You Want to Trade? Understand the Meaning, Strengths and Weaknesses

You Want to Trade? Understand the Meaning, Strengths and Weaknesses. Trading is currently a booming activity carried out in the financial markets. This activity is not just a process of buying and selling goods or services as usual.

The purpose of holding this economic activity is to carry out buying and selling facilities in a short time, but get big profits.

Is it risky?

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Let's learn together the Meaning, Advantages and Disadvantages of Trading

You Want to Trade? Understand the Meaning, Strengths and Weaknesses

In general, trading is a basic economic concept that includes activities or activities of buying and selling goods and services.

The advantage of running trading activities is obtained from the compensation paid by a buyer to the seller, or the exchange of goods or services between the two parties (the seller and the buyer).

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Even running trading activities can not only be done with people around (domestic) but can also be done worldwide (globally) so this system is called international trade.

Now because it is carried out in the market or international trade, so it can offer a fierce competition, and even has an impact on the creation of more friendly and competitive prices.

From a financial perspective, trading refers to the activity or process of buying and selling securities, such as stocks. In addition, trading is also often carried out in the futures market and foreign exchange market. This is called forex (foreign exchange).

This is what makes many people tempted to try to dive into the world of trading as additional income because the profits are so tempting.

Multiple Trading Types

Some of the following types of trading are quite popular and widespread by activists in the financial world:

1. Forex trading

Forex trading is an activity of trading foreign currency exchange rates. The value of this foreign currency is always up and down every certain time.

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To start exploring or trading forex, it is recommended that you exchange money at a money changer, either in person or online by depositing a certain amount of money first.

The benefits that will be obtained by running forex trading, depending on the exchange rate of foreign currency with our currency (the currency we want)

Example: If you buy 10 US dollars today, we have to pay Rp. 13,000. Well, when we exchange it in the future, it could be that the value of the 10 dollars when it is exchanged into rupiah becomes Rp. 16,000, how much profit has been gained from this activity?

This type of forex trading is believed to be one of the areas where the profits are quite large, but the risks are also quite heavy.

2. Stock trading

Remember you must understand the terms stock trading and stock investing. Both at first glance are almost similar, both have the word stock, but the concept is different, right?

Stock trading is an activity of buying and selling shares within a certain period of time, usually requiring a fairly short period of time.

Meanwhile, stock investment can be categorized as an activity to save (saving) by obtaining profits from buying shares in the long term.

You have to sell and buy it when the price fluctuates, to trade this stock.

Make the right decision to get a capital gain (profit margin) especially when stock prices are soaring

3. Trade binary

Just like other trading, binary trading activities cannot be separated from buying and selling.

However, this trade is considered very risky even though it can also produce large profits.

Most of the time, binary trading is a scam.

Usually, this type of trading is found in horse racing gambling transactions or football matches.

To make this trade, we have to set a target and risk some money. If the target is achieved, there will be big profits. However, if you miss, you will experience a loss.


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