Trading: What Is It? To put it simply, trading is the process of purchasing and selling financial products to generate profit, including equities, bonds, futures, options, and currencies. Traders try to purchase low and sell high, or sell high to buy low, to profit from the price differential between the assets that trade. Different kinds of Trading exist. Day trading requires opening and closing positions on the same day. Swing trading involves keeping positions for several days to several weeks. Position trading means maintaining positions for an extended length of time, usually months or years. Algorithmic trading includes the use of trading systems that are automated...
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