If you are new to trading then this page is for you, at first trading can seem daunting with challenges of know where exactly to start. So to begin let’s start with the basic understanding of what exactly is trading. Trading the exchange of the value of one financial product for another.
This could be either Currency Trading, Stock Trading, Crypto Trading or almost anything.
That is a good first point, nearly anything can be traded as long as it is liquid and the value is represented in a financial product.
One example of trading could be selling a gold CFD at a higher price than what you bought it for making a profit, another could be buying gold at a price where you are expecting a market to turn.
Secondarily trading can also be holding assets as a hedge against other assets or holding against inflation or in some cases deflation.
There are many reasons to trade and strategies can vary from person to person, however another point I would add about trading is that it also gives freedom if you understand it right. What do I mean by this, well there are two ways of living, saving in cash which depreciates or invest or trade or both.
In the world of saving in cash a person will lose money over time as governments erode the value of money and in the world of investing and trading people can hedge or reduce the risk of this by building portfolios that they believe will outperform currency devaluation and other risks like that.
To summarize trading is the act of trading one thing of value for another with the main goal of achieving a profit over time or accumulating more assets of desired value.
