What Is Trading? Beginners Guide.
What is Trading? Trade is a primary economic concept which involves buying and selling of commodities and services, along with a compensation paid by a buyer to a seller. In another case, trading can be an exchange of commodities/services between parties, mostly in return of money. Trade can occur between producers and consumers within an economy. What are the advantages of Trading? Traders can work for financial institutions, in which case they will trade via the funds and credits of a company, and they are paid a combination of bonus and salary. As another option, traders can work for themselves too, as in they can trade with their own money and credit. However, with this option they will also keep all of the profit to themselves. How does trading work? When you trade, you profit if the market price of your position moves in the right direction, and you lose money if the price of your position moves in the wrong direction. It can be risky to dive in without the proper knowledge The b...