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What is Trading?
Take the ancient silk route where merchants would travel for weeks or months to another city or country to trade. What do they trade? Well they trade for exotic things or necessity things which they do not have in their hometown. The basic definition of trading is the exchange of goods or services with something valuable.
But trading is used also in the financial markets. Because people trade about almost everything in the financial markets, there is always buyers and sellers around.
Take the currency markets for example. There is always someone buying the Yen and someone selling it at the same time. You cannot trade if you do not have either a buyer or a seller. The purpose of trade is to benefit in something. Modern day benefit of trading is money or wealth.
Therefore people trade the financial markets to create or accumulate wealth.
Take the ancient silk route where merchants would travel for weeks or months to another city or country to trade. What do they trade? Well they trade for exotic things or necessity things which they do not have in their hometown. The basic definition of trading is the exchange of goods or services with something valuable.
But trading is used also in the financial markets. Because people trade about almost everything in the financial markets, there is always buyers and sellers around.
Take the currency markets for example. There is always someone buying the Yen and someone selling it at the same time. You cannot trade if you do not have either a buyer or a seller. The purpose of trade is to benefit in something. Modern day benefit of trading is money or wealth.
Therefore people trade the financial markets to create or accumulate wealth.