Trading Basics
What is Trading?
In the financial market, buying and selling of stocks is referred as trading. But all types of buying and selling are not trading. In stock market two types of buying and selling are happening, i.e. Long Term and Short Term. Only short term buying and selling are called as trading. Long term is known as investing. In order to trade you have to approach a broker. You can trade either electronically or on the exchange floor. Exchange floor picture must be well known to you. In exchange floor trading your broker arranges for your shares to be ordered. . The floor clerk locates the floor trader from whom the shares can be bought. Once the price is agreed upon, the deal is finalized.
