Different types of trading depend on the market environment and the trader's objectives. The most common types include spot trading and derivatives trading. In spot trading, you buy or sell an asset immediately at the current price. In derivatives trading, you speculate on the future price through instruments like futures, options, or perpetual contracts. Day trading, swing trading, scalping, and position trading are also popular styles. Day traders take advantage of short-term price movements, while position traders follow long-term trends. Each type has a different level of risk, and strategies should be adjusted accordingly. Choosing the right trading type depends on your risk tolerance and time commitment.
