Trading - Page 84

Trading refers to the act of buying, selling, or exchanging goods, services, or financial instruments, typically in a marketplace. It involves participants, such as individuals or entities, who engage in transactions to negotiate prices and terms. In financial contexts, trading usually pertains to the exchange of stocks, bonds, commodities, currencies, and derivatives within organized markets or over-the-counter platforms. The primary goal of trading is to profit from changes in the market prices of these assets. Trading can take various forms, including day trading, swing trading, and long-term investing, depending on the time horizon and strategies employed by the traders. It relies on market mechanisms, like supply and demand, to determine prices and facilitate the exchange process.