What is trading?

Trading refers to the buying and selling of financial assets or securities such as stocks, bonds, commodities, and currencies with the aim of making a profit. It involves the exchange of these assets between buyers and sellers who are willing to agree on a specific price point. Trading can occur either through traditional exchanges or over the counter markets, with the use of various trading instruments such as futures contracts, options, and derivatives. Successful trading requires a combination of market knowledge, analysis skills, risk management, and discipline. Traders rely on many factors such as market trends, economic data, and financial news to make informed investment decisions.

This mind map was published on 16 May 2023 and has been viewed 131 times.