What Is Trading?
Types of Trading
Trading Advantages
Trading Risk
Types of Trading-Trading Advantages-Trading Risk
What Is Trading?
Trading is an activity carried out on the financial markets. This activity is not just an ordinary process of buying and selling goods or services.
The purpose of this economic activity is to buy and sell in a short time to get the maximum profit.
How to? Is it risky?
Come on, learn everything you need to know about trading in this article!
Trading in general is a basic economic concept that includes buying and selling of goods and services.
Profits from trading activities are obtained from compensation paid by a buyer to the seller, or the exchange of goods or services between two parties.
Trading can not only be done with people from the same country, but also globally which is called international trading
The international trading market offers more fierce competition.
This also has an impact on creating more competitive prices.
In a financial concept, trading refers to the process of buying and selling securities, for example, stocks.
In addition, trading is also often carried out in the futures market and the foreign exchange market or what is often referred to as forex (foreign exchange).
Many people try to trade as additional income because the benefits are quite tantalizing.
Types of Trading
There are several types of trading that are popular for activists in the financial world, namely:
1. Forex trading
Forex trading is trading foreign currency exchange rates.
As we know, the value of foreign currencies always fluctuates every certain time.
To trade this type of forex, you can exchange money at a money changer in person or online by depositing a certain amount of money first.
The benefits obtained from forex trading depend on the value of the foreign currency exchange with the currency we want.
Trading type of forex is considered to be one that generates big profits. However, the risks are quite heavy.
2. Stock trading
Be careful not to confuse stock trading and stock investing.
Both contain the word stock, but the concept is different. Investopedia even calls reading a very different thing.
Stock trading is the activity of buying and selling shares for a certain period of time, usually quite short.
Meanwhile, stock investing can be used as a "saving" activity to get profits from buying shares for the long term.
To trade stocks, all you have to do is sell or buy them when the price fluctuates.
Your decision must be the right one to get capital gains or profit margins, especially when stock prices are soaring.
3. Binary trading
Just like other trades, binary trading activities cannot be separated from buying and selling.
However, these trades are very risky even though they can also bring huge returns.
Most of the time, binary trading is a scam.
Usually, this type of trade is found in horse racing gambling transactions or soccer matches.
In order to make this trade, we have to set a target and bet some money. If the target is reached, there will be a big profit to be made.
However, if you miss, you will suffer a loss.
4. Gold trading
Gold trading cannot be equated with buying and selling, investing, or saving gold.
The way gold investing works is not much different from forex and stock trading, it's just that the object that is traded is gold.
Gold trading can be done through a broker.
It is important to price US dollars when choosing this type of trade. This is because gold price fluctuations are very suitable for the value of the dollar and the economic conditions of the United States.
5. Bitcoin trading
Since some time ago, bitcoin trading is one of the newest trading alternatives. The object of this type of trade is of course bitcoin.Don't worry, to be able to trade bitcoin, we don't always need large capital.
The important thing is, the right increase and decrease in bitcoin prices in order to make the right decisions.