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 look at the essence of modern trading

Earnings are generated by buying and selling currencies or other assets (gold, oil, etc.). You buy the currency at a lower rate and sell it at a higher price after the price rises.

Initial capital : you can start training with as little as $10 in your deposit, but for a stable income, you'll need at least several hundred.

Margin trading , or leverage , allows you to increase your income by borrowing from a broker. The loan amount can range from 1:2 to 1:2000. This means that by investing $100 with 1:2000 leverage, you gain trading capital of $200,000.

The essence of online trading is that all trading takes place exclusively online, through a special trading terminal program. Trading is organized by dealing centers, which also provide leverage and a trading terminal.

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

Earnings : On average, professional traders earn between 10 and 30 percent per month, depending on their strategy. However, there are also riskier strategies that can yield returns of up to 1000% or more in a single month.

Financial transactions : Account deposits and profit withdrawals are made using bank cards, electronic payment systems, or regular bank transfers.

Forex Basics section covers the basics of trading in more detail. From there, you'll learn how to start trading on the exchange and what nuances to consider.

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