What's trading ?
Trading for beginners Trading and forex Earning from trading and forex What's trading T he term 'trading' simply means 'exchanging one thing for another'. We usually understand this as exchanging goods for money or, in other words, simply buying something. When we talk about trading in the financial markets, we use the same principle. Think of a person who trades stocks. What he actually does is buy shares (or a small part of) a company. If those shares increase in value, he makes money by selling them back at a higher price. This is trading. You buy something at one price and sell it again at another - hoping it will be higher so that you make a profit, and vice versa. But why does the stock value go up? The answer is simple: value changes because of supply and demand - the more demand there is for something, the more people are willing to pay for it.