The exchange of goods or services between two parties for consideration is called a transaction. This is an important foundation for social economy and financial activity.
Transactions can take place between two countries or between two parties or between two companies or two individuals.
Trade looks at the progress of each community and allows you to create wealth. The place where any business takes place is called a market. The market is defined by the type of product.
There are two types of market: formal and informal. An organized market has rules and regulations that all participants must follow in the market, and it is often the authority of regulators to monitor this. For example: stock markets have a choice of trading law and organized events.
There are no hard and fast rules in the market that are not regulated, and even if they do exist, there is no reason to follow them. For example: an island is a lawless island. You can also buy 1 lakh for ten thousand.
History of Trading:
Trading or trading has been going on since ancient times. Different communities or countries used to have different types of trading systems. In the past, trading or trading was the exchange of goods or services in the exchange of any other goods or services.
The business problem of that time was that the products did not have a fixed price. Gold and silver were also traded in the exchange of grains.
To solve that problem, money or money was introduced and since then every product got a stable price and trade was organized and organized.
Share Market In various companies sell some percentage of their shares to investors and investors buy their shares and invest money in this company. There are investor participation in every profit and loss of the company and some investor sells those shares to another investor along with their profits. All this share buying is called Share Market Trading.
Intraday Trading:
In intraday trading, traders buy or sell shares on the same day. The day traders book profit or loss early and close their trade before the close of the stock market. Shares can be held for a few hours or a few seconds, and multiple times in a single day. Share price in intraday trading is highly volatile and it requires fast decision making. That’s why inexperienced people who are new to the stock market are made to take part in intraday trading.
Swing Trading
In this type of trading, traders or traders keep the shares for more than one day to increase the price. They estimate the price of their share to increase and accordingly keep the share for that number of days.
Most of the swing traders are there in the stock market.
Positional Trading
In this type of trading, investors keep the stock for a long period to get more profit. Shares are kept for a few months to years.
Investors predict the price movement by various technical and fundamental analysis and buy shares accordingly.
This type of trading is relatively safe because the shares are kept for a long time.
Fundamental Trading
Generally all the long term investors who invest in a developing company by ignoring the short term fluctuations of share price. This type of trading is called Fundamental Trading. There is always profit in the long run. That’s why fundamental traders invest only for a long time.
Conclusion
Although every business is called trading, but today, especially trading in the stock market or stock market is called trading.