What is trade?
Trading is the basic activity of all investors or investment services, it’s simply the buying, selling or exchanging of assets. In financial markets, people trade securities such as shares, currencies, commodities and derivatives.
Shares are traded on a stock exchange, while commodities and equities are bought and sold on the trading floor. The general aim is to look for a profit by buying at a lower price and selling at a higher one, usually within a relatively short period of time.
A trader can be anyone from an individual investor to a global institution. Trading can be done directly or via a broker, it can be done in person, on the phone or through an online trading platform.
Where have you heard about trade?
Trading activity on the financial markets is widely seen as a reflection of the health of the world's economies. People may also ask you if you trade, or talk about their own trading successes or failures.
What you need to know about trade...
It's easy to set up an online trading account and start trading shares. All you need is a password and some money in your account. You can also deal over the phone or through a stockbroker.
To make a trade, choose the financial instrument you want to buy, look up the price, decide how much you want to spend, and finalise the deal when you are happy with the quote. You can then track the performance of your investment, and opt to add more assets to your growing portfolio. You may have to pay tax if you make a profit selling shares.
Remember the value of securities and commodities can go down as well as up, so you can lose money on trades.