Posted by on Oct 6, 2017 in Business and Finance | 0 comments

What is Trading?

Trading is an adaptation of English which means to exchange goods or services from one party to another. Such exchange activities arise because of specialization and division of labor (specialization of labor). That is because individual skills are conical and fragmented, they only focus the production of a specific product or service specifically. Impact, they do not have enough time and resources to meet all their needs. Therefore, Trading activities underlie each individual to exchange goods or services of their products with their own personal needs. The earliest trading activities are known as barter, the simplest form of exchange before standardization of the exchange tools such as money is found. After the discovery of currency, Trading activity changes. The exchange process becomes much more efficient with the emergence of the division of supply (selling) with demand (buy). Because of this increase in efficiency, individuals have the potential to earn a profit or profit surplus over their initial capital. You can learn good trading by visiting http://www.dwhm.org/binary-options-strategy.html.

From barter until the discovery of standardized exchange tools, Trading activities are still progressing. In addition to the exchange of conventional goods and services, the market as a central exchange provides an opportunity for the emergence of sale and purchase on financial assets. Markets where the sale and purchase of financial assets include stock market and futures markets, including Forex. Currently, the term “Trading” in the world specifically refers to short-term buying and selling activities occurring in equity markets and futures markets, with the culprit being referred to as “Trader”. This term is often sidelined with the term “Invest” which the perpetrator called “Investor”. What is the current trading activity like? Here is a general overview The Stock Market offers access to government and private companies to gain capital from investors by trading in part of their “proprietary rights”. The trader or investor will buy the stock as a representation of the right of ownership. In return, investors will benefit based on how much the ratio of property rights to the producer’s net profit (dividends). While Trader will tend to resell its shares when the stock price increases, to gain profit from the difference between the selling price and the purchase price called Capital Gain.

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