Trading

Trading refers to the buying and selling of financial instruments such as stocks, bonds, currencies, and commodities with the aim of making a profit. It is an activity undertaken by individuals, companies, financial institutions, and even governments. The primary reason why people trade is to make a profit. They take advantage of market fluctuations or changes in the price of assets to buy low and sell high. Additionally, traders may hedge their positions or manage their risks by using derivatives such as options or futures. Trading also plays a crucial role in the functioning of financial markets. It provides liquidity, which enables investors to buy or sell assets at an efficient price. This, in turn, ensures that capital is allocated to the most productive sectors of the economy and supports economic growth.