What is the essence of trading on the stock exchange?

You can talk about trading for hours and still not understand what the essence of this type of trading is.

Therefore, in this article I will try to outline the main points of trading as briefly as possible so that they become understandable even to a person far from financial activities.

The essence of trading is, first of all, speculative trading on the stock exchange with the aim of making a profit, not pursuing any other goals other than making money.

Trading is available to almost everyone with money and a computer with Internet access, regardless of their profession and education, and sometimes age.

In addition, the following main points should be noted:

Let's consider what is the essence of modern trading

Earnings are obtained through the purchase and sale of currencies or other assets (gold, oil, etc.), you buy the currency at a cheaper rate, and sell it after the price rises at a higher price.

Initial capital - you can start training even with just $10 on deposit, but for stable earnings you will already need an amount of at least several hundred.

Margin trading - or leverage , in order to increase income you can use the broker's borrowed funds.

The loan size at your request can range from 1:2 to 1:2000. That is, by investing $100 with a leverage of 1:2000, you receive a trading capital of 200,000. The essence of organizing online trading is that all trading takes place exclusively on the Internet, through a special trader terminal program. Trading is organized by dealing centers, they also provide leverage and a trader terminal.

All you need to do is have a computer, laptop or smartphone connected to the Internet.

Amount of earnings - on average, professional traders earn from 10 to 30 percent per month, depending on the work strategy used.

But there are also riskier strategies that can bring up to 1000% or more in one month. Financial transactions - account replenishment and profit withdrawal are carried out using bank cards, electronic payment systems or regular transfers.

ABC of Forex ” section on our website is dedicated to revealing the essence of trading in more detail;

The easiest way to understand the essence of trading in practice is to open an account in one of the dealing centers and try your hand at a virtual account, without depositing money.