What is trading?
Trading is the implementation of operations of buying and selling assets on various markets – currency, stock, commodity, cryptocurrency, etc. Most transactions take place online, without visiting the office. Traders have access to thousands of financial instruments – currency pairs, stocks and bonds, cryptocurrency assets, commodities and raw materials, etc. The main task of a trader is to make a forecast of the price movement of the selected instrument. If the user expects the price of the asset to rise in the near future, he opens a buy position and completes the transaction at a higher price, making a profit. If the price is expected to decrease, the trader sells a certain number of units of the instrument and closes the position after the quotes fall.
This approach is practiced on all markets – Forex, commodity, cryptocurrency, stock markets. Depending on one’s strategy, trades can be opened for short term or long term. To make forecasts, traders analyze the market situation – determine the global trend and possible correction, levels of support and resistance, find price patterns on charts, etc. Expert Advisors are also actively used in trading strategies – indicators that show reversal points, trend direction and other data to assess the market situation. The functionality of brokerage platforms has many indicators, with the ability to change settings to suit their tasks.