeks, months, or even years, based on long-term fundamental analysis.

scalping: involves making numerous small trades throughout the day, aiming to capture small profits from each trade.

swing trading: holds positions for a few days to a few weeks, aiming to capture momentum from price movements.

algorithmic trading: uses computer programs to automatically execute trades based on predefined rules and strategies.

technical trading: employs technical analysis tools and chart patterns to identify trading opportunities.

fundamental trading: focuses on a company's financial performance and its underlying value rather than short-term price movements.

arbitrage: exploits price discrepancies in different markets to make a profit.