What is Trading | Ankitabhatt.com

What is Trading

What is Trading, and how does it work? First of all, we need to know the meaning of Trading. If buying and selling activities are done between two people, it’s called Trading. One person is called the buyer, who is ready to purchase the products, and the second one, who is prepared to sell the products, is called the seller. All the activities happen between the buyer and seller.

In Trading, different activities are involved. Before starting trading, every trader needs to know about what is trading and how to cover up risk or utilize the profit that occurred in trading. Now a days trading in both form digitally or traditionally but mostly traders prefer to deal with digitally in other countries. Trading is depend on brands and goodwill because buyers attract more with those traders who has high brand and reputations in the market.

 What is trading

What is Trading cab be understand properlyπŸ‘

  • Market Involve πŸ‘ The trading market space is very large. Let me explain. In the trading market, stocks, bonds, gold & commodities, foreign exchange, etc., are involved.
  • Profit Generate πŸ‘ All the traders who participate in Trading have only one goal: generating profit. Sometimes, it happens that to get profit, traders deal with foreign clients.
  • Risk Taking πŸ‘ What is trading trading is risk bearing process. If we talk about risk in Trading, then a high range of risk is involved. Traders are always scared about how to handle risk. Sometimes, traders bear high risk, which does not cope with everyone.
  • Technology πŸ‘  In Trading, various technologies are involved. Trading can be online and offline, and obviously, online involves so much technology. 

Kind of Trading 

If we talk about the kind of Trading, then there are various kinds of Trading, but a few important ones are given below πŸ‘

  • Commodity Trading πŸ‘ As the name indicates, Commodity means any tangible thing, such as gold, oil, agricultural items, raw material, etc. When there is an exchange of these commodities between buyer and seller, it is called commodity trading.
  • Stock Trading πŸ‘ As we know, stocks involve shares, debenture, and stock exchange so stock trading means dealing in stock items.
  • Forex Trading πŸ‘ Forex trading is in trend nowadays because buyers and sellers exchange currencies in the foreign exchange market. A forex trader must note the exchange rate of money.
  • Bond Trading πŸ‘ There are various types of bonds like government bonds, municipal bonds, and corporate bonds; when sellers sell these bonds intending to get profit from the exchange price and interest rate to the buyer, it is called bond trading.
  • Future Trading: Future Trading means when a contract between buyer and seller is signed to buy products on a future date with predetermined prices.
  • Optional Trading : As the name considers optional trading means, the seller can’t force the buyer to buy. It depends on the buyer whether they want to purchase the assets or not.

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